By Angel Marin Diaz
Car insurance is protection that is contracted through a policy so that in case of any incident that happens to your car, you are financially supported and protected. Insurance protects your wealth from accidents that may occur; it is a financial safeguard to any vehicle owner or driver and can be extremely useful. There are reasons why it is necessary to have a policy with full coverage.
A proper policy should cover at least 85% of the total value of the insured goods, contemplating, of course, material damages, total or partial robberies, accidents, and civil responsibility with respect to material, physical, or even lethal damages to third parties. This is extremely important because, depending on the circumstances of time, place, and manner, in the case of being responsible for these damages and/or injuries to occupants or third parties derived from such accident and not having this support—we could face more serious consequences, including those of a criminal nature.
We may be very responsible drivers, but it is not difficult to imagine a situation where we are driving our car, an unforeseen event happens to us, and we don’t have insurance. We may not be the one who caused it, but we could be the one who is financially responsible for it.
According to official information, there are more than 47 million motor vehicles registered in Mexico, making us all exposed to accidental events. Would you be prepared to speak to the police and negotiate your way through a tricky situation or possibly face a heavy expense and perhaps end up in debt?
Also, consider that in the case of robbery, if you do not have insurance, you could lose part of your wealth. A car accident may require the restitution of damages, but with insurance you would only have the responsibility of assuming the deductible for damages caused. If in the accident there are third parties involved, they may need medical care, and in case of severe injury, there could be a criminal proceeding. Insurance provides you with legal and medical assistance in case you need it.
In Mexico, having a car accident often is considered a criminal act, and the parties involved in the accident are treated as such—criminals. Auto insurance is the best way of putting a line of protection between you and the authorities, as well as protecting your family, your assets, third parties, and property.
I also highly recommend having a “legal policy” that covers the legal acts that are often required to “facilitate” action from the insurer. This is a policy that you can purchase covering car insurance, renter’s insurance, and commercial property, as well as protecting us as the proprietor of a home that we are renting to a third party.
In the case of renter’s insurance, the policy protects the owner from lack of payment, damages, and the entire eviction process, which can be lengthy and expensive.
The costs for legal insurance are nominal in comparison to the benefit. Policies range from as little as US$25 per year for cars, and for renter’s legal insurance, the renter must pay for the policy which has a cost of 25% of one month’s rent—so no cost to the owner.
Better safe than sorry.
Best regards,
Angel
Thank you all for your questions this week. For more specific information on Inmtec Legal Services™, Inmtec Title Services™, Inmtec Insurance™, Estate Planning, Asset Protection, and AfterLife™ Medical Advocacy by Inmtec™, please contact Angel Marin Díaz at info@inmtec.net, 415 121 9005 or www.inmtec.net.
*AfterLife™ Medical Advocacy is a national program available exclusively through Inmtec™ that sees to the professional production of all the documents needed to oversee issues such as medical advocacy, pre and post-death planning, the care and transport of physical remains, and all issues regarding probate and emergency contact communication with friends and family for the peaceful transition of assets.
