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AXA Mexico says average accident 25,000 peso yet only 23 percent carry insurance

Cancun, Q.R. — According to a new report, a car accident costs on average 25,000 peso yet only 23 percent of state drivers carry an auto insurance policy.

Findings of the new report were released by companies AXA Mexico and 4Ruedas who say that of those surveyed, 97 percent agree that having insurance is important, yet less than 30 percent of drivers carry a policy.

According to the report, eight out of every 10 motorists in Mexico say they do not have the resources to cover the costs of a road accident, which on average is 25,000 peso.

Patrick Font, Vice President of Cars and Damage at AXA Mexico explained, “Maintaining financial stability after a mishap can be complicated because the average cost, according to the insurance sector, is 25,000 peso, but the most worrying thing is that drivers do not have the resources to cover the damages which puts their assets at risk.”

He added that aside from the fact 73 percent of drivers in Mexico lack auto insurance, the majority of driver and pedestrian victims are unprotected and in the event of a death, disability or injury, they receive minimal or no compensation.

“Therefore, having an insurance policy will always be the best option to provide the necessary peace of mind to families.”

Font said from their survey, 97 percent of drivers agree that insurance is important and that less than 30 percent actually carry insurance. The report also showed three percent of survey respondents felt auto insurance was “not important” at all.

The survey also revealed that 57 percent of drivers are aware that the average cost of a car accident is 25,000 peso, with the balance of respondents saying they believe an auto accident costs an average of 5,000 peso.

“Knowing the economic implications of an accident allows us to raise awareness of the importance of being protected by insurance,” said Font.

While 49 percent admit the first thing they contemplate when buying a car is insurance, 46 percent say their priority, however, is expenses such as tenure, licensing and gasoline.

Last year, the Mexican Association of Insurance and Surety Agents also reported that less than 30 percent of vehicles on the road carry insurance.