Mexican Insurance; Do Banks Need Copies of Travelers Policies?

Travel alert.

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, youd 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; many are a bit foggy about whether or not it is kosher to bring a car that they have a loan on down to Mexico. If you buy your Mexican auto liability insurance from Mexican Insurance and proceed to Mexico South of the the 70 mile mark (All of Baja is exempt) without obtaining permission from your bank, you could find yourself in some trouble. In order to embark on a worry free vacation then, it is crucial to run your travel plans by your bank and obtain a permission letter before you head down.

Why Do You Need A Permission Letter, Anyway?

The reason a permission note may be required is fairly clear: Until you pay off your loan, you are not the actual owner of the vehicle. Many banks are not fond of the idea of their property leaving the country. Although the vast majority of people who bring vehicles down to Mexico ultimately bring them back, some of them do not. There are certain schemes out there 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 up your financial institution and find out what their precise stipulations are. (Again not needed in border areas or in all of Baja)

Obtaining Permission

In most cases, it isnt terribly difficult to get permission from a bank or financial institution to take your car to Mexico. Every company is a little different though, so definitely check in ahead of time. Most of the time, you will have to buy a quality Mexican Insurance policy and sentd it to your bank. They verify your identity and confirm your loan account number and other details. From there, the bank will fax or send you a letter you must sign and return within a specified period of time. While you can wait until the last minute to buy your Mexican auto insurance, you shouldnt put off getting this important documentation. Give yourself 7-10 business days.

Free and Clear to Explore Mexico

Once you have the permission letter in hand along with a top notch Mexican insurance policy, you will truly be ready to embark on a fun and exciting Mexican vacation. Once you have paid off your loan, you wont have to go through all of this rigmarole. Some folks would even say not to worry about it, with the odds of being caught so low. However, its always best to be safe in these types of situations, so keep everything on the up and up and get the permission note when it is required. Do banks need copies of travelers Mexican auto liability insurance policies?

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