Mexican Car Insurance FAQs
By Roxanna McDade, Mexpro.com
With the dip in the economy, the proximity to the U.S. and Canada, and the incredible deals that are abounding as a result, Mexico has become a more desirable and affordable vacation destination. In attempting to keep vacation expenses to a minimum, the question has been raised about whether or not Mexican insurance is necessary for a road trip to Mexico. We will address this question and more in the FAQs below.
1. Is Mexican Car Insurance a legal requirement for driving in Mexico?
The answer is yes and no. If you are involved in an accident while driving in Mexico you are required to pay all damages incurred (if at fault). If you cannot pay these damages, you will be incarcerated until you can. A Mexican car insurance policy will ensure you can pay damages and be on your way at the earliest possible time. If driving into the interior of Mexico, beyond the free zone, auto insurance is required.
2. Does my U.S. or Canadian Insurance policy cover me in Mexico?
Only companies authorized to do business in Mexico are able to provide insurance for vehicles in Mexico. Thus, only Mexican domiciled insurance companies are authorized in Mexico.
3. Where do you find Mexican Car Insurance?
Traditionally, Mexican car insurance was purchased near the border on the drive down to Mexico. Signs along highways indicated where the stands were located and there were always stands right on the border. Nowadays, you can purchase Mexican car insurance online, on the Internet. This not only provides the convenience of purchasing your policy before you go on your trip, but it also allows you to research the type of policy you are buying.
A.M. Best rates insurance companies based on financial stability and service. You should not purchase insurance ever from a company who is not A-rated by A.M. Best – but especially in Mexico. You want to be insured by companies in Mexico who are stable and secure, who will be available in the event you have an accident so you can get on your way and not be detained by authorities.
If you purchase Mexican car insurance online you have the added benefit of having all your information online, available to authorities and to your insurance company – immediately – in the event of a mishap.
4. What type of Mexican car insurance policies are available? What type of coverage should I purchase?
You want to be sure your insurance policy has Civil Liability Insurance - coverage that protects you in the event you cause bodily injury or property damage to third parties while driving your car in Mexico. Beware of insurance companies who use lower split limits, i.e. 40/80/40. Lower split limits reduce the amount of payment for certain types of losses.
Guaranteed Bond and Legal Assistance – you want to be sure your Mexican insurance policy will pay to assist you in the event you need to deal with authorities following a covered cause of loss. Beware of Mexican auto insurance companies who do not include this coverage.
Travel Assistance – your policy should include travel assistance – including medical assistance, tourist information, vehicle towing, etc. Many Mexico insurance companies DO NOT offer this service.
A Mexico car insurance policy needs to include Medical Expense Coverage for the Driver and other Occupants of the vehicle for injuries sustained in a covered cause of loss.
Optional Coverage: These coverage options are not standard on Mexican car insurance policies. If you are used to having these options on your U.S. policy and you want them, there are A-rated Mexican insurers who provide them.
Property Damage to your Vehicle (Comprehensive coverage is not standard on Mexico auto insurance policies), Total Theft, Partial Theft, Vandalism, Uninsured Motorist, Increase Cost of Repair, and fixed minimum deductibles.
Use these basic FAQs to answer all your questions about Mexican car insurance and then get on the road to enjoying an inexpensive Mexico vacation.