Tag Archives: Mexican insurance company

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

Rules for bringing Prescription (Rx) Meds from Mexico

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medications
The spiraling costs of prescription medication in the U.S. lures many a U.S. citizen into Mexico for “cheap prescriptions”. U.S. Customs does not have specific statistics, but it is safe to say that millions of prescriptions are filled for U.S. citizens, and then illegally brought into the U.S.

Many people think that Mexico is lax in their control and laws regarding medications, including controlled substances. Many think all they have to do is visit a border pharmacy and request what ever medication it is they want. To use an old saying, “Nothing could be further from the truth”.

Mexico’s laws governing prescription drugs or medications is similar to that of the U.S. A prescription from a licensed (federally registered doctor) is required for controlled medications. If you do not do so , it is a serious crime for you and the seller, including pharmacists. AND, by law, Mexican pharmacies do not honor foreign written prescriptions.

Popular controlled medications in the U.S. such as Demerol, Ambian, Vicodin, and their generic equivalents, are not sold over the counter, and must be prescribed by a Mexican physician. If you are able to procure one of these controlled substances without the required prescription by a Federally registered M.D., the Mexican authorities can arrest you and the seller for sale and possession of a controlled substance. WARNING, you could land in a Mexican prison from 10 months to 15 years. Don’t think your American Embassy is going to bend over backwards to assist you either, contrary to thoughts of many. They will contact your kin, give you a few blankets and some vitamins, and then say “adios”. You are now at the mercy of the Mexican judicial system. Mordida, or the “bite” (bribery) does NOT ensure your release in Mexico, as many U.S. citizens have come to find out.

If you are wondering which medications are considered controlled in Mexico, you can find out by visiting the Mexican web site, cofepris.gob.mx, for a list of both generic and brand named medications.

If you are wondering what you must provide the Customs Inspectors at the Port of Entry, you will need to provide a U.S. prescription used to purchase your medication in Mexico. There is a very helpful web site for U.S. Customs and Border Protection that you can use for bringing in medications from Mexico at: www.cbp.gov

We hope this information and web links help. 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?

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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!

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!

 

 

 

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

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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!