Mexican Car insurance Deductibles
Similar to the US and Canada, Mexican auto insurance policies are subject to deductibles. In the US there are two "sections" known as Comprehensive and Collision. In Mexico the coverage is similar, but Mexican insurance coverage is not the same as US coverage. So the sections on a Mexico policy are typically described as collision and theft coverage. For more information about what is covered under each section, please see our Physical Damage Coverage page. Deductibles apply separately to each insured vehicle. This means there will be a deductible for the insured vehicle and another for each towed unit.
Each section, collision and theft, is subject to its own deductible. There are two types of deductibles in Mexico, a traditional "percentage" deductible, and a "fixed" deductible.
Fixed deductibles are relatively easy to understand as there are not a lot of options. A fixed deductible will have a deductible of $500 for collision, and $500 or $1,000 for theft, depending on which insurer you choose. Fixed deductibles are typically required by banks and lienholders before they will issue a letter of permission allowing the vehicle to enter Mexico. Fixed deductibles are the best option when the vehicle has a high value or if there will be a number of towed units that will increase the overall insured value. This is because a fixed deductible will minimize the out-of-pocket expense in the event of an accident. Fixed deductibles do cost a little more than a percentage deductible, but are well worth the savings and are much simpler to understand.
Percentage deductibles are a bit more complicated to understand, but can save money up front. However, in the event of a claim this option will cost significantly more, especially on high valued vehicles, and on vehicles with multiple towed units, as the deductible applies separately. Percentage deductibles are the traditional standard for Mexican Tourist Auto policies and remain the only option offered by many other agents. If you choose to insure your vehicle using this option, the deductibles are 2% of the vehicle value for collision and 5% of the vehicle value for theft. But a claim is also subject to a minimum dollar amount. The MINIMUM deductible amount varies with each Mexican insurer and the type of vehicle (car, SUV, pickup, RV, etc.) and coverage section, so please see the "explain" button on our "quote results page" for the MINIMUM deductible for each of our policy options.
An example of how percentage deductibles work with the company Grupo Nacional Provincial (GNP) is as follows. The percentage deductible for a Sedan would be 2% for collision with a minimum of $500 dollars and 5% for theft with a minimum of $1,000. However, if I had a Truck, SUV, or Van the minimum for collision would be $1,000 and the minimum for theft would be $1,500 despite the fact that the percentage would remain 2% for collision and 5% for theft.
Get a quote now to see how the deductible will change the price of your Mexican auto insurance policy.