October 2, 2015
In Mexico there several type of policies, being the main type, resident policies; then there are tourist auto, both northbound and southbound, to and from the USA; then the resident policies are divided into Trucks and private passenger vehicles; all policies include the third party liability coverage and the legal assistance which could include a bail bond in case of a major accident; medical expenses and the type of coverage are optional.
Policy has to be paid for the loss to be accepted, unless its within the 30 days grace period. Please note that in case of installments some insurance carriers do not grant the 30 days beginning with the 2nd invoice.
Have to have a valid driving license and according to the type of vehicle you drive, meaning that if it’s a commercial vehicle, a truck, a corresponding valid license, has to be in place.
Have to be aware of the type of policy you buy, if its full coverage, covers your own physical damage; if its limited coverage it covers the total theft of the unit and all policies include the third party liability and legal assistance which is the basic coverage.
There are some standard exclusions such as partial theft: tires, mirrors and vandalism. Also in case of a loss and vehicle taken to the garage do not leave any belongings as these will not be covered; computers, ipod’s, ipads, sun glasses, etc…
Drunk driving and being under the influence has not been a denied cause of loss, in case of a resident auto in private passengers although there are some wording exclusions; still, we have not seen it inforced, or should say has been tolerated, beware of adjusters that try to make a buck out of it, but its an absolute exclusion in commercial units and in most tourist auto policies.
Have to be conscious of the deductible that your policy has for your own damages, since there is no deductible for third party liability, these deductibles are sometimes a % of the commercial value of the vehicle or can be a fixed amount, read your policy carefully. Lately, some insurance companies are implementing a cero deductible for collisions at a larger price.
When there is a collision and our insured is not at fault, normally, the third party would pay for our deductible, but this is something the insurer can not guarantee since this recovery is based upon the collection from the third party which might hit and run or just declare insolvency.
In the case of pick up trucks, have to state its use, because if normally carries loads, then it needs to be quoted as a commercial unit.
In the purchase of a local resident auto insurance, the liability for the USA for Mexican residents is now in most companies already included. Do not be fooled by your agent that the policy is on him.