Buy Mexican Insurance to Make Your Trip Hassle-Free:
Are you going for a trip to Mexico? Then, consider buying Mexican insurance policy to make your trip enjoyable and hassle-free.
Are you planning a trip to Mexico?
Well, then the first thing you need to consider is Mexican insurance.
According to Mexican law, outside drivers are subject to any injury or physical damage. If you do not have Mexican auto insurance, you would have need of a pre-arranged agreement with a Mexican bank to cover the liabilities ( i.e. that can be approx $333,000). Hence, the easiest way to satisfy the Mexican proof of liability is to buy Mexican auto insurance.
Don’t forget that your U.S. and Canadian auto insurance policies are not accepted in Mexico.
What is this liability?
Liability refers to an obligation of paying a certain amount to other parties whenever you are involved in an accident or mishap. The liability coverage of an insurance policy covers the damages which you would have caused to the vehicles or property of other parties involved in the accident. Apart from this, liability coverage covers costs for bodily injuries of another party caused by you.
Are you getting confused?
Let’s try to understand with an example. For instance, when you are involved in a serious accident in Mexico and cause injuries to any of the other parties, you would be asked to reimburse the damage caused to the driver and the passenger in the car as well as paying for medical and other expenses (obviously, if you are found to be guilty). When you have a Mexican insurance policy, both liability only and full coverage will pay these expenses.
Why should you need Mexican Insurance?
- In this context, it is important to note that all states of Mexico do not require auto insurance for Mexican and U.S. drivers. If you are not guilty or at fault in an accident, you may not be liable. But, if you are found guilty and you do not have a Mexican insurance, police may detain you until they are assured that you can pay for the damage or outstanding recovery. Herein lies the importance of insurance policy. When you have an insurance policy, it can also provide you with legal assistance, including bail coverage if you get detained unfortunately.
- Each Mexican state has different sets of civil and criminal liability coverage amounts that a driver is liable to pay when he/she is involved in an accident (and obviously found guilty). The amount of liability depends on the law of that particular state. You can buy a Mexican insurance that can cover you in all these various states.
- Even if you are involved in an accident but not at fault, you will be asked to show a Mexican insurance policy or proof of financial responsibility. In the face of such an event, you will need either ample real currency ($) or a Mexican insurance policy.
- You can notice big differences in coverages, limits and rates between U.S and Mexican insurance. If you want a combined single limit policy, there are some companies that can reduce the amount payable along with the usage of split limits. Some Mexican car insurance emphasizes a combined single limit of one hundred thousand dollars. So, it would be better to avoid split limits.
Now, as you know the importance of buying a Mexican insurance, you need to choose an insurance provider to purchase your insurance. You should try to get in touch with a company having a rating of “A” or even better. This rate implies that your provider has an acceptable level of risk. They should also have a strong infrastructure in Mexico.
A Final Takeaway:
As you come to know about the importance of Mexican insurance, don’t forget to include it in your travel plan. Generally, trips are meant for relaxation not headaches. Naturally, nobody would want to be involved in the legal affairs during their trips. We cannot control our fate. But, we can take all the possible steps to avoid any kind of mishap. So, buy a Mexican insurance to make your trip enjoyable.
Do you have any question regarding Mexican insurance?
Write us to get the best answer.
Cayla Silverstone, a financial analyst, gives you answers to all your questions.
Follow her blogs to learn which insurance policy would be perfect for you or how you can address tax-related issues. Palmer Insurance has decades of experience in the Income Tax & Insurance industry, we have the knowledge needed to handle any inquiry you may have.
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