Mexican Watercraft Insurance

Why does Mexico require liability insurance for my boat? And what is liability?

Requiring liability insurance allows Mexico to protect its citizens. Liability coverage pays for the other driver’s expenses if you cause a collision. So, if you cause an accident in Mexico, you will be responsible (AKA liable) for all the damage inflicted to both the people involved and the property involved. Requiring visitors to purchase insurance ensures that visitors have the ability to cover costs that may arise if they are in an accident. Liability does not, however, cover your expenses or losses.

What information do you need to know about my boat or watercraft during the quote and application process?

1. Year, length, make and model of boat or watercraft
2. Maximum speed
3. Registration number and country where vessel is registered
4. Hull ID number (HIN)
5. Information about operators- age, Driver’s License number

What is the difference between boat insurance and yacht insurance?

Some people use boat and yacht interchangeably. When it comes to insurance, agents use “boats” to describe vessels up to 26 feet L.O.A. and “yachts” to describe vessels 27 feet L.O.A. and longer.

What is agreed value vs. actual value?

There are two basic types of boat insurance—“agreed value” and “actual cash value.” How depreciation is handled is what sets them apart. An “agreed value” policy covers the boat based on its value when the policy was written. While it can cost more up front, there is no depreciation for a total loss of the boat (some partial losses may be depreciated). “Actual cash value” policies cost less up front, but factor in depreciation. In other words, the policy will only pay up to the actual cash value of the boat at the time it is declared a total or partial loss. Eventually, as your boat ages, your insurer will likely insist on an actual cash value policy—and if often gives a substantial savings.

How can I get discounts on my Mexican watercraft policy?

There are a few ways to reduce your boat insurance costs. For example, if your boating is restricted by seasons and your boat is in storage during the winter, you can get deductions for winter layup. Many insurers offer discounts for good driving records and for anyone who has completed boater education classes. Finally, it usually costs less to be insured in fresh water versus salt, so be sure to discuss where you boat with your agent. You may earn extra savings by bundling your coverage with the same company that insures your home and/or car.