Under Ley 253 de 1995 (Ley de Seguro de Responsabilidad Obligatorio para Vehiculos de Motor), a system of compulsory minimum automobile coverage was instituted in Puerto Rico. The coverage, obtained from the Puerto Rican government itself, currently carries a premium of $99 per year. Recently, however, the former and current Puerto Rican Insurance Commissioners have received pressure to consider reducing the premium in light of a large and growing reserve fund being held by the government, which recently topped $161 million. This reserve fund is in addition to a separate $90 million fund maintained to cover claims.

The premium reduction, which had been approved by the former Insurance Commissioner, Dorelisse Juarbe, for February of this year, was delayed for further consideration by the new Commissioner, Ramon Cruz, at the request of the administrator of the fund, the Asociacion de Suscripcion Conjunta (ASC).

It should be noted that the compulsory auto insurance provides minimal scope and limits of coverage in the case of an accident, normally not more than $1000, meaning that vehicle owners are well-advised to seek private insurance for protection against vehicle damage and potential liability to third parties that may well exceed and/or not fall within the compulsory coverage.