If you’re planning to drive your car into Mexico, be it rented or owned, you must make sure that your vehicle is properly insured.
In Mexico, the laws require you to have an insurance policy for all vehicles. But you need to know that having your vehicles insured by American/Canadian companies will not work in Mexico.
As such, you need to get an auto insurance from a company that is licensed in Mexico. But many people don’t have a clear idea about the auto insurance policies work in the country. To help you out, here are some basic things to know about the insurance policies in Mexico.
Avoid buying insurance policies at the border. Opt for online services instead.
It is a common trend among American or Canadian tourists to purchase auto insurance policies at the border while entering Mexico. However, such services tend to be costlier than the standard rates.
A better option is to go for an online insurance policy. Apart from being cheaper, it will also give you a better idea about the insurance amount and the types of coverage it provides. Most companies will explain all the information thoroughly in their websites. However, be sure to check if the company is authentic and approved by Mexican laws.
Know about the basic coverage
There are two primary coverage types provided by auto insurance companies – liability coverage and total coverage. In the event that your vehicle meets with an accident and subsequently injures another person, vehicle, or property, then the amount you need to pay to the injured party is the liability.
As the name suggests, the liability coverage only pays for damages caused by your vehicle to another person or object. It does not pay for the damage sustained by your vehicle, or the theft of the vehicle.
On the other hand, total coverage will pay for everything – theft, damage to another party, or damage to your own vehicle. Depending on your budget and vehicle, you can choose whichever option suits you best.
As a rule of thumb, if the current value of your vehicle is low, then liability coverage is the better option. For vehicles that have a higher value, total coverage is suitable.
What this means is that, if your car is old, not too expensive, or the repair costs for it are not too expensive, then it may be possible to pay for those costs from your own pocket. Then liability insurance will be sufficient. But when you have a new or expensive vehicle, then repairing it in case of any damages will also be equally expensive. In such cases, it’s better to get total coverage.
Read the company’s policies thoroughly and ask questions
As mentioned before, if you visit the website of Mexican auto insurance companies, you will find the details about their policies. Read all points in detail and mainly focus on what damages the policies will cover, and what they will not. You can even contact them and ask them any doubts you have.
There are two reasons why this is important. Firstly, each company has their own clauses and terms. Secondly, once you know what damages are covered by your insurance policy, you will be able to avoid any complications in the future.
In Mexico, if you damage another party with your vehicle and fail to pay the liability, the local authorities can put you behind bars. So you must be sure that in case of any mishap, your policy will cover such liability amount quickly without any dispute.