In light of the frequency of traffic accidents in the lakeside region—and recent incidents in which insurance coverage has been questioned—local motorists may want to better understand what their policies actually cover, and the circumstances that might lead to denial of payment for damages.
Auto liability insurance from a Mexican-licensed insurance company is required by law for all vehicles driving on Mexico’s federal roads and highways. Failing to hold Mexican car insurance can result in significant fines, vehicle impoundment, and even jail time if you are involved in an accident. A U.S. or Canadian insurance policy is not recognized and does not fulfill this requirement.
What a typical insurance policy covers depends on the type of policy contracted:
Limited Coverage: Protects against damage to third parties and their property, as well as total theft of your vehicle. It does not cover material damage to your own car in the event of a traffic accident. Ideal for those on tight budgets who need to comply with civil liability laws and can afford to pay for repairs if their car is not stolen.
Ample Coverage: The most comprehensive policy, covering your vehicle against any type of damage, whether due to collision, natural disasters, vandalism, or other unforeseen events. Additional benefits often include roadside assistance (tow truck, gas, tire change), legal advice, protection for special equipment, and partial theft. Ideal for those seeking maximum peace of mind to protect their assets against any eventuality.
How to decide? Consider your needs. If you have a new or valuable car, comprehensive coverage will give you greater security and peace of mind. If cost is a consideration, limited coverage may be preferable to comply with the law and protect your assets against third parties.
Please login or subscribe to view the complete article.