Mexico law does not recognize or admit Canadian (or any other foreign) auto insurance policies. So if you choose to drive in Mexico without obtaining a Mexican Insurance policy and are then involved in an at-fault auto accident, you run the risk of being detained (jail) until you provide proof you can cover the accident’s 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 both Canada and Mexico, car insurance rates and base services provided depend on the policy chosen. Canadian minimum liability limit is normally $200,000 in the provinces with the exception of Quebec where the liability limit 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
– Coverage Territory consists of all Mexico
– Medical evacuation if needed
Also make sure your coverage provider details specific pay out amounts and the limitations of the policy. If you have questions about the amount of coverage limits, 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 usually the best option for newer vehicles. 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.
– a total theft policy provision, as well as car rental in case your car is stolen.
– mexical payments for you and passengers to help pay hospital or doctor bills.
– additional medical payments limits (higher Limits) for claims caused by motorists who have no coverage (uninsured Motorists).
Accidents involving liability coverage that occur in Mexico bear no effect on your Canadian policy. Your Canadian liability rates will remain unaffected, and your Canadian driving record will not be affected if you have a loss in Mexico.
It’s paramount that you comprehend that in the event you are held responsible for a loss and the damages (to cars or people) exceed your coverage limit, you will be held responsible for the difference. This caveat holds 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. What’s worse than learning that coverage on your Canadian policy is invalid and is add on coverage that needed to be purchased as such when you purchased Mexican insurance.
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