Coverage Differences in Canada and Mexico – Mexico Car Insurance
Mexico law does not recognize or admit Canadian (or any other foreign) auto insurance policies. So if you drive South of the Border without buying a Mexican Auto Insurance policy and are then caught in an auto accident, you run the risking going to jail until you provide compensation to cover your new debt. Its important to understand this is serious. You might be required to assist in paying monthly expenses of the families injured if you injure the primary wage earner.
In Mexico as well as Canada, auto insurance coverage and premiums depend on the program you pick. In Canada, the mandatory minimum liability insurance coverage is usually $200,000 in all provinces except Quebec where the minimum liability requirement is $50,000. In Mexico, there is no minimum amount of insurance liability coverage you must purchase, however, most responsible Mexico car insurance providers begin liability amounts at $50,000 and since it’s not too much, most people buy $100,000 minimum, in case they run into a brand new SUV. This coverage would provide compensation to injured third parties in case you are found guility for losses to others.
In addition to paying for the other party’s damages, if you select the minimum liability insurance, you should also negotiate Mexico Insurance coverage that provides:
- Legal Assistance including Bail Bond
– Roadside Assistance
– Coverage Territory consists of all Mexico
– Medical evacuation if needed
Also make sure your coverage provider details specific pay out amounts and the limitations of the policy. If you are unsure about the amount of coverage, ask. A Liability Only policy might be OK if you have a large savings account elsewhere to cover the difference between the loss and the amount the Mexico insurance provider will pay. Full Coverage is the savvy choice for new autos and trucks. Make sure your full coverage Mexican insurance policy includes coverage for:
- physical damage to all vehicles involved.
– repair amounts (in the U.S. and Mexico) that are based on adequate labor rates.
– a total theft policy provision, as well as car rental in case your car is stolen.
– medical payments for yourself and your passengers.
– additional medical payments limits (higher Limits) for claims caused by motorists who have no coverage (uninsured Motorists).
Liability losses that happen in Mexico bear no effect on your Canadian policy. Your Canadian liability rates will remain unaffected, and your Canadian driving record will not be affected if you have a loss in Mexico.
It’s paramount that you comprehend that in the event you are held responsible for a loss and the damages (to cars or people) exceed your coverage limit, you will be held responsible for the difference. This problem persists in Canada and in Mexico. In Canada, if you are found at fault arrangements such as garnishments, asset sales, and liens may be put into play to secure needed funds. Within Mexico, however, you are responsible for the difference and you will be kept by Mexican authorities until payment is provided. In the event Your obligation exceeds your ability to pay, your confinement can continue. (jail)
Before planning your next trip to Mexico, carefully compare the services provided by your Canadian car insurance to the Mexican car insurance policy you are looking to purchase. Can anything be much worse than finding out too late that the standard coverage in your Canadian policy is actually extra broadened coverage that needed to be endorsed when you bought coverage.
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