Auto rates double in most violent Mexican states
Car insurance premium rates in Mexico are seeing further upward pressure in the wake of surging theft and theft with violence, with prices soaring in states with the highest homicide rates.
Analyzing data provided by financial service comparison website Coru.com, local daily El Heraldo de México found rates in the highest-risk states being as much as 100% more than those in the safest states, with the strongest differences seen with the three most commonly stolen car models.
The states with the largest number of murders in 2018 were Guanajuato, Baja California, Guerrero, Jalisco and the state of Mexico. In contrast, the least violent were Aguascalientes, Campeche, Yucatán, Tlaxcala and Durango, according to the national public security system, reported El Heraldo.
Mexican insurer association (AMIS) recently reported that 93,241 insured vehicles were stolen in the country last year. Of these, 48.6% of the thefts corresponded to the five most violent states.
Coru's comparison, of auto insurance that covers theft and available from insurers Quálitas, GNP and HDI Seguros, showed that all quoted higher rates in the five most violent states, particularly for the most commonly stolen models - Nissan Versa Sense STD, Chevrolet Aveo LS STD and VW Vento Startline STD, all 2018).
For example, insuring the Nissan Versa model in Guerrero with GNP costs 21,697 pesos (US$1,133) a year, which is 101% percent more expensive than securing the same model in Durango, where it has a cost of 10,781 pesos per year, according to figures from Coru provided to El Heraldo de México.
Another example is the Chevrolet Aveo model. Ensuring it in Guerrero has an annual cost of 19,312 pesos with GNP, which is 58.8% more than the 12,168 pesos it would cost in Durango.
Data also shows that Guerrero stands out as the state generating the highest rates most of the time.
Cinthya González, product analyst at Coru, told the outlet that safety does play a role in the higher cost of insurance and the premiums paid.
However, she added, the zoning that insurers use to establish the policy is variable and is based on the accident rate they have of their vehicle fleet, among other factors such as the make and model as well as the frequency of events with damages, theft and civil responsibility.
"Safety is a factor that influences the rates offered by insurers, especially in some segments, such as cargo transport," said Carlos Jiménez, head of auto insurance at AMIS, as cited in El Heraldo de México.
However, the premiums and costs that individual companies set are the result of the statistics and driver track record, added the specialist.
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