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.

[tony_lee]

crandle wrote:

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...

Yes, I have to do that too. Director of LLC gives himself permission to drive vehicle owned by LLC over the border. Quite logical really.

[tony_lee]

popsiscool wrote:
I saw the post about progressive. I have progressive ins for my r.v. It has Mexican coverage included. Is this not all I need?

No, you need Mexico-approved liability insurance to cover people injured/killed and Progressive only provides limited cover damage cover

[popsiscool]

I saw the post about progressive. I have progressive ins for my r.v. It has Mexican coverage included. Is this not all I need?

[JimmyD]

I have been checking on Mexico Liability Insurance policies. I plan on going down to Puerto Peñasco for about a week, then later on traveling down to Baja. I will be driving my motorhome and towing my CRV. I plan on getting Liability only. The straight-forward approach would, of course, be to get two separate policies. However, I was told by one agent that the cheapest approach would be to get a policy that covers a Driver's License. That way I would only need one policy as I would only be driving one vehicle at a time. I did some on-line research and it is completely unclear. One site says the Driver's License approach is not valid for a vehicle where you are towing something, which would, of course, be a problem for me. Does anyone have any first-hand knowledge on this approach? Thanks in Advance.

Jim

[NSSUE]

Thanks for the info. I am a new RV owner. Planing on going across border to San Carlos Mexico for one week. I am hearing the insurance rates for an RV are very high and can only be
taken for a minimum of one month.. so will be expensive for one week.
Care to comment?
Thanks!

[Robt65]

tcman wrote:
This page has some useful info:

LINK

Hello tcman,

I am grateful that you have said "This page has SOMESOME useful information" As I have read it and found much that is certainly not any longer viable. For example Coke being the only diet drinks or sodas in Mexico. While being a little more difficult to find in smaller stores such as SOME OXXO stores they can be found in mos Soriana, Walmart, Commercial Mexicana and even many other smaller shops in smaller towns along with a drink called B-Lite in many different fruit flavors. B-Lite is a Pepsi product and really great. I wish that Pepsi would make and distribute this drink here NOB.

Many other updates are required for this link.

robt65

[Robt65]

Hi All,

I have not had experience in using Mexican insurance for a RV, but I did have to use it last November for an accident my Mexicana wife had in our VW. The accident was not her fault and the guy flipped her the international greeting and drove off. Thankfully some folks working at a local store saw it all and confirmed my wife's version. I was at home and she called and came home. Much shaken and I asked first, if she and our daughter were OK, my next question was if she had called the insurance company. She did not. I quickly gathered her and our daughter and we drove back to the accident scene with the VW.

First let me caution everyone . . . . . . reporting an accident is not like in the USA. DO NOT LEAVE THE SCENE OF THE ACCIDENT AND DO NOT MOVE YOUR VEHICLE UNDER ANY CIRCUMSTANCES, WITHOUT FIRST CALLING THE INSURANCE COMPANY CLAIMS ADJUSTER AND THEN GETTING THE PERMISSION OF THE ADJUSTER TO MOVE THE CAR TO A SAFER PLACE OR TO THE SHOULDER OF THE ROAD.

Get photos first before moving the car, even if the adjuster is there. Get a photo (if possible) of the other driver(s) involved. Use your cell phone if that is what you have at hand. Get the licence number and the licence number of the other driver also get the name of his / her insurance company. A policy number is even better.
if you ask the other driver to see his insurance company card. Again take a photo with your cell phone of the ins card if possible.

If you do move the car before the adjuster gets there without their permission your policy could become null and void.

I can say that (at least in Tampico) that the response time of the insurance adjuster is faster than the police were. The insurance adjuster was there 15 minutes after I called them (once I had returned to the scene). I did ask them, when I phoned in the accident information, if I could move the car out of a dangerous position and the adjuster agreed.

I had full coverage for both my wife and myself. My yearly insurance cost for two cars is $462 USD a year. The insurance adjuster got all the information (was very thorough) and took several photos. I also took many photos including a photo of the odometer. The adjuster asked me if I had a certain place to take it, I said no. He suggested the VW dealer. I went to the dealer in C. D. Madero close to our home and they said they would have the car repaired in five days. I said OK. Three weeks later it was still not repaired. I called the adjuster and asked him, due to those circumstances, if I could take the car to the VW dealer in Tampico. He approved it. That dealer said the car would be repaired in four days. Indeed it was on time and very well done. I couldn't believe it.

It is a regular fiasco getting the bill paid at any dealer. First you get he bill, then you go to the bank with someone from the dealer and the dealer gives this paper of the costs to the teller. The teller takes a call )probably) to the insurance company. You give the teller the money and the bill is paid. Then you go back with the receipt to the dealer and the dealer rep gives you a paid receipt.

My insurance company was "ACE" insurance (I know, I know . . . what a name!) scares you to death doesn't it? (smiling) But I checked on them before buying and evidently they are the number two company in all of Mexico. They were excellent. Fast and courteous. I will continue to use them as long as they continue their excellent service. I found GNP (?) to be much more expensive.

Robert

[tcman]

This page has some useful info:

LINK

[maggybeck]

We have used San Xavier in Tucson since 1987, and never had a problem until now. Had an accident and took out the rear right fender and tow mirror. The Mexican insurance adjuster was at our meeting place within an hour and authorized repair in Tucson. However, the person we are dealing with in Tucson is proving extremely difficult to deal with, keeps dragging things out. He says they do not "order parts". How can you do repairs without ordering the appropriate parts. Luckily the repair facility has them in stock. Looks like we will have to pay for the repairs ourselves and reclaim from the company (Mapfre). This has changed our view completely and we are now looking for another insurance company. Is this a reflection on the company, or just the agent dealing with the claim? Either way, we will no longer recommend this company as we have done in the past.

[bradleyleanne]

I just checked with San Xavier to renew my policy. In the past the insurance company they used was Mapfre-Tepeyac but now have changed to ANA Seguros. Has anybody used ANA Seguros. Want to renew with San Xavier but thought I would ask first.

[jackw7jra]

If your insurance company is Progressive then all that is needed is Mexican liability.

[bajawinters]

We have had Mexican auto insurance through Adventure Mexican Auto Insurance for over 6 years. They represent several companies, we buy the Genworth policy for yearly coverage and evacuation insurance. While traveling in Baja we have seen their adjusters at work, they are very efficient and courteous.

[tugwell]

We have been traveling to Mazatlan and south for the last 7 years and have purchased Insurance fron San Xavier Mexico Insurance in Nogales, Az and Tucson Az. The rates are the best I have seenalso we had the unfortunate experience of being in an accident in March coming home. The Company who the underwrote the policy was Mapfre Tepeyac. The experience was fantastic. A adjuster was out to deal with the accident within 1 hr of calling. We had a choice to have our M/H fixed in Mexico, USA or Canada. We chose USA as our coach was built by Monico. We went to Arizona the repair shop ordered all the parts and by the time they arrived the check for the full repair had arrived fron Mexico in US Funds. It was a very good conclusion to a terible mishap. Later we were sideswiped in California by a US owned rig and we are still waiting for AAA Us insurance to settle. You can purchase the insurance by Phone or Internet their website is www.mexican-autoinsurance.com Nogales Phone - 520-377-0424 or mexicobob@aol.com

[keelhauler1]

Has anybody ever bought or used SkyMed.

It flies you home for any medical emergency, and cost about $500 a year for a family policy.

About 10 years ago we had a guy break his back in Mexico and he had to be flown back to the states by a jet which saved his life.

I've never bought this type of policy but was wondering whether anyone else had.