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Can I change the agency auto insurance? Break free.



Why is auto insurance from the auto agency conditional?

In theory, you can change the agency auto insurance since they are NOT mandatory according to the law.

However, unfortunately, conditioning is a practice that has not been totally eradicated and here we explain why.

When buying a new package car, the seller explains the clauses of the contract that include options to insure your vehicle.

Most of the financial credits of the agencies have at least one insurance option that they offer you as an option, but not as an obligation.

What happens is that distribution agencies establish agreements with one or more insurers to promote sales.

Once you sign the financing contract or any other that includes the insurance, you cannot change it since it is a private agreement.

The only thing that is mandatory is to have insurance.

We recommend this article to know everything about mandatory auto insurance.

Is conditional agency auto insurance legal?

According to a 2010 study by PROFECO , 13 out of 27 automotive agencies tell the user what insurance to get.

In addition, the Mexican Association of Automotive Distributors (AMDA) reported that 53% of all users who bought a car under a financing scheme were forced to purchase conditional insurance.

It is true that the Federal Consumer Protection Law prohibits the supplier from denying or conditioning the consumer to sell goods, products or services.

Despite this, the lawsuits reported to Profeco have not proceeded since the financial sector is protected under the law to operate autonomously.

The good news is that the CONDUSEF, as of April 2020, has begun to take measures to mitigate consumer abuse in this regard.

We recommend that you read about other procedures before taking out an agency car.

How much agency insurance is right for you

It is usually offered in order to avoid your researching prices and alternatives to choose from.

Of course. That was before you could quote and purchase your insurance online.

In general, agency insurance tends to be a bit more expensive than acquiring it outside, since the agreement between agencies and insurers charges an extra commission.

However, in each case, it is different depending on the cost of the vehicle, the administrative fees and the coverage included in the policy they offer you.


An advantage of having auto insurance included by the agency within the financing payment plan is that you have visibility of the total cost from the beginning.

Another advantage is that they have different offers such as periods of up to one year of coverage at no cost.

In case you decide not to purchase the insurance with the agency, it is important that you quote on your own the type of coverage that interests you and contract with dates that coincide just when you are going to release the car.

With this, you can start driving without any restrictions and without receiving fines.

Although a financial loan gives you the possibility of paying your car in comfortable and long-term instalment payments, your car insurance can be much more accessible independently.


One downside to agency insurance is that you don’t have much space or freedom to compare and choose between insurers.

Although at the beginning the cost of agency insurance seems sufficient, with the passage of time and the use of the car, you will know the levels of service that you get from different companies.

If you are not satisfied with the service provided by the insurance company with which you are tied by the agency, move on to your next renewal date.

We suggest you read this article so that you are prepared before buying a new car.

With good intentions, the agencies are full

Financed auto insurance offered by auto agencies has every good intention of giving you comfort and saving you from previously complicated paperwork. Now you have better options.

As you know, financing an agency car is not the same as insuring it.

Probably paying the total insurance separately is much easier for you than paying the total for the new vehicle.

Like when Luis tried to get out of the agency’s insurance

It happened to our friend Luis.

Their experience helped us learn how complex it can be to change insurance while the contract is in effect.

Luis wanted to change the insurance of his agency car because he wanted to switch to the same insurer with which he had contracted the health and life insurance.

First, Luis discovered that technically he was not the direct Contractor of his insurance but a beneficiary. The preferred beneficiary is the financier.

This means that in the event of any claim, the finance company collects its share before the reimbursements, if applicable, are finalized for the end customer.

In order to change, they asked him to process an endorsement, not knowing that it would turn into a painful experience.

It was quite an odyssey that included deadlines, demanding notice periods before the financial and insurer, documents, paperwork sealed by the bank, and longer conversations than I imagined.

The procedures and penalties are like this simply because Luis was not the owner of the car officially.

If you are already in this mess, we understand your frustration.

Break free! Take out the insurance of your choice

Although it is quite a topic, switching insurance will save you interest payments, late payment surcharges and simplify everything in the future.

So, while the poor practice of conditional insurance is being regulated, what can you do to be calmer?

If you are about to buy a car, we suggest you read the clauses of the financing contract before signing to know what freedom you have.

For now, the best thing you can do is wait until the mandatory deadline has been met and renew with the company of your choice.

By renewing with another insurer you will have the flexibility to choose the frequency and payment method that best suits your economy.

Activate an automatic reminder by charging your vehicle here so that we will notify you of your renewal.

No strings attached or conditions.

You will have time to choose a company that you really trust. Feel free and secure by hiring the policy and coverage that YOU choose.

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