Home and auto insurance in Paraguay: options and costs

You've settled in Paraguay, you have an apartment, a car, maybe an office or commercial premises. You're living your new expatriate life under the Asunción sun. And then one evening, a tropical storm devastates your neighborhood, your car is hit by an uprooted tree, and water infiltration damages your living room. Or a road accident—common in Asunción's chaotic traffic—leaves your vehicle in the garage for three weeks. Are you covered?

Home and car insurance in Paraguay doesn't work like in Europe. The obligations are different, prices are low, but coverage varies greatly, and pitfalls exist. This guide provides an overview of home and car insurance in Paraguay for French-speaking expatriates in 2026: what's mandatory, what's recommended, how much it costs, and how to choose.

Car Insurance in Paraguay

What is mandatory

In Paraguay, only automotive civil liability insurance (seguro contra terceros) is legally mandatory. It covers damages you cause to third parties (people and vehicles) in the event of an at-fault accident. This is equivalent to third-party insurance in France.

In theory, driving without third-party liability insurance is an offense. In practice, a significant percentage of vehicles in Paraguay operate without insurance—especially motorcycles and old vehicles. This is obviously not a reason to do the same: in the event of an at-fault accident without insurance, you are personally responsible for all damages from your own funds. And personal injury damages can amount to tens of thousands of dollars.

Coverage Levels

Third-party liability only (seguro contra terceros)

The minimum coverage. It pays for damages you cause to others—not your own. If you hit another vehicle, the insurance compensates the other driver. Your own car is not covered.

• Annual cost: 100 to 250 USD depending on the vehicle
• Coverage limit: varies by contract—ensure the limit is sufficient (minimum 50,000 USD recommended)
• Recommended for: old, low-value vehicles where the cost of comprehensive coverage is not justified

Third-party liability + theft + fire (seguro contra terceros completo)

Intermediate coverage. In addition to third-party liability, it covers vehicle theft and fire damage. In Paraguay, vehicle theft is a real risk—especially for popular SUVs and pick-ups (Toyota Hilux, Hyundai Tucson). This coverage is the minimum recommended for a valuable vehicle.

• Annual cost: 250 to 500 USD
• Recommended for: mid-value vehicles (5,000 to 15,000 USD)

Comprehensive (seguro todo riesgo)

Full coverage. It includes third-party liability, theft, fire, AND damage to your own vehicle in case of an accident (whether you are at fault or not). This is equivalent to comprehensive insurance in France. It can also include additional guarantees: roadside assistance, replacement vehicle, glass breakage, natural disasters.

• Annual cost: 500 to 1,200 USD depending on the vehicle's value, driver's age, and history
• Recommended for: recent vehicles or those valued over 15,000 USD—and for any expatriate who wants peace of mind

Major Car Insurance Companies

• Mapfre Paraguay: subsidiary of the Spanish giant, one of the country's largest insurers. Good reputation for claims management, extensive network of partner garages.
• Tajy Seguros: leading Paraguayan insurer. Competitive offers and good customer service.
• Sancor Seguros: Argentinian group established in Paraguay. Comprehensive offers with roadside assistance options.
• Royal Seguros: local insurer with offers tailored for expatriates and accessible Spanish-language service.
• La Consolidada: one of Paraguay's oldest, solid, and reliable insurers.
• Patria Seguros: good car coverage with competitive rates.

Selection Criteria

• Third-party liability coverage limit: ensure the limit is at least 50,000 USD for bodily injury—compensation for serious injury or death can be high
• Deductible (deducible): this is the amount you are responsible for in case of a claim. The lower the deductible, the higher the premium. A good compromise: a deductible of 300 to 500 USD for a reasonable premium.
• Roadside assistance (auxilio mecánico): very useful in Paraguay where breakdowns, punctures (potholes), and battery problems (heat) are common. Check that assistance covers the entire metropolitan area of Asunción and major roads.
• Network of partner garages: an insurer with an extensive network of partner talleres (garages) makes life easier in case of a claim—no need to search for a repairer, the insurer guides you.
• Claims payment speed: ask other expatriates for their feedback. Some insurers are known to be fast, others take weeks.

Amicable settlement and accident procedure

In case of a road accident in Paraguay:

1. Secure the area: turn on your hazard lights, place a warning triangle if you have one
2. Call the police (911): a police report is essential for the insurance procedure in Paraguay. Without a police report, your insurer may refuse to cover the claim.
3. Do not move vehicles before the police arrive (unless safety requires it)
4. Take photos: damages, vehicle positions, license plates, surroundings
5. Exchange information: name, cédula, insurance, license plate of the other driver
6. Contact your insurer within 24 to 48 hours with the police report and photos

The Paraguayan police usually take 15 to 45 minutes to arrive at the scene of an accident in an urban area. Be patient and do not sign any documents you do not understand—if your Spanish is still limited (see our guide to learning Spanish), call someone who can translate before signing.

Full Car Budget: Reminder

As detailed in our guide to transportation in Paraguay, the full annual budget for a car (fuel + insurance + maintenance + parking) is between 2,500 and 4,500 USD—of which insurance represents 100 to 1,200 USD depending on the chosen coverage. This is a fraction of the European car budget.

Home Insurance in Paraguay

What is mandatory (nothing)

Unlike France where home insurance is mandatory for tenants, Paraguay does not impose any mandatory home insurance—neither for tenants nor for owners. This freedom may seem pleasant but exposes uninsured individuals to real financial risks.

In practice, if you are an owner, no law obliges you to insure your property. If you are a tenant, your lease generally does not require insurance either—unless there is a specific clause. However, some condominios (gated communities) require insurance in their co-ownership regulations.

