Thu, 21 Mar 2019 15:49:24 +0000

OK, so if you’re like most people, you buy insurance at the border. The outcomes of driving in Mexico without buying insurance, particularly in case you’re in an accident, can be serious. Most dire outcome imaginable is Mexican jail pending an examination concerning the accident. Furthermore, if you are at fault, you’re immediately responsible for all damages.

You may not know that your accident protection doesn’t cover you in Mexico. You may have coverage for your car (theft and damage) within a distance of the border, however, insurance agencies in the United States and Canada don’t have any lawful purview in Mexico.

If you intend to drive on Mexican highways, you must buy Mexican Car Insurance. Where do you buy Mexican protection?

Mexico has a flourishing insurance industry, as only 70% of vehicles in Mexico have coverage. So, you can even buy a policy at the border. Is that a smart thought?

Buying Insurance at the Border Warning Signs

Just as you purchase anything else, you need to do your background checks. And pay particular attention to the following:

• Your Personal Data – is it on paper, or is it on a computer? Who controls your data, and where does it end up? A proper insurance document will contain your license, vehicle registration, address, and date of birth – don’t just hand that information over to anybody!
• Your payment method. Do they accept cash for insurance? Yikes. Not only do you need a receipt for payment, but you need to see something in writing that shows what you paid for
• What is the licensing? Make sure you are purchasing from an agent with a valid license. They should have credentials from the State you are in. It would be best if you did not buy from an agent with a license in any other country than the U.S. because, as an American or visitor to the United States, you have protection by those consumer laws which don’t exist in Mexico. Check the license!
• Licensing is important because a licensed broker will be careful not to give you bad information. They carry E&O (Errors and Omissions insurance), required by state laws, to protect against a licensed agent making an accidental false statement. Nobody without a license should speak about underwriting or coverage. And it is prohibited that anyone transacts insurance without a license.

Is it the coverage you need?

Buying protection is a budgetary choice that merits full thought of the alternatives. In most Mexican states, $300,000 of third-party liability is sufficient, as this will cover the accidental death of a Mexican citizen. In some states, $150,000 will be ok, and in Coahuila and Yucatan – you need $500,000 at minimum. The liability limits are based on a Mexican law that calculates the death benefit based on the minimum wage in that state. Keep an eye on the peso vs. dollar and the wages in Mexico.