Thursday, October 24, 2019
According to the Federal Road, Bridge and Highway Transportation Law, as of January 1, 2019, it is mandatory to have Civil Liability insurance to cover all or part of the damage to third parties caused by our vehicle. This measure now applies to all cars, unlike the 2014 resolution that required only 2011 or higher model vehicles to have insurance of these characteristics.
Having a Civil Liability insurance is essential to cover the expenses incurred to a third party in a traffic accident, but according to an analysis by the Mexican Association of Insurance Institutions, this expense can vary between 300 thousand and 3 million pesos.
The civil liability insurance covers from 100 thousand pesos, which in effect could generate monthly premiums of only 250 pesos, but here we find the first problem: if you choose this option, this insurance will only cover that limit of 100 thousand pesos, for which, in case of an accident, if the cost is higher, you must bear the additional expenses.
Other insurances available
In the same way, a civil liability car insurance, although cheaper, does not cover the material damage to the vehicle, nor the theft of cars, nor the medical expenses to the occupants. Thus, we recommend protecting those who travel inside your car, and those who might be affected outside the vehicle; the same must protect your car, to receive payment in case of theft or damage by accident.
Luckily, you can choose to purchase insurance with wide or limited coverage (do you want to know what each one is? Look at this article (link to article S1A5). These insurances are voluntary, but not only do they have more insured amounts, that also protect you, third parties in your vehicle, the car itself and many additional things.
To measure which is the cheapest car insurance in Mexico for wide and limited coverage, it is necessary to use a quote, which will show you the best options according to certain parameters that insurers require. In the next section, we will know more about them.
What things influence the cost of my auto insurance?
There are factors that insurers take into consideration when setting the price of your auto insurance. These factors allow you to determine the chances of having an accident, and therefore, influence the final price. These are the main aspects you should consider:
Age
With age we usually go more calmly, that is why at an older age, car insurance is cheaper. However, there is an exception for the elderly, as this presents health problems that can be considered a risk when driving.
Similarly, if you are, for example, 45 years old, and at home, you have a child of 20 and one of 18, it is possible that the insurer considers this as a greater risk because at some point your children could drive the insured car.
Sex
According to INEGI data, the proportion of women involved in traffic accidents has always been lower than that of men and by a wide margin, so car insurance will be cheaper if you are a woman.
Women are also less likely to drive while intoxicated and more attentive not to exceed speed limits, so in case of an accident, the damages are usually minor, which in turn influences the cost of insurance.
The localization
Living in a small and quiet city is not the same as living in Mexico City. In the latter, the cost of your auto insurance will be higher than in a small city. Also, within the city, the location where you regularly park your vehicle or where you live is taken into account, because if it is an area where robberies or vandalism are frequent, the value of the policy will increase.
Driving or driving history
Your insurance premium will depend largely on how respectful you are to the law, so the better your road behavior, your car insurance will be cheaper. Traffic violations, fines or traffic accidents, as well as their recurrence, are considered by the insurers as risk elements and will increase the final value of your policy.
The record also influences, as it is more likely that the premium will be more expensive for a rookie driver than one who has been driving for years. How recent are the license and the fact of not having insurance in recent years can also increase the price of insurance?
Credit history
Maintaining a good rating and credit history is not only essential to have our financial life in order, but it can mean savings and lower prices on your auto insurance.
Aspects such as having delinquent accounts, having declared bankruptcy, the amount of debt owed at the time of acquiring the policy and the start date of the credit history are aspects that insurers take into account.
The place where you live or park your car regularly
We already talked about the city in which you live will increase or decrease your insurance costs. However, within the same city, the places where vandalism, accidents, and crime are most frequent are considered at greater risk by insurers, so if they see that you keep your car in a dangerous place or your place of residence is in one of them, the price of your auto insurance will increase.
The car and model
There are much more expensive cars to insure than others, and among the factors for this to happen is the cost of replacing the car or any of its parts. The size of the engine could influence the cost of insurance, but on the other hand, the fact that the vehicle has security technologies or anti-theft systems could reduce the cost of the premium.
Cars with a capacity to “do more damage,” such as vans or armored cars, are more likely to have higher premiums for liability coverage.
Another factor that directly influences whether the price of auto insurance is cheaper or not, is the possibility of accidents and accidents, and for this, insurers analyze the number of vehicles of a specific brand in circulation. Therefore, in this case, it is advisable not to choose vehicles that are among the best sellers.
So which car insurance is best for me?
Knowing what are the factors that influence the value of insurance for your car, it is time to choose which one is best for you. This will depend on your budget and your needs. Most quotes give you different options and show you the prices so you can make the best decision.
Before getting your insurance, check each of the needs that you consider important to insure. The Kayum contributor can help you with this task, showing you everything that each insurance covers and will recommend you the most optimal options to reduce the cost of your insurance without losing benefits.
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