3rd Party Liability coverage pays for damages an insured is responsible for as the result of an accident.

This liability insurance covers death or bodily injury to another person and damage to the property of others. Effective November 20, 2012 revisions to Mexican federal law became effective which significantly increases the amount of financial responsibility an at-fault person must pay in the event of death in an accident. This law affects all types of liability, i.e., auto, watercraft, personal/home, business, aircraft, etc.

The amount of financial responsibility varies considerably by state, from as high as the equivalent of USD $543,754 in two states and more than USD $300,000 in six other states and the Federal District. The Mexican insurance industry is still wrestling with how to address the new limits of responsibility prescribed by the law. Several options are being considered but until we have firm direction from the companies we recommend that you consider purchasing the highest limit of liability presently offered, which is USD $500,000.

January 27, 2013