It may be legal, but in my book it is still a scam.
Let's say you bought a car in June last year, when the x-rate was around 30. Say you paid 380,000 pesos (13,000 USD) for said vehicle. You then proceed to buy full-coverage insurance for 28000 pesos (about 433 USD). If your vehicle is stolen or is wrecked they are supposed to pay you back so you can get one the same value, right?
Fast forward today. X-rate is around 54. You check the classified adds and lo and behold. The vehicle that you bought for 380000 pesos is now worth 650,000 pesos (higher rate, new taxes mayhaps?). You think you would be covered, after all you paid 3.3 percent of the value of your vehicle at the moment that you bought insurance. Wrong! The insurance company would only cover up to the original amount in pesos! You would need to cough up another 433 USD to get full coverage. Check next week if the value of your vehicle changes.
So... the insurance company get your pesos at 30/1 but does not adknowledge that. You go from 3.3% to 6.6% for basically the SAME coverage. Just like that. I AM @$%&^@$? MAD!!!!!! Same goes for property insurance.
So, check with your insurance company. You may find that your property, your savings for a rainy day, may not be enough to buy an umbrella should something happen.
Let's say you bought a car in June last year, when the x-rate was around 30. Say you paid 380,000 pesos (13,000 USD) for said vehicle. You then proceed to buy full-coverage insurance for 28000 pesos (about 433 USD). If your vehicle is stolen or is wrecked they are supposed to pay you back so you can get one the same value, right?
Fast forward today. X-rate is around 54. You check the classified adds and lo and behold. The vehicle that you bought for 380000 pesos is now worth 650,000 pesos (higher rate, new taxes mayhaps?). You think you would be covered, after all you paid 3.3 percent of the value of your vehicle at the moment that you bought insurance. Wrong! The insurance company would only cover up to the original amount in pesos! You would need to cough up another 433 USD to get full coverage. Check next week if the value of your vehicle changes.
So... the insurance company get your pesos at 30/1 but does not adknowledge that. You go from 3.3% to 6.6% for basically the SAME coverage. Just like that. I AM @$%&^@$? MAD!!!!!! Same goes for property insurance.
So, check with your insurance company. You may find that your property, your savings for a rainy day, may not be enough to buy an umbrella should something happen.