Puerto Rico Motor
Vehicle Compulsory Liability Insurance
The Puerto Rico Motor Vehicle Compulsory Liability Insurance
(CLI) Law ("No-fault Insurance" in other states), requires that all motor vehicles transiting on the Puerto Rico
public highways have a liability insurance coverage of not less than $3,000.00.
All motor vehicles are required to have medical liability insurance too. The insurance
is known as ACAA (Agency for the Compensation of Automobile Accidents). The ACAA is a compulsory insurance program
that covers personal injuries, illness, dismemberment or death resulting from an automobile accident. The CLI
differs from the ACAA in that the CLI covers damages your vehicle may cause to vehicles of third parties resulting
from an automobile accident.
If your vehicle is registered in Puerto Rico, the CLI premium ($99.00 for private
passenger vehicle and $148.00 for commercial vehicle) will be included in your annual registration fee. All persons
will comply with the law when obtaining a motor vehicle license for the first time and upon renewal of registration
thereafter. Many insurance companies will provide a discount on the coverage premium when you inform them that you
have already obtained $3,000.00 liability coverage through registering your car in Puerto Rico. You must comply
with the CLI even if your vehicle is not registered in Puerto Rico and retains out-of-state license plates. To
comply with the CLI you can:
1.) Obtain liability insurance coverage of at least $3,000.00 from your insurance
company (if the company is licensed to do business in PR) or;
2.) Obtain CLI coverage from any private insurer authorized to underwrite vehicle
insurance in Puerto Rico, or directly from the Joint Underwriters Association (JUA).
3.) You can also comply by obtaining the traditional liability insurance coverage for
damages to vehicles, property and collision (full-cover) with a cover similar or grater than that of the CLI. Once
you obtain the necessary CLI, your insurance company must request a certificate of proof of insurance from the
JUA.
Driving an uninsured motor vehicle is a misdemeanor punishable with a fine of $500.00.
In addition, other fines may be assessed for an expired registration, no ACAA, and no inspection, if applicable.
Further, the law requires a court to assess the costs of damage to the uninsured driver who caused them. The police
will seize the license plate of all uninsured vehicles. As the vehicle may no longer be able to transit the public
thoroughfares, the driver or owner shall assume the cost of its removal. The owner may claim the return of the
license plate from the Department of Transportation with proof of CLI compliance.
Owners of vehicles registered in Puerto Rico can show compliance by placing the
registration sticker on the windshield. The JUA has not designed a mechanism of proof of insurance for vehicles not
registered in Puerto Rico (that have no PR registration nor a sticker). The JUA is considering a sticker similar to
the ACAA that you can stick on your license plate or the windshield. Until then, if stopped, you must show the
Police the certificate issued by the JUA or a copy of your insurance policy as proof of CLI. It would be wise to
keep copy of these documents on your person or in your car to avoid a later trip to court to prove you had
CLI.
The CLI requirement and penalty mentioned above does not apply to federal government
vehicles. The state cannot request federal government agencies to pay the compulsory insurance premium and since
the Federal Government is self-insured, the federal vehicles operating in Puerto Rico comply with the compulsory
liability insurance.
The CLI adjustment and resolution of claims system do not supersede the right of
claimants to seek remedies in courts when they cannot come to an agreement or for damages in excess of CLI
coverage. You may purchase additional coverage and personal property coverage as necessary. In addition to the CLI,
it is mandatory that all motor vehicles have registration, ACAA and up to date inspection.
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