Question

The major advantage of the Limited Mexico Coverage endorsement to the Personal Auto Policy (PAP) is that it provides

A: Primary liability insurance within twenty-five miles of the United States border.

B: All auto insurance coverages required by Mexican law.

C: Liability and physical damage coverage for trips to Mexico of more than ten days.

D: Additional liability insurance as well as providing physical damage coverage.

Answer 1

The main advantage of the Limited Mexico Coverage endorsement in the Personal Auto Policy is it offers all coverages required by Mexican law within a specific distance from the U.S. border. It extends limited protection into Mexico typically for short trips and needs to be verified before traveling. For extended stays, a separate Mexican auto insurance policy is advised.

Step-by-step explanation:

The major advantage of the Limited Mexico Coverage endorsement to the Personal Auto Policy (PAP) is that it provides B: All auto insurance coverages required by Mexican law. This endorsement is an extension of a U.S. auto policy that extends limited protection into Mexico, usually within a certain distance from the border (often 25 miles) and for a limited time period. It is important for policyholders to confirm that their PAP includes this endorsement before driving into Mexico, as U.S. auto insurance is generally not recognized by Mexican authorities.

If someone intends to drive beyond the geographical limits or for longer periods, they should consider obtaining a separate Mexican auto insurance policy that specifically meets all the mandatory insurance requirements laid out by Mexican law. Potential policyholders should understand the differences between employment-based insurance, which is provided by an employer, and direct-purchase insurance, which is acquired individually from a private insurance company, to make an informed decision about their auto insurance needs when traveling to Mexico.