Mexican Insurance is not simple. The truth is, domestic insurance is not simple so how can car insurance in a foreign country be easier to understand? Our goal with this article is to Simplify Mexican Insurance Coverage
Listed below are the five Mexican insurance coverage basics. Every Mexican Car Insurance policy has some form of each of these. Here we try to simplify the language so you understand which is which. As a result, you will make a more informed decision when choosing between “Liability Only” or “Complete Coverage” policy.
Risk 1 – Physical Damage to Your Car. Also known as “Collision”
When you select Complete Coverage you get Risk 1 and 2. Common examples include:
- Uninsured motorist hits you and causes damage to your car. This risk covers the damage subject to limits on policy (actual cash value and the amount you enter or “value of car” are limiting factors). You will be reimbursed minus deductible. Deductibles are explained and detailed here.
- You get into an accident regardless of fault, this risk covers damage to your car (subject to Mexican Insurance Terms and Conditions)
Risk 2 – Total Theft
Risk 2 is included with Complete Coverage, and it is self-explanatory. Common examples include:
- Your car, truck, RV or motorcycle disappears. This risk will compensate you and/or the lien holder (the person you make monthly payments to) for your loss. Loss is based on Actual Cash Value and the amount you enter for “Vehicle Value”.
- Subject to deductible
Risk 3 – 3rd Party Liability
Commonly referred to in the mexinsurance world as “Liability” – this covers damage you cause to another person or property in Mexico. The absolute minimum we offer is $150,000 US, but you can purchase up to $1,000,000 US.
Common examples of coverage
- You blink your eyes and run into a young woman stopped at a red light. The woman at the red light was doing makeup and the makeup stick jammed into her eyeball during the impact of the accident. The ambulance rushes her to a hospital where she spends the next 48 hours. As a result, she has two broken bones, a broken car, and a broken heart.
- This is a risk – damage to third party person or thing. The damage to her vehicle and her medical is covered under this Risk up to limits you choose.
- Damage to your car is NOT covered under 3rd Party Liability.
- This is a risk – damage to third party person or thing. The damage to her vehicle and her medical is covered under this Risk up to limits you choose.
- Your accelerator sticks and brakes stop working and you run into a crowd of Texans at the bar in Monterrey (yes, with JJ Watt Jerseys, it’s a Sunday). The damage you caused to those Texans will be covered under this risk, to the maximum limit of the policy.
- If you are committing any crime, under the Terms and Conditions this policy can be voided and claim denied.
- Drinking and driving is a crime that can cause policy claim to be denied. Don’t drink and drive in Mexico. Don’t drink and drive anywhere. Be drunk; don’t be a drunken idiot.
Mexican Insurance Coverage Simplified
Risk 4 – Medical Payments
Medical Payments to cover YOU and your occupants in the car. This is included for all policies except for Motorcycle Automobile policy. Examples include:
- You are in a car accident, regardless of fault. Everyone is conscious but you have 3 occupants moaning and groaning in the back of the car. All parties are taking by ambulance to the hospital. Each person is subject to the Medical Payments, Risk 4 coverage which can be upgraded.
- Standard Qualias is $4,000 US per person, $20,000 per incident maximum
- Upgrade available to $6,000 US Per Person with $40,000 US per incident
- *Motorcycle policies do NOT have this risk. Drive motorcycles very carefully in Mexico
Risk 5 – Legal and Roadside
Risk 5 is almost always a legal and roadside assistance plan, and the 5th of 5 mexinsurance coverage basics. At the very least, most mexinsurance programs offer Legal Aid, Towing and Bail Bond but mexinsurance.com offers the following including with all policies: AVQ – Roadside Assistance in Mexico
