Republic of Mexico law does not accept foreign auto policies, including Canadian Car insurance. So if you drive South of the Border without buying a Mexican Auto Insurance policy and are then caught in an auto accident, you run the risking going to jail until you provide compensation to cover your new debt. This debt runs deeper than the people and vehicles involved in the accident, you may also have to help cover the livelihood of the families of those injured as well.

In both Canada and Mexico, car insurance rates and base services provided depend on the policy chosen. Canadian mandatory minimum liability insurance most times is $200,000 in many provinces except Quebec where the minimum liability needed is $50,000. In Mexico, there is no set minimum in liability coverage, however, most reputable Mexican auto insurance companies start vehicle liability coverage at $50,000 and since it’s not expensive to increase it, most people buy a minimum of $100,000. This coverage would provide compensation to injured third parties in case you are found guility for losses to others.

In addition to paying for the other party’s damages, if you select the minimum liability insurance, you should also negotiate Mexico Insurance coverage that provides:

- Legal Assistance including Bail Bond
– Roadside Assistance
– Policy Territory is not restricted (Should be all of Mexico)
– Medical evacuation if needed

Also make sure your coverage provider details specific pay out amounts and the limitations of the policy. If you are uncertain about the amount of you policy limit, ask. A Liability Only policy might be OK if you have a large savings account elsewhere to cover the difference between the loss and the amount the Mexico insurance provider will pay. Full coverage is usually the best option for newer vehicles. Make sure your full coverage Mexican insurance policy includes coverage for:

- physical damage to all vehicles involved.
– repair amounts (in the U.S. and Mexico) that are based on adequate labor rates.
– a total theft policy provision, as well as car rental in case your car is stolen.
– medical payments for yourself and your passengers.
– higher medical payments for injured drivers and passengers caused by uninsured motorists.

Liability losses that happen in Mexico bear no effect on your Canadian policy. Your Canadian liability car insurance rates won’t change, and your driving record in Canada will not record an accident.

It’s important that you realize that if you are deemed responsible for the accident and the damages incurred (bodily injury or property damage) are higher than your limit, you will be liable for additional payments. This problem persists in Canada and in Mexico. In Canada, if you are found liable through the court systems arrangements such as garnishments, asset repossession, and liens may be put into place to secure the overage. South of the Border however, you are responsible for paying your obligation, and will be detained by Mexico authorities until payment is made. In case the costs exceed your ability to compensate the injured, you can be jailed. (jail)

Before planning your next trip to Mexico, carefully compare the services provided by your Canadian car insurance to the Mexican car insurance policy you are looking to purchase. Can anything be much worse than finding out too late that the standard coverage in your Canadian policy is actually extra broadened coverage that needed to be endorsed when you bought coverage.

 

Filed Under Car insurance