American drivers who plan to drive into Mexico must have a Mexican car insurance policy. That’s because Mexican law does not recognize American car insurance, but it requires all drivers to carry coverage, foreign drivers included. However, getting a Mexican car insurance policy means you have to pay for it. Still, like in the States, Mexico car insurance is going to cost you money. Just like in the states, various factors will influence how much you pay for coverage. Consider just a few of these factors; they might help you make a more-informed decision on the type of coverage you buy.
Understanding Mexican Car Insurance
The U.S. and Mexico, despite their close relationship, are separate and different legal jurisdictions. Therefore, Mexican car insurance regulations are different from those of the States. Even if you live right across the border, in Del Rio, Brownsville, Laredo or McAllen, Texas, for example, you still have to buy separate car insurance policies in the two countries.
Often, you can keep your Mexican car insurance policy active only for the duration of your stay in Mexico. Or, if you cross the border frequently, you might keep policies active simultaneously in the long-term. But, that will mean paying for your Mexican policy for as long as it is active. If you don’t, then you could face a policy cancellation, which could cause a big hassle.
It’s important that you work with your Mexican insurer to determine the appropriate course of action. You want your policy to remain active for the length of your stay in Mexico, so you’ll also want to keep costs affordable.
What Can Influence My Policy Costs?
Just like in the U.S., Mexican insurers will base your premium costs on numerous risk factors. These risk factors demonstrate your likelihood of filing a claim on your policy. Therefore, the higher your risk level, the more you might have to pay for your policy. Some of the factors that might influence your rates can include:
1. Your Car’s Value
The amount of money attached to your car demonstrates how much the insurer might have to pay for damage to the vehicle, or for a totaled car. The age, make and model of the car might have an impact on value, and your eventual premium cost.
2. How Much Coverage You Buy
If you buy only the most-basic coverage for your car, such as the lowest levels of liability coverage, then you might pay less for your coverage. However, if you buy more coverage at higher limits, then you might have to pay more for your coverage. All the same, by buying more coverage, you’ll have more protection in case an accident occurs.
3. The Length of Your Stay in Mexico
Most Mexican insurers can make your policy active only for the duration of your stay in Mexico. The longer you stay in Mexico, the higher your policy might cost. A month-long policy might cost less than an annual policy. However, if you cross the border frequently, you might still find it cost-effective to keep a policy active continuously, rather than buying a new policy with each crossing.
4. Your Driving Record
If you have gotten a lot of tickets or had a lot of wrecks, that might show your insurer that you have a high likelihood of causing a problem behind the wheel. Therefore, your car insurance might have to cost more, because your insurer will have to address the cost risk you pose them.
5. Where You Will Travel
If you plan to drive to Mexico City, you’ll likely face different accident risks than you would if you drove in rural Mexico, or in a border city like Tijuana or Juarez. Accident risks, theft risks and security risks might be different in different places. Therefore, where you plan to go will likely impact your rates.
Talk to your Sanborn’s Insurance agent about your plans for a trip to Mexico. They can help you address all you cost concerns to find the most-appropriate policy.