Do you live in the U.S. or Canada? Do you cross Mexican borders more often? Are you well aware of Mexican laws? Well, you must know that your auto insurance from your home country is not considered proof of financial responsibility under Mexican law (more on that below). I know that’s quite a bad thing and can increase the burden on your pockets as you’d have to purchase separate auto insurance for Mexico. But you don’t have another option to go for; as a result, you have to end up buying separate Mexican auto insurance for your car.
If you are concerned about the additional expense, don’t worry; in the following article, we will see some tips for getting low-cost Mexican auto insurance. So, if you also want to save on your Mexican auto insurance, make sure to scroll till the end.
Is it Necessary to Have Mexican Auto Insurance?
Yes. Federal law requires every vehicle on a federal highway, road or bridge to carry insurance covering damage to third parties (Ley de Caminos, Puentes y Autotransporte Federal, art. 63 Bis): liability coverage is the thing the law asks for. Moreover, Baja Bound's FAQ says American and Canadian car insurance is not considered proof of financial responsibility under Mexican law. In case you’re found driving without Mexican auto insurance after an accident, expect the scene to take far longer to clear. As a result, buying Mexican auto insurance is the only option.
Tips To Save Money on Mexican Auto Insurance
You already have car insurance on your vehicle. However, you still need to get one more if you are planning to drive to Mexico or visit it more often by crossing the borders while driving a car. You can’t ignore the laws of carrying Mexican auto insurance to drive on its roads. But you can cut down on some of the cost of deductibles on car insurance. Here are some tips for getting a low-cost Mexican auto insurance policy:
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Compare different insurance policies: Comparing the cost and the benefits of other insurance policies can help you save a lot of money. The rates for different insurance plans vary from one company to another. So, if you spend some time comparing various insurance companies, you can find the policy that fits your budget. Baja Bound's quote form returned three policies (Chubb Platinum Baja Saver, HDI Premier and HDI Standard) at different prices for the same trip (price table); read what each covers before you pick the cheapest.
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Increase your deductibles: Increasing your deductible can help you save money on your premiums. However, you would need to have enough funds in the event of a claim. The quote form offers two deductibles (price table); compare the price at each. In simple words, deductibles are the upfront amount that you have to pay when making a claim and aren’t covered by the insurers. For example, you pay the deductible amount of a covered repair first and the insurer pays the rest, up to the policy terms.
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Check the cost of insurance for the vehicle you’ll drive: The quote asks for your vehicle and its value, so if you have a choice of vehicles to take, compare the quotes for each.
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Avoid getting optional coverage on an older car: If you own an older car that isn’t worth much more than the cost of the extra coverage, consider whether cover for your own vehicle is worth buying. Price the quote with and without physical damage and theft cover; the liability part is the part the law requires. So, now you can decide whether your clunker car needs that protection or not.
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Ask your provider about discounts: Ask whether any discounts are available for your driving history or other circumstances. Availability varies by insurer; Baja Bound lists a Baja & Sonora Saver, a SENTRI Saver and a Casa Saver discount, so check whether you qualify for one before you buy.
Conclusion:
Driving is one of the best pleasures that one can get while driving on Mexican roads while watching the natural beauty and the side view of Mexico. But, federal law requires liability insurance on federal roads, and a home-country policy does not count, so you need a separate Mexican policy. This can increase the burden on your pockets but wait! You don’t need to cancel your driving trip to Mexico. We have discussed all the methods that can help you get low-cost Mexican auto insurance.
Comparing the rates of different insurance companies seems quite daunting as it requires a lot of time and attention. So why don’t you consider us? SmartGringo is one of the best sites that helps its visitors to help them customize their insurance policy on their own levels of coverage and choose their deductibles as per their budget and needs.
Planning the crossing? Run a quote for your trip.