There are many people who find the payment modes of Mexican auto insurance quite confusing, whenever they go to Mexico for a vacation or some business. There are various credit card firms, which provide insurance coverage for rental automobiles, but it’s not certain that they will provide Mexican auto insurance coverage as well. In actual fact, there have been several instances where people lost their coverages when they got into accidents in Mexico.
Hence, it’s best to buy an insurance coverage in Mexico from one of its rental car companies, so that you are required to take no chances while you are there. Various industry experts and travel agents also recommend the same thing.
You must be insured for civil liability coverage for driving any kind of vehicle on roads as well as highways of Mexico. The government of Mexico requires Mexican auto liability insurance from all drivers in the nation, so that all sorts of vehicle damages like property damage, injuries or damages to alternative party, etc. are covered by this insurance.
In addition to this, you have to obtain an official declaration from the title holder, i.e., car lender of your vehicle or any well-known bank. This affidavit is used for a temporary importation and permits an individual to navigate its vehicle anywhere into Mexico. You should also take the evidence of your native registration, native driving license and native citizenship with you to Mexico.
When you enter Mexico, you have to buy a provisional import permit and a tourist pass as well.
Things covered in Mexican auto insurance
- Collision damage losses must be covered in the insurance, when you decide to go to Mexico. It’s important in the nation to buy this coverage in order to hire a car from any car rental service provider. You can’t refuse this insurance at any cost.
- You also have to acquire coverage for “loss of use”, which basically refers to a situation where a car rental service provider is not able to provide a certain automobile on rent due to some damages caused by accidents. You should not reject this coverage, or otherwise you would have to pay for the losses suffered by that company.
- Apart from insurance, you also have to pay about 15% VAT on it as all of this will be included in the final rental bill of your vehicle. Make sure to ask about VAT from your car rental service provider when go to hire a vehicle.
Legal angle of Mexican insurance coverages
In Mexico, if someone has parked their vehicle illegally, then the officials of law enforcement take away that vehicle’s license plate in order to make sure that the owner will come and make payments for penalty. Here, you can’t return your hired car without its license plate as it will result in payment of the time and cost losses for the agency, which occurred due to plate retrieval.
In case of bail bonds, some legal assistance is certainly provided in policies so that a car owner is efficiently able to cover its bail and the fees of its lawyer. Vandalism and theft are covered in separate insurance policies in Mexico. If you are thinking where you will be able to get car insurance, then you should look for accredited agencies at the crossings and borders of Mexican towns.