I am a licensed insurance agent and have been selling insurance for the last fifteen years, and during that time there have been many instances of people choosing to purchase coverage that is inadequate for their needs. I remember the first week that I started to sell auto insurance I sold a liability only policy to a man, and as soon as I handed him his proof of insurance cards he said: now I need to file a claim, my car burned to the ground last night and it’s just right outside, and I want this insurance policy to fix it. I went outside and sure enough his car was on a trailer just outside our office, and it was all burned up. Obviously the claim was denied for a variety of reasons: no insurance at the time of the fire, no comprehensive coverage on the policy, etc. I am convinced that it is cheaper to buy the right amount of insurance than it is to try to same every penny, and when traveling to Mexico, buy Mexican car insurance.
what does this have to do with travel to Mexico? Well, just like this fellow needed an education on the proper coverages in the United States there are a few things that you should know about your Mexican car insurance before you travel to Mexico.
The first thing that you should know is that you must purchase Mexican car insurance from a Mexican insurance company. It is not enough to have a United States insurance policy that will cover you inside of Mexico. There are a few major insurance carriers that will provide coverage within a limited distance inside of Mexico, but this is not enough. These policies do not provide proof of financial responsibility to the Mexican government in the case of an accident.
Under Mexican law failure to provide proof of financial responsibility to the Mexican police at the time of the accident is considered a felony, and jail time would be almost certain. I don’t know about you,but spending my vacation in jail is something that I would be willing to spend just a little more money, and maybe even a lot more money, so that could avoid it.
There are a few more things that you should know about insurance in Mexico. When buying liability insurance make sure that you buy a combined single limit of no less that one hundred thousand dollars. The combined single limit provides more coverage for property damage. You won’t need as much bodily injury coverage in Mexico because pain and suffering and emotional distress claims are almost unheard of in Mexico.
Be aware of the variable deductible in Mexico. Most insurance policies will provided for a variable deductible of somewhere between two and five percent of the value of the insured vehicle. That means that for a ten thousand dollar car, with a five percent deductible, you would need to save about five hundred dollars to pay the deductible, or one thousand dollars for a twenty thousand dollar car. Mexican insurance companies do offer some fixed limit deductible, but not all companies will offer it.
Remember my story at the beginning of the article and don’t be like the guy that bought the wrong coverage at the wrong time. Buy your Mexican car insurance before you leave, and make certain that you buy the right kind of insurance. I hope that you enjoy your vacation.
It is essential that before you buy Mexican car insurance stop by and ask the professionals. We have been helping people with their car insurance for Mexico needs for years. You can trust us.
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