Mexican Insurance Deductibles

The mexinsurance deductibles under the Qualitas Tourist Automobile insurance program:

Mexican Insurance Deductibles

Standard Automobile and Passenger Truck/Van

• Comprehensive (Risk 1): 5% or $1,000 whichever is greater
• Collision (Risk 2): 2% or $500 whichever is greater
• Liability, Legal and Roadside (Risks 3-5):  Zero deductible

An example to apply Mexican car insurance deductibles:

A 2008 Chevy Silverado stolen in a restaurant parking lot in Guadalajara. The Insured purchased “Complete Coverage” with the stated value limit of the truck set at $15,000. The deductible is calculated at 5% of the amount stated on the application, in this case, 5% of $15,000, which is $750. Since the deductible is the greater of 5% of the value stated on the application or $1,000, the deductible for this Insured would be $1,000.

The Insurance Carrier pays the lesser of the Actual Cash Value of the vehicle or the amount stated on the application. If the Actual Cash Value of the vehicle was determined by the carrier to be $8,000, the Carrier would pay $8,000 minus the $1,000 deductible.

If the Insured had purchased coverage stating the truck’s value to be $4,000 and the truck was stolen, the Insured would receive $3,000 ($4,000 minus the $1,000) deductible, because the Policy pays the lesser of the Actual Cash Value of the vehicle or the amount stated on the application.

Make sure to carefully value the vehicle on the application page to avoid paying too much for coverage (stating the vehicle is worth more than its true Actual Cash Value) and to avoid being paid too little in the event of a claim (stating the vehicle is worth less than its Actual Cash Value).

Uninsured Motorist in Mexico

The same Silverado is involved in an accident in Mexico and a Mexican Insurance claim is filed.

Accident Summary:

Vehicle: The same Silverado as above, $20,000 actual cash value. The Silverado was rear-ended at the border crossing by someone who took off. The Silverado did not want to leave their place in line, so they called Qualitas to file their claim.

Claim Results:

And adjuster met the client in line, took pictures and filed the claim. Because the vehicle was driveable he/she proceeded to return to the U.S., collected the adjuster’s information and they agreed to settle after estimates are reviewed. The Mexican insurance deductibles, in this case, are outlined below.

Repairs in the United States?

• $8,000 Actual Cash Value, 2% ($160) or $500. In this case since $500 is greater, it is the deductible.

• The damage results in $4,000. The insurance company will offer to repair the vehicle in Mexico or pay the client $3,500 to have the repairs managed on his/her own in the U.S.

Mexican Insurance Deductibles for:

RV “Motorhome”:  

• Comprehensive, total theft (Risk 1) 5% or $1,000 whichever is greater
• Collision (Risk 2) 5% or $1,000 whichever is greater
• Liability and Legal (Risks 3-5): Zero Deductibles

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