Being a motorist in Mexico and wondering what car insurance is may be more common than it seems. According to official figures, more than 70% of drivers are not insured nor do they know in detail what car insurance is. Only 7.4 million vehicles have insurance, according to the registry of government authorities.
For this reason, it is important to know that car insurance
This is a contract between the car owner and an insurance company. If an accident occurs, through the policy the insured can pay for physical and material damages that occurred during the road accident.
Benefits of car insurance
The advantages of car insurance will depend on the type of coverage contracted with the insurer. For a better understanding, at least three benefits will be listed when purchasing insurance:
Covers damages to third parties
Car insurance is an economic guarantee that protects drivers who incur damages to third parties. Typically, this coverage can be purchased with at least a liability policy.
Covers material damage
The insurance can cover the repair of the car in the event of an accident that damages the vehicle. The percentages and conditions of coverage vary depending on the insurance company.
You can have road assistance
By purchasing car insurance you can receive roadside assistance during an unexpected breakdown or any situation that requires timely road assistance.
Obviously, the increase in benefits will depend on the choice between the 390 types of car insurance available in Mexico. Although there are many options for choosing car insurance, it will always be better to have it and not use it than to need it and not be insured.
What happens if I don't have car insurance?
Drivers who are not insured can be fined between 2,000 and 4,000 pesos (depending on the city), and their car may be impounded until the owner proves that they have purchased car insurance.
This obligation came into effect in 2019 with the Federal Roads, Bridges and Motor Carriers Law, which requires motorists to have at least civil liability insurance that covers damages to third parties.
Furthermore, the law stipulates that the minimum amount of civil liability insurance for material damage is 50,000 pesos, while for injuries and death compensation it should not be less than 100,000 pesos.
How do I know if my car insurance is active?
To find out the validity of car insurance, it is best to contact the insurance company and check the expiration date and the period for a possible renewal.
Also in the contract, the insurer specifies the time it will protect the car, which is usually at least one year.
But if you are still wondering how to know if my auto insurance policy is valid, you can visit the website of the Mexican Association of Insurance Institutions. There is a section to check your status by simply entering the car's license plate number.
How to cancel car insurance?
To revoke car insurance, it is only necessary to notify the insurance company via email, fax or by delivering a written document to the insurer's offices.
The notification must clearly state the intention to cancel the car insurance. It is also necessary to provide personal data and a copy of the contract.
Two reasons to cancel car insurance
One of the main causes for canceling car insurance in Mexico is the increase in premium prices. In fact, a recent report from the National Financial Inclusion Survey reveals that almost half of the population does not take out insurance because they consider it expensive.
Another common reason for terminating insurance is poor service from the insurance company. Not in vain, the National Commission for the Protection and Defense of Users of Financial Services published an analysis with the best and worst valued insurers. In the ranking, MAPFRE México was ranked as one of the best evaluated, with a maximum rating of 10.
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