Paraguay (PY)
Affordable South American residency hub with low taxes, warm climate, Mercosur access, growing expat communities, and a practical base in Asuncion, Encarnacion and Ciudad del Este.
Insurance Guide
Which insurances you actually need in Paraguay, prioritised.
Paraguay has lower daily costs but higher practical risk from traffic, storms, informal rentals and uneven public services. Private health insurance, car insurance and property/contents coverage are the main expat protections.
Legally Mandatory
- - IPS coverage for formal employees through payroll
- - Mandatory vehicle liability coverage in practice through car insurance and road compliance requirements
Private health insurance
Access to private clinics, doctors, tests and hospitalisation.
Who needs it: Most expats, retirees, remote workers and families.
Annual cost: Gs. 4.8M-18M+ per adult
Check waiting periods, pre-existing conditions, hospital network and evacuation options.
Car insurance
Liability, collision, theft, hail and roadside assistance depending on policy.
Who needs it: Anyone driving or owning a vehicle.
Annual cost: 3-8% of vehicle value typical
Confirm coverage for unpaved roads, flood damage, theft and authorised drivers.
Home contents insurance
Contents, theft, fire, storm and sometimes liability.
Who needs it: Renters and homeowners with valuable electronics/furniture.
Annual cost: Gs. 500,000-3M+
Flood and storm exclusions matter during summer rains.
Travel and evacuation insurance
International medical evacuation and treatment abroad.
Who needs it: Retirees, families, people outside Asuncion and those with complex conditions.
Annual cost: USD 300-2,000+
Professional liability
Claims arising from professional services.
Who needs it: Consultants, health professionals, engineers, architects and business owners.
Annual cost: Varies by profession and limit
Life insurance
Payment to beneficiaries on death or disability depending on contract.
Who needs it: Families, mortgage borrowers and business owners.
Annual cost: Age/health dependent
Comparison sites
Get exclusions in writing; verbal summaries are not enough.
Ask whether premiums are in PYG or USD and how exchange rates are applied.
For health plans, confirm emergency hospital, maternity waiting period and medication coverage.
For car policies, photograph the vehicle and keep police-report instructions in the glovebox.
Insurance
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