Mexico Insurance and the Tourist Visa
I have taken quite a few calls recently related to FMM and Mexican insurance coverage. Which sounds really silly because what does immigration have to do with insurance? Immigration is a federal government system that controls who enters and exits their country. Where insurance is a private financial instrument designed to transfer risk. Where do these two entities and instruments intermingle?
Apparently, some companies are using one as an excuse to deny the other. Sound shady? Let’s dig deeper.
In some states and countries, the government can require insurance in fact most states in the United States of America require minimum limits. Even Mexico has a mandatory auto insurance law on the books. The government can do what it wants.
But insurance – not so much. Insurance is highly regulated in the United States. You can expect that anyone who offers you a quote is licensed, and by extension has technical training on the products they offer, and also ethics training to ensure the consumer is treated fairly above all else. So, how does a private and licensed insurance organization make immigration requirements in order to file a claim? Can they take the money, sell the policy without the requirement, and then deny the claim? But what does immigration have to do with operating a vehicle?
I laughed when I was first asked this question because it seems almost ridiculous. If someone in the U.S. tried to deny an immigrant or tourist insurance policy claim based on their legal status – there would be outrage. I mean, if you sold them the policy and collected their money – you better have a better excuse than their “immigration status” to deny a claim. For a U.S. company to sell a policy to someone, then deny a claim based on immigration status would be booed, sued, and burned to the ground.
So – who is doing this? What is the justification?
FMM Has Nothing to do With Mexican Insurance Claims
No client of ours has, or will ever be denied a claim based on immigration status. I have confirmed with all three of our underwriting partners: Qualitas, Chubb, and Mapfre – they would NOT deny a claim solely based on immigration status.
Let me know if you have any questions. And check your agent/broker’s license! You should never buy insurance from someone who doesn’t hold a valid insurance license in the United States! The bad actors have their underwriter’s interest front-of-mind (profits), and NOT YOURS.
Be a Good Tourist
Please follow all local, state, and federal laws while visiting Mexico. We have a border crossing checklist that is updated regularly so that you can find everything you need before you cross the border. Click here to view that border crossing checklist.
And for God’s sake, don’t let your friends work with bad or racist agents and companies. Send them here, we’ll make sure they are treated with the respect they deserve.
Learn about returning your FMM and TIP at the border here