Auto Insurance in Mexico How does it work 2024?

How does Auto Insurance work?

Before understanding how car insurance works, we must know what it is? In summary, a car insurance policy is a contract signed between an insurer and a user whereby the monthly, bimonthly, semiannual or annual payment of a premium the insurance will offer you financial support and assistance in the event of a road accident or accident involving your vehicle.

These benefits, also called coverage, protect not only the driver but all the occupants of the car from most of the dangers that you may face when driving. When you sign up for your policy, you will have the freedom to choose the type of coverage you want. contract as well as the insured sums available to cover the expenses of certain items such as medical expenses or damages to third parties.

These insured sums represent the maximum amount of money that you will have available to cover any expenses that you may incur as a result of an accident where it was your responsibility, which will allow you to take care of your finances, preventing you from spending money from your savings or worse. still be in debt to cover expenses.

Currently having car insurance is mandatory, so there is no option whether to hire one or not, however there are different options that adapt to the economic needs of each person, as well as the security requirements they seek. Taking out car insurance is a way to take care of your investment and protect your family as well as your vehicle.

Before hiring insurance, we recommend that you fully understand how car insurance works so that you can hire the best option.

What risks does Auto insurance protect me against?

Car insurance is designed to protect all vehicle occupants from the most frequent risks when driving, thus providing financial support and medical, mechanical, legal, etc. assistance to cope with the situation in the best way.

Some of the most common risks that car insurance protects you from are:

• Crashes, collisions and rollovers
• Material damage or bodily injuries that you may cause to third parties
• Coverage of medical expenses in any incident related to the use of the vehicle such as collisions, attempted theft, etc.
• Total robbery or attempted robbery
• Material damage caused by fire, lightning, falling object, vandalism, natural disasters, etc.
• If you are stranded, the auto insurance company will be able to send you assistance to resolve the situation.
• Glass smashes, tire punctures, theft of auto parts, etc.

However, not all car insurance coverage has the same benefits. How car insurance works will depend on the needs you have regarding the use of your vehicle in order to determine what types of insurance you should purchase.

Auto Insurance works through Coverage

To know what the benefits are and how your car insurance works, you must first keep in mind what coverage you are going to contract. Currently, in insurance companies you can find basic alternatives to the most specialized ones, starting with Standardized Basic Insurance, Limited Coverage. , Broad Coverage, and even Broad Coverage Plus.

On some occasions you will also have the opportunity to contract additional coverage which complements your policy to specific needs such as geographic scope abroad, excess civil liability, etc.

Below we break down what benefits the three main auto insurance coverages include.

What are the benefits of taking out Auto Insurance?

You already know how car insurance works through its coverage, however each coverage works differently and benefits you according to the situation. Below we share with you the benefits that each protection provides and how it works in the event of an accident. :

• Damage to Third Parties: In this case the insurer will be responsible for paying for the repair of material or personal damage that you cause with your vehicle. It is important to keep in mind that this coverage has a limit, that is, the insured sum contracted, in case of If this is exhausted, you must cover the remainder yourself, which is why it is recommended to contract flexible and higher insured sums than those requested by the Roads, Bridges and Motor Transport Law, which range from 50 thousand for material damage and 100 thousand for injuries. .
• Total Theft: In the event of total theft of your vehicle, you must immediately report the incident to your insurer and file the corresponding minutes with authorities such as the Public Ministry, Public Vehicle Registry ( REPUVE ), cancel your license plates, etc. Once this procedure has been completed, a waiting time will be provided for your car to appear. If this does not happen, the insurer will give you compensation for the commercial value of your car, less the percentage of the corresponding deductible.
• Medical Expenses: If as a result of a vehicle accident you or your companions require medical attention, you will be able to obtain it at no cost, also respecting the contracted insured amounts. Through this coverage you will be able to have support for hospitalization expenses, medications, ambulance transportation, studies, medical fees, etc.
• Material Damage: Has your vehicle suffered damage during a crash or attempted theft? The insurance will have it covered. Your repairs will be carried out within workshops or agencies with an agreement with your insurer, in this case you will only pay a deductible percentage of the total value of the repair.

These as such are the most essential, you can also count on legal and road assistance if required, that is, legal advice, sending a tow truck, changing a tire, etc.

Another advantage is that all these benefits will be available 24 hours a day, 365 days a year to attend to any emergency at any time.

How much does Car Insurance cost?

Now that you understand how car insurance works, its cost will depend on different factors, including the type and amount of benefits you want to acquire when contracting it. That is, the more protections you receive, the greater the investment of your premium will be.

However, cost today is no longer a problem for those who wish to purchase a policy because thanks to the diversification of coverage and the flexibility to choose sums insured, deductibles or payment terms, the budget will not be a problem.

Some of the variables that determine the cost of your insurance are:

• Age, address and gender of the driver
• Vehicle model, make, version and year
• Contracted coverage
• Sums insured and deductibles
• Payment deadline

One of the advantages is that today there are insurance simulators to quote different options for free, as is the case of Mejorsegurodeauto.mx, where you will find alternatives that are registered with the National Insurance and Bonding Commission (CNSF) and with which you can contract reliable policies.

One of the advantages of contracting through these tools is the possibility of finding exclusive promotions and discounts.

What are the consequences of not having car insurance?

The main consequence of not having car insurance is being liable to a fine because, as of 2019, the Federal Roads, Bridges and Motor Transport Law has decreed that all vehicles must have mandatory car insurance with coverage. of Damages to Third Parties active. In addition to meeting the minimum insured sums of $50,000 for material damage and $100,000 for medical expenses in the event of bodily injuries. If you do not have this requirement, you may be subject to a fine or penalty; in some cases the sanctions are usually greater than the cost of mandatory basic insurance.

If this is taken to the corralón, in addition to the fine you will have to pay a deposit; hiring car insurance will avoid these types of sanctions.

Another disadvantage is that, in the event of a crash, you will not have financial support that can cover the expenses, so you will be responsible for them, thus using up your savings or even having to go into debt to pay compensation or material damage. considering a minor accident but for those that are catastrophic the bill can increase into millions.

Now that you know how car insurance works, we recommend that you look for the best option and start protecting yourself.

Quote your Auto Insurance

Through Mejorsegurodeauto.mx you can contract car insurance in just minutes, just enter the following information in the form and contract immediately:

• Full name
• Age of the insured
• Address and zip code of the insured
• Characteristics of the insured vehicle such as model, make, year, version
• Contact information such as telephone number and email

Quote your insurance and start obtaining the security benefits and financial support that they offer you.