How Much is Mexican Car Insurance?
The cost of automobile coverage for those planning on driving into Mexico can vary due to many factors which can affect the price. It is wise to get a Mexico auto insurance quote before venturing off into our southern neighbor.
Many people believe that their current policy will cover a loss incurred south of the border. Unfortunately, this is usually not the case although there are a few insurers that do cover up to a specified amount of miles across US border. One should make sure to check the guidelines of their policy and avoid assumptions of being protected. If no coverage is provided, a Mexican insurance policy should be purchased to protect against any unexpected losses incurred during the travel period.
What Affects the Cost of Mexican Auto Insurance?
Mexican car insurance cost is determined by a range of factors that auto insurers take into consideration. These include:
- Length of stay
- Part of country traveling to
- Year, make and model of vehicle
- If hauling any items such as a trailer
- Driver information and driving record
- Desired coverage
This is similar to the criteria used by companies when obtaining policies in the United States, except the length of stay can be used to customize the term of the policy. Usually, the longer a person will be south of the border, the higher the premium will be; however, annual policies may be purchased for a discount.
The destination is factored in for reasons such as congestion and crime rate which may increase the potential of a loss. Vehicle information may impact the rate just as it would in the States; there are certain models which are stolen more often than others and have a higher risk of theft. The type of coverage desired may also affect the rate since it will have more benefits to the policyholder in case of a loss.
What Type of Coverage is Recommended in Mexico?
The auto insurance coverage recommendations are very similar to the ones recommended in the United States since the usual risks and perils exist regardless of location. The usual available protection is as follows:
- Liability – covers bodily injuries and property damage to a third party
- Uninsured Motorists – pays for injuries to the driver and/or passengers if struck by and uninsured driver
- Comp and Collision– covers physical damages, theft and/or vandalism to the insured vehicle
- Medical – compensates for bodily injury to the driver and/or passengers
Some companies may offer additional coverage options such as rental car reimbursement, loss of use, extended stay and more. If an automobile is being financed, the lender may need to issue a permission letter before it can leave the country in which case, proof of Mexico insurance will need to be provided. The reason for this is to keep track of vehicle location since a lien is held by the financing bank until it is paid in full.