BajaNomad - Liability Insurance Not Mandatory in Mexico [?]

Liability Insurance Not Mandatory in Mexico [?]

DENNIS - 12-20-2012 at 01:43 PM

Consumer Misinformation in Car Insurance Industry
Liability Insurance Not Mandatory in Mexico
By Vivian Stratton & Reporter X

Information provided to consumers by the US car insurance industry regarding
Mexico's requirements for third party liability auto insurance is frequently
false, fraudulent, or misleading. A large number of US auto insurers, Mexico
information websites, and other sources of information for US tourists are
promulgating untrue information about Mexico's auto insurance requirements. In
Mexico, there is no law requiring a personal vehicle to carry any type of auto
insurance, including liability. There is no Federal law, state law, or municipal
law requiring drivers to carry liability insurance. Although liability insurance
is not mandatory when visiting Mexico, most tourism experts agree that it is
highly recommended. But, "highly recommended" is not the same thing as "legally
required" or "mandatory". Nevertheless, many cross border insurance companies
regularly tell clients that it is illegal to drive in Mexico without liability
insurance. The practice is so widespread that it probably warrants an
investigation by US insurance regulators.

The Gringo Gazette conducted a survey of companies selling insurance to people
living and traveling in Baja. Callers asked the companies about Mexico's auto
insurance requirements. Amazingly, these companies provided a huge range of
answers as to what insurance requirements, if any, were actually required by
law. About one third of the companies truthfully answered that there were no
laws mandating liability insurance. Two thirds of the companies insisted that
liability insurance was mandatory in Mexico. Several of the companies even said
that drivers could not cross the border into Mexico without it, that you could
be arrested or fined for driving without insurance, and that the President of
Mexico had recently enacted a new auto insurance law, none of which is true.

Besides the false information from the auto insurance companies, much
misinformation circulates on the internet and in news articles about Mexican
tourism. Many of these websites probably obtained their information from
insurance companies. Information sources based in Mexico tended to contain more
accurate information than US based sources. The Mexican Tourism Board, for
example, correctly informs callers to their 1-800 number that insurance is not
mandatory, but is highly recommended. Two major Mexican based insurance
companies, Atlas and Sanborns, consistently provided correct information to the
public. People giving out wrong information usually say that there is a Mexican
law requiring liability. But, if you ask the representative to specify what law
they are referring to, they cannot cite it.

Third party liability insurance is highly recommended for Mexico travelers
because it determines how long you will stay in jail if you are involved in an
accident and arrested. Under standard Mexican procedure, anybody that causes
bodily injury or serious property damages during an accident will be immediately
jailed. If you don't have liability insurance, you will have to post a bond to
get out of jail, usually around $50,000. American visitors usually don't realize
that jail is the standard procedure, and the prospect of Mexican jail is
terrifying to most tourists. For that reason, most experts, including the US
State Department, highly recommend the liability policy for visitors.

Companies Providing Correct Information
Adventure Mexico
Mexico Tour Baja
Sanborns
Huggy Bear Insurance
Atlas
Baja Travel Club: "Traveler must have either $50,000 cash, bond, or liability
insurance"
Mexican Tourism Board 1-800 Number: "Insurance is not mandatory, but is highly
recommended"

Companies Providing Incorrect Information:
Mexico Insurance Online: "Liability is mandatory, ex Mexican President Fox
passed this new law", Cristine
ASA: "Liability is mandatory, driver can be fned without it", Elena
Safe-Mex: "Mandatory", Alma
Mexico Insurance Professionals: "Liabiltiy is recommended to be in compliance
with Mexican law", Fernando
Vagabundos del Mar: "Mandatory, must be written by a Mexican underwriter",
Carol
Mexican Insurance Proessionals: "Absolutely, it's the law. You can be taken to
jail just like in California. A cop can pull you over and demand proof of
liability insurance", Erin
Got Mexico.com: "You must have liability insurance to cross the border. You are
not allowed to cross without it." Shannon.
American Mexican Insurance: "You need Mexican insurance to cross the border",
Gaby
Baja Bound: "Liability insurance is mandatory"
Adventure Mexican Insurance: "Liability insurance is a civil law", Eddy

BajaGeoff - 12-20-2012 at 02:31 PM

The law went into effect January of 2012....liability insurance is absolutely mandatory in Baja Norte. Whether or not they begin aggressively enforcing this new law remains to be seen.

fdt - 12-20-2012 at 02:43 PM

Sorry Dennis but the only missinformation is the on beeing provided by the article you posted.
The law was decreed on July 1st, 2011 and went into effect immediately. There was a (so called) grace period until January 2012 but that is it.
It is decree #66 that you can find here and starts on page 47.
http://www.bajacalifornia.gob.mx/portal/gobierno/legislacion...

