Cross Border Auto Insurance: Are You Adequately Covered Abroad?

Insurance regulations are uniquely different from one country to another and in the USA from state to state. If you drive south into Mexico you need a policy that will cover you inside of that country or you risk exposing yourself to significant financial liability and/or jail time.

You’ll need to find a broker who has in-depth knowledge of local insurance requirements, a broker that will ensure your safety and your compliance with local laws.

What to Look For in a Broker

Look for a broker who will offer you a policy that is underwritten by an insurance company that is AM Best rated. Too often brokers will try to sell you insurance that is underwritten by a company who may not have the financial strength to pay you out in the event of a claim. This is especially so when you do business with a border based insurance shack. When you’re broker puts you in the hands of an insurance company who is financially strong you’ll avoid the risk of having your policy being declared non-compliant or even voided by the local legal system, which could mean you also avoid having a disputed claim.

Premiums and Deductibles

Beware of inflated premiums. If you shop around you can, with a little patience, find a policy that has an affordable premium and a reasonable deductable fee. The premium is the amount you pay to be covered by your insurer. The deductable is the amount you pay in the event of a claim arising out of an accident. Deductibles are normally in the $500 to $1000 range. If you were liable and at fault then you will not receive your deductable back. On the other hand if you were not at fault, you may still have to pay the deductable up front however you’ll likely get it returned to you afterwards before the file is closed. It’s unlikely that you’ll notice a decrease in your premium over time, at least in the short term. This is likely because insurers are continuously attempting to protect their profit margins to stay ahead of inflation costs. It’s important to make sure that your insurance company knows about your excellent driving record though, as that can influence the cost of your premiums.

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Your Credit Score Matters

Protect your credit rating. If you have a shady looking credit history you might pay more for insurance than others who have an above average credit score. Check your score before you start shopping for insurance so that you’ll know what to expect. You should obtain your credit score from all three reporting bureaus TransUnion, Experian, and Equifax. Then check the accuracy of those credit reports.

A distinct advantage to purchasing insurance coverage from a broker and underwriter that understands the needs of their cross border customers is that the underwriter generally has a network of reliable service contacts and providers both at home and abroad. The underwriter can quickly and efficiently handle insurance inquiries, provide advice and in the event of an emergency contact a local and send support to you from miles away.

Mexican Insurance Store is the place online to purchase car insurance for Mexico. Enter you vehicle information online 24/7 and print your policy in minutes.

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