Mandatory car insurance limits updated

Through Resolution 05-2025, the Insurance Superintendency updated the limits of mandatory vehicle insurance, which had not been revised in more than two decades.

Specifically, the regulatory body has adjusted the minimum civil liability amounts, as well as the premiums for mandatory motor vehicle insurance in the Dominican Republic. This reform represents the first formal revision since Resolution 010-2002.

The new regulations contemplate a significant increase in minimum coverage, which ranges from RD$100,000 to RD$ 400,000, to amounts reaching up to RD$2,000,000 per claim, depending on the type of vehicle.

Along the same lines, minimum premiums have been adjusted to incorporate differentiated surcharges based on engine power and specific vehicle use, with the aim of more accurately reflecting the current risks associated with the national vehicle fleet.

For example, private cars with up to four cylinders will see their accident coverage increased from RD$200,000 to RD$1,000,000, while the corresponding minimum premium will rise from RD$1,175 to RD$2,750. Likewise, public buses, whose minimum premium was RD$4,052, will now have to pay RD$17,078, in line with the new coverage limit of RD$2,000,000.

The resolution also introduces a detailed structure of surcharges, which vary depending on the vehicle’s engine capacity, its use (public or commercial), and whether it transports dangerous goods, among other factors. It also establishes additional rates for towed vehicles and includes penalty clauses for insurers that fail to comply with the new limits.

With this reform, the Superintendency seeks to adapt mandatory insurance to the current economic and social reality, guarantee better compensation for accident victims, and technically strengthen vehicle liability coverage.

It is estimated that, with the new minimum limits proposed in the resolution, up to 95% of claims arising from significant incidents could be covered.

Achieving these compensation levels with the mandatory limits in place for the past 21 years was simply a pipe dream. On the contrary, this update represents a significant step toward enhancing the response capacity to catastrophic risks, benefiting both policyholders and insurers.