BajaNomad - Heads up on Progressive Insurance change in Mexico Coverage

Heads up on Progressive Insurance change in Mexico Coverage

Santiago - 9-2-2012 at 08:41 AM

I have been a fan of Progressive for boat insurance as their comp/collision applies to Mexico (not the liability portion). This works great for those who don't need/want liability while in Mexico and reduces your tow vehicle insurance simply by listing the value of the boat/trailer as $0, but the liability portion of the tow vehicle's Mexican insurance still applies to the boat/trailer should the boat, while being towed damages something. Or at least, this is the dreamland I've been living in for the last 6 years.
However, Progressive has made a change to their Mexican coverage that may affect some of you:

The covered watercraft shall not remain in any state, territory, possession, or territorial waters of Mexico for more than 30 consecutive days. If the covered watercraft remains in any state, territory, possession, or territorial waters of Mexico for more than 30 consecutive days, the Mexico Coverage afforded under this Part IV shall not apply beyond the 30 days and shall not be available again until the covered watercraft exists any state, territory, possession, or territorial waters of Mexico and returns to within 75 nautical miles of the United States or Canada.

It seems to me that if you tow your boat back and forth, most of you are still covered. If you hit a rock on day 31 of a long trip, well, I guess you hit it the day before?? For those of you who keep your boat in Mexico AND would NEVER lie to an insurance company, you're SOL. For the rest of you who go out of your way to lie to the insurance companies, how in the world would the adjuster know when you crossed the border?

Paladin - 9-2-2012 at 11:42 AM

Insurance adjusters today are generally incompetent and/or unethical. They're not even all that smart either, BUT if you turn in an insurance claim in Mexico and coverage is ONLY for the first 30 days, don't you think the adjuster will ask for your visa to show when you crossed the border??

The adjusted are highly trained to find a way to deny a claim.

Take it from a 65 year old Insurance Broker in the Independent Agency system. Started right after college in 1974 and it gets worse every year.:

Santiago - 9-2-2012 at 11:56 AM

Quote:

Originally posted by Paladin
Insurance adjusters today are generally incompetent and/or unethical. They're not even all that smart either, BUT if you turn in an insurance claim in Mexico and coverage is ONLY for the first 30 days, don't you think the adjuster will ask for your visa to show when you crossed the border??

The adjusted are highly trained to find a way to deny a claim.

Take it from a 65 year old Insurance Broker in the Independent Agency system. Started right after college in 1974 and it gets worse every year.:

Yes, but I have an FM2 (or whatever it's called) and I just drive across.

Pescador - 9-2-2012 at 03:44 PM

I am not surprised that Progressive finally took a position because I read somewhere in the insurance adjuster news that they were taking a loss in the Mexican market. The major Mexican insurance companies found that they could not cover theft and come out ahead, so it was only a matter of time until Progressive found this out. Boat US figured this out and dropped their coverage of boats in Mexico. Insurance companies try to figure out where they can get ahead of their competitors and the first couple of years Progressive got a lot of business that their competition did not pull in, but sometimes their losses cause them to re-evaluate their coverage. That is why most of the Mexican companies gave up on theft or comprehensive coverage and only cover liability which is a much safer bet. I would assume that Progressive will further change their coverage to no comprehensive while South of the Border.

Santiago - 9-2-2012 at 06:07 PM

Pesky: I agree that this will prolly happen; but in the meantime, just how do you prove that you crossed the boarder on day X with an FM2 or 3? Or, if you leave your boat down there full time and then you cross, getting your passport stamped each time, how do they prove you did not have the boat? Seems like its tough either way?

Days in mex?

akshadow - 9-2-2012 at 10:34 PM

Maybe it is just for tourists? If so and you have an Fm 2 or 3, whatever called now, you may not be a tourist?

Pescador - 9-3-2012 at 07:35 AM

Quote:

Originally posted by Santiago
Pesky: I agree that this will prolly happen; but in the meantime, just how do you prove that you crossed the boarder on day X with an FM2 or 3? Or, if you leave your boat down there full time and then you cross, getting your passport stamped each time, how do they prove you did not have the boat? Seems like its tough either way?

Having dealt with a lot of adjusters, the issue will only come up when they have a major loss claim. It builds a case for not paying the claim. But you are right, they have almost no way to prove your entrance or exit since nothing is stamped and would have to prove otherwise in avoiding a claim. Even with an FMT you can do multiple entries, so it is going to be very difficult to prove one way or another. "But sir, I just came down last week and my boat she is stolen".