On page 48 Article 18 BIS, if you look at the 4th paragraph, it states that out of state or foreign vehicles are also subject to this law.
Saludos
Fernando

fdt - 12-20-2012 at 02:46 PM

Quote:

Originally posted by BajaGeoff
The law went into effect January of 2012....liability insurance is absolutely mandatory in Baja Norte. Whether or not they begin aggressively enforcing this new law remains to be seen.

It is beeing enforced !

mulegemichael - 12-20-2012 at 03:18 PM

what about baja sur???...gawd, i hate getting mixed messages!

DENNIS - 12-20-2012 at 03:21 PM

Quote:

Originally posted by fdt
Sorry Dennis

Don't be sorry. I'm but one of the messengers and insured to the limits available.

I was going to say where I got the article, the Punta Banda Bulletin Board, but had people knocking at the door and I rushed The POST REPLY button.

.

[Edited on 12-20-2012 by DENNIS]

sancho - 12-20-2012 at 03:37 PM

Quote:

Am I correct in remembering this reg also includes Mex Plated National cars? That they must have liability?
Although we all know that is a total fantasy

[Edited on 12-20-2012 by sancho]

fdt - 12-20-2012 at 03:38 PM

Quote:

Originally posted by mulegemichael
what about baja sur???...gawd, i hate getting mixed messages!

This is in effect in the state of Baja California, don't know if the state of Baja California Sur has something similar.
What I'm finding is that only 2 states have it as mandatory within the United States of Mexico and they are Baja California and Yucatan.

fdt - 12-20-2012 at 03:39 PM

Quote:

Originally posted by sancho

Am I correct in remembering this reg also includes Mex Plated National cars? That they must have liability?

The law says that all vehicles.

durrelllrobert - 12-20-2012 at 05:44 PM

Quote:

Originally posted by fdt

Quote:

Originally posted by sancho

Am I correct in remembering this reg also includes Mex Plated National cars? That they must have liability?

The law says that all vehicles.

So, are you saying that if a BC plated vehicle is involved in an accident, and can't show proof of insurance, the driver will go to jail?

fdt - 12-20-2012 at 06:49 PM

I never said that. I would imagine it is all depending on the accident whether you go to jail and stay for life or just pay a fine.

DENNIS - 12-20-2012 at 07:02 PM

Quote:

Originally posted by fdt
I never said that. I would imagine it is all depending on the accident whether you go to jail and stay for life or just pay a fine.

Actually, it would depend more on WHOM was in the accident.

Marc - 12-20-2012 at 07:07 PM

Buy it anyway. :?:

DENNIS - 12-20-2012 at 07:10 PM

Quote:

Originally posted by Marc
Buy it anyway. :?:

I don't know anyone who doesn't buy at least liability coverage.

durrelllrobert - 12-20-2012 at 07:57 PM

Quote:

Originally posted by DENNIS

Quote:

Originally posted by Marc
Buy it anyway. :?:

I don't know anyone who doesn't buy at least liability coverage.

My policy includes a get out of jail free clause.

shari - 12-20-2012 at 08:24 PM

gosh, very very few locals have any insurance on their vehicles here....maybe some rich guy who has a big fancy new truck but I dont know anybody who has it.

J.P. - 12-20-2012 at 09:46 PM

I just recived a notice from Progressive my ins. carrier that they have formed an association with a International ins. provider where they can handle all your Mexico needs via Internet Daily, Weekly, Monthly or ever 6 mos and you can pay with credit card or they will bundle your U.S.and Mexico coverage

bajaguy - 12-20-2012 at 10:02 PM

Quote:

Originally posted by J.P.
I just recived a notice from Progressive my ins. carrier that they have formed an association with a International ins. provider where they can handle all your Mexico needs via Internet Daily, Weekly, Monthly or ever 6 mos and you can pay with credit card or they will bundle your U.S.and Mexico coverage

I would rather use BajaBound. local people who I can trust. I have met and talked to Geoff and know nhe will take care of me if needed

Bajafun777 - 12-20-2012 at 10:50 PM

We carry liability insurance and was as Ruben's by Cantamar when an American had a mexican plated car run the stop sign hitting him so hard it flipped his vehicle over. We rushed outside and witnessed everyone getting out of the vehicles and the judical police came up focusing on the American. However, enough people had seen the accident that the mexican plated vehicle was the offender. The local police stepped away as soon as the Federal Police showed up and took control of the accident.
The American had struck his head and was not able to put everything in order when being talked to but we let the police know he had a head injury from the accident and that the other car ran the stop sign. Now, the American had insurance which we found in his vehicle and helped him get all of his stuff out of the car as both vehicles got towed to T.J., where after the police report was completed the American could get his vehicle we were informed. His vehicle was pretty messed up so it wasn't going anywhere anyway. The showing of his insurance made a big difference in the way he was being questioned by the police. We also called in to his insurance so he could get assistance.

