Monthly Archives: December 2013

What are the Time Zones in Mexico?

One of the considerations and requirements of living on the U.S. Mexican border has to be understanding the Time Zones and how they affect both countries. Especially if you do business or commute to work from one side of the border to the other.

I have been involved in the International Insurance industry since 1989, specializing in Mexico, which makes it doubly important to know the Time Zones in Mexico. Additionally, living in El Paso Texas, we are the only major city in the State of Texas that is on the Mountain Time Zone and not the Central Time Zone. We need to know these zones because we deal with numerous offices, agencies, and of course customers throughout Mexico, including Mexico City.

There are three (3) Time Zones in Mexico as compared to the U.S. four (4) time zones in the continental U.S. The majority population lives in Mexico City and Merida locals, and is the same time as our Central Time Zone in the U.S.

The next time zone begins North of Puerto Vallarta, but does not include Puerto Vallarta. It does include the very popular Mazatlan, and Baja Sur (Sur meaning South). This area represents a major play ground for Americans and Canadians, especially those who enjoy the warmth of the beautiful Pacific and Sea of Cortez. Major cities in this Time Zone are Loreto, La Paz and the extremely popular Los Cabos.

Closer to home, our home, is the State of Chihuahua and includes the city of Chihuahua, as well as Ciudad Juarez, that sits next to El Paso Texas. This large area, usually described as the Texas of Mexico, is located in the Mountain Time Zone (one hour between U.S. Central and Pacific Time Zones)

Baja Norte (North) uses the same time as California, Pacific Time, while the entire State of Sonora (located in Northern Mexico, directly East of Baja Norte and bordering Arizona) does not participate in changing their clocks at any time during the year.

We hope this helps you in your Mexico travels. If you have any questions concerning this or anything else regarding travel into Mexico. Please let us know, we will do our best to assist you.

For all of your Mexico Tourist Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!

Is Mexico Tourist Auto Insurance cheap?

Mexico Tourist auto insurance, like most stateside auto insurers, is regulated by a Federal Insurance Commission. Consequently, rates for Mexico Tourist Auto insurance is submitted, and approved by this Commission. The same regulatory procedures that occur in most, if not all, U.S. states.

Whether the insurance is cheap is determined by what type and kind of insurance you want or need to have. There are currently 19 insurance companies that operate in Mexico that offer this type of insurance. Out of those, there are only six Mexican insurance companies that write at least 5% of the market share or above. The meaning there is that this market represents a small % of the over all insurance market in Mexico. Through my many conversations with numerous administrators and managers, most became involved in this market in order to generate U.S.D. (currency). They all, however, play a major role in the tourism industry, as they provide a product that allows their closest Northern neighbor access to beaches and time shares in the comfort of their own cars.

Rates or costs are determined by the type of insurance you want or need to purchase. For instance, if you want, or if your Lien Holder (who you make auto loan payments) wants you to have physical damage on your car, like theft and collision, then the rate is determined by the value of your car. Most if not all Mexican Tourist auto policies are written on what is called a ACV, or Actual Cash Value basis, and not a Stated Amount policy, where you can just name what ever value you think your car is worth, and then think that the insurance company is just going to fork over that amount…good luck.

Since a very large percentage of vehicle loans in the U.S. are what is called underwater (loan amount over the value of the vehicle), it is important to understand that the Mexican Tourist Auto policy will pay the ACV (up to the insured amount) only, as generally determined by Kelly Blue Book, or N.A.D.A. (National Automobile Dealers Association) appraisal book. Unfortunately, and this is the fault of the financial institutions that make these loans, they want the insured amount of the financed car to show at least the balance of the loan amount. Doesn’t make sense, due to the fact the insurance company will only pay up to the ACV. Another ridiculous requirement involves Ex Pats (U.S. Citizens living in Mexico) who still make U.S. car loan payments, but their financial institution requires they carry U.S. full coverage auto insurance when the insurance doesn’t even provide coverage in Mexico.

