November 11, 2000

Don’t jeopardize insurance coverage.

If involved in an accident in Mexico it must be reported before returning to the US. Failure to report the accident in Mexico will void the policy. The reasoning is that the insurance adjuster must have the opportunity to verify the damages, and obtain a report while in Mexico.

Policy is null and void if the driver is responsible for the accident was under the influence of alcohol or drugs.

The policy is null and void if driver does not have a valid driver's license (Valid driver's license from state of residence.)

If towing a trailer, or vehicle it must be declared at time of application for insurance and be included for coverage, otherwise the policy is null and void.

Theft of parts or accessories to the vehicle is not covered, unless the loss is a direct result of the total theft of the vehicle.

If when applying for insurance, the applicant has left out material information that had it being provided, would have caused denial of insurance, or a waiver of coverage (such as damage already visible on the proposed auto to be covered), the policy will be voided and no coverage will be extended.

Should a claim be presented, the policyholder must declare the existence of any other insurance offering the same coverage for the same risk.

The more serious US Surplus Line Brokers and Mexican insurance companies are moving towards not issuing policies to US driver who do not demonstrate proof of US auto insurance. In the near future, US and Mexican insurance companies will agree to exchange information to avoid double coverage claims.