FAQ Insurance for Mexico

[Turtle-Toad]

There seems to be a lot of confusion about Mexican Insurance so I thought I’d take a stab at putting together this little primer. My experience is primarily in Baja but I believe that this will apply anywhere in Mexico.

NOTICE!! Change to liability requirements.

I received the following from Discover Baja on 02/08/13

Mexican Federal Law has changed regarding liability amounts for death coverage. Formerly, compensation in case of a death was calculated on 730 days of the General Minimum Wage or the Highest Professional Minimum Wage. The new law stipulates that death compensation will be based on 5,000 days of the General Minimum Wage or the Highest Professional Minimum Wage. Formerly, in general, $50,000 liability was enough. THAT IS NO LONGER THE CASE. To make matters even more complicated. each state in Mexico has a different minimum wage, so each state has a different death liability amount. To give you an idea, in Baja California (Norte) the death liability could be $143,838 per person while Baja California Sur it could be $335,223 per person.

Both of Discover Baja's insurance companies have been working with their lawyers to clarify this issue and offer new products. They have been accommodating to their customers. If you have an ACE Seguros insurance policy written before February 1, 2013, ACE will increase the liability amount to $300,000 until the end of the policy at no additional cost to you. If you have an HDI policy written before February 16, 2013, they too will increase the liability of existing policies at no additional cost.

We are writing the new liability amounts of $300,000 and $500,000 into our insurance programs. We will keep you posted of any other developments. If you have questions, be sure and give us a call.

Now back to my original post

Mexico Insurance:
Applies to Baja and mainland Mexico
(A lot of this also applies to boats and trailers).
Anytime you cross the border, while it’s not a law, you should have (or get) Mexican insurance. This applies even if it’s only a short visit of a few hours. US and Canada liability insurance is not recognized in Mexico and without liability insurance, you will end up in jail if you’re involved in any kind of accident. Traffic accidents are considered felonies in Mexico and if you don’t have insurance, they hold you and impound your vehicle until fault is determined and restitution is arranged.

It is also recommended that you get the “Legal” rider; this provides you with an on-the-spot agent to help you with the paperwork and navigating the sometimes-confusing (to gringos) legal system.

On Edit (8/7/09) Mexbungalows has provided additional information on the importance of the "Legal" rider. It is much more important than I thought. I've copied his post below, and added some more comments from qtla9111 and myself;

Estimado Amigo,

Seguros para los chofers isn´t mandatory nor is insurance mandatory for automobiles. Anyone applying for a fianza de importacion temporal at Bancercito does not need to show any kind of insurance document.

Aqui en Mexico it is assumed that all drivers have the ability to satisfy any and all claims arising out of an accident. Of course it is absurd to think that many Mexican vehicles carry liability or any other type of insurance.

Drivers that are involved in a minor accident who have no way to prove financial responsibility are detener (arrested) and brought to the commandancia (police station). However, mexican law also protects the driver. if you were to run over someone who was crossing the road, and the transit police showed negligence on the pedestrian or cyclists part, you would not be held responsible. If you hit a person who is crossing under or within 150 meters of a pedestrian bridge, the driver is not liable.

If the accident is serious enough, drivers are arrested and must sort things out at la commandancia. If the adjudged guilty party cannot satisfy all claims against him he will spend the nexty few days in jail and then be transferred to a state prison ¿entiendes? Prison is an extreme example but not unheard of. It would probably require a death or drunk driving conviction.

Mexican coverage underwritten by anyone anywhere does not agree to satisfy claims fast enough to keep a person from going to prison. I think he meant jail, see above. Sometimes a claim can take months to sort out while the guilty party remains behind bars.

To cover this period between accident and renumeration, many Mexico Insurance based in the states offer supplemental coverage that is solely of their own origin. This coverage may go by any one of several names: Legal Fees, Lawyer, etc. It means that the alliance of surplus line brokers in the USA have established a fast-reaction fund that their agents in Mexico can access to satisfy legal claims. When the claim is settled and the broker will get his DESPOSIT GUARANTEE back once the claim is settled.

May I suggest that anyone wishing to verify or query this information get in touch with the Lewis & Lewis brokerage in California. They have a website and toll free telephone number.

If your US insurance does not provide for Fire/Theft/Collision coverage on your vehicle in Mexico, (and most don’t) then it is recommended (and probably required by your lien holder) that you get a full coverage policy, not just Liability/Legal. These policies are based on the current bluebook value of your vehicle. You will have to provide this dollar value so check it on the internet ahead of time. One source for this is the online NADA Guides at NADA Guides. This site covers autos, RV’s, boats, and motorcycles.

