Car Insurance in Mexico: Having insurance for your car has become more of a necessity than a luxury. In fact, it is one of the best tools that exist when you need financial protection against physical damage or injuries caused by vehicular accidents, traffic collisions, and natural disasters. But more importantly, insurance for your vehicle gives you a benefit that money can not buy: peace of mind.
This peace of mind comes in many forms: do not worry about where you will get the money to pay your hospital bills and repair your car; not be afraid of how to pay the hospital for other people who have been involved in a car accident; or not having to worry about how your family will survive if you can not work for a while.
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An insurance is definitely something very necessary in what you need to invest. And one of the most important steps that must be done before hiring insurance for your car is to be more informed about the options that are available. In this way, you will choose the best option that suits your needs and budget.
Mandatory third-party liability insurance
The Civil Liability Insurance covers any individual from the financial responsibilities caused by hurting a third party. The term “third party” is the person or persons involved in the accident, or whose property the owner of the insurance policy has impaired or damaged. This insurance is the most basic and also the cheapest to protect your car, and many states in the country, including CDMX, consider this insurance as mandatory.
Voluntary liability insurance for material damages to third parties
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Coverage for the insured
The coverage for the insurance holder and its passengers during an accident or collision varies, and it is very important to include it at the time of contracting the insurance for your car. This insurance is given to the insurance holder and his passengers at the following events:
- The accident is not the fault of the owner of the policy
- Neither party is guilty in the accident
- The guilty driver is on the run
- The driver who caused the accident does not have enough money to repair the damage caused to the car insurance holder
Comprehensive coverage insurance
The word integral can be misunderstood when hiring a comprehensive policy for your car since it is assumed that the insurance will cover any type of damage.
The reality is that this type of insurance varies depending on the company. There are some insurance companies that add more benefits, but there are basic coverages that are included in almost all comprehensive coverage insurance packages. These include the following:
Theft / damage
Covers all vehicle losses (including spare parts and accessories) and vehicle loss due to the following:
Damages during transport Any damage caused while a car is being transported or moved by a crane, trailer or any other means.
External explosion or fire Any damage caused or initiated by fire from external sources, or those caused by self-inflammation.
Damage caused while driving This is damage caused when driving the vehicle, such as hitting a pole or hitting a parked vehicle.
Theft of parts and vandalism There are times when some parts of the car are stolen. Here you have to be careful since the insured person will have to pay the full cost of the stolen part if the replacement value costs more than the value of the deductible.
Total theft of the vehicle The insured can claim up to the total value of the vehicle in case of theft and that the car does not recover. The fair calculation to be paid is based on the value of the car in the market minus the depreciation value.
Keep in mind that the possessions inside the vehicle and the damages caused by a natural disaster are not covered, such as the fall of a tree on the roof of your car, for example.
Additional Car Insurance in Mexico
There are some situations where a little more coverage is required than the average. The good news is that there are several types of auto insurance coverage that insure those with special needs, especially with the comprehensive insurance package. Some of these coverages include:
Additional transportation The insurer will pay the insured’s transportation costs while the insurer waits for his car to be repaired. There are some companies that even offer a car during this period.
Road services This coverage includes different services depending on the insurance company. It can range from towing services to fuel deliveries and hotel accommodation, although not all companies have these coverages.
Accidents This type of insurance covers medical, funeral or hospitalization expenses for the injuries or deaths of other people who travel in the vehicle during a vehicular accident.
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It covers damages caused by nature, such as hurricanes, floods, earthquakes and other disasters. This is a very important coverage, especially in Mexico, since there are always strong winds that bring down trees, there are areas where there is flooding and particularly the CDMX is prone to seismic movements.
These are some of the auto insurance options that you have today. You have the freedom to choose the coverage for your cheapest car, but this could be a mistake since a single accident could take away all your savings in the blink of an eye, regardless of whether the fault was yours or not. In the end, it is always better to invest in car insurance than to regret not having one.