The Band Wagon

A car accident in Mexico is much more of a hassle than having an incident take place at home - especially if you are an American tourist, as Mr. Bill K. explains. Mr. K. has recounted his experiences of an accident that took place in Mexico and the following week he experienced with the Mexican police. It is his hope that he will encourage all Americans to come prepared when driving a car in Mexico.

Mexican car insurance is an important resource to possess, for reasons that become obvious as you browse his true story. Additionally, this was not the first time Mr. K. traveled to Mexico when he was involved in an accident in Southern Mexico, as he was driving a truck that belonged to his friend.

Bill is a very cautious driver and, since the road conditions were getting very bad because of a rain storm that was moving in, he was at the wheel. This meant he was dependent on the coverage of his friend’s Mexican insurance being adequate.

Bill was traveling at a cautious speed when he rounded a corner to find a Mexican military vehicle full of soldiers hurtling towards them partly on their side of the road. Unable to avoid a crash, the two vehicles impacted head-on left, sending the personnel scattered down a cliff and Bill and his friend into the wall on the opposite side.

The Mexican police came very quickly. While his friend was left standing on the side of the road, Bill, who wasinjured, was taken hastily to another location that was not know to either Bill or his friend. You are guilty untilproven innocent in Mexico, unlike in the US.

Bill finds himself in a Mexican detention cell without any contact and without any knowledge of his fate, in part because at this point he has no way of knowing whether his friend even carried Mexican auto insurance.

Hours pass and the guards come to take him back to the scene of the accident. At this time, he is able to join his friend and his friend’s Mexico car insurance policy. In the United States, there are usually no further complications, but in Mexico - this is not the case. There is much more to deal with.

The entire story of Bill is lengthy and quite upsetting. He actually spends a week in a Mexican hospital without anyone by his side. Bill attempts to prolong his injuries so that he will avoid seeing the inside of a Mexican prison. He is completely at the mercy of the local government; an archaic technology; and shady legal counsel. At first it seemed that paying his way out of the situation is clearly not an option.

Bill often thought that there would be no way to end this nightmare and questioned if he could even afford to put this incident past him. Finally, he once again is a free man, but only after spending more than $28,000. Lucky for him, he was in a position to gather up the funds to pay for his freedom, but sadly, many other Americans are unable to raise this kind of money.

It is the disorganization and deceit found in Mexico that caused Bill to doubt if he would ever see a gain on his life’s venture. However, he learned a lot of things from his ordeal that he is determined to share with all of the Americans planning a trip to Mexico:

Carry a cell or satellite phone-and learn how to dial in Mexico

Remain in contact with family in the states that can help you secure funds if needed and contact Mexican insurance companies as needed (because your ability will be limited)

And most importantly -

BE CERTAIN YOU HAVE GOOD COVERAGE MEXICO CAR INSURANCE- It needs to cover ALL personal injury and property damage that you are deemed to have caused.

Make sure the Mexican car insurance is from a reputable company.

Make sure you carry proof of Mexican Insurance in the vehicle, accessible at all times! (And if you are separated from the vehicle, take the Mexican car insurance ID cards with you!)

Mr. Kitto’s drawn-out and exhausting dilemma has proved one thing to him- money is what makes Mexican legalities disappear. Over there, they don’t care where the money originates, but only if you can pay the bill. Innocence plays a small role in these situations and it can mean the difference between receiving your freedom and losing your rights.

Since fast access to $30,000 or better is a pipe-dream for most of us, the best way to protect yourself when driving in Mexico is to have an excellent Mexican automobile insurance policy to back you with high enough limits.

Your friend calls you and says he needs to speak to you right away. After a few minutes he tells you that unless he pays his landlord the rent by 5:00 p.m. he and his family will be evicted. He states that if you will just lend him $800.00 for a short time he will definitely pay you back. You reach into your wallet and count out eight one hundred dollar bills. You slide the money into your friends hand and he thanks you and waves good bye. Fast forward one year and you have yet to see a penny of the money. Sound familiar? Unfortunately this scenario plays out all too often. However, while you can never guarantee yourself that you will be repaid there are things that can be done to protect yourself.

First every agreement should be in writing. It should specify how much is being borrowed and when the money will be repaid. All too often the lender and borrower are friends and it is somewhat uncomfortable to discuss the signing of a formal agreement. If you friend seems surprised or annoyed by being asked to sign an agreement than do not lend him the money. Ask yourself why would they resist signing an agreement if they intended to repay the money. A formal agreement is the only way that everyone can be assured of no misunderstanding as to the terms of the agreement. Another way to protect yourself is to loan the money in the form of a check so that there is additional written confirmation of the obligation. Additional means include retaining some personal property as collateral or if the buyer owns a house, obtaining a mortgage on the house. The later methods are generally reserved for more significant loans.

Sometimes the question of interest on the money comes up. Unless there is an agreement that the money will be paid back with interest than you will only be entitled to the return of the principle. If the money is to be repaid with interest the interest rate should be specified along with an amortization schedule indicating how much is to be repaid and when.

What if the borrower fails to repay the loan? You can institute suit in the appropriate Court of Law for the amount due and owing. If the amount is less than or equal to $3,000.00 suit can be filed in the small claims court. Amounts over $3,000.00 and no more than $15,000.00 should be filed in the special civil part. Generally, suit must be filed in the county where the defendant/borrower resides.

Even if you are successful in court the is no guarantee that you will actually recover the money you loaned. A successful litigant merely gets a judgment for the amount found to be due and owing. It is than incumbent upon the lender to try and collect on the judgment. Once a judgment is entered the lender may be entitled to post judgment interest.

In short lending money even to friends can be a risky proposition. In my humble opinion you should not lend money that you are not prepared to never see again. If you never see the money again chances are you will never see your friend again either.

The information contained in this article is intended for general informational purposes only. The facts of every case can vary. There is no substitute for a consultation with an attorney. Please visit a New Jersey Personal Attorney to understand more.