The little check-box that asked “is this vehicle used for business”, or simply “business use” should be clarified. It’s easy enough to just skip through to the next section of your Mexican auto insurance application but before you do, read this article.
What is Business Use on Mexican car insurance?
The business use surcharge is to cover things like car signage, wraps, or capture any additional miles and maneuvers that you would be making as a business user. For example, a realtor showing properties drives more, and often with additional passengers in her car. The business vehicle also frequently has signage, like car a “wrap”, which act as a mobile advertisement for the business. Here are examples of Business Use vehicles:
- The vehicle is owned by a business
- The vehicle will be used to conduct business (of any sort, including attending a business meeting)
- The vehicle has business signage or a wrap on it
What is the Cost Difference for Business Use?
It is typically between 10-25%. WIth Qualitas it is 20%, there are no business use surcharges with Chubb or Mapfre.
Here is why it’s important to check that box. If you have a claim, you will submit your expenses and get several estimates. The wrap might cost anywhere from $800-$4,000! If you don’t have that box checked, and the business surcharge paid, there is a good chance that the wrap will be excluded from reimbursement from the insurance company. Here is another example, you are taking business clients to your favorite restaurant downtown, conducting business and you’re involved in an accident. The passengers will be asked a series of questions and if they reveal they were conducting business in your car, your claim may be denied. A final example is your car is leased by your business. You get into an accident and submit a claim. The underwriter will see that the title and registration are in a company name, so if they look and find you did not pay that Business surcharge, they will have an argument to deny the claim entirely.
Please make sure to check the box if you or your car have anything to do with business. For 20%, it’s just not worth the risk.