

When many people buy a house or condo in the Yucatan Peninsula and are ready to move, either full-time or part-time, to their new home in Mexico, they will bring their vehicle with them.
However, many are surprised to learn, or don’t realize until it is too late, that although their Canadian or U.S.A. auto insurance policy may be comprehensive, it will not fully cover you in Mexico.
This is because Mexican law stipulates that for auto insurance in Mexico to be legally recognized and accepted, it must be issued by an insurance company that is licensed in Mexico.
So, while your foreign policy may be very comprehensive, it cannot legally provide liability coverage in Mexico.
Essentially, in the case of an accident, while your policy may cover your own damage, your foreign insurance policy will not cover your liability to others while driving in Mexico.

Not only is this a serious concern that could end up costing you a great deal of money in restitution and legal fees, drivers involved in serious accidents in Mexico are usually arrested pending investigation if they are not able to produce proper, legal insurance.
There are numerous reputable car insurance agencies in Mérida, Yucatán, Cancún and Riviera Maya. Be sure to shop around to find one that is fully licensed and able to provide liability, legal counsel and bail-bond (in the off-chance that you should ever need it).
Having good car insurance in Mexico means one less thing to worry about, so you can get back to the business of enjoying the incredible Mexican lifestyle in your tropical dream home.
Source: http://tropicasa.com/
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