Top 5 Things to Consider Before Buying Car Insurance

Car insurance is one of the most widely sold types of insurance worldwide. In addition to being a legal requirement in many countries like Mexico, it’s also very affordable and offers numerous benefits.

This type of insurance is commonly sold through various channels, such as insurance agents, banks, car dealerships, department stores, supermarkets, and even directly from insurance companies.

With so many options available, it’s easy to find a policy that in appearance meets all your needs. But be careful! Remember that not everything that glitters is gold. And when it comes to insurance, it’s best to make an informed decision to avoid regretting it later.

In this blog article, our team of experts shares some crucial points that every Expat should consider before deciding where to purchase their car insurance policy:

1. Is insurance the specialty of those selling it to you?

If it’s an Insurance Agent or an Insurance Company, the answer is yes. But if you’re buying your insurance through another channel, the answer is no. Will they be able to clarify your questions about benefits, limits, and coverage? Will they be there for you in case of an accident, or will you have to handle it on your own? If you’re not satisfied with the service from the insurance company, will they advocate for you and your interests? As the saying goes, “Leave it to the experts,” so it’s best to buy your insurance from those who specialize in it.

2. The language barrier

Remember that the official language in Mexico is Spanish, and in the case of insurance companies, 99% of the time their documents are issued in Spanish.

Do you know what you’re buying? If you purchase from a bank, department store, or other channel, the person selling you the insurance might speak your language. But will your policy be issued in English, or will it include a courtesy translation? Most of the time, these policy distributors only issue documents in Spanish.

On the other hand, if you buy through an insurance agent specialized in Expats, you’ll receive assistance in your language, along with a translation of your policy documents.

3. Are you buying based on price?

It’s true that we all want to manage our finances wisely and save whenever possible. But it’s also true that sometimes it’s worth investing a bit more if the product or service warrants it.

Remember that insurance is something intangible, so you won’t know how good or bad your policy is until you need to use it. If, among all the options you’ve quoted, you find one that is significantly cheaper than the others, you might want to talk to a broker and get informed before making that purchase. An honest broker will tell you the pros and cons of choosing that option that seems much better than the rest.

4. Assistance in case of an accident

As in other countries, car accidents involve many parties, such as adjusters, other drivers, mechanics and car shops, car dealerships, pedestrians, traffic police, lawyers, etc., and most of the time, the communication will be in Spanish. Does the person selling you the insurance offer assistance in the event of an accident, including acting as a translator when dealing with other parties involved?

5. Financial stability of the insurance company

As mentioned in point 4, you may have found an option that seems much better than the rest, perhaps due to price or coverage, but before assuming it’s the best choice, it’s important to research or ask your broker about the financial stability of the insurance company, its years in the market, and its reputation. A cheap insurance policy won’t do you any good if it doesn’t work when you need it.