Updated Insurance Auto Coverage Limits for Mexico

The Mexican government made changes to the Labor Law in 2012, which included a clause that increased the government established limits for the value of a human life, in case of accidental death, with the changes taking effect on February 4, 2013. A good friend posted the following information and table of values on Mexconnect today:

“This is the exact notice I received from my insurance company.”
“IMPACT OF CODE 502 REFORM ON MEXICO STATES AND YOUR ACE AND MAPFRE POLICIES”
“In December 2012, the Mexican government announced new reforms to the Labor Law in Mexico (Article 502). The Labor Law (Article 502) is used as the basis to compute limits to indemnify a person when someone dies in an accident. This caught the Mexican Insurers by surprise, as little notice or input was provided or requested of the Insurance Industry prior to the change. For many years, the indemnity limit was based on 730 days (Approximately 2 years) of minimum wage making $10,000-$20,000 a typical claim paid in any fatality.

Now, the time a dependent must be compensated has increased to 5,000 days.

Depending on the location of the accident, this may increase your financial exposure in Mexico to any at-fault auto accident which results in a fatality. Many Mexico states interpret Federal Laws themselves and create their own civil and criminal laws. Attached is a chart that shows the indemnity limits of the different states and how these states will apply them to their particular state.”

New Insurance Limit Requirements For Mexico

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Insurance companies are allowing clients to increase their Liability Limits on their auto policies to cover the new liabilities for modest premium increases. It is worth noting that Yucatan has especially high liability limits, requiring additional riders to our policies for most people living here.

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Feel free to copy while giving proper attribution: YucaLandia/Surviving Yucatan.
© Steven M. Fry

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11 Responses to Updated Insurance Auto Coverage Limits for Mexico

  1. Cindy says:

    Dr. Fry,
    Can you recommend insurance companies/agents? On another subject since you’re my go-to-guy, what company is the best to purchase a cell phone and a plan for calling back to the United States?

    • yucalandia says:

      Hi Cindy,
      We have happily used LRM. Marco Rojano (Romero). His office is easy to find: Av. Reforma #544 x 33-B Local 3.
      His office is in the little plaza just south of the Bull Ring (Plaza de Toros) on Avenida Reforma. This plaza is on the west side of Reforma, at Reforma and Calle 25, Garcia Gineres, and there is plenty of parking behind the building.

      Sr. Rojano speaks very good English, gives good service, and offers well priced policies. (Fortunately, we have never had to use the policy though).

      LRM Marco Rojano (Romero)
      Ofi 9999 20 43 33
      Cel 9999 49 22 72
      marco@rojanoseguros.com
      http://www.rojanoseguros.com

      * ~ * ~ *
      In a world where people appreciate options and alternatives, I can also recommend:
      Sra. Julieta Morales (Vera)
      Email: julieta.morales@segurosmerida.com
      Telcel: 9991 63 35 61
      Iusacel: 9999 49 31 32

      Seguros Mérida – Oficina
      Calle 72A No. 489 x 17 Col. Garcia Gineres
      C.P. 97070 Mérida, Yucatán, México
      Email: contacto@segurosmerida.com
      Oficina: (999) 285 72 82

      Julieta also offers excellent service, and speaks beautiful English. She has a superb reputation for service with her clients.
      All the best,
      steve

      • Cindy says:

        Thank you so much, Dr. Fry! You are such a help! Can you shed some light on what will be my second most immediate action….getting a cell phone and server. I’m moving mid-May and will be driving in (following your driving instructions) from the border. I would just fly, but I have two dogs and won’t trust the airlines to ship them.

      • yucalandia says:

        Hi Cindy,
        We would like to help on the cell phone issue, but we have not kept up with the details of plans with good plans for calling back to the States. Maybe some other reader can help?

        We use Magic Jack, for about $35 a year, with a US number, and $19 a year for additional years of service. If you have even slow but reliable internet, Magic Jack has worked well for us. Other Americans we know use only VOIP plans, like Magic Jack or Vonage.

        Re internet: Cablemas and Telmex Infinitum offer similar levels of service in Merida. In moving to a new area in Mexico, I would want to know what the neighbors think of their internet servers. The internet service provider should have fast enough the switches and amps in your neighborhood to provide the service you want: e.g. Some colonias in Merida have very fast Telmex fiber optic connections, while other neighborhoods have very slow old Telmex equipment.
        steve

  2. Cindy says:

    Thanks so much for the input, Steve. May I call you that? As a retired nurse-old habits die hard.

  3. Kathleen says:

    Steve, is auto insurance required in Mexcio?
    Thanks.

    • yucalandia says:

      Hi Kathleen,
      Just like the USA, there are no Federal rules requiring auto insurance, ** but just like the USA, many Mexican states require auto insurance. Yucatan requires it.
      Happy trails,
      steve

      **Reply Edited: Yes, as of Oct. 1, 2013 – motorists using the Mexican federal highway system are required to be able to show proof of insurance. Thanks to Kathleen for giving us a good head’s up about the change! steve

      • Kathleen says:

        Thanks for your reply, Steve. I asked because I recently received this email from an insurance agent in Puerto Vallarta:

        “Effective October 1st, 2013 all cars traveling on roads in the Mexican Territory are required to have an insurance auto, according to the Official Federation Daily Journal published by the Mexican Government last March. Those who fail to meet this obligation will be granted with fines that start at $ 1,295.00 Mx Pesos.”

        I checked the Official Federation Daily Journal (http://dof.gob.mx/), but could not find this announcement to verify it. Insurance is a good idea anyway, but I would like to know what the law is. Perhaps you can steer me to a site that gives the auto insurance law for the states of Jalisco and Nayarit, our home state. Thank you.

        Kathleen

      • yucalandia says:

        Hi Kathleen,
        Lic. Spencer McMullen of Chapala Law has a good pdf file of Jalisco Rules of the Road at: http://intercasafs.com/Driving.pdf

        Your report on the federal requirement for insurance looks really good. We are still looking for the DOF citation, to read the details, but there are several press reports of the new law, published last April, that confirm that the requirement would be implemented 6 months later (Oct. 1, 2013).

        Thanks,
        steve

      • Kathleen says:

        Thank you, Steve. I’ll check out Lic. McMullen’s pdf file. I think auto insurance is in our immediate future!

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