How does auto insurance work?

Having your own car allows you many things. Mainly comfort, but also freedom to carry out various activities, in addition to protecting yourself against possible contagion when riding public transport. Car trips are usually calmer, more comfortable and each one can do them in their own way. Despite all the advantages that come with them, cars are always subject to risks. 

Mexico is one of the countries in Latin America with the highest number of deaths from road accidents. In the first half of 2021 alone, 7,463 people died from this cause, according to the National Public Security System. On the other hand, there are the robberies. According to figures from the Mexican Association of Insurance Institutions (AMIS), in 2019 there were around 230 thefts of insured vehicles per day.

That is why having an auto insurance policy should be a priority. Not only because it has become mandatory according to traffic regulations, but because of the responsibility that driving implies as owner and driver. In addition, it is estimated that only 30% of the cars that circulate in Mexico have insurance.

What is auto insurance?

It is a contract between a person and an insurance company in which the latter undertakes to cover the expenses for damages to third parties and their property or effects on the insured and their car (depending on the coverage) in the event of road mishaps. The above, in exchange for a deductible; that is, an amount that you must pay in the event of an accident. 

The risks against which auto insurance could protect you are :

Another important aspect when answering what is auto insurance is that the insured agree to pay a corresponding premium. This type of insurance covers the expenses generated by damage to the insured's car and the property of third parties when the owner is responsible for the accident. For example, in case of affecting the gate of a foreign house or a neighbor's flower box while you park. 

In addition, by insuring your vehicle you also obtain protection in case of causing damage to the Assets of the Nation; that is, government-owned buildings or public service facilities such as traffic lights, utility poles, or traffic signals.

How does auto insurance work?

Auto insurance are tools used to protect your assets against any situation or event in which you and your car are involved. Check out some of the important points to consider below:

• It does not matter if it is a traffic accident or any type of accident, auto insurance offers all kinds of help.
• In the event of an accident, theft, loss or needing road assistance (tow truck, power surge, running out of gas), you can call the insurer, provide your policy number and they will send an adjuster or the necessary help. to solve the issue.
• If you require legal assistance, you will receive it.
• In case of needing a repair, the expenses are borne by the insurer, whether they are damages to third parties or material expenses towards the car.
• Insurers offer premiums with different types of protection.
• It is always better to compare to choose the option that best suits your needs.
• Recommendations for choosing auto insurance

Recommendations for choosing auto insurance

Only you know what risks you face most frequently depending on your routine and the use you give the car. Look for insurance that specializes in what interests you most.

What happens if I don't have auto insurance and I crash?

Since 2019 it is mandatory to have civil liability insurance (damage to third parties) , this to have the right to circulate on federal roads, paths and bridges:

• This measure aims to protect potential victims in traffic accidents.
• If there is no insurance that, at least, offers a guarantee against damage to third parties, drivers will have to pay a fine of between 2,000 and 4,000 pesos depending on the location.
• All car models, regardless of the year or the value of the invoice, must be insured.
• The minimum amount insured for material damage is 50,000 pesos. For injuries and compensation it is 100,000 pesos.

However, in case you decide to risk a fine and do not take out insurance, you should know that there are other latent risks, so that you reconsider "what happens if I do not have car insurance and I crash":

What happens if I stop paying car insurance?

It is very likely that the insurer will not pay you. Insurance companies agree to provide the service of insuring your car if you agree to pay the premiums.

It is essential that if you have a car you hire insurance. It is not an extra expense, but a solution and the protection of your assets. It is not recommended that you think "what happens if I stop paying car insurance", it is as important to take out insurance as it is to have up-to-date payments.

Always look for the insurance option that best suits your needs. Remember that you will not only be taking care of your financial health with insurance, but you will also take care of your assets. In addition, there are measures that you can take yourself to protect yourself from risks while driving, one of them is to avoid the roads with the highest rate of highway robberies .