Auto Club Alerts Motorists About New Driving Fees in Mexico.

LOS ANGELES--(BUSINESS WIRE)--Dec. 1, 1999--

The Automobile Club of Southern California is alerting motorists that starting today, they will have to pay a $400-$800 refundable fee to drive into mainland Mexico.

Vehicle owners who wish to drive farther than approximately 15 miles beyond the Mexico-U.S. border must obtain a permit from Banjercito (the Bank of the Armed Forces) and pay a refundable deposit of between $400 and $800, depending on the age of their vehicle.

The cash or credit card deposit will be refunded when the vehicle and driver return to the border area, provided it is within six months of the permit being issued. No fees will be charged for vehicle travel in Baja California or in border areas.

"This change will not affect most Southern California tourists, who usually stay in the border areas and Baja California when they drive into Mexico," said Sandy Braun, travel products administrator with the Auto Club. "But for those who want to visit inland Mexico, this new policy will likely affect their decision on how they will travel."

In addition to the security deposit, travelers bringing their vehicles into Mexico will have to pay a non-refundable $15 processing fee, an increase from the current $11 fee. Also, if motorists pay their security deposit with a credit card, Mexican authorities will charge them the service fee charged by credit card companies, which typically ranges between 2.5 percent and 5.5 percent of the amount charged.

The Mexican government says it is imposing the fee to stop the illegal sales of vehicles imported over the border.

Fees will be charged as follows:

-- $800 for 1999 and 2000 vehicle models

-- $600 for 1994-1998 vehicle models

-- $400 for vehicle models from 1993 and older

The Auto Club has more detailed information available on Mexican tourism policies at its 68 district offices. However, Braun warns that the policies are all subject to change by the Mexican government without notice.

The Auto Club is also reminding travelers who drive in Mexico that according to Mexican law, it is illegal for anyone to have an accident in Mexico without proper Mexican liability insurance coverage.

The Auto Club sells Mexican auto insurance to its members through an arrangement with Grupo Nacional Provincial, S.A., one of the largest and most reputable insurance companies in Mexico. Various packages are available including those that offer coverage for civil liability, medical expenses, guaranteed bail and legal assistance, total theft, physical damage and traveler's assistance.

"Even if travelers are just going to Mexico for the day, they should buy Mexican insurance from a company based in Mexico," said Braun. "They should be sure to ask specific questions about what their Mexican policy covers so they are certain of the coverage they have. Passengers riding in a vehicle going to Mexico need to be sure the driver has Mexican insurance or they may experience difficulties with Mexican authorities as well because it is illegal to have an accident in Mexico without Mexican liability insurance."

"Travelers also need to know that if they are involved in an accident in Mexico, they must file a claim prior to leaving the country or it will not be honored," added Braun.

In most cases auto insurance policies offered by the Interinsurance Exchange of the Automobile Club provide excess auto insurance over and above Mexican insurance coverage for infrequent travel in Mexico. This is not true of all insurers. Coverage by some insurers stops at the California-Mexico border.

Full coverage Mexican auto insurance packages are available in Auto Club district offices starting as low as $9 a day. The Club suggests limits of at least $100,000 for civil liability and guaranteed bail and $50,000 for medical expenses which would increase that price. For example, full coverage with the Auto Club recommended limits on a $15,000 vehicle would be $18.93 per day.

The Automobile Club of Southern California, the largest affiliate of the AAA, has been serving members since 1900. Today, the Auto Club's members benefit by the organization's emergency road service, insurance products and services, travel agency, financial products, automotive pricing, buying and financing programs, automotive testing and analysis, trip planning services, highway and transportation safety programs and legislative advocacy. Information about these products and services is available on the Auto Club's Web site at www.aaa-calif.com.