I pay US$ 454 a year ( just checked .. ) La Positiva for US$ 8500 coverage, full coverage + third party.
A familymember had his car not insured, and had an accident 7 months ago, not his fault.
The other party had third party insurance, but they still don't have their car back because of fights with the insurance company. If he would have had car insurance and not depend on the third party insurance of the guilty party, he would have had back his car months ago. So I would advice to get a full coverage insurance.
My insurance covers some fancy extras, like a driver when I am drunk, and what seems to be standard in Peru, a towing ( lifting the car in a trailer ) / emergency repair service in case your car brakes down. It even covers when I actually would drive drunk ..
If you however ever get involved in a traffic accident and there are no wounded. If the damage is low, and specially if it is not your own fault, try to get money from the guilty party, and fix the damage yourself. If you use the insurance, you will be in for a lot of red tape. A police report MUST be made, you must do a breath test ( which you have to pay for yourself, and will be brought to another policestation in a policecar for the actual test ) They will impound your car for at least a day, as a police 'pirito' has to check the damages and make that official. You will need to go several times to the police to give statemenst and pay for the reports. And in the end you have to pay at least US$ 200 yourself + 10%. So if you estimate the damage lower ( and fixing cars is cheaper in Peru anyways ) better to resolve it with the other driver on the spot, without police.