Wed, 20 Apr 2022 00:56:20 +0000
Determining your car’s value in Mexico is more important than you might think. With any insurance policy, the question of car value is at the top of peoples’ minds. This question has become even more prevalent in the current used car market. Right now, there is a unique used car market in which your car may be going up in value.
How is the Value of My Car Determined in Mexico?
It may relieve you to know that Mexican insurance companies do not determine the value of vehicles. Mexican insurance companies use one of the following reputable sources to determine a vehicle’s value: Kelly Blue Book, National Automobile Dealers Association, or CCC Information Services.
If you would like to look up the value of your car use the following guidelines:
For Kelly Blue Book, select “Buy from a private party” and then enter your vehicle’s information.
For National Automobile Dealers Association or CCC Information Services, select “Average Trade-In” and enter your vehicle’s information.
Although the value of your vehicle may change over time, you can get an idea of your vehicle’s worth before purchasing insurance. If you experience a total loss, then the value of your vehicle on the date of loss will be used.
Tips on Buying Insurance in Mexico With a Stated Value:
Mexico Insurance works very differently than in the USA or Canada. In the USA, your driving history, age, and the history of the car will all affect the cost of your insurance premium. However, in Mexico, this information is not publicly available. Therefore, the value of your vehicle is the main factor in determining the premium of your Mexican insurance policy.
When you enter the value of your car on the Mexico insurance application, that is called the “stated value.” The stated value is the MAXIMUM possible amount you will receive in the event of total loss. It is always better to overestimate rather than to underestimate your vehicle’s value.
For example:
If you state that your vehicle is worth $20,000.00 and then your car gets stolen and Kelly Blue Book determines that your vehicle is actually worth $24,000.00, then $20,000 is still the MAXIMUM you could receive in compensation. On the other hand, if you state that your vehicle is worth $20,000 and at the time of loss your vehicle is only worth $15,000.00, then you would only receive a MAXIMUM of $15,000.00 in compensation.
What Happens if My Car is Totaled in Mexico?
After you experience an accident in Mexico, an adjuster will come and assess the damage to your vehicle. If it is determined that your vehicle is a total loss, you will be offered compensation for your vehicle’s value.
You are responsible for your vehicle even after your vehicle has been totaled. According to Mexican law, insurance companies cannot keep the salvage of American plated vehicles. This means that you will only receive a percentage of your vehicle’s stated value because the insurance company is unable to keep the vehicle and resell it to recoup expenses.
Which Mexico Insurance Policy is Right for You?
Each underwriter has different rules when it comes to determining a total loss, so It is important to review this information to determine the right coverage for you.
Qualitas:
Qualitas will determine your vehicle a total loss if the costs of repairs exceed 75% of the stated value of the vehicle.
Qualitas will offer you up to 90% of the stated value of your vehicle minus the deductible. However, You can get up to 100% of the stated value minus the deductible, if you can prove that you donated/ destroyed your vehicle.
More information can be found in the Terms and Conditions under Clause 3.4
Chubb:
Chubb will determine your vehicle a total loss if the costs of repairs exceed 60% of the stated value.
Chubb will offer you up to 75% of the stated value of your vehicle minus the deductible.
If Your vehicle has a rebuilt title, Chubb will offer you up to 50% of the stated value of the vehicle minus the deductible.
More information can be found in the Terms and Conditions under Clause 11
Mapfre:
Mapfre will determine your vehicle a total loss if the costs of repairs exceed 50% of the vehicle’s stated value.
Mapfre can offer you up to 100% of the stated value of your vehicle minus the deductible and you will have to sign over your vehicle to Mapfre.
If your vehicle has a rebuilt title, Mapfre will offer you up to 50% of the vehicle’s stated value minus the deductible.
More information can be found in the Terms and conditions under clause 7.4
Mexico has a unique insurance system. Understanding how tourist insurance in Mexico works can help you make a more informed decision when purchasing tourist car insurance. Be sure to look at the different policies options to determine which one is right for you and your needs.
