Car Insurance in Mexico
Mexican Law stipulates that only Mexican licensed insurance companies can provide the type of auto insurance coverage that is recognized and accepted by Mexico’s legal system. Be aware you will need to purchase automobile insurance in Mexico, although you may think you have comprehensive car insurance from Canada or the US, you may find that is not enough if there is an accident. Canadian or American insurance holds no legal jurisdiction in Mexico. This means that you are required to buy separate insurance for your car while you are driving in Mexico. If you are uninsured and become involved in an accident, it will be very expensive and you may end up in prison until the claim is settled. Foreign based insurance companies may extend the coverage for damages to the vehicle but do not include liability to others in Mexico.
It is important to research the underwriting Mexican Insurance company, not only the broker that sells you the policy. Ensure the company you sign with has an English speaking customer service team available for questions and if you need to make a claim, how available are they? do they have a local office, you do not want to be waiting on a representative from another state.
Is the insurance company underwriting your policy financially sound?
Is your broker licenced and knowledge about the policy? It may not be the best idea to go with the cheapest policy.
When in Mexico, your auto insurance policy must cover your personal liability, as well as your lawyer and provide a bail bond, because you will be detained until blame is assessed if you are in a serious accident. Your broker and the insurance company should provide local support services so that in the event of a claim, you are able to call for help.
Make sure your policy documentation is absolutely clear about the procedure you need to undertake in the event of an accident and any subsequent claims. You should report your claim at the scene of the accident, you can not wait till you get home to Canada or the US to report or file a claim. You may be required to provide a police report when you.