Tag Archives: Mexico Auto Insurance

New 3rd Party Liability Limits for Mexico

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!

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!