Like many travelers, you may think that all Mexican car insurance policies are basically the same. However, they vary considerably just like other auto insurance policies. One policy may work well for you but fall short for the next person. Mexican insurance policies can vary in many ways, and deductibles are a prime example. The deductible is the amount that you have to pay before your claim will be processed. Some Mexican auto insurance policies have low deductibles while others have high deductibles. Some policies have variable deductibles while others have fixed deductibles. It’s important to choose a policy with a deductible that’s right for you.
Basics about Mexican Insurance Deductibles
You can’t buy a Mexican auto insurance policy that doesn’t include some kind of deductible. However, some policies have very affordable deductibles, and others have extremely expensive deductibles. The amount of the deductible has a direct impact on the total price of the policy. Policies that have high deductibles tend to be cheaper, and policies with low deductibles tend to cost a lot more. That’s true about all insurance policies. However, you shouldn’t base your decision on the price of a policy alone.
People are often tempted to just buy the cheapest Mexican insurance policies they can. Such policies usually have really high deductibles. You have to ask yourself whether you’ll actually be able to pay your deductible if the need arises. If you can’t, you won’t be able to file a claim against your policy. Be realistic. It may be a little annoying to pay more for your policy up front, but you’ll thank yourself later if you need to file a claim and have to pay your deductible.
The majority of Mexican insurance policies have fixed deductibles. In fact, most auto insurance policies in general have them. As you probably already guessed, a fixed deductible is one that never changes. Right when you buy your policy, you will know precisely how much your deductible will be. This is convenient for a number of reasons. Most importantly, it helps you avoid unpleasant surprises. The downside is that policies with fixed deductibles tend to cost more. As with low deductibles, though, it’s worth it to pay more in the beginning than to deal with issues later.
Policies with variable deductibles tend to be a lot cheaper. However, you won’t know ahead of time how much your deductible will be. It is based on the value of your car and a few other variables. The only time it’s practical to get a policy with a variable deductible is when you’re driving a car that is worth next to nothing. Your deductible is sure to be really low. If your car is relatively new or in excellent shape, you will end up with a high deductible and might not be able to file a claim.