In Mexico, most of drivers drive without insurance. Of a vehicle fleet in circulation is 35.4 million cars, only 6.9 million people have car insurance, according to data from the National Institute of Statistics and Geography (Inegi) and the National Commission for the Protection and Defense of Users of Financial Services.
On the other hand, insurance coverage in Mexico are more limited compared to the United States, which shows a delay in the local market.
While in the United States, the company allocates between 30% and 35% of its fleet for the replacement car service; in Mexico the percentage of use of this service represents only 3% of its fleet of vehicles last year and hoping to reach 5% this year.
“I think we are 20 or 25 years behind with the United States,” says Roly Osuna, the firm’s project manager in Mexico in an interview with Expansion.
Substitute car: an expensive benefit?
Insurance policies in Mexico are divided into three types: basic, limited and broad. Only in this last category do you have access to a replacement car in the event of an accident. However, some insurers offer the option of contracting this service additionallyas one more product within the policy.
According to the site specialized in AhorraSeguros policies, the substitute car is applicable when there is a legal detention of the vehicle, mechanical failure or partial or total loss.
If used for accidents or partial repairs the deadlines for the use of the substitute car, they can be between three and up to 15 days, while in the case of total or partial loss, terms of up to 30 days can be agreed.
“But lack of knowledge on the part of the insured and the perception that this additional coverage may increase the cost of the policy are factors that contribute to this low utilization. However, additional coverage does not necessarily make the policy more expensive”, concludes Osuna.