Tag Archives: International Health and Accident

New Liability Rules in Mexico.

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

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!

Fast Pass Automobile Border Crossing Available for frequent Mexico travelers

Now over 1 million members signed up for the “SENTRI, FAST, NEXUS and Global Entry Program under the Trusted Travelers Programs, according to U.S. Customs.

This program literally allows frequent travelers to Mexico, generally Students, Maquiladora Employees, and those who visit relatives or businesses regularly, to circumvent the normal transit times of an hour to three hours it normally takes to cross from Mexico back to the U.S. in their vehicle.

There are numerous advantages, as well as disadvantages to this program.

Primarily, you must apply, and pay for the privilege to acquire this “Fast Pass” as it is normally called. Background checks are performed, and if you qualify there are some realistically easy rules to follow. However, if you happen to break any of these rules, consequences are swift and sometimes severe. Failure to notify the U.S. Customs Agents what, if anything, you are bringing back from Mexico can quickly remove your privilege of literally saving hundreds of hours annually from your commute. Additionally, fines usually accompany those who break the rules. Most of the times, it seems to be those who cannot resist the temptation of bringing to the U.S. cheap produce like avocados, tomatoes, poultry, well you get the idea.

Cost for this permit runs higher on the Mexican side than the U.S. (generally $ 122.25 per person in U.S., about 2 times more in Mexico) Though I can’t understand “Why”, since the wait time is always from Mexico to the U.S. Maybe because of the loss of revenue generated by the collected tolls at these same bridges or ports?

Each person in the vehicle must posses this permit. Again, well worth it if you can afford it, especially if you cross the border frequently.

Here is a link to the U.S. site that allows you into the SENTRI Program.

http://search.cbp.gov/query.html?tx0=Sentri+program&ty0=w&op0=%2B&fl0=&tx1=%2Fcgov%2Ftravel%2F&op1=%2B&fl1=url%3A&ty1=w

Click on the SENTRI text. Go to the appropriate area of interest from there.

If that fails, go to: www.cbp.gov/ Follow instructions, remembering key word SENTRI.

If this is helpful, please allow us an opportunity for your Mexico Tourist Auto, and Int’l Health & Accident business. You can reach us, Insurance Consultants International, at (915) 591-8279 OR 800-434-3966, OR write us at ici@mxici.com. Our Web Site is www.mxici.com. Feel free to a call us at normal business hours, M.T. 8:30 to 5:30 M-F.

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