ABCs of Purchasing Insurance in Mexico

Written by Sean Godfried, Guadajalajara Reporter Newspaper and Craig Chamberlain, Mariners Insurance.”

Let’s start with Auto insurance and work our way down the list of the most common insurance needs for ex-pats. In the United States and Canada, the common law is based on the British code: innocent until proven guilty and your auto policy insures the driver and the vehicle. Provinces and states handle the insurance regulations while in Mexico insurance is regulated by CNSF under the jurisdiction of the Hacienda at the federal level.

In Mexico, the Napoleonic Code is in play: guilty until proven innocent. In Mexico, adjusters and traffic cops both go the scene of the accident. If no resolution is forthcoming between the parties, both may be detained in the case of injury or damage to public property. It is the vehicle, not the driver which is insured here – so make sure if you drive someone else’s car it’s insured.

But fear not. In the event of you being arrested, the adjuster will post your bail bond and, if legal action is needed, a lawyer is included in the policy and hired by the insurance company.

Under Mexican law, your insurance company must be registered in Mexico for your policy to be valid.

Under state laws you are required to have liability insurance on your auto if you live in Jalisco, Nuevo Leon or Mexico City but you are legally responsible for any damage to person or property anywhere in the nation regardless of whether or not you have insurance coverage.

Homeowner and condominium policies are somewhat similar to Canadian policies however much of Mexico is located in both hurricane and earthquake zones so it is important to be aware of the coverages and exclusions in your policy. Many insurance companies exclude damage due to hurricane, flood, and earthquake. Others will void storm related damage if storm shutters are not fitted on all windows. Like any contract, reading and understanding the fine print is critically important. Liability coverage is included but restricted to defense in Mexico. At MIM we have developed a unique program to add Canadian and USA Lawsuit Liability coverage should a plaintiff petition a court for a change of venue and try to sue outside of Mexico. This is particularly important coverage if your home is rented frequently. Annual premiums for this coverage are typically under $150 annually.

We receive more questions regarding Health insurance than any other line of insurance. Our clients often have health insurance benefits in their home countries that do not extend to Mexico. The good news is Mexico does offer very reasonably priced health insurance options so, in most cases, Canadians do not need to forego health insurance while living in Mexico. Our primary health insurance program does not have a maximum age.

MIM also writes a Travel Medical Program that DOES include a small benefit for pre-existing medical conditions. The Travel Medical policy is an excellent program for the part time Mexico visitor or a person that does not qualify for standard health insurance coverage. The pre-existing conditions benefit is often adequate to pay for the client to be stabilized in Mexico and flown back to their home country for further treatment. It can also be used as stop gap coverage while a person improves their health situation leading to acceptability in one of our standard health insurance programs. We also offer emergency transportation coverage including medical evacuation.

Our new MIM Medical Tourism program covers expenses related to complications resulting from an elective surgery or dental procedure in Mexico as well as travel delays, lost luggage, trip cancellation and other travel related expenses. Mexico is becoming recognized around the world as having excellent doctors and medical facilities and still maintains pricing benefits over its northern neighbors so Medical Tourism is growing rapidly. This policy provides peace of mind that costs associated with a complication are covered.

Mariners Insurance Mexico (MIM) has created specialized insurance solutions specifically for Canadian and U.S. ex-pats residing in Mexico. Our mission is to make the move for Canadians to warm sunny Mexico as seamless as possible (at least from an insurance standpoint). Our personalized programs include auto, home, condo, health, HOA’s, and boat/yacht insurance as well as Travel Medical and Medical Tourism coverage for short term visitors. MIM is an insurance brokerage corporation organized under the laws of Mexico.

Our staff has decades of experience in the Mexican and U.S. insurance markets and our affiliation with Mariners General Insurance Group (MGIG) in the U.S. provide our clients with the best knowledge and service from both sides of the border. A key objective for MIM has been to identify and explain the differences between the insurance products sold in Mexico and our clients’ home countries. Laws are different, underwriting and claims issues are different, and need to be understood. Mexican laws and regulations are not better or worse, just different. In addition, at MIM we include a courtesy English translation of our policies so clients know what they are buying.

All of us at MIM love the beauty of Mexico, its people, and culture. While our vocation is insurance, each of us appreciates the opportunity to live in such a warm and beautiful country. We enjoy sharing our experiences with others that plan to someday make the migration south. us. We invite you to visit our office in Puerto Vallarta or drop us an e-mail if you have any questions. We can also be found online at www.marinersmexico.com or you can “Like” us on Facebook where we post updates regularly.