Q: Why do I need Mexican insurance?
A: Mexico has traffic laws very similar to the United States. The application of their laws is what accounts for the differences, and the reasons for needing Mexican insurance. The law in Mexico is based on the Napoleonic Code where guilt prevails over the assumption of innocence. In the U.S., the law is based on the English Common Law where innocence prevails over the assumption of guilt. Mexico does not have compulsory automobile insurance. The basic difference between Mexico’s and United States financial responsibility law is that anyone involved in an accident in Mexico must have the means to respond to damages or injuries for which they may be responsible….which in Mexico would be in the form of either cash or a Mexican insurance policy.
Q: Do I need a Mexico Car Permit?
A: If you plan on only driving in the state of Sonora, the answer is NO, you don’t need a permit.. If you plan to drive outside the state of Sonora in mainland Mexico beyond the border areas, or plan to transport a vehicle by ferry from Baja California to mainland Mexico, then yes, you do need a permit.. Permits are also not required for travel on the Baja California peninsula.
Q: Does my U.S. insurance policy cover me in Mexico?
A: Some policies may cover your vehicle for physical damage. The problem is that the Mexican government does not recognize any policies as valid unless it is by a Mexican Insurance Company. You must have a Mexican Insurance Policy that covers you for your liability in Mexico.
Q: How is the value of my vehicle determined?
A: Your insurance agent should be able to help you, or you can go to the web site for Kelly’s Blue Book and check for yourself to determine your vehicle’s value. Make sure to add those extras you want insured in case you should have a loss. Don’t forget to add the vehicle being towed, if any, in the amount to be insured. We advise you not to under-insure.
Q: What if I have a loan on my vehicle?
A: Most lenders will require that they be furnished a copy of your policy indicating that the unit is insured while it is in Mexico. Upon request, we will supply a “lien holder” copy of the policy naming your bank or financial institution as lender. Always make sure you allow enough time before your trip into Mexico to allow for the handling of paperwork.
Q: If I tow a trailer, boat, or another vehicle, do I need to insure them?
A: No, and it must be listed on the policy with the towing vehicle, otherwise the towing vehicle’s insurance could be voided in the event of an accident or loss. If you are towing another Car or Truck, and plan on driving it around in Mexico, you will need a policy to cover it for driving and not just while it is in tow.
Q: If I am borrowing a vehicle, will I need any special documents?
A: Yes, you should obtain a notarized affidavit of permission from the legal owner?
Q: What is Liability Only?
A: The Liability Only policy provides the minimum vehicle insurance required by the Mexican government. Included in this coverage is property damage caused by your vehicle, legal liability for injuries or death of persons not in your vehicle, and medical expenses for you or other persons in your vehicle.
Q: What is Legal Aid Coverage?
A: In Mexico, a traffic accident is considered a felony, it is possible that you will be detained by the authorities, with your vehicle impounded, until they conclude their investigation. Legal Aid helps prevent this, with one phone call an attorney will come to your assistance, and negotiate your immediate release, as well as the release of the vehicle.
Q: What’s covered on a Mexican auto insurance policy?
A: Contrary to the more broad coverage’s of a standard U.S. auto policy, a Mexican tourist auto policy is a named peril policy. Basically that means, “what you see is what you get”. If it is not listed on the Policy Coverage then it is not a part of the coverage, nothing more and nothing less.
There are five (5) basic risks to a standard Mexican tourist auto policy.
1) Collision, Upset, and Glass Breakage
2) Fire and Total Theft
3) Property Damage Liability
4) Bodily Injury Liability
5) Medical Expenses
There are various methods of customizing a Mexican tourist policy. You are encouraged to clearly define your travel plans to your Mexican insurance agent so that adequate insurance is established.
To view the total Policy Coverage Terms click here.
Q: What’s NOT covered on a Mexican auto insurance policy?
A: As important as it is to know what is covered, it is worthwhile to also know what is NOT covered. Some of the losses and/or expenses an insured might incur which are not covered include pilferage, vandalism, lodging expenses, toll calls, and loss of wages.
Q: Are claims paid in dollars?
A: The Mexican insurance company settles all insurance claims in U.S. dollars from their claims offices in Mexico.
Q: How much does Mexican insurance cost?
A: There are many factors to determine the total cost of insurance. Basically it is a “sliding scale” It all depends on How much you insure you vehicle(s) for, and how long you will be insured for. Most policies are written on a daily rate. It may be less money if you are going to be traveling many days in Mexico, to go with an annual policy (covers you for the entire year).
. 10% Mexican government tax on the premium
Q: Do I have to go to your office to get my insurance policy?
A: No, you actually can do most everything using the Postal Mail, Internet, Fax Machines, and of course, what we recommend the most, just plain calling us. We can answer your questions and figure out a solution that makes getting you a policy as easy as possible.