How To Properly Assess 'Actual Cash Value' For A Mexico Auto Insurance Policy.
In 2022, this is a challenging scenario because vehicle values have significantly risen in recent months, sometimes exceeding
their initial price.
OK, so let me explain. When buying a full-coverage Mexico car insurance policy, one of the most essential things to consider is
"Actual Cash Value", which is "Current Market Value" in layman's terms. It's important to get this right. Make the value too
and the policy will cost you a little more than it needs to. If you settle for too low a figure, it will cost you money in a
loss or theft, which could be used to purchase a replacement vehicle. The maximum amount any policy will payout is the value you
enter for your vehicle.
So, how can you figure out what your automobile is worth? The usual method is via Kelly Blue Book. Although this may be
case, many late-model used vehicles in 2022 are selling for considerably more than KBB.
Before purchasing a policy, go to a website that lists used cars from well-known dealers. Next, go through the models and
pick one with comparable pricing. Use the same year, make, model, mileage, condition, and accessories. If a reasonable person
believe that the vehicle for sale is quite comparable to your vehicle, your value should be as accurate as possible in a payout.
There is one potential problem with this approach. Assume that your "Actual Cash Value" falls to normal levels during its
after you purchased a policy. You may not receive the total amount of money covered by your Mexico insurance policy if the
vehicle is destroyed or stolen.
Of course, if your auto policy is effective for a short period (less than 30 days), no worries! If you're purchasing a 1-year policy,
might think twice, but it appears car shortages will not ease until 2023 at the earliest, and higher values are projected to
There is also one additional point. Quality Mexican auto insurance companies pay a minimum of KBB Private Party - Retail.
Sub-standard online insurers with less than "A" ratings try to pay wholesale value regardless of the "Actual Cash Value" you
as do many local poorly-rated car insurers selling coverage at the border. As usual, you get what you pay for.
In 2022, to help narrow the gap in this situation, one A++ rated Mexico insurance company has increased its definition of a
loss to KBB dealer value, which is higher than retail. Good move!