BajaNomad

Auto Insurance

Bajaboy - 11-11-2013 at 10:21 PM

Just bought my annual policy for my new Tacoma...man has insurance gotten expensive in Baja...paid over $515. My policy with AAA in California is just a bit more.

So what percentage of drivers in Baja do you think have insurance?

acadist - 11-11-2013 at 10:35 PM

all the ones that live in the US :biggrin:

Pacifico - 11-12-2013 at 08:09 AM

Quote:
Originally posted by Bajaboy
Just bought my annual policy for my new Tacoma...man has insurance gotten expensive in Baja...paid over $515. My policy with AAA in California is just a bit more.

So what percentage of drivers in Baja do you think have insurance?


Who did you go through? Thanks!

Jack Swords - 11-12-2013 at 08:15 AM

We just got our annual through Vagabundos $415 for platinum plan, legal aid, $30,000 4Runner. $35 membership on top of that. Who did you insure through?

Vagabundos say they are absorbing cost of Mexico's increased liability requirements.

chuckie - 11-12-2013 at 08:21 AM

Everything in Baja is getting way expensive......

Bruce R Leech - 11-12-2013 at 08:36 AM

We have coverage in USA and Mexico for 80 USD per year it is liability only

MitchMan - 11-12-2013 at 09:05 AM

Usually the cost of the liability portion of US policies pale in comparison to the cost element for collision, fire and theft for the subject vehicle.

Why is the liability so expensive for coverage in Baja?

I strongly suspect that the Mexican premium hike since this new liability requirement came to the table is NOT supported actuarially. If I am right, then the ins companies are taking advantage of the "scare" tactic that allows them to influence the market price demanded by them.

I once sold life ins in my youth. The ins companies have marketing down to a science. The main thread that we were taught and that ran thru the pat sales pitches was "fear".

Also, the ins companies know how to twist terminology to further fool the consumer.

For example, the use of the terms "premium" and "dividend" were coopted and used in ins sales speak. "Premium" in general parlance means something of high quality as an adjective or "bonus" as a noun, but instead, ins companies use it to describe the monthly payment and to avoid the use of the word "cost".

"Dividends" in normal circumstances stands for the portion of the profit that is paid to corporate stock shareholders with disclosure of the % of the profits, as such, these real dividends are directly correlated to and paid out of profits by calculation, but instead, ins companies use it to describe arbitrary payments to whole life policy holders where such payment amounts are not correlated to profits at all. It's all in an effort to deceive.

It may not be above board, but it is all legal.

This is not an indictment of insurance as a product, just a description of reality. Insurance is an important necessary commodity that we all need. It is the price that I am squawking about and the false pretense to hoodwink the market, increase the demand curve by so justifying price hikes so that people will pay higher prices for insurance excessively beyond what is actuarially necessary.

[Edited on 11-12-2013 by MitchMan]

Russ - 11-12-2013 at 09:13 AM

Is your US insurance for 6 months or a year? Mx. yearly policy seems a bit high but that would depend on what's included/added. If your AAA policy is yearly I'm going to check AAA out.

bajagrouper - 11-12-2013 at 10:31 AM

I use Costco and the premium is about $500 a year for all of Mexico but with the 25% member discount it comes to about $370 a ear........

David K - 11-12-2013 at 10:46 AM

Quote:
Originally posted by bajagrouper
I use Costco and the premium is about $500 a year for all of Mexico but with the 25% member discount it comes to about $370 a ear........


What Mexican company is Costco selling policies for?

sancho - 11-12-2013 at 12:05 PM

Quote:
Originally posted by MitchMan
I strongly suspect that the Mexican premium hike since this new liability requirement came to the table is NOT supported actuarially. If I am right, then the ins companies are taking advantage of the "scare" tactic that allows them to influence the market price demanded by them.

[Edited on 11-12-2013 by MitchMan]





With you on that, doubt if the actual awards have
reflected the NEW Libility requirements,
I've done a few inquires as to the Increased Libility Limits
in the case a Insured driver kills someone in Mex, and in a typically
confusing Mexican reg, the awards in case of death are different in
some Mex States, you know it is rearly straight forward
in Mex. I believe it was Jan 1 of this yr., the awards increased some 10 fold, Baja Norte is posted as a lesser amount than
Baja Sur. a San Ysidro Mex Ins kiosk now lists all of the libility portion of their policies as $500,000. Both San Diego
based Mex Ins Brokers say they never remember a death
caused by their insured. I remember reading that ALL drivers
in Baja need libility, including Mex vehicles, can't imagine
that was put into practice, some 90% plus of Mex plated
vehicles are said to be uninsured. Costco MAY use the
Bonita West Mex Ins carrier, I remember they used to use
Lewis& Lewis

Bajaboy - 11-12-2013 at 10:19 PM

Quote:
Originally posted by Pacifico
Quote:
Originally posted by Bajaboy
Just bought my annual policy for my new Tacoma...man has insurance gotten expensive in Baja...paid over $515. My policy with AAA in California is just a bit more.

So what percentage of drivers in Baja do you think have insurance?


Who did you go through? Thanks!


Baja Bound.com

Bajaboy - 11-12-2013 at 10:23 PM

Quote:
Originally posted by Russ
Is your US insurance for 6 months or a year? Mx. yearly policy seems a bit high but that would depend on what's included/added. If your AAA policy is yearly I'm going to check AAA out.


My AAA is yearly...we have a 2004 Subaru Outback and now my 2014 Tacoma....I think we pay somewhere about $1600-1700 for both. We have been very happy with them.