Mexico Auto Insurance Deductibles

A $500 mistake—or a $2,000 surprise. Do you know what you’re paying before you file a claim?

In Mexico auto insurance, the deductible isn’t just a line item on your quote — it’s your share of the risk. And if you don’t understand how it works, you could find yourself paying far more out of pocket than you expected.

Let’s fix that. This is your clear guide to deductibles in Mexico tourist auto insurance—what they are, how they work, and how they vary by carrier.

What Is a Mexico Auto Insurance Deductible?

A deductible is the portion of a claim you’re responsible for before your insurance coverage kicks in. It’s your financial skin in the game.

If your deductible is $500 and your accident causes $4,000 in damage, the insurer pays $3,500 and you cover the first $500. Simple enough.

But here’s where it gets more interesting: in Mexico, deductibles can be fixed or percentage-based—and that difference can dramatically affect what you owe. It’s not just the carrier that determines this. It may vary depending on whether your loss is due to a collision, theft, or even a hurricane.

So if you’re comparing policies—or trying to understand why one quote looks cheaper than another—this is the line item you don’t want to skim past.

Fixed vs. Percentage-Based Deductibles

Let’s break it down so you know what you’re signing up for.

Here’s the key difference:

• Fixed Deductibles: A flat dollar amount. Example: $500 for collision, $1,000 for theft.
• Percentage Deductibles: A percentage of your vehicle’s value. Example: 2% for collision, 5% for theft.

That second one matters—because if your car is worth $40,000, a 5% theft deductible means you’re paying $2,000 out of pocket before coverage kicks in.

Some policies offer you the choice. Others assign it by default based on vehicle type or coverage tier.

Carrier Rules: What to Expect

At MexicoCovered.com, we work with top-rated carriers like Chubb (ABA), GNP, and El Aguila. Here’s how they typically handle deductibles:

Chubb / ABA

• Collision: 2% of vehicle value (minimum $500)
• Theft: 5% of vehicle value (minimum $1,000)
• Deductible waiver available if third party is at fault and uninsured (on extended policies)

GNP

• Collision: Fixed or percentage-based, typically $500 or 2%
• Theft: Fixed or percentage-based, typically $1,000 or 5%
• Natural Phenomena (e.g., hurricane): Deductible increases to $1,000

El Aguila

• Collision: $500 fixed (standard policies)
• Theft: $500 or $1,000 fixed, depending on the policy
• Deductible amounts vary by policy type (basic vs. extended)

Always check the declaration page of your policy or your quote summary. If you’re unsure, our team can help break it down.

Why Deductibles Matter

You don’t think about deductibles—until you have to. They matter most when things go wrong. And it’s only after a claim that most drivers realize what they’ve actually agreed to pay.

Imagine these two scenarios:

Scenario 1: You hit a curb and cause $4,000 in damage.

• With a $500 fixed deductible, you pay $500, insurer pays $3,500.
• With a 2% deductible on a $35,000 car, you pay $700.

Scenario 2: Your car is stolen from a hotel parking lot.

• With a $1,000 fixed deductible, your claim payout begins after $1,000.
• With a 5% theft deductible on a $45,000 SUV, you’re paying $2,250 out of pocket.

That’s not pocket change.

How to Choose the Right Deductible

You don’t pick a deductible once. You feel it every time something goes wrong.

Here’s how to choose one that won’t sting later:

1. Consider Your Car’s Value

If your vehicle is worth $15,000, a 2% deductible might be manageable. But if it’s worth $45,000? That same 2% is nearly $1,000. Percentage-based deductibles grow with your car’s value. Fixed deductibles don’t.

2. Think About Your Tolerance for Risk

Want a lower premium? You’ll pay more out of pocket if something happens. Prefer predictability? A fixed deductible means no surprises—no matter what your car is worth.

3. Understand Where Waivers Apply

Some extended policies waive your deductible if the other driver is at fault and uninsured. That’s a detail worth checking before you choose.

4. Do the Math Before You Commit

A $250 difference in premium might feel steep—until you’re staring at a $2,000 deductible. Look at the total cost of risk, not just the monthly quote.

We Help You Choose the Right Plan

At MexicoCovered.com, we don’t just give you options—we explain what they mean. Our quote tool shows both fixed and percentage-based deductibles where available, and we help you understand how they impact your premium and claims.

Because in Mexico, knowing your deductible isn’t optional. It’s how smart travelers stay in control.