Driving without protection in Peru is a suicidal action. Every day numerous accidents occur and drivers are called upon to take the necessary measures to ensure the welfare not only of their vehicles, but of their finances.

To achieve this, users have two vital products at hand, the SOAT and vehicle insurance. Although they are similar, they are two different products, with different coverages and benefits, so they should not be confused. Here are three of the basic differences that will help you better understand the topic:

Mandatory and vehicle insurance is not

Mandatory and vehicle insurance is not

stipulated by law that every driver at the national level must have the Obligatory Traffic Accident Insurance. Otherwise, they must pay a fine. On the other hand, vehicle insurance is not mandatory, but drivers buy it if they want to protect their car.

The SOAT does not cover damage to the car and vehicle insurance

The SOAT does not cover damage to the car and vehicle insurance

The SOAT was created to cover the damages of all traffic accident victims, including drivers. However, what it does not cover are the damages that can be caused to the vehicle, for example, damage to the body, tires, moons, etc. 

Vehicle insurance has coverage in case of theft and the SOAT does not

Vehicle insurance has coverage in case of theft and the SOAT does not

The SOAT only works in the event of a traffic accident, but vehicle insurance has coverage that is activated in the case of theft of your car, returning the commercial value to obtain a new vehicle.

Both products are important and understanding how they work is the key not to confuse them. Remember that prices will vary depending on the model of your car and its age, just before applying for vehicle insurance, do not forget to compare all the alternatives