The Mexican National had no insurance and no drivers license and since the American was injuried off to jail he went. Glad we got involved and my wife's fluent spanish came in real handy instead of my broken spanish which gets me by but not real good for this type of situation. Better to have the insurance and better to know you have an insurance that will go to bat for you quickly. Much better than one looking for the side door to bailout on you just when you need them the most. Take Care & Travel Safe-----"No Hurry, No Worry, Just FUN" bajafun777

J.P. - 12-21-2012 at 09:54 AM

Quote:

Originally posted by bajaguy

Quote:

I would rather use BajaBound. local people who I can trust. I have met and talked to Geoff and know nhe will take care of me if needed

To each thier own. Dont shoot the messenger I was just relaying Information.

Bajajorge - 12-21-2012 at 09:55 AM

I have my insurance through a local San Felipe agency. Everyone I know around the area speaks highly of their service, and handling of situations. Sometimes it's better to deal Mexican and not USA. I buy coverage by the year, so I don't worry about coverage on each trip south.

BajaGeoff - 12-21-2012 at 11:11 AM

There are plenty of insurance options out there to suit everyone's needs and comfort level. At the very least, get a liability policy that includes legal aid! I was traveling with a friend in a caravan and a local ran right out in front of his truck, sending the local flying and badly injured. After calling in the incident to the insurance company, we spent time in Ensenada with the Federales (who were very professional to work with) and as soon as the adjuster arrived, he called for an attorney to represent my friend. A few hours later after going in front of the Ministerio Publico my friend was free to go, as the local was found to be at fault. Having that lawyer there for my friend made the process a whole lot smoother. The local did survive the incident, but was very lucky that it was not worse.

sancho - 12-21-2012 at 11:53 AM

Quote:

Originally posted by BajaGeoff
he called for an attorney to represent my friend

Geoff, is my understanding correct that Gringo to Gringo
incident in Mex, that the at fault party can be sued
in a US setting? My worst fear is that no one would
answer the 800 # in Mex to get a hold of your Mex Ins
Co.

motoged - 12-21-2012 at 12:11 PM

Quote:

Originally posted by DENNIS
I don't know anyone who doesn't buy at least liability coverage.

Dennis,
I do....he's a rich friend who is the cheapest SOB I ever met :biggrin:

.....also refuses to pay the tourist card fee of $25....

DENNIS - 12-21-2012 at 12:14 PM

Quote:

Originally posted by motoged

Quote:

Originally posted by DENNIS
I don't know anyone who doesn't buy at least liability coverage.

Dennis,
I do....he's a rich friend who is the cheapest SOB I ever met :biggrin:

.....also refuses to pay the tourist card fee of $25....

GEEEE.... who could that be? :lol:

BajaGeoff - 12-21-2012 at 02:08 PM

Hello Sancho,

The answer to your question is much better suited for a lawyer here in the U.S. to answer. People can try sue you for whatever they want...whether it holds up in court is another story.

All of the insurance companies that we represent have claims centers that are open 24 hours a day, 365 days a week. When my friend had his accident, we reported it around 8PM on a Sunday. The adjuster was there shortly after and the lawyer got there at 10PM and stayed with my friend at the Ministerio Publico until he went in front of the judge and was released at 1AM.

Quote:

Originally posted by sancho

Quote:

Originally posted by BajaGeoff
he called for an attorney to represent my friend

absinvestor - 12-22-2012 at 10:10 AM

Sancho- I had an accident in Baja Sur (an 18 wheeler took off a mirror in a motorhome.) I had Mexican insurance that I bought through BajaBound. The instructions on the policy as to where and how to call were excellent. I had no problem reaching the company. The company was professional and other than trying to explain where in Mexico I was actually located the process went smoothly. (Not their fault.) Even though I was not near a major city an adjuster came to the scene and explained that I could get the repairs done in Mexico or the US. I received a follow up call from the insurance company when I was out of cell service area. When I returned the call (again from Mexico) I found it easy to get to the correct department etc.

David K - 12-22-2012 at 11:17 AM

Quote:

Originally posted by absinvestor
Sancho- I had an accident in Baja Sur (an 18 wheeler took off a mirror in a motorhome.) I had Mexican insurance that I bought through BajaBound. The instructions on the policy as to where and how to call were excellent. I had no problem reaching the company. The company was professional and other than trying to explain where in Mexico I was actually located the process went smoothly. (Not their fault.) Even though I was not near a major city an adjuster came to the scene and explained that I could get the repairs done in Mexico or the US. I received a follow up call from the insurance company when I was out of cell service area. When I returned the call (again from Mexico) I found it easy to get to the correct department etc.

