Mexico Auto Insurance Coverage. A Major Restriction On the ISO Personal Car Policies
by Edwardo Sneineh,
Chicago Auto Insurance Agent
Unless there is a legal amendment or endorsement to the contract, the personal auto insurance policy will not provide any protection if and when the insured individual is operating the insured vehicle in any Mexican territory. For that reason it is important that acceptable insurance policy be obtained with one of the authorized auto insurance companies before a trip is taken to Mexico. The company must also be licensed in the country of Mexico.
To operate a vehicle in Mexico without auto insurance coverage is a criminal offense. Travelers to Mexico can get Mexican insurance coverage at the Mexican border. Also it may be possible to add this insurance to an existing (US) Personal Auto Policy if an the US based insurance company is a member of a foreign insurance syndicate. Some people/ visitors may choose to buy a totally separate policy for any trip to Mexico.
Standard ISO's PAP provides 'Limited Mexico Coverage'. However, this article is not the purpose of Limited Mexico Coverage endorsement. The endorsement is primarily utilized by vehicle owners who reside close to the Mexican borders and very often take short trips to Mexico. All auto policy coverages can be obtained: for losses that take place in Mexico within 25 miles of the US- Mexico borders; and the coverage applies only while the insured person is in Mexico for 10 days or less.
The Limited Mexican Coverage endorsement will not defend the insured in Mexico. The insurance carrier will only come to the defense of the insured under the auto liability insurance coverage if the main lawsuit is brought in the US . Furthermore, the US insurer will not provide coverage even if the original lawsuit is against a Mexican citizen or resident. Also, any repair to a covered auto is not covered if the repair is made in Mexico, unless the auto was inoperable.
For many individuals who do not live near the US Mexico borders there is a basic need to get separate coverage for any Mexico travel. The Rate is usually estimated based on the territory in Mexico and time length of the trip. If comprehensive and collision coverage is sought the value of the vehicle will also be considered.