It is very important to talk about something that has always been considered as a necessary evil: Insurance in Mexico for Expats.
I think it's considered a subject that many pass in long, maybe because they are not interested in knowing what it is about or if it's really important to get, or because they think they know everything already. The fact is that getting insurance in Mexico can be very different than what you have in mind if you are already living here or are about to become an expatriate in Mexico.
Knowing how to choose the right insurance in Mexico is very important because no insurance policy should be considered as the total savior. However, insurance can definitively be the difference between life and death (physical or financial)... Literally!
In Mexico there are multiple insurance companies and it is always recommended to choose one that has its legal basis in Mexico and that is regulated by the National Insurance and Bonds Commission (CNSF). Check the following link:
Choosing one of those companies will give you the certainty that at least you can count on jurisprudence to defend yourself if necessary.
It is also very important to know that in Mexico, the intermediation of an insurance agent or broker is still required to purchase insurance from any company. Therefore, it is recommended to know how to choose the insurance advisor that will provide you with the service. Consider to review that this advisor has a good structure of service, that is well-stablished, several years of experience and above all good reputation among the community. There are many forums on social networks where you can find references but do not limit yourself to this information. Consider interviewing yourself with 3 or 4 people who have already received atention from that broker.
There are 4 insurance policies that most expats are interested in when they choose Mexico as their temporal or permanent retirement place:
- Private Medical Insurance
- Life Insurance
- Homeowner/Property insurance
- Car insurance
PRIVATE MEDICAL INSURANCE |
Mexico has a large variety of insurance companies that can provide you with private health coverage. In the event that you or a member of your family are taken ill or suffer an accident, the insurance company will cover the medical fees.
How much is covered depends on what health care plan you choose to buy. The more cover you need, and the older you are, the more expensive the premiums will become. Chosen deductibles also play an important role here.
Health insurance premiums have been rising dramatically in Mexico over recent years. It is in part due to the higher cost of medical care, higher cost of medicines and an increase in hospital fees as well as the exchange rates.
When you sign up for private health insurance, just as in the US and Canada, you will have to fill out a form stating all of your previous ailments and surgeries. If you have a preexisting condition, the insurance company may refuse to pay for expenses related to that condition or even to offer a policy at all. The insurance company may also require you to take a physical exam before issuing a health insurance policy.
What´s included in a Private Medical Insurance?
Any expense related to a “diagnosed” disease or an accident, such as:
Doctor´s Fees (consultancy visits, medical and/or surgical treatments)
Operating theater and recovery room
Anesthetizing equipment’s
Laboratory and image analyses (x‐rays, electrocardiogram, blood tests, etc.)
Medication in and outside the hospital (only if prescribed by treating physicians)
Intensive care
Orthopedic apparatus or prosthesis that are required due to an illness or accident covered by the policy
Land ambulance
Medical expenses incurred for the practice of any sports as an amateur
Medical or surgical treatments for reconstructive purposes (not aesthetic) that is indispensable as a result of an accident among others…
General Exclusions of private medical policies
Pre‐existing conditions and their consequences
Premature birth, deformations and congenital conditions previous of the policy
Companions of the insured as a patient in a hospital
Any aesthetic treatment
Dietetic, medical and/or surgical treatment for obesity, anorexia and bulimia
Vitamin and food complements and/or supplements
Checkups, medical examinations not related to a diagnosed condition
Glasses, contact lenses, hearing prosthesis and/or hearing implants
Dental treatments (except if necessary due an accident)
Any type of study and/or treatment to correct sleeping disorders such as apnea, snoring, behavioral disorders, learning or language disorders, insanity, dementia, mental depression or nervous, hysteria, neurosis or psychosis, as well as its complications.
Chiropractic or acupuncture treatments
Treatments of illness caused by alcoholism, toxicomany and/or drug addiction
Expenses due suicide attempts, voluntary mutilation, and conditions resulting from boxing, Thai boxing and wrestling, motor sports, and the practice of any sports as a professional.
Important Facts of the Private Medical Insurance
Private Medical Insurance policies don’t cover any “Preventative” treatments or medical prescriptions to prevent health as they do US or Canadian plans.
Most insurance companies have an age limit of 64 to contract a new policy.
Once the company has issued a policy, the renewal is guaranteed regardless of the use or cost generated, as long as the premiums are paid every year.
Insurance premiums will increase every year because of three factors: change of age (risk increase), inflation rates and medical inflation that the companies adjust in order to maintain the same level of service provided throughout the contracted policy.
There is a lot more information that you should know before hiring health insurance. It is super important to take the time necessary to know all the scope and limitations of the plan you want to hire.
LIFE INSURANCE |
Inherit tranquility, not problems you would think!
There are events you want never to happen but there are some that are inevitable, one of which is death and it always occurs prematurely. It is true that nothing can replace a life, but the financial security for their dependents and their quality of life is a benefit that can be protected with life insurance.
Life insurance provides protection to your family in the event of your death when living overseas.
