Everyone knows that the United States and Mexico have different legal systems, and because of these differences they also have different car insurance policies. I will try to outline some of the differences by type of insurance. Make sure that you don’t make the mistake of imagining that this is a complete list because there are just way too many minor differences to list.

The first coverage that I will talk about is Liability insurance. Liability coverage in Mexico is determined by civil law and defined by statute. Now some people think that this is really good and others think that this is really bad, it’s just a matter of opinion. The result of this is that it is very rare to have a claim made for pain and suffering or emotional distress. Most claims are paid under “Property Damage to Others” coverage and the “Bodily Injury” coverage. All of these losses are settled on an actual cash value or acv approach as is dictated by law.

By the way, this is completely opposite to the way that claims are handled in the United States, but Mexico is not nearly as litigious as we are. It is rare to see a claim above $100,000. Property damage claims can approach this limit, but very rarely do you see a Bodily Injury claim this high.

Some will find this next piece obvious, and others not so much: The insurance purchased from a Mexican Insurer will not cover a case brought against you in the United States. It will only provide protection for cases brought against you in Mexico. If you have an accident in Mexico and are sued in the United States for that accident you will have no coverage under your Mexican policy.

Secondly, lets take a look at car insurance. There can be quite a big difference in rates, coverages, limits, and deductibles between the various Mexican Insurance companies so lets take a look at some of the things that you should pay attention to. You will want a combined single limit coverage, some insurance companies will reduce the amount payable with the use of split limits. The standard used on a Mexican car policy is a combined single limit of one hundred thousand dollars. Stay away from split limits. Another very important coverage is Legal Aid and Travel Assistance, sometimes these are listed as as additional coverages, but they are essential. Without both of these coverages you will be paying your own legal expenses until liability is determined.

The Mexican car policy has exclusions for Vandalism and Partial Theft. Whereas United States policies are generally “all risk” policies Mexican policies are “named perils” policies. These policies provided coverage for collision, fire, total theft, some natural occurrences, and other perils. In the United States we are accustomed to a fixed deductible, however Mexican car polices will often have a deductible as a percentage of the value of the car insured.

Learn more about Mexican car insurance. Stop by Luisa Navarrete’s site where you can find out all about car insurance for Mexico and what it can do for you.