Mexico Insurance Alert: Radical Change to Mexico Liability Laws

Mexican Car InsuranceA radical change has been made to Mexico Liability Law.

In the past, the liability damages imposed on an at-fault driver who caused a negligent fatality in Mexico were capped at 750 days multiplied by the local Mexico Minimum Wage (approximately $50,000 total damages in most Mexican States). Effective immediately, that limit has been increased by the Mexican Government to 5,000 days multiplied by the local Mexico minimum wage (up to approximately $300,000 US Dollars total damages, depending on the Mexican State). For more information about the maximum liability by state click here.

MEXPRO.COM RECOMMENDS THAT ALL OUR CUSTOMERS PURCHASE A MINIMUM OF $300,000 in LIABILITY LIMITS, AND SERIOUSLY CONSIDER THE $500,000 LIMIT!

What happens if I have a current policy in force with limits of $50,000 or $100,000?
Each of our underwriters–ABA Seguros, ACE Seguros, and GNP Seguros–have agreed to honor the $300,000 Death Liability Limit on all currently in-force policies until expiration. So you do not have to do anything if you purchased your existing policy on or before February 4, 2013. It is still in-force…regardless of the current limit on the declarations page. The insurers listed above will honor the $300,000 Death Liability limit until the expiration of your in-force policy purchased on or before February 4, 2013.

What limits do you suggest we choose when purchasing future new or renewal policies for Mexico?
Mexpro.com suggests you now use the same level of care regarding Mexico Liability limits that you would use when purchasing a US or Canadian auto liability policy. The radical change to Mexico Liability law means that claims for Death Liability in Mexico will now be similar to the damages that are often imposed by courts in the US and Canada in similar cases.

If you have any questions about this new law please feel free to contact us today at 888-467-4639. We cannot stress enough the importance of understanding these new liability limits and the need for higher limits when purchasing Mexico Auto Insurance in the future.

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About Roxanna McDade

is the Mexpro.com website designer, SEO specialist and editor. With a degree in Chemical Engineering, Roxanna worked for Dow Chemical, Intel Corporation and IBM.
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4 Responses to Mexico Insurance Alert: Radical Change to Mexico Liability Laws

  1. gtodon says:

    The math in this piece doesn’t add up. You say that the limit for a fatality “has been increased by the Mexican Government to 5,000 days multiplied by the local Mexico minimum wage (up to approximately $300,000 US Dollars total damages, depending on the Mexican State).” Well, the current minimum wage in Zone A is about 65 pesos per day. Multiple that by 5,000 days and you get 325,000 pesos. At the current exchange rate of about 12.6 pesos per dollar, that’s equal to about US$25,800–far below your figure of US$300,000. Please explain.

  2. J. Kramer says:

    How does this apply to rental companys. We travel to Mexico offten and rent cars. Will the car company automatically charge more for the increased liability. Many times we rent cars and are charged very different rates…. oh suprise

    • roxanna says:

      Mexpro.com only deals with non-rental vehicles so we are not sure how this will apply. You should contact your rental car company concerning the changes.

      Thank you,
      Mexpro.com

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