Cars with Mexican license plates, damage due to hydrometeorological phenomena

During Mexico's summer hurricane season, heavy rain and wind cause damage to cars. It is inevitable that every year, hundreds of cars suffer mishaps as a result of these hydrometeorological phenomena, and insurance companies pay millions of pesos in claims to owners of these vehicles. Many clients contact our offices with various questions about their insurance policies and how their damages are covered. Below are the top questions from our customers with Mexican license plate auto policies:

Does my Car Insurance policy cover damage caused by tree limbs hitting my car?

The answer is yes. Material Damage coverage is aimed at restoring your vehicle to the condition it was before it was hit by any object. Whether it is damage caused by another vehicle, stones, pieces of trees, etc. It is recommended that photographs of the accident be taken before removing the branches and taking the necessary steps to prevent further damage to the car. Call the insurance company to report the accident and explain the cause of the damage.

Is my car covered if it gets flooded in a parking lot or on the street?

Your car insurance policy with Mexican license plates includes coverage in the Property Damage section of the policy due to flooding. Whether the water level in the street has risen due to rain, a river has overflowed, high tides from the ocean or bay, or you are parked in an area below ground level, and the water damages your vehicle. Sometimes the currents of water in the streets wash away cars.

The most important thing is to keep your family safe by heading to higher ground. If possible, take pictures of the vehicle as it is being washed down the street. If not safely possible, wait to take photographs until it can be done safely and call the insurance company to report the damage.

In the above two cases, if the damage to the vehicle exceeds fifty percent of its value, it will most likely be considered a Total Loss, so the insurer will indemnify you under this coverage section of your policy.

Does Mexican-plated auto insurance cover a rental car while my car is being repaired or during a total loss claim?

Quick answer: Yes, but only if you have explicitly added the "Rental Car Reimbursement" or "Substitute Vehicle" optional coverage (endorsement) to your policy. Comprehensive Material Damage coverage alone does not automatically include a rental car during repairs or total loss settlements after a hurricane or flood.

This optional coverage is highly recommended for coastal and high-risk flood zones in Mexico—such as Puerto Vallarta, Los Cabos, La Paz, Manzanillo, Cancun, Huatulco, Zihuatanejo, and Puerto Peñasco (Rocky Point). In these areas, hurricane landfalls and flash floods can cause severe material losses, leading to lengthy repair times or extended total loss compensation processes.

What is the deductible for flood damage on Mexican-plated Cars?

Like any other auto policy, policies for cars with Mexican license plates have deductibles for each coverage, except third-party liability. These may vary depending on each insurer. They are generally given in percentages of the commercial value of the car or the Agreed Value amount of insurance of the car. Typical deductibles are: Material Damage 5%, Total Loss 10%, Glass Breakage 20% for the value of the damaged glass. For Material Damage or Total Loss due to your car due to Flooding, it is double the contracted deductible.

Novamar Zero Deductible Car Insurance Coverage

There is a possibility of having zero deductible coverage for all of the above coverages, which generates an additional cost in the premium.

Our recommendation is to have the full backup and peace of mind that your vehicle is covered and that you will not be left without a car while waiting for repairs, or while you are waiting to be fully compensated in a Total Loss.

Contact us, we will gladly analyze the current situation of your policy and make the necessary adjustments so that you have the peace of mind by having the proper coverage in case of damage caused by hydrometeorological phenomena to your car.