US and Canadian travelers take extra care in choosing an insurance company at home, but fail to protect themselves adequately while driving in Mexico on vacation or business. This is understandable because Mexico insurance coverage can be confusing.
As Mexico practices Napoleonic law, it is vital that you protect yourself from the possibility of being “jailed” in the event you are found at fault in an auto accident. Every US and Canadian car insurance excludes “Liability” coverage in Mexico and most domestic insurers will not pay for physical damage to your vehicle while you are motoring South of the Border.
In order to help guarantee the best quality Mexican Car Insurance coverage, astute travelers start out by examining the finances, valuation, and claims ability and reputation of their Mexican auto insurer and then compare internet coverage and rates online that meet their needs as a 2nd step.
Purchasing insurance from a reliable “A” rated company who provides adequate “liability” limits with value oriented features and benefits is the goal when purchasing insurance for Mexico. The method discussed is nearly impossible if you buy coverage at one of the border sellers (it’s a la carte), however over the past few years it is getting easier to buy a policy that can be understood and can be purchased less expensively online over the internet.
At a minimum, search for insurers with an “A” rating or higher (Published by A.M. Best, or Standard and Poor’s) who are admitted and authorized to sell Mexico car insurance.
If an internet site offers Insurance for Mexico and does not show boldly right up front on the opening page that the insurer they are selling is “A Rated” insurance or higher by A.M. Best or Standard and Poor’s then they are probably selling insurance company programs that are NOT rated (this includes Mexico Insurance Companies).
A.M. Best (ambest.com) and Standard and Poor’s (who rate global, foreign, and domestic insurers) are considered to be the industry standard rating agencies in the insurance marketplace. In fact, many insurers do business with other insurance companies (this is called reinsurance) and the minimum grade for normal business risks in the past 20 years is an A.M. Best’s Rating of “A”.
When purchasing any type of Mexican Insurance , buyers should ask themselves a few questions. Am I able to purchase coverage from an insurer who has a minimum “A” Rating or am I being asked by an agent or broker who runs a website or local agency to accept and purchase coverage from an unrated/not-rated insurer who has a weaker program, but who may pay the agent more commission in order to sell their coverage?
You should understand, the amount of premium a company writes yearly or the size of an insurance company as a measure of fiscal strength or claims paying ability is a very iffy measure of fitness. The answer you often hear when an broker does not wish to reveal or doesn’t understand the true scope of your risk is often “Why they are the first , second, third etc largest insurer in (any country).
First look at the insurance company rating ( “A” is Standard), next the policy limit and features, and finally the price. Exploring this Mexican Insurance buying process will assist you in measuring, learning and comparing quotes on a clear equal basis and assist you in getting what you pay for should you ever be unfortunate and have a car accident in Mexico.
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Filed Under Car insurance