Mexican Auto Insurance is One of the Easiest

Insurance agents: If your customers drive their cars to Mexico, don’t tell them to purchase their Mexican auto insurance at the border!

Mexican auto insurance, sometimes called Mexico ‘tourist’ auto insurance, is not only a great product for earning some extra commissions. Mexican auto insurance can also be a wonderful tool for attracting new customers and for building customer loyalty with your existing clientele. With the help of the internet, writing Mexican auto insurance has never been easier. So if you have customers who drive to Mexico, your agency needs to get appointed to offer Mexican auto insurance.

How to get appointed to sell Mexican auto insurance

There are a number of US based MGAs (managing general agents) who will appoint independent insurance agents to sell Mexican insurance. If you have a valid property casualty insurance license and a current Errors and Omissions insurance policy, most MGAs will gladly appoint you to sell their Mexico insurance products. The appointment paperwork is usually very simple, and the appointment procedure can usually be finalized in less than 24 hours. Some of the better MGAs who have their offices streamlined can have you signed up and ready to sell in less than an hour. Many MGAs have no production requirements, so agents should not feel any pressure to meet sales volume commitments.

How to write a Mexican insurance policy

Mexican auto insurance is one of the easiest products for insurance agents to write. Now that most of the decent MGAs have internet based agency websites, agents can issue Mexico insurance policies in less than 5 minutes. Most Mexico insurance agency websites will allow you to login to your online account using and agent code and password. Once logged in, agents can generate quotes or issue policies in real time. Most agents find that writing Mexican insurance through the internet is as easy as buying an airplane ticket online.

Agents who can benefit from selling Mexican insurance

Many agents incorrectly assume that only agents who are located near the Mexico border will benefit from selling Mexican insurance. Although many Mexican insurance policies are still sold at the border, the vast majority of policies are now being purchased by customers well in advance of their Mexico road trip. In fact, many of the most successful agents who sell Mexican insurance are located in states that do not even share a border with Mexico. Agents in states such as Oregon, Washington, Colorado, and Illinois, are responsible for producing a large percentage of sales for the Mexico ‘tourist’ auto insurance industry. If you have any customers or potential clients who drive their cars to Mexico, you are doing yourself a disservice by not being able to offer this product.

Commission potential

Many of the Mexico insurance MGAs offer between 20%-30% commissions to agents for written policies. For many agents not located near the Mexico border, their clients tend to take longer trips to Mexico ranging from a few weeks to a few months. A three week Mexico insurance policy can easily generate a $200-$400 premium which would result in a $60 to $120 agency commission. Although you may not be able to retire on this revenue, 5 to 10 policies per month would certainly pay more than the electric bill for your office. Some agents may also elect to enhance their commission with a broker fee. And remember, each policy usually takes less than 10 minutes to issue and requires almost no servicing once the policy is issued.

Advantages of offering Mexican auto insurance

Mexican auto insurance can also work as a great marketing tool for your agency. Many agents find Mexican auto insurance to be a great product for attracting new customers. Once the word gets out that your agency can provide Mexican auto insurance, you may find new customers stopping by your office prior to their road trip to Mexico. Once you solve their Mexico insurance need, most customers are happy to discuss the possibilities of working with you for their domestic insurance needs as well. Mexican auto insurance is also a great tool for building customer loyalty and retaining your clients. If you offer Mexican insurance, your customers are less apt to visit your competitor who does offer Mexico insurance.

In summary, if you are looking to grow your insurance agency, or just retain your existing clients, you should seriously consider getting appointed to sell Mexican ‘tourist’ auto insurance. You will most likely find it to be one of the easiest and most advantageous products your have ever sold.

Need to Know About Auto Insurance

Every auto owner must have auto insurance in order to drive their vehicle legally. You can get into serious trouble with the law if you do not have insurance in place and if someone hits you – or if you hit them – and auto insurance is not held by you or the other person, legal issues are not the only thing you will have to worry about. You will have to worry about how the vehicles will be fixed if they can be fixed and how doctors bills are going to be paid if someone is seriously injured.

