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Mexicanbill

Aug 1, 2013, 12:57 PM

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USA Car Insurance in Mexico

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My Insurance Co. in the states (American Family) just informed me that I need to maintain Full Coverage of the USA policy during the 6 months I am in Mexico as well as the 6 month Mexican Policy I will purchase. This does not seem right to me. If their policy has no value while I am driving in Mexico, why do I need to carry it, at a cost of about $475. for the 6 months I am in Mexico covered under a different policy?
Is this standard or are they just trying to keep the commissions rolling in?
Chef William aka MexicanBill



RickS


Aug 1, 2013, 1:32 PM

Post #2 of 5 (3965 views)

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Re: [Mexicanbill] USA Car Insurance in Mexico

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It may be time to consider another carrier. I have Geico and annually, when we get out of Colorado for the winter, I put the cars being left at home on Comprehensive only.... basically a storage policy. I also do this on our RV if we aren't taking it with us that winter. I have done this for several years (and Geico even 'advertises' doing this on RVs for winter). If our winter trip takes us to Mexico (rather than, say, Florida) I even take Collision off that car for the months we will be in Mexico (and have Mexican insurance).


Aaron+

Aug 1, 2013, 1:35 PM

Post #3 of 5 (3961 views)

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Re: [Mexicanbill] USA Car Insurance in Mexico

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Many if not most states in the USA require that cars registered in their state carry insurance. So unless your state allows for informing it of "vacation periods" or the equivalent of inactive status, the insurance co. may just be complying with your state's law. You may be able to downshift to lower liability levels and a higher deductible during your absences from the USA, if your company would allow for that and provide reduced premium charges; just do not get into a liability situation in the USA without having the full coverage you would normally want within the USA.

Also, be sure the Mexican policy you purchase meets at least the minimum requirements of the Mexican states you will transit and where you will principally be. Requirements vary considerably by state, with "my" state of Yucatán having one of the higher minimum requirements (although, despite state law, companies here say that still over 70% of cars remain uninsured!). The Mexican company should be able to provide such info. Even if you buy such insurance for Mexican through a U.S. company or agent, the actual insurer in Mexico is a Mexican company.


Mexicanbill

Aug 1, 2013, 1:39 PM

Post #4 of 5 (3961 views)

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Re: [RickS] USA Car Insurance in Mexico

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Thanks, It's the car I'm taking into Mexico for 6 months that will be covered with Mexican Insurance that American Family Insurance told me I had to keep the USA policy alive at 100% during the months I'm out of the country. If it was a month or two I wouldn't mind, but six months seems excessive for something I is not protecting my car at all during that time frame.
Chef William aka MexicanBill


sioux4noff

Aug 5, 2013, 10:18 PM

Post #5 of 5 (3811 views)

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Re: [Mexicanbill] USA Car Insurance in Mexico

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Nationwide, our insurance company we had in Texas, allowed us to suspend our policy while we were in Mexico, and we could reactivate it on our return, as long as we could prove we had the equivilent coverage in Mexico during the susprended time.
 
 
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