Republic of Mexico law does not accept foreign auto policies, including Canadian Car insurance. So if you drive South of the Border without buying a Mexican Auto Insurance policy and are then caught in an auto accident, you run the risking going to jail until you provide compensation to cover your new debt. This debt runs deeper than the people and vehicles involved in the accident, you may also have to help cover the livelihood of the families of those injured as well.

In Mexico as well as Canada, auto insurance coverage and premiums depend on the program you pick. Canadian minimum liability limit is normally $200,000 in the provinces with the exception of Quebec where the liability limit is $50,000. In the Republic of Mexico, there is no minimum liability limit , however, most reputable Mexican car insurance agents start car liability limits at $50,000 and most insureds purchase a minimum of $100,000. This policy provides payment in dollars in the event you are at-fault for third party property damage or injury to other people.

In addition to paying for the other party’s damages, if you select the minimum liability insurance, you should also negotiate Mexico Insurance coverage that provides:

- Legal Assistance including Bail Bond
– Roadside Assistance
– Policy Territory is not restricted (Should be all of Mexico)
– Medical evacuation if needed

Also make sure your coverage provider details specific pay out amounts and the limitations of the policy. If you have questions about the amount of coverage limits, ask. A Liability Only policy might be OK if you have a large savings account elsewhere to cover the difference between the loss and the amount the Mexico insurance provider will pay. Full Coverage is the savvy choice for new autos and trucks. Make sure your full coverage Mexican insurance policy includes coverage for:

- physical damage to all vehicles involved.
– repair amounts (in the U.S. and Mexico) that are based on adequate labor rates.
– total theft coverage and car rental if your vehicle is taken and never found.
– medical payments coverage for you and also for passengers riding in your car.
– additional medical payments limits (higher Limits) for claims caused by motorists who have no coverage (uninsured Motorists).

Accidents involving liability coverage that occur in Mexico bear no effect on your Canadian policy. Your Canadian liability auto rates will remain the same, and your Canadian driving record will not note the accident.

It’s important that you realize that if you are deemed responsible for the accident and the damages incurred (bodily injury or property damage) are higher than your limit, you will be liable for additional payments. This dictum is true in both Canada and Mexico. In Canada, if you are at fault, there are ways such as garnishments, asset repossession, and liens that may be placed to pay your obligation. South of the Border however, you are responsible for paying your obligation, and will be detained by Mexico authorities until payment is made. In case the costs exceed your ability to compensate the injured, you can be jailed. (jail)

Before planning your next trip to Mexico, carefully compare the services provided by your Canadian car insurance to the Mexican car insurance policy you are looking to purchase. There’s nothing worse than finding out too late that the normal coverage in your Canadian policy is actually extended coverage that needed to be added separately when you purchased Mexico insurance.

 

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Filed under: Car Insurance

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