There are some tremendous coverage differences between US and Mexican Insurance policies, and far too many "minor" differences to list here. Following are some of the major differences outlined by type of insurance.

HOMEOWNERS and COMMERCIAL PROPERTY- While some Mexican companies offer "all risk" policies and reasonable deductibles, others offer only "named perils" policies with some strange deductible and coinsurance clauses. Unlike US property insurance, coinsurance in Mexico is a "share in the loss" penalty applied after the deductible has been met. A coinsurance clause could effectively increase your deductible to 10% to 20% (or more) of the property value.

Check your policy carefully. The same insurance company may offer all types of options, ranging from "All Risk" with no coinsurance (the good) to "Named Perils" with a coinsurance clause (the bad) to, well, we won't get into the ugly.

LIABILITY INSURANCE- Liability in Mexico (liability coverage is a part of all homeowners, auto, commercial property policies, etc.) is determined by Civil Law, and is based on limits defined by Mexican Statute. Depending on your view of things, this is either a brilliant system or an antiquated one. I like it. Claims for pain and suffering and emotional distress are virtually unheard of and claims for Property Damage to Others and Bodily Injury to Others are settled on an "actual loss" basis, guided by Statute.

Personal Injury lawyers, as we know and love them in the US, do not exist in Mexico. Therefore, liability limits and claims exceeding $ 100,000 are rare. It is far more likely to have a "Property Damage to Others" liability claim that approaches this limit (damaging someone else's new Chevy Suburban, valued at $ 55,000, for instance) than it is to have a "Bodily Injury to Others" liability claim that approaches this limit (damaging the occupants of the Suburban, for instance). This is almost an exact opposite of how claims are settled in the US.

Keep in mind that the liability insurance you purchase from a Mexican insurer will not respond to claims or suits brought against you in the United States or Canada for an "incident" which occurred in Mexico. All liability claims under a Mexican insurance policy must be brought and adjudicated in Mexico for coverage to respond.

AUTOMOBILE INSURANCE- Automobile Insurance rates, coverages, limits and deductibles vary greatly among Mexican companies. Some important items to look for are:

Does the insurer offer adequate liability limits, or does the policy reduce the amount payable by using split limits?

Split limits reduce the amount available for "Property Damage to others". An ideal limit of insurance on a Mexican Auto policy is $ 100,000 Combined Single Limit. Beware split limits of $ 40/80/40, for example.

Does the insurer automatically include Legal Aid and Travel Assistance?

These "additional" coverages should be included in every policy. They will help you tremendously in the event of an accident. Without them, you could be on your own racking up legal bills and huge headaches until your liability has been determined.

What are the Physical Damage coverages and deductibles?

The main exclusions on a Mexican auto policy are Vandalism and Partial Theft.

The policy is written on a "named perils" basis which includes coverage for Collision, certain Meteorological Events, Total Theft, Fire, and other perils. Deductibles are generally a percentage of the value of the insured vehicle.