Puerto Rico's Mandatory Auto Insurance Coverage to Rise to $6,000 Without Premium Increases

Drivers in Puerto Rico will soon face a $6,000 coverage limit for mandatory auto insurance, up from $4,500, under legislation announced by Rep. Víctor Parés Otero. The increase is designed to close the gap between current insurance limits and the rising cost of vehicle repairs. Repair expenses have climbed due to higher parts prices, limited availability of components, and increased labor costs. The expanded coverage would be funded through extraordinary dividends from the Joint Underwriting Association’s capital reserves, a mechanism previously used in 2022 to fund a fuel tax surcharge moratorium. The bill would leave current insurance premiums unchanged at $99 for personal vehicles and $148 for commercial vehicles. The coverage, which pays for damages to third parties, is automatically included when drivers renew their vehicle registration.