If you get into an accident, the first thing you should do is make sure your auto insurance was in force at the time of the accident. Most insurance agencies have a 24 hour hotline for just the reason. If another person was involved, you will need to make sure their insurance is in force as well. The next step is to immediately contact the authorities so that they can help control the situation and charge whoever was at fault for the accident. This helps auto insurance agencies determine who is liable for any repairs or doctors bill. Having auto insurance is extremely important.

When you purchase a vehicle from an auto trader, a private person, or at an auction, you will need to contact your insurance agent immediately to let them know that you have purchased a new vehicle. Sometimes the auto trader will carry insurance on the vehicle they sold you for 24 to 48 hours in order to protect you until you can get your insurance in place. When you purchase a vehicle from an auto trader, always ask them about temporary insurance they may have in place. Additionally, always inquire about coverage for a new car with your agent before you purchase it. You may find that your coverage will be in force temporarily through your agent until you can sign or pay on a new insurance agreement.

If you get into an auto accident and your vehicle is considered a total loss, the vehicle may be used for auto parts if there are areas of the vehicle that are not damaged. Many auto salvage yards receive vehicles from accidents where auto parts can be salvaged and then resold for a reduced price to people who need them to fix up their own cars. Reliable auto salvage yards are a great source of auto parts that can save you some money if you are able to work on your own vehicle or know someone who can do the work for you.

Being able to prove that an accident is not your fault is key to making sure that you do not see increased auto insurance rates or are left out in the cold when they refuse to pay your claim. This is one of the reasons why a police report and unbiased witness accounts are important in an auto accident. If no report is filed with the police, then the cost of the accident will be split between you and the other party. This is not fair to you if you are not at fault, so always protect yourself and your investment. Never accept blame for an accident. Make the report in an unbiased way and let your insurance company determine the blame based on your information and the reports they receive. After all, this is what you pay them to do.

How to Buy Auto Insurance on the Internet

Are auto insurance agents a dying breed? Today, auto insurance is one of those service businesses that are becoming more and more dominated by online providers.

In fact, there’s some question whether auto insurance agents are needed at all anymore. Do you really want to spend your Saturday morning visiting an auto insurance office being pitched on a single car insurance company’s policy when you can buy auto insurance online any time – weekends, evenings, etc. Not only that, but buying auto insurance online enables you to compare the offerings of several companies side-by-side in terms of policies and premiums. What’s more, you can buy the policy online (in most states), and even file claims online.

One might well point out, of course, that many people simply prefer meeting and talking face-to-face with an insurance agent, rather than simply pounding a computer keyboard. For one thing, they may feel more secure about transferring money (premium payments) in person than on the Internet. For another, they may prefer having a knowledgeable individual they can communicate with and ask questions of.

But the number of such people as a proportion of the adult population is clearly dwindling. According to market research firm ComScore, 67.5% of 2,000 U.S. consumers surveyed last year said they would consider purchasing their next auto insurance policy online. Auto insurance purchasing online has been growing at an amazing 55%+ rate over the past couple years.

Therefore, whether you’re looking for a replacement policy or for your first policy, online auto insurance offers a number of benefits: cost-savings, convenience, speed, and better information about available policies from a range of insurance providers.

Nonetheless, before you sign up for a policy, whether in-person or online, make certain you’re familiar with the basics of auto insurance.

Basics of Online Auto Insurance

If you drive a car in the U.S. you need insurance. That’s an obvious fact. But what kind of insurance and at what price?

Liability insurance. As you may know, there are two basic types of liability insurance, namely bodily injury and property damage. If you buy a 25/30/25 coverage that means the insurer pays up to $25,000 for bodily injury per person, $30,000 for bodily injury per accident, and $25,000 for property damage per accident. So this would be a relatively low amount of coverage, and you must assess your own situation in deciding what level of coverage is best for you. All states, except New Hampshire and Wisconsin, require that you carry liability insurance.

Collision. This category of auto insurance covers your property damage and medical expenses in an accident in which you are at fault.

Comprehensive. This type provides coverage for loss from accidents other than collision, or from theft, for example property damage sustained from flood, fire, or vandalism.

Uninsured/underinsured motorist. Pays you if the other driver in an accident does not have insurance or does not have enough insurance. (It’s not required in all states.)

