Policy Differences in Canada and Mexico - Mexico Insurance
Where Do You Live?
Mexican law does not accept Canadian (or any other foreign) auto policies. So if you drive in Mexico without purchasing a Mexico Insurance policy and are then involved in an at-fault car accident, you are risking jail until you provide proof you can pay damages. This obligation is serious. You may be required to help pay wages and some expenses of the families of those you are deemed to have injured.
In both Canada and Mexico, car insurance rates and base services provided depend on the policy chosen. 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 set minimum in liability coverage, however, most reputable Mexican auto insurance companies start vehicle liability coverage at $50,000 and since it’s not expensive to increase it, most people buy a minimum of $100,000. 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
- Policy Territory is not restricted (Should be all of 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 uncertain about the amount of you policy limit, 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 wise choice for brand new cars. 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), based on adequate labor rates.
- total theft coverage and car rental if your vehicle is taken and never found.
- medical payments coverage for you and also for passengers riding in your car.
- 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 auto rates will remain the same, and your Canadian driving record will not note the accident.
It’s important that you realize that if you are deemed responsible for the accident and the damages incurred (bodily injury or property damage) are higher than your limit, you will be liable for additional payments. This dictum is true in both Canada and 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. South of the Border however, you are responsible for paying your obligation, and will be detained by Mexico authorities until payment is made. In the event the costs exceed the amount of your assets, your detainment can persist. (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. There’s nothing worse than finding out too late that the normal coverage in your Canadian policy is actually extended coverage that needed to be added separately when you purchased Mexico insurance.
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