Historically, the way the policies are priced (both full and liability/legal), if you’re going to spend more than 3 weeks in Mexico, it’s cheaper to get a full-year policy. Get quotes both ways.

If you're using the Discover Baja website, be aware of the "1 year/90 day" option. This is only offered by GE-Seguro and is normally a lot cheaper than other options. What it is, is a policy that covers you for a total of 90 days in a years time. If you're going to be crossing the border multiple times during the year, it's the only way to go. The 90 days don't have to be in a continuous block, you can use a week (or month) now and another one later. Of course, the strange thing about it is, I can't figure out how they would know how long you've been in Mexico, since they only stamp your FM-T on the first crossing, and just look at it on subsequent crossings.

If your vehicle(s) are financed, you will also need a letter from the lien-holder authorizing you to take the vehicle across the border. Most lien-holders require that they be listed on the Mexican insurance policy so you should get that letter before buying the insurance. On Edit (05/09/09). Even if your registration does not list a lien holder, remember that most financing contracts do not allow you to take the vehicle out of the country. The penalty for doing so can be quite expensive, ranging from a fine or increase in interest rate all the way up to requiring you to pay up in full or lose the vehicle. So at least read the contract very carefully; better yet, call your agent and ask!

Another thing to remember, most RV/Auto/Boat policies don’t cover theft of personal items (except for full-timers RV policies). This is normally covered by your home-owners (or renters) insurance, which in most cases also isn’t valid in Mexico. So check with your home-owner carrier and consider picking up a personal property rider from your Mexican provider or adding it to your US policy (if it applies in Mexico).

A word of warning; not all of the insurance sellers along the border are legit so, if you’re buying at the border, make sure you pick a good one. Insurance is probably the easiest item to take care of for a border crossing because you can do it in advance, either buy it through a travel club or on-line.

Most of the on-line sites allow you to get a quote, pay for the policy, and print out the policy, without getting out of your pj’s.

Two of the better known Baja travel clubs (their insurance also covers mainland Mexico) and what they offer are :

Vagabundos del Mar: FMT (visa), Insurance, Fishing License, Boat License, Travelers Aid, On-Line Forum, Med Evac Services, Caravans, Fiestas, Tours & on-line road, weather, and fishing reports. Discounts at most RV parks and many restaurants and other business’s in Baja. Club also has functions and get-togethers in the US.

Insurance is through AdaVis Insurance, Quotes and purchase on-line or by telephone.

Discover Baja: Same as above (with the exception of the U.S. get-togethers), plus Spanish lessons and Satellite Phone rentals.

Insurance is through GE Seguros & ACE Seguros. Quotes and purchase on-line.

One of the on-line sites is MexPro. They will give you quotes from 5 of the major Mexican insurance companies. They also offer their own medical evac and road service riders on all of the quotes.

For more, just Google “Mexico Travel Clubs” or check out Mexonline Travel

Mexico Insurance Agencies: Just Google “Mexico Insurance” or see Mexonline Legal for a list with links. Lewis & Lewis and Sanborns are both popular with RV’ers.

Since I’ve never been involved in a claim in Mexico I can’t speak from personal experience about the service, but I’ve used both Lewis & Lewis and ADA Vis (through the Vags’). The Vags were the lower of the two.

If I’ve erred or missed something, please let me know or add it to this thread.

On edit, activated links.

[crandle]

dchasteen wrote:
Would having a unit in his company's name be a problem at all? Appreciate your response. Thanks.

This problem was faced by a poster a year or two ago. The vehicle was in the name of a company owned by the person taking the vehicle into Mexico. He had to write a letter as an officer of the company granting himself permission to take the vehicle into Mexico. Seems silly but that is what it took.

I don't know if this solution still applies...

[MEXICOWANDERER]

You may wish to keep in mind that in the event of a serious accident, it may take months before liability has been resolved. A Mexican citizen may request that the "other driver" be kept "in custody" while the insurance companies or company wrangle things out. You may have insurance, even increased limits of PL & PD but until things are resolved, the foreigner will sit in a prison (I did not mean jail). This may take months.

The "legal aid" option as found with most surplus line broker insurance companies allows them to cut an immediate check to the court that guarantees that a debt will be paid regardless of the willingness or unwillingness of "the other party" to accept payment in the long run. In the real world, this allows the foreigner to be released from custody usually within 48 hours.

To verify this point do so by contacting your surplus line broker.

