Misconceptions and realities about Insurance for Non-Mexican vehicles
New public government policy enforces stricter rules on mandatory auto insurance.
Until some years ago, Mexico car safety regulations were lax and not sufficient. The country was losing 100 million dollars per year on car accidents.
State and local governments are leading the mandatory auto insurance policy. Most of Mexican states still haven’t passed any laws. Current laws concerning this issue are old and outdated, but more states are joining the effort each year.
One of the first states to pass this kind of laws was Baja California (ley vehicular del estado art 18 bis). The law requires all vehicles to have a minimum of $ 150,000 pesos of 3rd party liability. This is a great step forward because it keeps each driver accountable for their actions. Before, people had to settle for little if anything in case of collision or accident.
Still, $ 150,000 pesos is not enough if you add property damage (private and public), medical expenses, legal fees etc. Local Congress in Baja is evaluating whether to raise this liability limits.
Fraudulent Non-Mexican auto insurance (Tourist auto insurance)
This issue has fueled the establishment of too many “insurance brokers” that sell and scam tourists with fake insurance or very bad policies with low coverage. We’ve had customers complaining about getting into collisions and having to pay out of they’re own pockets to cover the damages. Accidents are not cheap in Mexico as one would think; professional assistance to complete all the red tape formalities is highly recommended.
US auto insurance doesn’t cover in Mexico!
One of the main misconceptions about auto insurance with Americans is the idea that US insurance still covers beyond the border. Some of the policies state that the validity only extends 20 miles south of the border. But still, some companies will not even try to get into trouble trying to satisfy a client in need.
The reason for this is what I talked earlier, about all the paperwork, formalities and procedures needed during an accident. The good news is that bureaucracy has been being eradicated recently and police officers need to pass tougher background checks. US and Mexican adjusters work in different ways so to avoid this we recommended buying your specific Non-Mexican auto insurance from a trusted source.
Do you live in Mexico and your US insurance expired?
Many Americans have the false idea that when they lose coverage with their American policy automatically the policy of their Mexican insurance also loses its validity. This is false, Mexican insurance does not lose its effect even if your US insurance expires.