If you are planning a Mexican vacation, you will have a lot to pack. You will need plenty of sunscreen. You will also want to pack some fancy clothes for those wonderful Mexican nightclubs, and some sturdy walking shoes for all the shopping you will be doing. But then the question arises, does my policy have Personal Property Coverage?
But no matter what else you pack, be sure to bring your Mexican car insurance. Your U.S. policy will not cut it south of the border, and if you do not buy the protection you need, your dreams of a carefree vacation could vanish in an instant.
Car Insurance in Mexico
In Mexico, the car insurance marketplace is largely unregulated, and that means drivers need to educate themselves before they buy. If you want to get the protection you deserve, you need to understand how car insurance works in Mexico.
There is a lot of confusion over coverage for personal property south of the border. If you do not think this coverage is important, just think about the total value of everything in the car. If you do not understand personal property coverage in Mexican car insurance, you could be out thousands of dollars in losses if your car is stolen south of the border.
So what is and is not covered by the personal property portion of your Mexican auto insurance policy? Here are some key things you need to know.
First and foremost, you should not expect the Mexican auto insurance policy you purchase at the border to cover the contents of your vehicle. The policy may cover the cost of the car itself if it is stolen in Mexico. The insurance will not typically reimburse you for the value of the items inside.
The good news is you may already be covered for the loss or theft of personal property inside your vehicle. If you have homeowners or renters insurance, that policy may cover theft from your vehicle. You will want to contact your insurance agent before you leave home to make sure you are covered, and once you know you will have one less thing to worry about on your Mexican vacation.
Homeowners and Renters
You may not be out of luck even if your homeowner or renters does not cover it. Many credit card issuers provide some kind of travel insurance, including reimbursement for items stolen out of vehicles. Once again, it is important to contact your credit card issuer before you leave for your trip. You will want to know which card you want to use for paying for items.
Many drivers assume that the Mexican auto insurance policy they purchase before crossing the border will cover everything. However, that is usually not the case. In your Mexico-specific auto insurance policy you need to know what is excluded.