House, Renters and Auto Insurance in Ecuador is very similar to the United States. Rates will vary based on type of coverage and value.
This article discusses the different types of insurance in Ecuador and the associated costs.
Homeowners Insurance in Ecuador
Homeowners insurance in Ecuador typically covers things like fire, theft, natural disasters, civil liability, etc.
The rate is based on the value of the structure and contents, but does not include the cost of the land. The purchase price may have been $300,000, but the premium will be based on that amount minus the assessed value of the land.
For a $200,000 house structure value, you can expect to pay roughly $460/year for the structure only. If the value of the contents is estimated at $40,000, you can expect to pay an additional $370/year to cover the contents only. So the total cost would be $830 per year to cover the structure and contents.
Renters Insurance in Ecuador
Since most apartment and condo buildings carry their own structure insurance, you may only need renters insurance to cover the cost of your contents.
If the value of the contents is estimated at $10,000, you can expect to pay roughly $140/year. For $20,000 in coverage, you can expect to pay roughly $210/year.
Auto Insurance in Ecuador
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 home, renter, or auto insurance quote from Carlos Ramírez, you can reach him directly through his website at BlueBoxInsurance.com.
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I grew up in the Chicagoland area and spent most of my career working as a sales rep in the commercial lighting industry. I still work online for a company in Denver doing sales CRM administration. YouTube is my part-time gig, but I'm so happy we can share our Unconventional Life and hopefully inspire you live yours!