Mexican Insurance Coverage – Do Banks Need Copies of Your Policy?
So, you recently bought yourself a shiny new car. Since you are the proud owner of what is undoubtedly a reliable and fuel-efficient new vehicle, you’d probably like to stretch its legs a little. One great way to do that is with a trip to Mexico.
Every seasoned south of the border traveler knows how important it is to buy Mexican insurance coverage; many are a bit foggy about whether or not it is kosher to bring a car they have a loan on down to Mexico. Buy a Mexican auto liability insurance and proceed to Mexico South of the 70-mile mark (All of Baja is exempt) without obtaining permission from your bank. You could find yourself in trouble.
To embark on a worry-free vacation, it is crucial to run your travel plans by your bank. Obtain a permission letter before you head down.
Why Do You Need A Permission Letter, Anyway?
A permission note that may be required is relatively straightforward. Until you pay off your loan, you are not the actual owner of the vehicle. Many banks are not fond of their property leaving the country. Although most people who bring vehicles to Mexico ultimately bring them back, some do not.
There are specific schemes that involve shady dealings and stolen foreign cars. To stay safe, start with checking out a Mexican auto insurance review or two; from there, call your financial institution and find out their precise stipulations. (Again, a permission letter is not needed in border areas or all of Baja)
In most cases, getting a permission letter from a bank or financial institution to take your car to Mexico isn’t terribly difficult. Of course, every bank is a little different, so check in ahead of time. Most of the time, you must buy quality Mexican Insurance coverage and send it to your bank.
Mexican Insurance Coverage and Amounts Owed
They verify your identity and confirm your loan amount is covered with a full-coverage policy. From there, the bank will fax or send you a letter you must sign and return within a specified period.
So while you can wait until the last minute to buy your Mexican insurance coverage, you shouldn’t put off getting this vital documentation. Give yourself 7-10 business days.
Free and Clear to Explore Mexico
Once you have the permission letter in hand along with top-notch Mexican insurance coverage, you will indeed be ready to embark on a fun and exciting Mexican vacation. Once you have paid off your loan, you won’t have to go through all this nonsense. Some folks would even say not to worry about it, with the odds of being caught so low.
However, it’s always best to be safe in these situations. So keep everything on the up and up and get the permission note when required. For example, do banks need copies of travelers’ Mexican auto liability insurance policies?