Mexican Auto Insurance Policy Review
Many people choose to buy a longer term Mexican auto insurance as it often costs less. If you are in this situation, it is important that you review your policy on a regular basis. This will allow you to re-assess your needs and determine if your policy is still suitable for your circumstances.
You may hold a policy that is valid for a period of three to six months, but you should consider potential changes to Mexican law which may affect it. You need to have Mexican car insurance and your Canadian or U.S. insurance policy is not valid in Mexico. The Mexican authorities will assume you are guilty if you are involved in a serious car accident, until they can prove that you are innocent of wrongdoing. This makes it critical for you to have a valid and suitable insurance policy that will cover all your needs.
Death Benefits
The Mexican legal system changed recently when they increased death benefits for Mexican citizens seven-fold. This new law created many challenges for insurance providers and insurance buyers. You should bear in mind that travel in a foreign country is governed by the rules and regulations of that country.
If you purchased your long term policy a while ago, you should review it. There may have been regulatory changes during the period since your last visit to Mexico. This may change your needs completely and by reviewing your policy, you will be able to amend it accordingly. You should check on the different death benefit levels required in the different states. Ensure that you have sufficient cover for the states you intend visiting.
If you purchased insurance for specific regions, you should review your policy if you are going to visit different areas. An example of this is if your initial insurance purchase was to cover a trip to Baja Norte. If you intend traveling further south to Baja del Sur, you may need to increase your coverage as the death benefits in the southern area is at least double that of the northern region.
Your insurance broker should be able to provide you with the details regarding the area you intend visiting. You can also go online and check to compare your requirements with the different providers. You can click here to purchase your Mexican insurance policy online.
Costs
Aside from the regulatory changes that affect your insurance coverage, you should be aware of other regulatory amendments. Mexico has increased its sales tax, particularly in the northern regions. Many of the areas in the north will be experiencing a five percent increase to 16%.
Although your costs for your Mexican auto insurance may not be affected by this increase, your overall cost for your trip may be affected. This may limit the level of shopping you can do while you are on vacation.
Mexican car insurance is a legal requirement for all visitors to Mexico who intend driving in the country. Your existing policy in your country of residence will not cover you for travel in Mexico. Even if your current home policy offers you cover, it will more than likely not be adequate in Mexico.