Tag Archives: Border Endorsement

Does my U.S. auto insurance cover me in Mexico?

NO. Mexico does not recognize U.S. 3rd Party Liability coverage on any policy other than on a valid Mexican Insurance policy, underwritten by an authorized Mexican insurance company.

YES. For the Physical Damage (Collision & Theft) coverage IF your U.S. auto insurance policy covers it in the U.S. AND it contains a Border Endorsement. This generally occurs if you live at or near the U.S. Mexican border. This only applies to the Physical Damage coverage to your vehicle while in Mexico. THIS DOES NOT INCLUDE THE 3rd PARTY LIABILITY MENTIONED ABOVE, WHICH IS REQUIRED TO OPERATE YOUR VEHICLE IN MEXICO. FYI, 3rd Party or Public Liability coverage is for “injury or property damage you cause the other guy”…This coverage is a standard moral and financial requirement in the U.S. as well as Mexico.

IMPORTANT: Your U.S. insurance agent may not completely understand this Endorsement, especially if you are domiciled away from the U.S. / Mexican border. Some U.S. insurance companies provide the Endorsement, only with the requirement of your purchasing the Mexican 3rd Party Liability policy through a Mexican insurance company. Some may not have this requirement. Yet others might provide various degrees to range of territory (25 kilometers, 100 kilometers, or all of Mexico) or limited time requirements for travel in Mexico. In any case, you should know that, at the very least, Mexican authorities will typically require restitution on the spot (by law) if you do not possess a Mexican Tourist Auto policy. If you do not have the monies ($$$) on your person to pay for the damage, or injuries you have caused a 3rd party, including your own passengers, then you are subject to being detained, and your vehicle confiscated until all fines, fees, and damages are paid.

If you are relying upon your U.S. insurance companies Border Endorsement for Physical Damage to your vehicle, they require YOU to tow the vehicle back to the U.S. for repairs. Tough to do even near the border, and tougher (and more $$$) if you are in the interior! For a few bucks a day, it is just not worth it…

Conclusion: Do not rely upon your U.S. auto insurance in Mexico, have peace of mind while enjoying your Mexico travels by purchasing a Mexico Tourist Auto insurance company from a reputable Agent and insurance company.

Now go enjoy your adventure! If you have any questions, please feel free to call or E Mail.

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!

What do you do if you have an auto accident in Mexico?

Auto accident in Mexico

First, if passengers or drivers are injured, seek medical attention.

If your vehicle has been stolen, hopefully you would have taken a picture or record your V.I.N. and License Plate on your phone. Also make certain you include your Mexican Tourist Auto policy #, if any, and the Claims Center phone # for the policy. Many times people leave all their important paperwork, passport, vehicle title or registration, in the car and it takes an inordinate amount of time reconstructing or retrieving that paperwork. Best just to put it all in your phone, and save a copy of each important document at home so the information can be easily transferred to you no matter where you are.

If you have a Mexican Tourist auto policy, contact your Mexican Insurance Companies Claim Center. Most Claims Centers use Mexican Toll Free #’s which typically cannot be dialed with a U.S. cell phone, so you might have to use a land line. Be prepared to provide them your:

Name
Policy #
Exact Location (if uncertain, ask someone)

Do NOT enter into any kind of agreement with a 3rd party. That is, anyone whom you have damaged or injured in the accident.

If you do not have a Mexican Tourist auto policy and are depending on your own U.S. auto insurance policy then one of two things could occur. Remember, Mexican law requires immediate financial restitution to a damaged or injured 3rd party.

1. Mexico does NOT recognize U.S. auto policies 3rd party liability coverages. That particular coverage must be written by a legally licensed and authorized Mexican insurance company. Consequently, there is a high probability that you will still be held accountable if you do not posses this type of policy.

2. If you don’t have a Mexican Tourist Auto policy, you might be asked to make immediate financial restitution to the damaged 3rd party. The authorities typically negotiate with them, and you will have to pay them on the spot. At times, the 3rd party, who understands the system, might seek financial restitution from you prior to the authorities arriving. If the authorities do show up and you are required to pay the 3rd party and you don’t have monies to do so, will usually impound your vehicle, and possibly bring you before a Magistrate.

