There are numerous differences between US, Canadian and Mexico automobile Insurance policies. Mexico law states that insurers who are licensed and recognized by Mexico authorities are allowed to provide “liability” insurance covering you against bodily injury or property damage you might do to others. Mexico does NOT however mandate that insurance carriers be rated for financial strength or claims paying ability
Your US or Canadian policy may extend physical damage coverage within past the US border for a limited number of miles. (Most do not) Please check with your insurance agent before you leave home. Auto insurance for Mexico coverage is sold bit-by-bit, with more than a few unrated insurers reducing benefits in order to appear to be a good value, as there are no “standard” policies.
It should not be surprising, that the insurance companies with the best reputation for paying claims fairly tend to be rated companies. Claims for Property Damage to 3rd parties are finalized on an “actual cash value” basis, guided by Mexico practice of law. Review Kelly Blue Book in the US for accurate Mexico vehicle valuations.
All claims must be placed in Mexico for insurance coverage to apply. Mexican Auto Insurance rates, coverages, limits, deductibles and claims handling vary among Mexican insurers. You should inquire as to whether Legal Assistance, Bail Bond, or Roadside Assistance for no extra cost? Are large claims processed in the US, making it easier on the insured so that you do not need to make extra visits back to Mexico to complete legal claims issues? Does your coverage allow you to repair your damaged vehicle in the US or Canada, as well as Mexico? Are you buying a postal service paper policy from a local broker,or an electronic internet immediately verified policy? Is the agent selling policies from un-rated insurance companies? This knowledge will help you greatly in the event of a car accident
Most Mexican Car Insurance policies do not cover Vandalism or Partial Theft, but coverage may be included by with the better programs. Auto Insurance for Mexico is written on a “named perils” basis and “Full Coverage” includes Physical Damage to your vehicle. Hundreds of US insurance brokers, gas station outlets, towing companies etc. offer policies at the border, but you should ask yourself how many agents specialize in Mexico Auto Insurance exclusively? Half a dozen ?
For knowledgeable Mexico Car Insurance information look directly for agents who do not sell Mexico policies as a sideline, but as a specialty. You might be interested to know that many agents sell car insurance from non-rated insurance companies who then pay them larger commission? The only way they can afford to pay higher commissions is by limiting what is covered, or by reducing or trying to skimp on claims.
As the economy proceeds in a state of uncertainty, it might be most important to get good value for your money by buying a Auto Insurance for Mexico policy from a financially secure insurer.
You’ll benefit by buying coverage with an experienced specialist. Everyone is always happy and thinks they got a GREAT deal, until they have an accident!
Filed Under Car insurance