It’s just obvious that there will be some differences between United States and Mexican car insurance policies, and I will try to list some of the differences here. However, before I do let me warn you not to confuse this with a complete list of all of the differences because there are just too many minor differences to list. I will list the major differences by type of insurance.
Now the very first coverage that will be addressed is Liability insurance. Unlike the United States, Mexican civil law, which is defined by statute and not case history is what determines liability. Some people think that this is great and others hate it; you can decide for yourself whether or not you like it. Under Mexican statute there is not redress for pain and suffering or emotional distress and therefore no liability for it. That means that claims are usually paid under the “Property Damage to Others” coverage or the “Bodily Injury” coverage, and all of these claims are adjusted on an actual cash value (acv) basis.
It is generally assumed (and assumed correctly) that Mexico does not have as many court cases and attorneys as the United States. Indeed it is uncommon to have a claim in excess of $100,000. Sometimes, with a very expensive car, Property Damage to Others claims will get near this limit, but it is not at all common to have a Bodily Injury claim that comes close to the $100,000 number.
Some will find this next piece obvious, and others not so much: The insurance purchased from a Mexican Insurer will not cover a case brought against you in the United States. It will only provide protection for cases brought against you in Mexico. If you have an accident in Mexico and are sued in the United States for that accident you will have no coverage under your Mexican policy.
Secondly, lets take a close look at car insurance. The various and sundry Mexican insurance companies offer quite a wide variety of rates, coverages, limits, and deductibles, and it only stands to reason that these are some of the things that you should pay attention to. The first thing is that you will always want a combined single limit coverage. Please do not accept coverage that offers a split limit because some insurance companies will reduce the amount payable in the event of a claim with the use of split limits. The standard used on a Mexican car policy is a combined single limit of one hundred thousand dollars. Once again, please stay away from split limits. Another very important coverage that many people don’t consider is Legal Aid and Travel Assistance, sometimes these are listed as as additional coverages, but they are essential, and without both of these coverages you will be paying your own legal expenses until liability is determined.
The last thing is that a Mexican car policy has exclusions for both Vandalism and Partial Theft, but in the United States policies are generally “all risk” policies. Not so in Mexico, because Mexican policies are “named perils” policies. These policies provided coverage for collision, fire, total theft, some natural occurrences, and other perils. In the United States almost all insurance companies use a fixed deductible, but in Mexico insurance companies will often have a deductible as a percentage of the value of the car insured.
Looking to find the best deal on Mexican car insurance, then visit ABC Insurance Services to find the best advice on car insurance for Mexico for you.
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