Tag Archives: 3rd party liability

Will my New Mexico Auto insurance policy cover me in Mexico?

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Rather than bore you with a narrative of what I know after 32 years in the insurance business, I will just let this actual text from the New Mexico Department of Insurance answer this question:

” Will my New Mexico personal auto policy provide coverage if I drive my vehicle into Mexico?

Mexican law requires that you purchase separate liability coverage from a Mexican insurer before operating your vehicle in Mexico. Your New Mexico personal auto policy may provide some limited coverage on a limited basis (within 25-50 miles of the Mexican border); however, this coverage does not meet the insurance requirements of the Republic of Mexico. Failure to purchase proper Mexican liability insurance may result in many hours in a Mexican jail or a heavy fine if you are involved in an accident while operating your vehicle in Mexico. Check with your company or agent to determine the coverage available under your specific policy.”

After having personally assisted someone who relied upon their own personal auto policy, I know. Having to find this out, after the fact, is not very wise, but rather stupid. When for a few bucks a day, you can purchase 3rd party liability insurance which can certainly help, and won’t hurt.

Anyone who has family, friends, or even work in Mexico, can benefit from our knowledge, and certainly our insurance products for both sides of the border. We insure U.S. residents or citizens traveling to Mexico, and we can insure Mexico Residents or citizens traveling into the U.S.

So call us, write us, even fax us, for the finest service from the best insurance companies with the most competitive prices!

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

New Liability Rules in Mexico.

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This past year, something occurred in the Mexican legal system that boggles the mind.

Going from a laisser-faire attitude about its own citizens and their driving without insurance, to now requiring sometimes huge limits for 3rd party liability in certain Mexican states. Most times, Mexican Nationals, when they don’t have a liability policy from a Mexican insurance company, will just bolt or flee. Mexican law is not lax in handling those responsible for causing the accident. The “at fault” driver typically has their vehicle impounded, or if there is injury, then the owner or driver of the at fault car is jailed or held until brought before a Magistrate.

These limits are not just geared to U.S. drivers in Mexico, but also are the standard for Mexican citizens and their own personal cars.

Don’t forget that many people will drive over one state line to another, just like in the U.S., but unlike the U.S., your Mexico auto or tourist auto insurance will NOT adjust itself to the required minimum 3rd party liability limits of an adjoining state. If you are not familiar with this term, 3rd party liability, it means injuries you may cause another person, a 3rd party, not you or one of your passengers.

In addition, most visitors to Mexico, whether Paisanos or just tourists, don’t realize that most Mexican vehicles are valued close to double that of an American car, even if the same year , and model. The reason for that is the IVA, like a sales tax the Mexican Gov’t charges. This generally increases the value of the car. What does this mean to you? It means to replace a Mexican car that you have damaged, or totaled is generally significantly more than a U.S. or Canadian registered vehicle. If you don’t have enough coverage in your policies 3rd party liability limits, then you are responsible ($) for the difference.

Don’t rely on cheap insurance when in Mexico, and certainly don’t rely on some vanilla web site or even your local insurance agent who sells this on the side, when you can speak or E mail those with years of experience in this industry and get the correct answers. We are here to help you. It is what we do, it is what we are paid to do, and we are adamant about being knowledgeable about our products, and our experiences in dealing with Mexico.

To see what the actual limits for liability are for each Mexican State, go to this link. We hope this helps you become a knowledgeable consumer. Click here for posted liability limits.

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

So you think your covered with your U.S. insurance in Mexico?

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Unfortunately many people believe this myth. Again unfortunately, it is because most of our U.S. insurance companies giving credence to this belief by implying their Mexico Border Endorsement provides coverage in Mexico. It “might” for physical damage (damage to YOUR vehicle) but NOT for the 3rd party liability exposures you encounter in Mexico.

First, a brief explanation. Automobile insurance is broken down to specific parts or types of coverage. 3rd Party Liability is the part of your auto insurance that provides monterary compensation to “others” that you have either injured or caused property damage to. It is not for you, it is your fiscal responsibility to pay a 3rd party when you are at fault in an covered accident. Just a brief note about Mexico and their 3rd Party Liability requirements, click here for the latest information regarding those limits. Special note: Your destination may entail driving through various Mexican States. It is wise to at least purchase the States highest 3rd party liability limits that you travel.

