Flagstaff, AZ (PRWEB) February 04, 2013
Recent changes to Mexico Liability law will have a radical impact on the Mexico Tourist Auto Insurance Industry, and on all people who drive in Mexico, including US and Canadian visitors, according to Jim Labelle, CEO of International Insurance Group, Inc. (http://www.mexpro.com).
"Historically, the Mexico courts have limited the maximum damage award for a negligent accident which caused a fatality to 750 days multiplied by the daily Mexico minimum wage, which in effect was roughtly $ 50,000 US dollars. The recent change now increases the maximum damage award to 5,000 days multiplied by the daily Mexico minimum wage, or roughly $ 300,000 US dollars", states Labelle.
This change will impact both insurers and drivers. Insurers will now face much greater potential losses, and may not have been collecting adequate premiums to make up for the increase in claims payments that are now expected to occur. Labelle expects many insurers will need to raise their rates in order to ensure profitability and remain financially strong, particularly those that insure a large number of drivers in Mexico.
For Americans and Canadians who have historically purchased low limit Mexico Auto Insurance policies based on the old law, MexPro advises that those who drive in Mexico should immediately consider purchasing increased liability limits. Purchasers of Mexico Auto Insurance should use the same level of care when choosing liability limits as they do in the USA or Canada, as the new law enables the Mexican courts to award damage limits similar to those awarded by US and Canadian courts for comparable claims.
MexPro .com offers liability limits of up to $ 500,000, and represents only A-rated, financially strong Mexico Insurers. Consumers can obtain quotes and print policies directly from http://www.mexpro.com. Agents and distributors can sign up to sell their Mexico insurance products via the http://www.mexicoinsuranceonline.com portal for insurance agents.