You can cover periods of one to 30 years with annual premiums fixed through a comprehensive life insurance policy to give you and your family peace of mind whether abroad temporarily or setting up a new life overseas.
Available for people in good health with ages between 18 to 70 years old.
Premiums will vary depending on the chosen insured amount, gender and age will also be considered to calculate the cost.
HOMEOWNERS/PROPERTY INSURANCE |
Home insurance in Yucatan is mostly chosen in two ways: with or without hurricane coverage. Why? Simply because Yucatan is located at a high-risk hurricane zone. Even when we don’t get hurricanes often, we are continuously hit with storms that cause flooding and physical damages to the buildings.
Once you've made that decision, you can also decide to insure your home against damage to contents, theft, civil liabilities or for accidental glass breakage.
For those who own a home at the beach, however, it is a very different story. For beach residents, home insurance is practically a requirement with hurricane coverage.
There are important issues to consider before contracting house insurance such as the constructive type, number of levels of the property, the location and closeness to the shore, the protections against theft and/or hurricanes.
Premiums vary a lot depending on the insurance company and also the type of package you want to get, but use the following table to have an idea:
PROPERTIES IN MERIDA CITY | |
|---|---|
INSURANCE POLICY WITHOUT HURRICANE | INSURANCE POLICY WITH HURRICANE |
PROPERTY VALUED AT US$200,000 | PROPERTY VALUED AT US$200,000 |
YEARLY COST FOR FULL PACKAGE: US$350 | YEARLY COST FOR FULL PACKAGE: US$1,500 |
BEACH PROPERTY IN YUCATAN | |
INSURANCE POLICY WITHOUT HURRICANE | INSURANCE POLICY WITH HURRICANE |
PROPERTY VALUED AT US$200,000 | PROPERTY VALUED AT US$200,000 |
YEARLY COST FOR FULL PACKAGE: $390 | YEARLY COST FOR FULL PACKAGE: $1,700 |
Deductibles and co-pay will also be different depending the contracted zone. In Merida the deductibles will be less than the ones for beach properties.
CAR INSURANCE |
Car insurance is probably the easiest insurance to obtain in Mexico. If you have a US or Canadian vehicle, you should have bought auto insurance when you entered Mexico. There’s a lot of places where to get car insurance, but if you are driving into Mexico, you can buy your car insurance for a day, a month or a year through the internet, print your insurance policy, pay by credit card and you're ready to go.
No matter if you have a foreign or Mexican plated vehicle there are only three options to get your car insured:
Full Coverage| Collisions (material damages to your car), Total theft, third party liability, medical assistance for the occupants, roadside assistance and legal advisory and bail.
Limited coverage | all of the full coverage minus collisions
Basic coverage | all of the Limited coverage minus collisions and total theft
Most insurance policies will consider the following deductibles:
For Material Damages (collision): 5% over the commercial value of the vehicle at the moment of the accident.
For Total Theft: 10% over the commercial value of the vehicle at the moment of the accident.
For glass breakage: 20% over the replacement value.
In Mexico there’s a blue book that most insurance companies use to verify the commercial values of each type of vehicle. The name of the book is EBC Guide.
Car insurance is not mandatory in Mexico, except for the driver’s liability. It’s important to choose an insurance company with a good structure of service and with their own adjusters. This will really make a difference when an accident occurs.
If you are involved in an accident, try to avoid moving your vehicle from the site of the accident unless you are really blocking the street and/or advised by a police officer. Try to take pictures of the damage before moving it. Consider the situation and analyze who was really the guilty part, as this will result into paying or not a deductible. Immediately contact your insurance company and wait for your adjuster to arrive and ask the other party to also contact theirs. DO NOT make any private arrangements with the other party or else your insurance will not cover anything.
You should expect your adjuster to deal with the other party’s adjuster’s and give you a service sheet with the name and location of the repair shop where your vehicle will be taken to be repaired. Depending on the vehicle’s age can your car be taken to the agency or to a general repair workshop.
Despite the place it is taken, you should know that replacement parts are not in stock or available to a quick repair. Most of the times the workshop or the agency will wait a little to have a big order so they ask the factory to deliver the pieces. This could take long, be patient¡
If the other party was the guilty party and they don’t have a valid insurance policy, then… prepare yourself to spent an entire day at the policy station placing a civil demand, both vehicles taken to the policy guard and waiting for the other party to present a solution or guarantee of payment. If they cant or wont guarantee the repair of your vehicle, then you must pay for your deductible leave the civil demand and know they will go to jail.
The insurance agent will be able to help you get several options for car insurance and help you with the claims after the vehicle is taken to the workshop. Insurance agents are not allowed to visit the site of the accident or interfere as they can’t be judge and part… although some agents do this as “part” of their service… this is not recommended… just let the experts (adjusters) do their job.
All information was provided by: Ricardo Castilla
Contact him: yucataninsurance@gmail.com
Call him: 999-129-9740
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