Auto insurance in Ecuador works just like it does in the United States, except that it’s not required by law. Since other drivers may not have insurance, it’s even more important that you do so that accidents will be covered.
You have a choice between Civil Liability only, or Comprehensive, which includes Civil Liability insurance. Civil Liability insurance will cover all expenses incurred by the other person if the accident was your fault. Comprehensive will cover both the other person’s expenses, as well as your own, regardless of who was at fault. However, the insurance company will do their best to get the other person to pay if the accident was their fault.
Some comprehensive car insurance plans in Ecuador also include roadside assistance. If your battery goes dead or you have a flat tire, those repairs will be covered. Some plans also cover legals fees associated with court costs, as well as rental car costs while your car is getting repaired.
The car insurance deductible is typically $200 or 1% of the value of the car. You can also purchase gap insurance to cover this deductible.
Car insurance rates vary by the value of the car, but a good rule of thumb is to estimate and annual rate of 3% to 4% of the value of the car. So for a $10,000 car, you can expect to pay around $300 per year plus 17% for taxes or $351/year.
Auto insurance contract terms are for 1 year, but if you cancel early, you’ll be reimbursed for any remaining months on the contract. If you pay for the entire year up-front in cash, you will often get an 8% to 12% discount versus paying monthly, quarterly or semi-annually using a credit card.
Most car insurance plans work throughout Ecuador, but you can also purchase insurance that works throughout South America.
If you would like to get an auto insurance quote from Carlos Ramírez, you can reach him directly through his website at BlueBoxInsurance.com.
Planning a move to Ecuador?
Our Ecuador Expat Fast Track eCourse will tell you exactly how to do it! Join more than 250 people who have already signed up! See what our students have to say here...
Get Qualified, Trustworthy Recommendations
Need help with your visa, finding a place to live, shipping a container, health insurance, private driver or something else?
We're happy to introduce you to our trusted and qualified relocation experts in Ecuador!
Every Friday, we send an email with current expat-relevant news from Ecuador (in English). It contains the latest information about covid, travel restrictions & guidelines, government actions, volcanoes, flooding, crime, and more. Basically, anything significant from the prior week that affects expats. We don't share this information ANYWHERE ELSE!
In addition, you'll also gain immediate access to our Ecuador Cost of Moving & Living Calculator. And it now contains a Low Budget Cost of Living option.
Once you become a member, you'll also gain access to a variety of exclusive benefits that will help you make a smooth transition to Ecuador!