Thousands of vehicles in the Peruvian capital, are currently uninsured, according to local newspaper El Comercio.
On Thursday Gustavo Sardinia, president of the Peruvian Association of Insurance Companies (Apeseg), said that about 532,608 vehicles in Lima and Callao lack SOAT vehicle insurance.
The figure means that close to 34 percent of the city’s cars don’t have the mandatory SOAT insurance, furthermore 19 percent of cars within this group were completely uninsured, the daily said.
The other 81 percent, are reportedly insured by Fund Against Traffic Accidents, or Afocat, for its Spanish initials.
"While Afocat is cheaper than SOAT, when a traffic accident occurs, the Afocat will not cover the costs involved with a traffic accident," Sardinia said.
Lima and Callao currently have around 1,578,889 vehicles in circulation.
According to recent estimates, about 532,608 vehicles in Lima and Callao lack mandatory SOAT vehicle insurance.