Wonderful News! Viva BajaBound.com!

durrelllrobert - 12-22-2012 at 01:38 PM

Quote:

i had similar experience with my MAPFRE liabilty omly policy. I went to La Fonda restraunt to eat and was directed into a parking space between two cars by the guard. He kept motioning me to pull forward until the front bumper on my honkin big Yukon hit the front fender on the little car on my left. Used a cell phone to call MAPRE's 800 number and their adjuster drove down from TJ in about 30 minutes. Took care of everything on the spot and I went back to enjoying my meal.

DavidE - 12-22-2012 at 02:22 PM

One of those typical counterpoint articles that finds a crack, drives a 15 pound wedge in it and then shouts "LOOK! IT'S DEFECTIVE!"

In a serious accident CASH is the only instrument that will keep the drivers out of prison.

When serious injury or property damage is involved OR if one of the participants has connections (A TelMex truck, the military, the son of the governor, or a rich man's brother in law) things go to hell fast.

The gringo has no way to contact an attorney. LIABILITY COVERAGE IS FREAKIN' NOT ENOUGH! Insurance companies can take weeks to months settling a serious claim. The average cost of damage for each death today is above twenty five thousand dollars.

There will be giant traffic and administrative fines to settle. A lawyer is needed to say "NO!" to tacked on charges.

How can one single person do all this while in protective custody?

They cannot. What do his on scene passengers do, of his has some or if he ends up in the hospital. hitch hike or call taxis? "Oye taxiista, conoces un abogoado muy listo?"

The only answer is to carry trusted insurance with a legal assistance clause. Someone who can show up, cut a check for however many thousands of dollars is needed to free the driver, wrangle with the ministerio publico, and the other driver.

Some folks decide not to take this seriously or even believe it at all. Mexico via the ministerio publico is a hell of a lot different than Mexico via Roberto the bartender or blanket salesman on the beach. I intend to avoid the ministerio publico. I have seen too many badges and too much blood from automobile accidents from others to stay ignorant.

Alm - 12-23-2012 at 02:01 PM

Quote:

The only answer is to carry trusted insurance with a legal assistance clause. Someone who can show up, cut a check for however many thousands of dollars is needed to free the driver, wrangle with the ministerio publico, and the other driver.

Almost all liability policies - if not all - include bail bond and legal assistance.

It is interesting that both Bajabound and Discoverbaja are brokering same 2 companies - ACE and HDI, though Discoverbaja doesn't tell the cost, except for $120 annual policy (including DB membership). BB annual liability starts from $180.

It is sometimes not clear how much legal assistance will be covered, but there are limits to bail bond amount (see below from the BB website).

"Legal Assistance is available 24 hours a day and includes legal defense and bail bond.

Limits

ACE Seguros - Coverage amount for bail bond is up to $30,000. Legal defense is covered as necessary.

HDI Seguros - Coverage amount will be the same as the limit of liability stated on your policy. For example, if you choose a policy with $100,000 in liability, your bail bond and legal defense limit is $100,000.

Mapfre Seguros - Coverage amount for all legal assistance and bail bond services is $30,000 total when the legal services are requested from Mapfre Seguros. If services are not requested from Mapfre, coverage limits are significantly lower."

So the Mapfre (somebody mentioned it) has somewhat law legal coverage - unless Mex lawyers are really cheap.

[Edited on 12-23-2012 by Alm]

greengoes - 12-23-2012 at 02:13 PM

Mexican liability insurance - the short version.

Reputable Mexican Insurance company - Seguros Atlas for example. 150.00 dolares cada ano.

They give you a nice laminated card with policy and 800 number on it. It also has the obligatory blue stamp. Maximum coverage as demanded by government.

Issued to the driver, not car specific. I would hate to be in an accident without it.

David K - 12-23-2012 at 02:18 PM

With a club membership then a group rate discount is possible. Discover Baja is a club that sells insurance . BajaBound is not a club that you must join first. However, the Baja Good Life Club offers BajaBound annual discount policies that make the pricing competitive with Discover Baja. Just so we all have the data to shop with.

I am a member of both clubs and they both have email newsletters on Baja news. I like Discover Baja because they have an office in San Diego we can go to and get books, maps, assistance.

[Edited on 12-23-2012 by David K]

Bajabound

bajaguy - 12-23-2012 at 02:27 PM

Also has a substantial discount if you and your vehicle(s) are enrolled in the SENTRI program

willardguy - 12-23-2012 at 02:47 PM

people who save hundreds of dollars with geico are really happy.
how happy are they?
happier than bajaguy bragging about his SENTRI pass!! :lol:

David K - 12-24-2012 at 12:37 PM

Quote:

Originally posted by willardguy
people who save hundreds of dollars with geico are really happy.
how happy are they?
happier than bajaguy bragging about his SENTRI pass!! :lol: