I was asked in a PM to comment on this thread.
The minimum wage in Mexico is used to calculate maximum liability damages in the case of an auto or moto accident that results in the death of a third party. Recently, that amount was raised to 5,000 times the minimum wage of 80.04 pesos, or about $20,000 dollars, plus funeral costs. The federal government also allows states to raise that calculation to 5 times that amount. In Quintana Roo, the calculation only comes to about $25,000 usd. In other states it is much higher. It is also good to remember that a judge can award “extra” damages if he feels the circumstances justify a higher penalty; for instance, if the driver at fault was driving recklessly or had any level of alcohol or drugs in his system at all. That is another good point to bear in mind; there is no “Legal Limit” in Mexico. ANY level of blood alcohol will void your car insurance if you are in an accident.
Victims of auto accidents in Mexico have a right to claim “Actual Damages” from the driver at fault. “Actual Damages” is defined as “damages based on the actual value of the other vehicle, plus damages resulting from lost wages, and medical expenses for the other driver or occupants of his or her vehicle”.
Quintana Roo mandates that all drivers have auto insurance. They do not require that you have enough coverage to handle every kind of incident. Not all car or moto rental companies in Cozumel have the same insurance policies or the same coverages. You need to read the policy and make sure it has enough coverage. Then, you need to make sure you don’t void the policy by driving after a drink, driving off-road (dirt roads) or having someone not listed on the policy drive the vehicle.
A new wrinkle is that, although the law has been unenforced for many years, PROFECO and the local government have been reminding rental agencies that it is the law that you must have a motorcycle license to rent a motorcycle. I would assume that would mean that having a wreck while driving a moto without having a motorcycle license could void your insurance as well. Time will tell how that rolls.
The 2011 Travel Advisor post by Chris K that included his caveat “From what I have gathered…” that was quoted earlier in this thread and stated that IMSS is required to pay lost wages to incapacitated workers is incorrect. IMSS does not start paying disability (not lost wages) right away and do not pay the actual wage the victim had at the time of the accident. To be made whole, he could demand these lost wages be paid by the driver at fault.
If you have an accident in Cozumel and someone or something is hurt or damaged, the likelihood is that the police will be called to the scene. You will need to either work out and pay a financial settlement with the injured party for the Actual Damages and get a signed agreement and receipt to that effect on the spot, or you will be taken to the police station to work it out there. If you have an insurance policy with the rental agency, they should send someone to the station to handle the settlement with the injured party so that you can be released. If the cost of the Actual Damage exceed the amount of your coverage, you will be held at the station until you come up with the difference in cash. If the insurance was voided because you were under the influence, you will be held at the station until you come up with the total cost of the Actual Damages in cash. If you can’t get your hands on enough cash (while being held at the police station) in a reasonable amount of time, you will be transferred to a holding cell until you do.
