US and Canadian travelers take extra care in choosing an insurance company at home, but fail to protect themselves adequately while driving in Mexico on vacation or business. This is understandable because Mexico insurance coverage can be confusing.
In Mexico Napoleonic Law is applied and practiced, so it is vital that you have protection against the real risk of being “Detained” if you do damage either property damage or bodily injury to third parties in an accident. Every US and Canadian car insurance excludes “Liability” coverage in Mexico and most domestic insurers will not pay for physical damage to your vehicle while you are motoring South of the Border.
In order to help guarantee the best quality Car Insurance for Mexico coverage, astute travelers start out by examining the finances, valuation, and claims ability and reputation of their Mexican auto insurer and then compare internet coverage and rates online that meet 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. This technique is unrealistic if you purchase coverage at one of the border venders, (it’s take it ot leave it) still it is becoming easier to buy a policy that can be reasonably interpreted and can be bought cheaper if you buy online over the Web.
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 offers Insurance for Mexico and does not show boldly right up front on the opening page that the insurer they are selling is “A Rated” insurance or higher by A.M. Best or Standard and Poor’s then they are probably selling insurance company programs that are NOT rated (this includes Mexico Insurance Companies).
A.M. Best, (ambest.com) and Standard and Poor’s (who independently rate global, foreign, and domestic insurers) are regarded as the expert authorities in the insurance industry. 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 buying Mexican Car Insurance coverage, travelers 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?
Please remember that yearly written premium is a poor measure of financial strength and a poor measure of the actual ability of any insurer to pay claims. The answer to this question when an broker might not wish to reveal the true nature of your risk could be to say “Why they are the 1st , 2nd, 3rd largest insurer in (any country).
The number one thing is to ask is the A.M. Best Rating of the insurance company (keep shopping if they don’t know what you are asking) then ask for various limits and features and finally ask for a quote to compare pricing. Applying this Mexico Insurance buying technique will help you measure and compare rate quotations on a clear oranges to oranges basis and assist you in getting what you pay for should you ever be entangled in a car accident or have a claim.
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