The cheapest insurance rate is for the 3rd party liability coverage, which is the only required coverage needed in Mexico. That coverage is for the “other guy”. It pays for any bodily injury or physical damage to their car, that you have caused. It is similar to that which most, if not all, U.S. states require when operating a motor vehicle in the U.S. Those rates generally start at around $ 4.00 a day for the lowest liability limits. NOTE: recently, each Mexican State determined it’s own minimum liability limits, which range from close to $5,000 U.S.D.$ to $540,000 U.S.D.$…that’s right, in U.S. Dollars! You can see the exact requirements for each Mexican State by clicking on this link, and go to the State you are traveling to. Please also note that you might be crossing from one State to another, and thus encounter differing liability limits.

The great thing about the design and cost of Mexican Tourist Automobile policies is that you can choose the limits and coverages you want, and you can purchase them by the day, six months or annual plans. Whether a policy is cheap is strictly determined by your wants and needs. Just like Flo on TV, you can name your price or adjust your costs by what coverages you choose. Never, EVER, mistake an insurance product as significant as this to be based solely on if it is “cheep”, but rather the value you can receive from it. Like, if it offers Guaranteed Bail Bond and Legal Assistance, which is a stand alone feature of some policies, and not on others. In Mexico, Mexico Tourist Auto insurance does not provide for legal representation, unless it is specified as a coverage on the declarations page. Very important, because Mexico follows Napoleonic law, your guilty UNTIL proved innocent.

For all of your Mexico Tourist Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!

Can you rent a vehicle in U.S. and take to Mexico?

The answer is absolutely YES!

Many U.S. car rental companies are totally unfamiliar with this scenario, especially the further you are away from the border. There a few companies, typically in the border states that do allow their vehicles to travel into Mexico with the proper Mexican insurance.

Some car rental companies, like CAPPS Van & Truck Rentals headquartered in Dallas Texas, rent their very popular 15 passenger vans from all over their Southwest locations. From Dallas, Houston, San Antonio, Oklahoma City to Phoenix Arizona to name just a few of their locations where rentals are allowed to travel not just to the Mexico border towns, but with permission, into the interior of Mexico. Most car rental companies do not allow their rentals into the interior of Mexico.

The primary purpose for which many rent from CAPPS Van & Truck Rental for travel to Mexico is for Student and Church Groups doing short term outreaches or studies in their selected fields in Mexico. These vehicles are perfect for transporting large numbers of people and luggage for these types of trips. CAPPS, who has dealt with these types of groups for years has developed a faithful following. Their Reservation Center phone # is Reservation Center 1.800.969.9329 or if you prefer you can visit their website.

If allowed by your car rental company to take their vehicle into the interior of Mexico (generally 26 kilometers from U.S. border) you will need the following:

1. A notarized “Letter of Permission” from the car rental company to the renter. It must contain the Make, Model, Year, and V.I.N. of the rental car, van, or truck

2. A Valid U.S., Canadian, or International Drivers License (NO MEXICAN DRIVERS LICENSES, it is illegal, a Federal law, for a Mexican to operate a U.S. Registered vehicle in Mexico. Subjects the vehicle to CONFISCATION!, FYI, you won’t get it back)

3. A Rental Agreement with your renters name

4. A Valid Passport for the Renter and all passengers

5. In addition to the above, if you are traveling with minor children, then a Parental Affidavit giving the responsible adult permission for their children to travel. We have those available, if needed. Contact our office at the phone #’s or E Mail below.

You must purchase a Vehicle Permit when going into the interior of Mexico. You can purchase it at the Port of Entry. It is important, maybe critical, to remember to TURN IN THE VEHICLE PERMIT when exiting Mexico. Failure to do so could entail future costly complications on any travel into Mexico.

For any questions regarding Mexico Tourist Auto insurance and renting a vehicle for travel to Mexico, please feel free to call. We have been serving the international travel community sine 1989.

For all of your Mexico Tourist Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at ici@mxici.com or visit us at mxici.com to issue your own policy. We appreciate your business!