Personal injury protection. Pays your unrecovered medical expenses as well as lost wages resulting from an accident. PIP may also include a death benefit. (About 16 states now require PIP coverage.)

A source of confusion are so-called “no-fault” auto insurance program. In a no-fault system, all drivers pay their own accident costs, no matter who is to blame. It was for a long time thought that this system would reduce litigation thereby holding down costs. It didn’t happen. In fact it usually resulted in higher accident rates, higher costs, and higher insurance premiums. As a result, most states that had enacted no-fault laws repealed them (DC, NV, PA, NJ, GA, CT, CO, FL). leaving only Michigan, Kansas, Hawaii, Massachusetts, Minnesota, New York North Dakota, and Utah. However a couple states – New Jersey and Pennsylvania – adopted “choice no-fault”, allowing drivers to choose between no-fault and a traditional policy. (Results, in terms of premium levels, have been mixed so far.)

Keeping Your Premiums Down

To the average consumer, insurance firms may seem to have some strange ideas about what factors to consider in setting your insurance rates. For example, I once found my rates increased after another driver hit my car, and when I called the company, and explained that the accident had not been my fault, the customer service rep answered, “Yes, but you were in the wrong place at the wrong time.”

That is, it’s all a numbers game, and there’s no real effort to achieve equity in setting rates. So to win the game you have to provide the company with numbers that will result in reasonable premiums. Some of these you have some control over and some you don’t. Among the factors that will be taken into account are: age/gender (single males under 25 get higher rates; women generally get lower rates); location (New Jersey and California rates are high; urban rates are higher than rural rates; many companies now even look at your zip code); driving history (if you’ve filed one or more claims in the past five years, this will boost your premium significantly; so will a speeding ticket or other violation, even if no claim was filed); amount you drive; type of car (expensive cars get higher premiums, so do cars with high rates of theft, like the Toyota Camry and Honda Accord; so do off-road vehicles and large SUV’s).

Finding an Auto Insurance Company on the Internet

If you run a Google, MSN or Yahoo search for “car insurance” or “auto insurance” you’ll see that this is a crowded business on the Internet. There are literally hundreds of companies advertising auto insurance online. However your best bet is to use one of the companies which allow you to order online, like Esurance.com or InsureMe.com.

You’ll soon notice that each online insurance company has its own little qualifying process and series of screens it forces you to go through before it give you a quote.

Esurance.com is a good example. It starts by asking you for your zip code – an easy enough question. Then on the ensuing screens they request detailed information — How many cars you are insuring. How many drivers. Year/Make/Model of your car. Uses of your car. Discounts for which you may be qualified, such as airbags, antilock brakes, car alarm, etc. Coverage you are looking for. And so forth.

The Esurance.com application process is actually fairly simple, and takes only a couple minutes – after which you’re provided with a specific quote from Esurance.com, which is a virtual (online) insurance provider.

By contrast, another website, InsureMe.com takes you through a very similar application process, but concludes without providing you with a specific quote. Instead, it lists several brick-and-mortar insurance companies which will contact you later, either by email or phone, with specific quotes. This has the advantage that you will be able to compare policies and quotes, and the disadvantage that you will have to wait awhile for the companies to contact you.

Other auto insurance aggregators (as they are called) have other processes — some, for example, run your credit report as part of the process.

In any case, as a final step in choosing a policy, you may want to take a little time to check out your selected insurance provider at AMBest.com, particularly if it’s one you’re not familiar with. To do so you’ll have to create an account on AMBest.com to look up an auto insurance company’s rating, but it’s fairly simple to do so. Once you’ve created your account, click on “rating and analysis” and input your company’s name. Companies are assigned a letter grade from “A++” downward. You’ll definitely want your selected company to have at least a “B” rating, which is “good.”

Incidentally, even if you already have what you think is a reasonably-priced policy, it’s usually still a good idea to apply online to see if you can get a better premium rate. After all, there’s no obligation and it only takes a couple minutes. According to a recent survey of consumers by the industry publication EDP Weekly, one in three people who shopped online for auto insurance and then bought a new policy saved more than $500 with some saving $1,100 or more.