November 11, 2000

The cost of Mexican insurance.

We've all seen ads for automobile insurance, each touting how inexpensive they are compared to competitors. It's not difficult to save money on premiums going to the lowest advertised premium will do that.

One ultimately pays for what one buys. The lowest cost Mexican insurance premium is a bargain provided there is no accident. Low cost policies do provide coverage, but by necessity the insurance company has to lower its exposure.

The above does not imply that "bargain" insurance policies, particularly the ones advertised at below $100 per year, do not offer coverage. They do, the question is, will the coverage be sufficient in the case of a severe accident? So if a driver can be guaranteed an accident free trip or a slight accident, then the bargain insurance policies offered by many Mexican companies will be more than sufficient.

The insurance buyer is the only persons who can make the decision. Just be aware that the less premium, usually and typically means less coverage. So shop wisely.

Review the information in Part 8 (In Court there is a judge, but no jury) for an explanation on how the courts determine liability.