Guatemala Repeals Controversial Car Insurance Mandate Amid Protests

After backlash from citizens, President Bernardo Arévalo rescinds decree intended to introduce mandatory car insurance due to financial concerns from impoverished communities.

After two days of significant protests, Guatemalan authorities have rescinded a decree that would have mandated car insurance for vehicle owners. The proposed regulation aimed to ensure financial protection for victims of traffic accidents, following a tragic incident last month where over 50 individuals lost their lives in a bus accident. However, many citizens, struggling against poverty with about 55% of the population living below the poverty line, voiced concerns about their ability to afford the insurance.

Demonstrations intensified as thousands of protesters took to the streets, blockading key roads and confronting law enforcement. In response, President Arévalo acknowledged the difficulties that come with such transformative policies, emphasizing the need for comprehensive changes to the nation’s transportation laws for the greater good.

In a news conference, the president pointed out the high incidence of traffic fatalities in Guatemala and reiterated his commitment to addressing these issues. Following discussions with protest representatives, the government plans to establish a technical committee aimed at creating a viable implementation strategy for compulsory insurance within the next year. Protesters had expressed dissatisfaction over the lack of transparency regarding the potential costs associated with the insurance, which was set to take effect on May 1. The road blockades led to significant disruptions, affecting schools and businesses in key areas of the capital.