Auto insurance coverage hit by the crisis

Auto insurance in Argentina only covers 53% of the 6.67 million cars in circulation and coverage could drop even further due to the recent economic crisis, local daily Clarin reported. The auto insurance segment also shows serious deficiencies in terms of coverage for people who are injured in transit accidents. Between 20-35% of transit accident victims that claim compensation in court fail to receive reimbursement from their insurance company due principally to insurance companies declaring bankruptcy. During the last five years a notable 120 insurance companies declared bankruptcy and were liquidated leaving policy holders stranded following a traffic accident.