There are numerous differences between US, Canadian and Mexico automobile Insurance policies. Mexico law mandates that only insurance companies which are licensed and admitted within Mexico can provide “liability” coverage protecting you against damages you could do to others. The Republic of Mexico has no policy that dictates insurers to be tested and ranked to evaluate finances or claims paying ability
Your US or Canadian policy may extend physical damage coverage within past the US border for a limited number of miles. (Most do not) For this reason, its a good idea to check with your US or Canadian broker or insurance company before you leave home. Auto insurance for Mexico coverage is sold bit-by-bit, with more than a few unrated insurers reducing benefits in order to appear to be a good value, as there are no “standard” policies.
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 you cause to others are settled on an “actual cash value” basis, guided by Insurance Law. Review Kelly Blue Book in the US for accurate Mexico vehicle valuations.
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. It’s OK to ask questions such as, does the insurer include Legal Assist, Bail Bond, and Roadside Assistance and is it included in the rate? Are major claims handled in the United States, sparing you the frustration, and expense of journeying many times to Mexico to fulfill your judicial responsibilities? 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 information will help you tremendously in the unfortunate event of an auto accident
Most Mexico Insurance policies do not cover Vandalism or Partial Theft, but coverage may be included by with the better programs. Insurance for Mexico is sold on a “named perils” basis. “Full Coverage” includes collision coverage for your car. 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? Four or 5 ?
For knowledgeable Mexico 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? The only way they can afford to pay higher commissions is by limiting what is covered, or by reducing or trying to skimp on claims.
As the economy proceeds in a state of uncertainty, it might be most important to get good value for your money by buying a Auto Insurance for Mexico policy from a financially secure insurer.
You’ll benefit by buying coverage with an experienced specialist. Remember, we’re always satisfied and we always believe we have found a fantastic policy, until we have a loss!