Mexico’s vehicle laws are implemented differently than those in the U.S., and require payment at the time of the accident, OR, you must posses a valid Mexico Tourist Auto policy from a Mexican insurance company. The authorities will negotiate with the Mexican insurance companies Claims Department, or Adjusters.

So your U.S. auto insurance is not applicable when in an accident in Mexico. Restitution is immediately required, and trust me, your U.S. insurance company is not going to send their U.S. Adjuster to Mexico to ajudicate your claim. Therefor, you will be required to pay out of your back pocket the damages or repair costs to the 3rd party on the spot, OR, they may impound your vehicle until restitution is made, OR, they could, and this is extremely rare, incarcerate you until restitution is made.

You may say, but my policy says I am covered, and I am an American! GOOD LUCK with that gem of a statement as your vehicle is impounded while you go back to the U.S. to get $ for this claim. OR, you can speak to your U.S. insurer, who will happily explain to you “NO problem” just bring us a copy of all the police reports and tow or drive your vehicle back to the U.S. and we will gladly pay your claim! There are numerous other scenarios where this can just only get worse, but I am not about to dissuade you from traveling to Mexico, just be wise and purchase your Mexican Tourist Auto policy prior to leaving the U.S. Inexpensive and very simple…

Another thought. I have recently pursued and have made avialable on line, the Mexico Border Endorsments from Nationwide (Texas) and Allstate (Texas). They are vague at best without specific coverage definitions, and also realistically convey that their coverage is not recognized in Mexico. Why they make it part of the policy, I will never know.

To view these documents, click on the following:

Nationwide (Texas) Mexico Border Endorsment

Allstate (Texas) Mexico Border Endorsment

We hope this helps with any questions or concerns you have about your U.S. Auto insurance and the implications that could arise if you depend solely upon that as your proof of insurance in Mexico.

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!

 

 

 

New 3rd Party Liability Limits for Mexico

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Recently, we received word that Mexico has instituted new 3rd Party Liability Limits for vehicles. This includes foreign plated vehicles, most of which are vehicles registered in Canada and the U.S.

In Mexico, they have one Department of Insurance that covers all insurance matters for all 33 Mexican States. It is administered by the Federal Government. In the U.S., each State has it’s own Department of Insurance, who then has agreements with the other states when insurance law is generally applied in 3rd party liability cases. Every State has their own minimum 3rd party liability limits, as does Mexico. However, Mexico allows each State to set it’s own minimum liability limits, which is very strange since it is a Federal program.

So now we have 33 states with varying liability requirements. The new minimum limit is over $500,000 USD$ (yes that is right, and it is not pesos) in some states, and a few States with very low limits around $ 4,000 USD$. Click on this link for the latest requirements. PLEASE, do not forget, the distinct possibility of crossing into or through one Mexican State that has a higher liability requirement, as opposed to your destination, which may have a lower liability requirement. Unlike the U.S., your liability limits do not automatically adjust to the higher limits that some States require.

The problem is this, and it is the same for the U.S. You can purchase an automobile policy with the minimum limits, but that does not exclude you from having to personally pay for additional judgements against you. In Mexico, the reason for raising the limits were for crashes or collisions resulting in someones death. Though not common, it does indeed happen. Having been in this particular industry since 1989, we have unfortunately experienced a few. It is the primary reason for purchasing insurance, and that is to protect you from personal financial liability, the insurance company, if purchased correctly assumes the risk. Actually, personal risk was mentioned in the bible, where it was part of the Jewish law. Paraphrased, if you dug an unmarked well and someones livestock fell into it, you were fiscally responsible for settling the cost of the livestock with its owner.

Since each Mexican State has it’s own required limits, it is much safer to purchase a policy with $ 500,000 C.S.L. (stands for *Combined Single Limits) than to purchase one for $50,000. That is why we offer limits of $300,000 C.S.L. and $500,000 on our best insurance packages.Our standard plans do have a lower available limit, but we HIGHLY suggest the plans with the higher limits. You are talking only a few dollars more, and worth every penny…

If you have any questions regarding this or any other insurance matter as it involves Mexico, please feel free to call or write. As always, Mexico can change their laws at any time, and unfortunately, we generally do not find out about them until they are implemented. So call before you go, to find out the latest in available information.

* Combined Single Limit means that both property damage you cause others, AND bodily injury costs are taken out of the same bucket so to speak. Split limits are separated, one amount for Property Damage you cause others, and the other for Bodily Injury you cause someone.

For all of your Mexico 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!