If you plan on driving in Mexico plan to purchase Mexican car insurance. So whether traveling to Cancun, Puerto Vallarta, Los Cabos, Mazatlan, or Cozumel familiarize yourself with some of the great activities and exciting things to do, while at the same time avoiding legal entanglements.
Thousands of people travel from the United States and Canada to Mexico each year, this includes vacationers and individuals with a Mexican heritage that are returning to visit family members. This has created a growing need for Mexican car insurance. Mexico is not any different than the US or Canada in that you are required by law to purchase liability insurance for your car, in order to be legal to drive on the roads.
For those people that live in Mexico and work in the United States will be traveling back and forth quite a lot. It makes sense for these people to purchase an annual policy, as opposed to a daily tourist policy, because of the savings. There are also people that live in the United States and travel work in Mexico, an annual policy makes sense for these people as well. Just like any other item, insurance will be cheaper if purchased in bulk and in this case bulk mean a longer period of time.
While traveling in a foreign country it is important to obey and respect the local laws, and while it is true that some major US carriers offer limited coverage in Mexico, usually within twenty-five miles of the border; this policy does not comply with Mexican law. Only a Mexican car insurance policy provides evidence of financial responsibility, that means that if you are involved in an accident you can be incarcerated until you can provide proof of financial responsibility. After the accident has occurred the proof will have to be in the form of cash or cash equivalent, and this is even if your insurance company will cover the accident. Some people are under the mistaken opinion that their US auto policy will be sufficient while in Mexico, but nothing could be further from the truth.
Nobody wants to pay too much for insurance and Mexican car insurance is no exception. It is important to shop around and make certain that you are getting the best price, but remember that price isn’t everything. Make certain that you purchase sufficient coverage for your need. The industry standard is a combined single limit of one hundred thousand dollars. Try to avoid split limits as they are a tactic that the insurance companies use to avoid a higher payout if a claim is filed.
The insurance deductible is handled quite a bit different in Mexico. Mexican car insurance will usually come with a variable deductible. This is the complete opposite of what most people are accustomed to, because here in the US and Canada a fixed deductible is the norm. A variable deductible is usually a percentage of the value of the vehicle. The percentage amount will vary, but is usually between two and five percent of the value of the vehicle.
Nobody want to pay more than they have too, but more importantly everybody wants to be covered in the event of an accident. While you’re shopping around, keep the internet in mind. You obviously have internet access because you are reading this. The internet is full of places that sell Mexican car insurance. Educate yourself on the variety of coverages available and the different deductibles.