And yes, the long and the short of it means that you can carry the best Mexican insurance but without an optional rider you can end up in prison for months in the event of a serious accident.

I hope this helps you.

[semperfilee]

T-T,
EXCELLENT ARTICLE AND MUCH APPRECIATED.

[BadBob6]

I have an annual policy for liability with ADA VIS. I found them very easy to work with and they send me a reminder about two months in advance for my renewal. I usually explore Mexico on one of my motorcycles and generally take a different one each trip. That makes the annual policy, written on my drivers license, the best option for me as it covers any vehicle I drive. Last November I drove my pick-up down to Creel and planned on leaving the truck parked in Creel for a week while I explored the remote areas of Copper Canyon. On the drive down I thought that it would be a good idea to get full coverage on the truck for the trip. I called ADA VIS on my cell phone and the new policy for my truck was FAXed to the next hotel I was staying at on my way. It's hard to get any better service than that.

[jeninvegas]

I am wondering if anyone in Nevada has ever been told by an agent from Allstate Insurance that US auto insurance is valid in Mexico as long as you are within 75 miles of the border.

If so, please let me know. The law firm where I am employed as a paralegal has three clients whom this representation has been made. There is a possibility of a class action lawsuit - does not matter if you have been involved in an accident - just if an Allstate Agent ever told you that you would be covered in the event of an accident.

Thanks
Jennifer
jenenglish_0123@yahoo.com

[dchasteen]

Thanks for all the good info; but I have another question. We are planning a trip with friends to Mexico this fall. Our rig is old and "Paid For" and title is, of course, in our names. Our friends units have liens. One unit is in his name, the other is in the name of his business. What kind of problem will they encounter in getting Mexican Insurance or anything else? Would having a unit in his company's name be a problem at all? Appreciate your response. Thanks.

[moisheh]

. I have been on the net for an hour checking insurance quotes for one of our units. It is interesting that there are not really many sellers. Most of the online vendors use the same software and the same prices. Any of us can become online agents in minutes complete with a custom web site. BUT I did uncover some facts that many may not be aware of. On at least 2 of those websites they had a disclaimer stating that you cannot buy 2 short term policies: one for your travel days in and another for your travel days out. You must exit the country to buy a second policy. Those of you who have been buying those policies may find that the carrier will refuse coverage. Some policies also require you to exit the country one day or more before your policy expires ( I dont understand that requirement). Others will not issue a policy if the vehicle is already in Mexico. BUYER BEWARE.

Moisheh

[HerbertRon]

TRICARE Insurance: For those of you who have TRICARE medical insurance and have a medical emergancy while in Mexico. TRICARE will pay what ever % for your coverage. I had surgery and was hospitalized overnight on two seperate occasions last fall. File the required forms (hospital bill was in Spanish), Doctor's bill, and lab work. I had my checks in approximately 6 weeks after filing. Medicines had to be sent into different address.

[HerbertRon]

I used MexPro and needed to file a claim. They came through and paid what the policy said they should pay in a reasonable amount of time. Last two years I have returned to Mexico and use the same company. No increase in rates. Another little information. At the accident on a toll road the Federal police asked if I had the ticket from the toll booth, which I had. They explained that was insurance. Sure enough when the insurance company asked for the deductable I said no toll road pays. They called in and then agreed. Keep those toll road tickets.

[MARK_AN_DAR]

WHILE IN MEXICO YOU DON'T INSURE VEHICLES YOU INSURE YOURSELF. YOU GET A INSURANCE POLICY FOR YOU. I GOT MINE AT 1-800-909-4457. IT COST ME $58.00 + $25.OO FOR LEGAL AID TOTAL OF $83.00 FOR 365 DAYS. AND I CAN DRIVE ANY VEHICLE. CONTACT YOUR INSURANCE COMPANY ABOUT LOSS OF YOUR VEHICLE. MINE ARE COVERED TO A CERTAIN DISTANCE. DON'T BUY INSURANCE AT THE BORDER, THEY ARE VERY EXPENSIVE. I PAID $90.00 FOR 3 DAYS BEFORE I WAS TOLD ABOUT THIS COMPANY......HAVE A CORONA FOR ME, MARK

[Tango_Dancer]

I just find out that, Adventure Mexican Insurance - www.mexadventure.com - 800-485-4075, insures CARS in Mexico with comprehensive and liability, i just insured my Jeep with them for one Year for less than $300 Dollars for a $20.000 Jeep comprehensive and liability coverage. Bill

[scubamex]

Turtle Toad,

Just noticed that you asked specifically about CARS - not RVs.

