Why Ratings Matter for Mexican Car Insurance Policies!

Independence Monument at sunset. Reforma avenue.

When shopping for Mexican Car Insurance policies, it is critical to make sure that the company that’s selling you your policy is reputable. Although testimonials and other things should be considered, they tend to be unreliable. After all, what’s to stop a company from simply making them up? Since you don’t want to drive around with a worthless Mexico insurance policy, it’s imperative to double-check the company’s reputation that is selling you your policy. One of the best benchmarks to look at when investigating an insurance company is its financial strength rating from A.M. Best. Find out more about why this rating is so important by reading below.

What is a Financial Strength Rating, Anyway?

As a Nationally Recognized Statistical Rating Organization or NRSRO, A.M. Best is considered a legitimate source of financial strength ratings, or FSRs. While A.M. Best publishes other ratings – it has recently been edging in on Standard & Poor’s territory – it has always primarily focused on insurance company ratings. An insurance company’s financial strength rating reflects its ability to make good on its policies – i.e., to pay out on filed claims. Therefore, when shopping for Mexican car insurance policies online, it is wise to find out what the insurance company’s ratings with A.M. Best are so that you don’t end up with a worthless scrap of paper.

The ABC’s of Mexico Insurance Policy Ratings

If you have looked at a grade school report card, you know how A.M. Best’s financial strength ratings work. Companies with ratings within the “secure” category are rated A++, A+, A, A-, B++, and B+. Therefore, it would be best to buy policies from these companies.

If a company’s rating is below average, it might not pay its claims. Companies with “vulnerable” ratings offer lower premiums and higher commissions to agents who agree to sell their policies. The trade-off is that these policies might not be very good. If you need to collect what you are owed, it may be more difficult because there is less premium available in the program to pay claims.

Do Your Homework When Buying Mexican Car Insurance Policies!

Sometimes, travelers feel that they don’t have to invest too much time in buying a Mexico insurance policy since they’ll only be there for a short period. What are the chances of anything going awry, anyway? This is a dangerous way to think. A shoddy policy could land you in all sorts of legal trouble south of the border. A vacation in Mexico is supposed to be fun and carefree. The best way to ensure that everything goes off without a hitch is by purchasing a policy from a highly rated company with A.M. Best. Why Ratings Matter for Mexican Car Insurance policies!

 

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