Coverage Differences in Canada and Mexico – Mexican 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. 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 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 policy provides payment in dollars in the event you are at-fault for third party property damage or injury to other people.

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 unsure about the amount of coverage, ask. Liability Only protection may be enough if you have deep pockets elsewhere to cover the difference between your oblication and the actual amount the Mexico Auto insurance coverage will compensate. 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) that are based on adequate labor rates.
– total theft coverage as well as car rental in the event your vehicle is stolen.
– medical payments for yourself and your passengers.
– higher medical payments for injured drivers and passengers caused by uninsured motorists.

Accidents involving liability coverage that occur in Mexico bear no effect on your Canadian policy. Your Canadian liability car insurance rates won’t change, and your driving record in Canada will not record an accident.

It is essential that you understand that in the event you are deemed responsible for the accident and the damages incurred (to vehicles or individuals) exceed the amount of your coverage, you will be personally liable for the overage amounts. 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 case the costs exceed your ability to compensate the injured, you can be jailed. (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.