Yes, I checked out National Interstate before, and they do offer the coverage for 'Companion Autos' if you ALSO insure your RV with National Interstate. The only problem was that the National Interstate policy for the RV was very expensive, so once I crunched the numbers, I found it more cost effective to insure my rig with Progressive, then just buy the Mexican 'full coverage' insurance through the Mexican insurance company. Adventure Mexican Insurance gave me the full scenario so I was able to crunch the numbers (they could give me a Progressive and National Interstate quote) Also, National Interstate does not seem to have as large a presence as Progressive (claims infrastructure) so I felt more comfortable with the Progressive policy.

Unless your car is worth over $40K, the full coverage Mexican insurance (Mexican carrier) has decent coverage, reasonable deductibles, and decent rates. It's when you have an RV worth more than $50K that the Mexican insurance carrier programs start getting really expensive and the deductibles get ridiculously high.

So our experiance was - get Progressive US RV insurance, and get full coverage Mexican insurance through the Mexican carrier.

Call the guys at Adventure so they can run the numbers for your scenario.

[scubamex]

Yes, Progressive is one of the US companies who extends physical damage and theft into Mexico.

There are a few Mexican insurance brokers who also sell the Progressive policy as well as National Interstate. As mentioned before in a post, Adventure Mexican Insurance 800-485-4075 is where we bought our insurance from, and they could provide us with BOTH the Progressive US policy AND the Mexico liability policy. We found it much easier to work with 1 broker who truly understood all of the Mexico insurance concepts.

If you call Progressive directly, you end up speaking to someone who doesn't really know anything about Mexico (it is a call center in Ohio), and they can only tell you to go find a Mexican insurance broker who then can sell you the Mexican liability insurance.

It cuts out alot of the trouble if you just get your Progressive policy and Mexican policy from the same broker - then you can make sure you are not missing anything

[Turtle-Toad]

Scubamex,
Thanks for the info.

Can you provide the names of the US insurance companies that cover Mexico for cars? The only one that has been posted here is National Interstate, and I've had a problem finding a live human when trying to contact them, so I still don't know what they offer. If there are others, I'd like to know.

[scubamex]

There is some great information about Mexican insurance on this forum, but there a multitude of options on how to best insure your RV in Mexico. I highly recommend calling a Mexico insurance specialist to explain all of your options because RVs (especially when you are towing other vehicles) can be a bit complicated to insure.

I have had very good experience with Adventure Mexican Insurance http://www.mexadventure.com 800-485-4075 They take time to explain all of your options, and the pros and cons to each type of insurance.

There are a lot of options depending on what type of insurance you have in the US/Canada, the length of time you will be in Mexico, and if you plan on going to Mexico frequently.

Option 1 - switch your US insurance carrier:
If you plan on being in Mexico for more than 7 days, you should highly consider switching your US insurance to a US RV insurance company who extends physical damage and theft coverage into Mexico (there are about 3 US companies who offer this perk right now). This option can save you hunderds $, and can give you much better coverage. These companies cover all of Mexico, not just 25 miles across the border like some other US insurance companies. If you have this special US RV insurance, then you will only need to buy a Mexican liability insurance policy which is much less expensive than buying a full coverage RV insurance policy (plus you get lower deductibles and often get full replacement value through your US company - the Mexico insurance only offers depreciated values and usually has higher deductibles). NOTE: Canadians, sorry, this is not an option for you at this time.

Option 2 - If you are Canadian or do not want to switch your current US insurance carrier:
If you need to get your 'full coverage' insurance through a Mexican carrier, you should ask the following questions before your buy:
1: What are the deductibles?
2: Am I allowed to fix my vehicle in the US, and what is the hourly labor rate for repairs made in the US? (many companies make you fix your vehicle in Mexico - yipes!)
3: Is towing included?
4: Is legal assistance included?
5: Is Medical Evacuation and Plane Tickets home included? If so, for how many people? (We found that Adventure Mexican Insurance includes medical air ambulance and plane tickets back to your home if your vehicle is not drivable - this coverage is already included in their Mexican policy for up to 4 people in your tavel group)

If you are towing another vehicle:
Each self propelled vehicle will need its own individual Mexican insurance policy for while that vehicle is driving under its own power. So expect to buy 2 separate insurance policies (but you will also need to list the towed car as a towed unit on the RV policy).

As you can see, this gets a little complicated, so I highly recommend speaking to a live human who can explain all of your options to you.