Auto Insurance Rises by 20%

(Acapulco, NA 8 June) In the first five months of 2011 Acapulco registered 1,441 auto thefts, 131 more than in the same period for 2010. As a result, premiums for auto insurance have increased twenty percent, from $7,000 pesos for coverage of a standard vehicle to $8,400 pesos.

According to Romeo Galán Alderete, considered to be the “dean” of auto insurance agents in Acapulco, the increase in premiums is the direct result of the greater risk of theft and car-jacking. As for bullet holes in the auto glass and body, he said that he knows of no policy that covers such damage, so any increase in losses would not be reflected in the premiums. According to Mr. Galán, Toyota, Nissan, Volkswagen and Ibiza are the makes most targeted by auto thieves.

Another loss that is covered under the policies is damage from road hazards, which in Acapulco is very common, given the lamentable condition of many streets. Mr. Galán said that many policy holders are unaware that they are covered when the car breaks a tire, rim or axle in a pothole, whether or not the city has made any effort to repair it.