Plan on towing something into Mexico? Let's get it insured right.
If you plan on towing something in Mexico, there are a couple of REALLY important rules you need to understand.
1. Every towed unit needs to be listed on the policy. Yes, every one. Failing to list ANY TOWED UNIT can void the insurance policy on the "Power Unit" which is doing the towing.
So, what is a towed unit?
- Utility Trailers
- Boat Trailers
- Boats and Jet Skis
- Pop Up trailers
- Travel Trailers, Fifth Wheels, Toy Haulers
- Other Cars, SUVs, Trucks, Vans
- Motorcycles/ATVs/Golf Carts
So that couch, ice chest, or canoe, doesn't necessarily need to be listed, but if it can be pulled or move on its own it needs to be listed as a towed unit.
So here are a few quick scenarios that illustrate what would need to be listed:
- An RV with a companion vehicle: the RV would be the "power unit" and the companion auto would be the towed unit. And, the companion auto would need to be listed on the RV policy as such.
- A truck pulling a trailer with four motorcycles: the truck would be the "power unit". The trailer and four motorcycles would all need to be listed, making for a total of five towed units.
- A truck pulling boat: the truck would be the "power unit", the trailer is one towed unit, the boat is another (a total of two towed units).
Now, how does coverage apply to towed units? Well any towed unit can be listed and have liability coverage WITHOUT an increase in premium. However, if you want the vehicles to have physical damage coverage, you will need to list each towed unit with its actual cash value. However, that brings us to rule number two, which addresses when physical damage applies.
2. Physical damage only applies to towed units while in tow...sort of. If you have a vehicle that you are towing, physical damage will only apply when it is in tow. The minute the vehicle, motorcycle or boat is no longer being towed, and is unhitched from the tow vehicle NO PHYSICAL DAMAGE APPLIES. Thus, the towed units need their own policies. For street legal registered ATVs, that may be a driver's license policy. For a companion auto, that may be a traditional Mexico auto insurance policy. For boat, that may be a Watercraft liability policy. So if it can move on its own, you need a separate policy.
What if it can't travel on its own, say a travel trailer or fifth wheel? What happens when you unhook it from the towing vehicle? Well in that case you lose liability coverage, BUT still have physical damage and theft coverage.
Simple right, well maybe not. Just remember:
- Be sure to list every towed unit on your policy, including trailers.
- If it can travel on its own, it will need its own policy for liability.
- Yes you can cover a towed unit for physical damage.
- If it can travel on its own it will need a separate policy.
- If it cannot travel on its own, like a travel trailer, the unit will lose the liability coverage, but can keep the physical damage.
If you need coverage for your towed units on your Mexico insurance policy, no problem. Make your life easy by getting all the paperwork you have on each towed unit before you start the quote process.