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Mexico Insurance – What Is The Difference Between US Insurance And Mexico Insurance

Mexican Insurance Verses United States InsuranceEach year more than 20 million tourists visit Mexico with and without Mexico Insurance. Just to give you a close estimate in 2008 alone, out of the 22.6 million tourists in Mexico, 17.6 million were American tourists. That is roughly about 75% percent, and a pretty high percentage of those American tourists enter the Aztec nation by car, motorcycle, in a trailer home, RV or other forms of automobiles which will require insurance. Now, that is a fact most people ignore. Not because they want to, but because perhaps they are unaware that US auto insurance is NOT valid in Mexico. And, in order to operate a car with a US or Canadian License plate in Mexico, beyond the border you need to acquire Mexico insurance for the vehicle you will be driving in. This includes rental cars that you rented in the United States or Canada. You should not travel about Mexico without first buying insurance for Mexico.

Now, you can definitely get the insurance in Mexico on the US/Mexico border, but you are probably better off, getting to Mexico prepared. You can buy your insurance for Mexico online and ahead of time. By getting your Mexico insurance online you can prepare yourself and know that you are taking your family on a safe and fun vacation.

Why is your US or Canadian insurance NOT valid in Mexico?

Mexican laws differ from their northern neighbors. Hence, their laws command that only Insurance companies licensed in Mexico under Mexican specifications are the only ones authorized to provide any sort of insurance, car insurance among those. Therefore, if your car insurance provider is NOT licensed in Mexico, then the protection stipulated in your US insurance policy is reduced to zero in Mexico. Mexico Laws does not mandate that cars within their borders have Mexican insurance, but it is highly recommended. Not doing so can create serious problems for you, especially if you do end up in some sort of predicament.

Are the US and Mexico insurance coverage different?

Of course! Just as some laws differ in the US from state to state, they certainly differ from country to country. There are way too many small differences to be able to precisely name them all, but it is important to mention the most notable ones.

  • Auto Insurance Prices – In the US there are laws that control the insurance industry and protect the consumer. In Mexico it is very common to find car insurance companies offering prices that vary dramatically. There are dozens of Insurance Companies in Mexico, some good, some bad, some terribly bad. It is your responsibility to do the research and figure out which one offers the protection that you and your family will require when traveling in Mexico. The great thing is that today you can find very reputable Mexico insurance companies online that are rated for financial stability by a company called A.M. Best. Remember that Mexico insurance policies are named risks and not all risks. This means that whatever your concerns with regards to your protection and entitlement, should be set in black and white within the coverage and declarations page.
  • Liability – In Mexico, unlike in the US, liability is established by Civil Law. In the US liability is part of the insurance policy, in Mexico it is not. But you can certainly add liability protection to your Mexico Insurance policy. And as in the states, liability protection is the least you can put on your car when traveling in Mexico. But, because Liability is determined by law, there are some things you should be aware of. Personal Injury Lawyers do not exist and Personal Injury claims are extremely rare. This means that laws determine compensation for Damage to others or Bodily Injury based on actual “loss”. Liability in Mexico insurance policies is a tricky thing. Therefore, make sure that when you add it to your package, it is clearly stated in the declarations page, what is the protection you are entitled to in case of an accident. Not having any insurance, can lead you to jail if you get into a car accident and someone gets hurt. So, even if it is just liability you need some sort of protection.

Do not let these details scare you. In fact, this should be used as a guide and an example of why you need to protect your family. Mexico insurance is crucial if you are going to be driving around our southern neighbor. There is no doubt Mexico has a rich heritage and exquisite culture, but facing an unforeseen event without being properly informed or protected with the right Mexico Insurance, can turn into a nightmare vacation, rather than a memorable one.
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And now that you know the difference between US and Mexico Insurance,  now make sure you get the right Mexican insurance policy! Start today by getting your quote from GotMexico.com.