Mexican Auto Insurance

[RVGRINGO]

Thanks for mentioning that process, Rodrigo. Most folks aren't familiar with the Mexican process of dealing with an accident which has not caused death or injury; or damaged government property. It is a rather polite way of handling things without getting angry or casting blame. The parties do just wait for the insurance adjusters to arrive and let them handle the details. If both vehicles are drivable, I've heard that they sometimes write checks on the spot. It is not at all like the US system of having to sue for damages. Here, accidents are accidents; they happen.

[HolyMole]

Originally Posted by RVGRINGO

Thanks for mentioning that process, Rodrigo. Most folks aren't familiar with the Mexican process of dealing with an accident which has not caused death or injury; or damaged government property. It is a rather polite way of handling things without getting angry or casting blame. The parties do just wait for the insurance adjusters to arrive and let them handle the details. If both vehicles are drivable, I've heard that they sometimes write checks on the spot. It is not at all like the US system of having to sue for damages. Here, accidents are accidents; they happen.

Yes, from experience, Rodrigo and RVGRINGO are correct. Three winters ago we had an accident along the coastal highway near Pinotepa Nacional in Oaxaca State. I was turning left off the highway into a PEMEX station, and smashed into the side of a local taxi who was trying to overtake me on the left just at that time. The taxi was passing on a solid double yellow line. The taxi driver was skillful enough to prevent his car from rolling. Damage to my left front bumper was minimal...almost unnoticeable....but there was a long, large dent all along the left side of the Nissan taxi, from the front panel all the way to the back of the car. (This was in a 30km speed zone....the taxi was driving at twice that speed).

No police were called. We waited almost 5 hours for my insurance representative to come from Puerto Escondido..... some 75 km down the road. A Federale did show up....but only to check out the large group of people standing along the side of the road. He asked no questions, listened to my insurance agent, then drove away. No insurance agent or representative ever showed up to assist the taxi driver.

Although my Spanish is rudimentary at best, it was clear that my insurance agent was telling the taxi driver that he (the taxi) was totally in the wrong. After arguing for an hour or so, it was agreed that I would pay the taxi driver 100 pesos for the use of his cellphone....period. My damages didn't require repairs. I would guess that a repair garage in the US or Canada would have charged $1000 to fix the taxi, but he would probably have paid no more than $100 or $200. The taxi was more concerned about his lost revenues for the day, and tried to get me to pay 500 pesos to cover those losses, but my insurance agent, (who spoke not one word of English) made it clear that I should not pay anything.

[Rodrigo84]

I have known Americans who were at fault in accidents (light fender benders). They didn't deny it either, it was apparent in most cases that it could have only happened one way, but again they didn't have an issue with it. Insurance adjusters handled it and they only paid something if they had damage to their own vehicle (and wanted to get it fixed). It was just as if it happened between two Mexicans. Surprising to the Americans I knew, they were so shocked as to how the system was completely opposite what they expected, because the Mexican ended up being nice about the situation.

On a side note, often it was a decent deal for the Mexican, because they often knew someone who could fix the vehicle for MUCH less than the cost of the check that was cut, and pocketed the extra $$$, that often covered the deductible.

[G.Bledsoe]

Go to a company called Bajabound on the internet (or call them) to buy car insurance for Mexico -- by the day or year.

The internet site will allow to select from five insurance companies and your level of coverage -- from just liability to full coverage. Most of the companies are American or American-backed. Bajabound is a very good company in San Diego and they cover all of Mexico. I have used them for six years.

If you need help or more advice, send me a private message. I take groups of cars across the border twice a year and have had no problems.

[RVGRINGO]

Please be sure that the company you deal with will have adjusters on tap quickly in the area where you will live and do most of your driving.

[mexliving]

on my way out of mexico i came to a couple of american students that had fallen asleep and went into the center ditch on their honda pilot...... the suv rolled many times but the students where not infured.(wearing seatbelts). the driver had driven from los angeles to pick up his girlfriend in phoenix and without any sleep crossed nogales into mexico around 3 pm.... in hermosillo he had the accident.... i stopped and stayed with them...... loaded their belongings into my truck and drove them to meet insurance agent... 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....

drove the students back to phoenix,,, they filled my gas tank and bought me a large pizza.....

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.

[Calgary Native]

Originally Posted by dstan

I am driving to Mexico and will be there for 2 months. What is the best company to buy from, both economically and reliability? Is it best to buy in advance over the internet or at the boarder? I will be crossing at Nogales. thank you for any recommendations you can offer.

For the past number of years I have used Don Smith Insurance. I have found it is cheaper to purchase a 6 month policy as opposed to a 2 - 3 month policy. They have a office in Nogales but you get a better deal if you purchase on line.

[HolyMole]

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.

[BajaGringo]

My experience has been similar to others here. I have seen some Gringos become terrified when involved in an accident here on the Baja peninsula. As I speak fluent Spanish I usually try and stop if time allows and help where possible.

I have seen grown men (Gringos) practically reduced to tears in such situations as they were driving without insurance and were now recalling stories they had read on travel blogs that they were soon to become close friends with a cellmate named Bubba. Or perhaps in this case, "Señor Bubba".

If indeed the accident did not cause bodily damage or third party property damage I just try to get both parties calmed down and convinced that I want them both to leave satisfied with the outcome. I then try to just get everything reduced down to a simple common denominator ($$$) and then act only as a translator in the negotiation. Well, maybe I give a small opinion or two if I believe that one party is being unreasonable.

Usually the entire thing can be handled in less than 15 minutes, damaged covered to mutual satisfaction and everybody on their way.

I actually wish the USA could go back to such a system...

[mexliving]

i am a bit confused... my insurance policy is through mapfre... and so was the students that rolled their honda suv.

on the paperwork, there was a space that had the value placed at 9,000 dollars.

on my insurance i told the clerk my value was 25,000 dollars.... this is separtate from the other amounts listed on the coverages from the insurance company.

so with the students, the adjuster came out to the tow yard and after checking the insurance coverage and car/truck value listed at 9,000 u.s. he told them they would get by mail -9% of the 9,000 dollars...