I can’t begin to count the number of tourist policies that I have sold, and it seems to me that everyone assumes that a Mexican policy and a United States policy is the same. Nothing could be further from the truth. For crying out loud, a New Mexico and Arizona policy are different and they are both one of the fifty United States.
I know that you’re going to ask be to be a lot more specific, and I will be very specific and even make some recommendations, but first I’d like to tell you a story. I remember a gentleman that came to my office some years back. He wanted to buy insurance on an old pickup; because of the value of the vehicle I recommended that he purchase a liability policy, and that he include uninsured motorist coverage. He agreed with me and about ten minutes later he had insurance on his old truck. As soon as I handed him his proof of insurance he said that he wanted to file a claim. Now, this got my attention because I didn’t think that two seconds was enough time for a covered loss to have occurred.
To make a long story short his old truck had burned to the ground the night before and he wanted the insurance to pay for it, even though he didn’t have insurance at the time that the truck was on fire. I know that this story sounds incredible to most of you, but it’s true. What does this have to do with car insurance for Mexico? Well, this man didn’t know anything about insurance. He didn’t even know that you have to have purchased the policy before the loss occurs. Now, I’m going to ask you a question. What don’t you know about Mexican insurance policies? Don’t you think that you should find out before you go?
Yes, you do need to buy Mexican auto insurance. Failure to provided adequate proof of financial responsibility in Mexico is a felony. Only a policy written by a Mexican insurance company can provide adequate proof of financial responsibility in Mexico. You didn’t book a vacation in Mexico so that you could spend time in a Mexican jail, and you don’t want to go there. I don’t think they have nearly as much fun there as they do at the beach. It is worth your time to buy a Mexican insurance policy regardless of whether or not your current carries provides a limited amount of coverage in Mexico.
Don’t assume that all insurance policies are the same, and certainly not all Mexican insurance policies are the same. Allow me to make a few recommendations, and I’ll start with the limit of liability; this is often referred to as third party liability insurance. A 50/100/25 limit is common to have in the United States; this is called a split limit which divides the bodily injury limit into a per person limit and per accident limit, and also separates the property damage limit. The purpose of a split limit is to reduce the amount payable in a very large claim.
All bodily injury losses are settled on an actual cash value basis; this greatly reduces the amount needed to settle a bodily injury claim. Mexican statue eliminates pain and suffering or emotional distress claims. Because of the legal environment in Mexico I would suggest a combined single limit for third party liability insurance of no less than one hundred thousand dollars, and it really isn’t that much more to purchase three hundred thousand dollars of insurance.
Make certain that your policy includes coverage for both Travel Assistance and Legal Aid; they are really inexpensive and well worth the money. If you don’t purchase these coverages and an accident does occur you will be paying for all of your own legal expenses until liability is determined. Allow your insurance company find you an attorney and keep you out of trouble that’s why you pay them, and you shouldn’t have to worry about that while on vacation. Make sure that the box for Travel Assistance and Legal Aid is checked.
Your insurance agent may know all about insurance here in the United States, but does he/she know everything about insurance coverage in Mexico; buy from somebody who does. Last of all, make sure that you do your homework before you go, and also that you buy from a reputable carrier. I will only sell policies from companies that are rated A+ by AM Best, and that have shown a superior claims paying ability.
When you want to buy Mexican car insurance make sure you check out this website. I’m sure that you’ll find it helpful. Don’t just ask the insurance agent down the street, ask an agent that specializes in insurance for Mexico.
Tags: business, family, finance, home insurance, travel, Travel tips