Why insure anyway

The absence of legal obligation does not mean the absence of risk. The most common claims in Paraguay:

• Water damage: tropical storms during the rainy season (November to March, see our climate guide) can cause leaks, floods, and significant damage. Flat roofs of buildings and sometimes undersized drainage systems aggravate the risk.
• Storms and lightning: tropical storms are accompanied by violent lightning. Lightning can damage electronic equipment (computers, TVs, air conditioning) if the electrical installation is not properly protected.
• Burglary: although residential areas are generally safe (see our security guide), the risk of burglary exists, especially in detached houses without security guards.
• Fire: low risk but devastating consequences. A short circuit, a gas problem, or a forgotten candle can destroy a home in minutes.
• Civil liability: if a guest is injured at your home or if damage from your dwelling affects a neighbor, your civil liability is engaged.

For an expatriate who has invested in quality furniture, electronic equipment (computers, screens, work equipment) and valuable personal effects, home insurance is a common-sense investment—especially since rates are very low.

Available Coverage

Basic fire insurance (seguro contra incendio)

The minimum coverage, often required by banks if you have a mortgage. It only covers damages caused by fire and sometimes lightning.

• Annual cost: 50 to 150 USD

Comprehensive home insurance (seguro de hogar)

The recommended coverage for expatriates. It includes:

• Fire and explosion
• Water damage and floods
• Storms and natural disasters
• Theft and attempted theft (contents of the dwelling)
• Glass breakage
• Electrical damage (lightning, power surge)
• Home civil liability

• Annual cost (apartment in a good neighborhood): 150 to 400 USD
• Annual cost (single-family home): 200 to 600 USD

Optional extensions

• Electronic equipment coverage: computers, TVs, professional equipment—highly recommended for digital nomads and entrepreneurs (additional 50 to 150 USD/year)
• Valuables coverage: jewelry, watches, artworks (with inventory and prior appraisal)
• Home assistance: plumber, locksmith, emergency electrician 24h—practical and inexpensive (50 to 100 USD/year)

Major Home Insurance Companies

The same insurers who offer car insurance generally offer home insurance:

• Mapfre Paraguay: comprehensive home offers, structured subscription process
• Tajy Seguros: good rates on home insurance, water damage coverage included in standard plans
• Sancor Seguros: interesting home assistance options
• Royal Seguros: flexible plans adaptable to your profile
• La Consolidada: classic, reliable home coverage

Tenant or Owner: Who Insures What?

• The owner insures the building (walls, roof, fixed installations)—this is their patrimonial investment. Our guide to notaries in Paraguay reiterates the importance of legally securing your property.
• The tenant insures the contents (furniture, electronics, personal effects, clothes) and their civil liability. This is your movable property—it deserves protection.

If you own a rental apartment (see our guide to buying an apartment), building insurance is a cost that is integrated into your management expenses—tax-deductible via your SRL if the property is held by a company. Our accounting service at €30/month integrates these expenses into your declarations.

Cost Comparison: Paraguay vs. France

Insurance Type	Paraguay (USD/year)	France (€/year)
Car Third-Party Only	100 - 250	300 - 600
Comprehensive Car	500 - 1,200	800 - 2,000
Home (T2, tenant)	150 - 300	200 - 400
Home (house, owner)	200 - 600	400 - 1,000
Annual Total (Car + Home)	350 - 1,800	700 - 3,000

Insurance in Paraguay costs on average 40 to 60% less than in France for comparable coverage. The gap is even more pronounced if you compare with Switzerland or Belgium. This is an additional expense where the cost of living in Paraguay works in your favor.

Practical advice for expatriates

Shop around

Get quotes from at least 3 insurers before subscribing. Rates vary significantly from one company to another for similar coverage. A local insurance broker (corredor de seguros) can compare offers for you—their service is free because they are remunerated by the insurer's commission.

Read the exclusions

Paraguayan insurance contracts are in Spanish. Get help understanding the exclusions—what is NOT covered. Common exclusions: damage caused while intoxicated (car), obvious negligence (home), war and acts of terrorism, normal wear and tear. Some contracts also exclude specific natural disasters—check that floods and storms are well covered, given the Paraguayan climate.

Document your belongings

For home insurance, take photos of your valuables and keep purchase receipts. In the event of a claim, the insurer will ask you to prove the existence and value of damaged or stolen goods. An up-to-date inventory greatly simplifies the claims process.

Combine your insurances

Many insurers offer discounts if you subscribe to car + home insurance together. Ask for a package—the savings can represent 10 to 20% of the total. Some even include health insurance in comprehensive plans.

Don't forget your business premises insurance

If you have an office, a restaurant (see our guide to opening a restaurant in Paraguay) or commercial premises, specific insurance is necessary: coverage for stock, professional equipment, professional civil liability and loss of operation. Rates vary according to the activity and the value of the insured goods.

Insurance and your tax residency

Your insurance contracts in Paraguay—car and home—are additional proof of your local life. A home insurance contract in your name in Asunción, a car contract with your Paraguayan address—these are concrete elements that document the reality of your establishment. As detailed in our guide on the Paraguay-France tax treaty, each proof of local life strengthens your tax residency file.

Conclusion: inexpensive, indispensable

Home and auto insurance in Paraguay costs a fraction of their European equivalents — but they offer essential protection against very real risks. Compulsory auto liability insurance must be taken out as soon as you purchase your vehicle. Home insurance is not mandatory but highly recommended — especially in a country where tropical storms, power surges, and water damage are common.

For an annual budget of 350 to 1,800 USD (auto + home), you are covered against major risks and can sleep soundly. This is a negligible investment compared to your assets in Paraguay — car, apartment, furniture, work equipment. Do not overlook it.

Are you preparing your move to Paraguay and have questions about insurance? Contact our team for comprehensive support — residency, housing, vehicle, and connection with the best local insurers.