Quote:
Originally Posted by mexliving
............ truck was a complete loss ... the student had placed the value at 9,000 dollars just to save some money on the 14 day mexico trip... insurance agent informed they would get a check -9% of the 9,000.
i believe his truck would cost around 14k-16k to replace...
so he made a mistake by trying to save a little money.... he was not thinking that he would fall asleep and rolll the truck..
when purchasing mexico auto insurance.... used the highest replacement value.. just in case....... the idea of the insurance is that if its stolen or a complete loss, you will not worry about not being able to replace the vehicle at true market price to replace....
and if you are involved in an accident .... expect to wait for hours for insurance representative to show up.... take photos and you can also request to have your car fixed at a dealership.
|
I agree with everything you've written, but would like to comment on your suggestion that you use the highest replacement value on your Mexican insurance policy.
I suggest you use a high replacement value figure only if any additional premium cost to do so is minimal. The reason is that, in the event of a total loss, the Mexican insurance company will simply use one or several of the various "blue books" to establish a value for the vehicle.
In my own situation, (as posted elsewhere on earlier threads), our car was stolen in Zihuatanejo, then found a day or so later, but damaged beyond repair. It was an '03 Chev Malibu, four years old at the time, but with very low mileage...about 25,000 miles. I had assigned a replacement value of $11,000 (in Canadian $, which essentially means nothing to the Mexicans).
The Mexican insurance company, which deals only in US$, initially offered me $6500 US. I wimpered, whined, argued and cajoled them to increase their offer to $7300 US, which I reluctantly accepted. If I wanted more....what I felt to be the real, fair replacement value.....my option would have been to take them to court. Obviously not a practical option.
Note there is usually a $1000 deductible on theft/total loss claims, so I had actually settled for $8300 US. At the exchange rate in effect at the time, I received about $9100 gross Canadian , net $8000.
Even establishing a "blue book value" is a shell game.....one that the insurance company plays to their advantage, obviously.
Bottom line: insure your vehicle for at least an average of the blue book value. Going much beyond that is a waste of premium dollars.