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.

Mexico applies Napoleonic law, so it is critical that you are protected from being “confined” in case you are determined to be responsible in a car accident. Mexico is excluded for damages to others in all United States and Canadian issued “Liability” or “Full Coverage” insurance policies and most do not cover collision to you vehicle (some allow collision coverage near the border areas so check with your agent).

To help find top quality Mexican Auto Insurance protection, astute motorists begin by checking financial $ strength, independent ranking, and loss handling reputation and ability of their potential insurer as a first step and then compare internet features, limits, and rate quotes that satisfy their needs as a 2nd step.

Purchasing insurance from a reliable “A” rated company who provides adequate “liability” limits with value oriented features and benefits is the goal when purchasing insurance for Mexico. The method discussed is nearly impossible if you buy coverage at one of the border sellers (it’s a la carte), however over the past few years it is getting easier to buy a policy that can be understood and can be purchased less expensively online over the internet.

At the very least, explore carriers with an “A” rating or higher (As ranked by A.M. Best, or S and P ) who are admitted and accredited to sell Mexico car policies.

If an internet site does not show on the opening page that the insurance company they represent is “A Rated” (this includes Mexico domiciled Insurance Companies), 9 times out of ten they are selling insurance from un-rated or non-rated insurance companies.

A.M. Best (ambest.com) and Standard and Poor’s (who rate global, foreign, and domestic insurers) are considered to be the industry standard rating agencies in the insurance marketplace. In fact, many insurers share business with other insurance companies (reinsurance) and the minimum rating for the past 2 decades is an A.M. Best’s Rating of “A” .

When purchasing any type of Car Insurance for Mexico, buyers should ask themselves a few questions. Can I buy reliable insurance from a carrier who has a minimum “A” Rating or am I being steered by an agent or broker who runs a website or local independent agency to accept and purchase coverage from an unrated insurer who offers a less reliable program, but who may pay the agent more commission in order that the agent will favor their coverage?

You should understand, the amount of premium a company writes yearly or the size of an insurance company as a measure of fiscal strength or claims paying ability is a very iffy measure of fitness. The answer you sometimes hear when a broker does not wish to reveal or doesn’t understand the true scope of your risk could be ”Why they are the first , second, third etc largest insurer in (any country).

First look at the insurance company rating ( “A” is Standard), next the policy limit and features, and finally the price. Using this Mexican Car Insurance purchasing method will help you evaluate and compare rate quotes on a clear apples to apples basis and help you get what you pay for should you ever be involved in a car accident or have a loss.

.

Many

Your US or Canadian policy may extend physical damage coverage within past the US border for a limited number of miles. (Most do not) Please check with your insurance agent before you leave home. Car Insurance for Mexico is sold a la carte, with numerous unrated insurers limiting coverage in order to appear to reduce price, as there is no “standard” policy coverage.

It should not be surprising, that the insurance companies with the best reputation for paying claims fairly tend to be rated companies. Claims for Property Damage to 3rd parties are finalized on an “actual cash value” basis, guided by Mexico practice of law. Check Kelly Blue Book or N.A.D.A. Guide (nada.com) for correct ACV values

All claims must be placed in Mexico for insurance coverage to apply. Mexican Auto Insurance rates, coverages, limits, deductibles and claims handling vary among Mexican insurers. You should ask questions such as, does the car insurance policy include Legal Assistance, Bail Bond, Roadside Assistance as part of a package? Are the more serious claims handled in the United States, saving you the time, frustration, and expense of traveling multiple times to Mexico to fullfill your legal obligations? Does your carrier allow repair your car, pick-up, RV or SUV in the US or in Canada, and not just Mexico? Are you buying a postal service paper policy from a local broker,or an electronic internet immediately verified policy?  Is the agent selling policies from un-rated insurance companies? This knowledge will assist you enormously in the regrettable event of an accident

Most Mexico Car Insurance policies do not cover Vandalism or Partial Theft, but coverage may be included by with the better programs. Car Insurance for Mexico is offered on a “named perils” format. “Full Coverage” includes Damage to your automobile. Hundreds of US insurance brokers, gas station outlets, towing companies etc. offer policies at the border, but you should ask yourself how many agents specialize in Mexico Auto Insurance exclusively? Half a dozen ?

For knowledgeable Mexican Car Insurance information look directly for agents who do not sell Mexico policies as a sideline, but as a specialty. You might be interested to know that many agents sell car insurance from non-rated insurance companies who then pay them larger commission? There is only one way they can afford to pay higher commissions and that is by restricting the policy wording or limiting claims payments..

As the economy proceeds in a state of uncertainty, it might be most important to get good value for your money by buying a Mexican Insurance policy from a financially secure insurer.

You’ll benefit by buying coverage with an experienced specialist. Remember, everybody is always pleased and believes they found a fantastic deal till they have a claim!