Once, on a flight home from San Antonio, rode with a Bodily Injury Adjuster for a major U.S. (national) auto personal lines insurance company. We shared stories, and when I asked exactly what occurs when one of their U.S. policies has a claim in Mexico, he chuckled and said “nothing”! We are not allowed to cross into Mexico to work…period. When I asked how they adjusted the claim, he said they processed the claim once the insured got themselves, and their vehicle back to the U.S. Absolutely worthless, so know what you have. Most U.S. insurance companies possessing this endorsement, will advise you get additional 3rd party liability coverage for Mexico.

For the least amount of resistance, purchase a 3rd party liability policy issued by a Mexican insurance company, very inexpensive, especially as compared to the scenario above.

If your vehicle is valued high enough to warrant physical damage (i.e. Collision and Theft) it can be purchased for a few more dollars. Finance companies, if your still making payments on your vehicle, require this coverage. If you have a U.S. full coverage (Collision & Theft included) insurance policy that contains a “Border Endorsement”, you should have this coverage, as long as the insured event takes place along the frontera, generally within 26 kilometers of the U.S. border. Many U.S. insurance companies do not have this provision, and those that do, have guidelines that practically make them worthless. FYI, get it in writing.

Follow the instructions provided by your Claims Center or Adjuster. Always ask them to provide you a Claim #, and if an Adjuster arrives, be certain to request their Business Card and a copy of the Claims Report. If they cannot get to you in a reasonable amount of time, due to your location or other factors such as Holidays, or heavy traffic, then you might receive permission to drive the vehicle, if it is safe to do so, and if not, they will probably send a tow truck (grua) to your location.

If, and this is very rare, you are in a serious accident where injuries or possibly a total loss of yours or anothers vehicle, you might have to go before a Magistrate. This is not common, as Mexico does not want to hinder tourist travel, or generate bad publicity, due to the economic impact tourists generate. However, on occasion, and due to their laws, they might hold you in a Magistrates office until the case is settled. Most Mexican insurance companies, not all, provide legal assistance for this scenario.

What have we learned.

1. Make copies and document all of your important paperwork on cell or at home
2. Do not rely on a U.S. Insurance Companies, Border Endorsement
3. At least purchase a 3rd party liability policy from a legally licensed and authorized Mexican company.
4. If needed or warranted, purchase Full Coverage, that includes Theft and Collision and Legal Assistance, which will also include the needed 3rd party liability coverage
5. Report your claim prior to exiting Mexico
6. Lastly, follow the instructions provided by the Claims Center or Adjuster

Have a safe trip, and if we can assist you with answers to your questions, please feel free to call or E mail us!

For all of your Mexico Auto 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!

What can happen when you do not have Mexico Auto insurance

Whether you can purchase your Liability coverage through your Texas auto policy to cover you in Mexico is a moot point.

It clearly states that Mexico does NOT recognize U.S Auto Liability policies. Subsequently, it doesn’t matter whether you have the Endorsement or not. Why the Texas Dept of Insurance even prints this disclosure is beyond me…

I recently had a person call my office to seek our help and assistance in respect to an accident he had while recently in Cd. Juarez. I had previously insured this gentleman with a Mexico Tourist Auto policy, but unfortunately he was under the impression that his Texas Auto Policy would suffice. Yes, he did have the Border Endorsement as described in the Texas Dept of Insurance (TDI) publication, however when he presented it to the authorities at the scene of the accident they told him “ call your adjuster or agent and have them arrive to make immediate restitution ($) to the 3rd party” (the person whom he collided).

That’s right, immediate, because according to their law, Mexico only recognizes two things when property damage or medical costs are attributed to the offender. This was on a late Thursday afternoon. And when he called he was desperate. Having neither a Mexican Tourist Auto policy, nor the money needed to pay the 3rd party (approximately $ 1,500 USD$)

With my experience and contacts developed over the years, I did what I could to help him. Unfortunately, insurance offices were closed. He had to visit the Juarez Hilton for the night.

For all of your Mexico Auto and International health insurance needs, please call us at 1-800-434-3966 OR E mail us at ici@mxici.com or visit us at www.mxici.com We appreciate your business!