What are the differences between US and Mexican coverages
and what type of insurance and limits do I need?

There are some tremendous coverage differences between US and Mexican Insurance policies, and far too many "minor differences to list here Keep in mind that the liability insurance you purchase from a Mexican insurer will not respond to claims or suits brought against you in the United States or Canada for an "incident" which occurs in Mexico.  All liability claims under Mexican insurance policy must be brought and adjudicated in Mexico for coverage to respond.

Liability Insurance: Liability in Mexico (liability coverage is a part of all homeowners, auto, commercial property policies, etc.) is determined by Civil law and is based on limits defined by Mexican Statute.  Depending on your view of things, this is either a brilliant system or an antiquated one.  I like it.  Claims for pain and suffering and emotional distress are virtually unheard of and claims for Property damage to others and bodily injury to others are settled on an "actual loss" basis, guided by statute.

Personal injury lawyers, as we know and love them in the US, do not exist in Mexico.  Therefore, liability limits and claims exceeding $100,000 are rare.  It is more likely to have a "Property Damage to Othrs" liability claim that approaches this limit (damaging someone else's new Cheby Suburban, valued at $55,000 for instance) than it is to have a "bodily injury to others" liability claim that approaches this limit (damaging the occupants of the Suburban, for instance).  It is almost the exact opposite of how claims are settled in the US.

 Automobile Insurance: Automobile insurance trates, coverages, limits and deductibles vary greatly among Mexican companies. Some important items to look for are:
  • Does the insurer offer adequate liability limits, or does the policy reduce the amount payable by using split limits?

(split limits reduce the amount available for "Property Damage to others".  An ideal limit of insurance on a Mexican auto policy is $100,000 combined single limit.  Beware of split limits of $40/80/40 for example.)

  • Does the insurer automatically include legal aid and travel assistance?

(These additional coverages should be included in every policy.  They will help tremendously in the event of an accident.  Without them, you could be on your own, racking up legal bills and huge headaches until your liability has been determined)
Mexico Tourist Auto — Special Broadening Endorsement
 

When added to your Tourist Auto Policy as indicated in the space provided on the face page of your policy, and upon payment of the corresponding premium, this endorsement modifies and broadens coverage for damage and repair to the Insured Vehicle, Third Party Liability, Medical Expense coverage , and injuries to occupants of your vehicle caused by an at-fault Uninsured Driver, to include the following Covered Losses and Limits of Coverage:

  1. Partial Theft — Not applicable for Drivers License Policies

    Exclusion H is eliminated.

    Total Theft coverage is broadened to include payment for theft of parts and accessories only that are permanently attached to the Insured Vehicle, excluding sound reproduction and recording equipment such as but not limited to AM/FM radios, Cassette and CD players/recorders, and CB, UHF, and VHF radios.

    The deductible for Partial Theft is the same as the deductible amount for Total Theft as shown on the face page of your policy.

  2. Minimum Deductibles for vehicle types other than Private Passenger autos ( i.e., Pickups, Vans, SUVs, Motor Homes, Motorcycles, Trailers)

The Minimum Deductibles shown on the face page of your policy are reduced from $1,000 for Collision to $500, and from $1,500 to $1,000 for Theft. The deductible as a percentage of the vehicle value shown on the face page of your policy remains as shown.
  1. Vandalism — Not applicable for Drivers License Polices

    Vandalism, meaning wilful and malicious damage to or destruction of the Insured Vehicle is covered by this broadening endorsement.

    The deductible for Vandalism is the same as the deductible amount for Total Theft as shown on the face page of your policy.

  2. Increased Cost of Repair — Note: Not applicable for Drivers License Policies

    Clause # 6. on Page 4 of the policy is modified as follows:

    If damages to the Insured Vehicle are repaired in the United States or Canada, the cost of repairs will be paid at an hourly labor rate not to exceed U.S. $50 per hour.

    The Insured Vehicle will be considered a total loss at the option of The Company.

    The deductible applicable to repairs under this clause are the same as the deductible amounts shown on the face page of your policy.

  3. Section 3, Civil Liability for Property Damage and for Bodily Injury to Third Parties

    The Property Damage Liability limit of liability is increased to US$100,000 and the Bodily Injury Liability limit of liability is increased to US$100,000 per person and US$300,000 per accident. These limits will be shown on the face page of your policy.

  4. Risk 6, Medical Expenses for Occupants of the Insured Vehicle

    The limit of liability for Medical Expenses is increased to US$5,000 per person and US$25,000 per accident.

    This limit will be shown on the face page of your policy.

  5. Uninsured Motorist Coverage

In the event that you are not at fault in an accident that results in injuries to the occupants of your vehicle and the driver of the at-fault vehicle is Uninsured, i.e., does not have Automobile Civil Liability Insurance in Mexico, coverage for Risk 6 (Medical Expenses) for injuries to occupants of your vehicle is increased to $15,000 per Person and $30,000 per accident.

  • What are the physical damage coverages and deductibles?

(The main exclusions on a Mexican auto policy are vandalism and partial theft.)

The policy is written on a "named perils" basis which includes coverage for collision, certain meteorological events, total theft, fire and other perils.  deductibles are generally a percentage of the value of the insured vehicle.
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