Blog

Usage-Based Auto Insurance Coming to Mexico

taun stewart 1359098 unsplash

Crabi, a Mexican insurance startup, intends to shake up the lucrative Mexican auto insurance market using artificial intelligence by predicting driver behavior.

Dubbed an “insurtech startup,” Crabi recently raised $1.3 million in startup money to get their platform off the ground. Led by Redwood Ventures, they aim to become a leader in car insurance in Mexico.

Crabi uses a “Fair Drive” model and personalizes auto insurance plans based on a person’s driving records, so drivers with a safe driving record could pay less than others with a not-so-clean record. The National Commission of Insurance and Finances has authorized Crabi to issue digital policies starting in Q2, 2019.

Crabi’s website has yet to release any information on their products so it’s too soon to tell if their policies will be offered to non-Mexican citizens, but all drivers must have a Mexican auto insurance policy when operating a vehicle in Mexico.

Latin American countries are often behind the times when it comes to new technologies and despite a 37 percent spike in insurance industry startups, Mexico has relied on old school insurance companies to write auto insurance polices.

One immediately apparent issue Crabi may have is the lack of documentation that often gets left out when drivers commit infractions due to the overall lack of accountability in Mexico, so it could be difficult for Crabi to determine exactly who is a safe driver and who is not. Just because someone has not received an infraction does not automatically make them a safe driver.

One thing is for certain is it will force existing insurance companies to step-up their game to compete with these new advanced technology services.

Share

Before you go...

Did you know our insurance partner, Baja Bound, has over 20 years of trust in the Mexican insurance industry? Get great insurance coverage in less than 5 minutes and see why they have so many happy customers.

Baja Bound logo
Baja Bound logo

SmartGringo thanks you for being awesome, you are being redirected to our exceptional insurance partner, Baja Bound.  You'll be able to get your insurance online through them, and they're around in case you have any questions.   The agents there love insurance and LOVE Mexico!