#644 – The Expat Files: Eddie’s Journey, Racing Culture, and Car Insurance in Latin America

Automatically transcribed from the original recording; names and wording may contain errors.

[00:00] South of the border down Mexico way That's where I fell in love when the stars above came up to play and now I wonder Hello there all you expat wannabes I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Now I mentioned that expat Eddie's back man. Does he have some stories for us? Anyway, you long-time listeners will know that expat Eddie came down about ten years after I'd at his old friend of mine from the states Brought up kind of trailer trash in Texas very smart laid-back guy who had a lot of bad breaks because well

[00:48] You know had a few vices debts bankruptcy a few bad relationships dysfunctional family and all that sound familiar Anyway, Eddie came down here with 5,000 bucks up his mother's money and now he's a multi-millionaire He started a little sushi kiosk a long time ago in San Salvador That's the capital of El Salvador in the biggest mall there Which isn't a big mall only reason why he did it was because he couldn't get good sushi At the time all they had down here in Latin America in that regard was bad Unhygienic Chinese restaurants who would have a short section on their menu for sushi because it was the up-and-coming thing Now back then sushi was not the up-and-coming thing for the average land They didn't even know what it was But it was the hip cool thing for that two to five percent of Latin's with dough who had satellite TV usually

[01:38] Sky TV back then that was the only way you could get us programming So Latin's down here with money saw shows like Seinfeld and home improvement and how gringos were suddenly into this new Groovy thing called sushi and soon enough bad Chinese restaurants started making bad Unhygienic versions of sushi and Eddie said hey, there's a niche So his first kiosk was pretty much for him so he could eat sushi Then it got to be a thing and he expanded quickly from mall to mall little kiosks popping up everywhere And then about a year and a half ago. He was approached by a rich latin and sold out of course the deal He made with the other people was to hang around a bit and keep the franchise gringo like because you know What happens when the gringo leaves and the Latins come in and that's by the way exactly what's happened

[02:28] And he says it's already going to the dogs, but you know he expected that we all expect that down here in Latin America That's why if you have a business you have to be there Well not every day But you have to keep close tabs on it or the Latins you put in charge will regress to their old Manana time third-world ways and that's what sets us apart from the Latins. We're in competition with details details That's our gringo advantage So anyway that he's been in the money now for the past seven years or so And he's been engaged for a couple years now to a hot Salvadorian runway model by the way he met her when he was still pretty much broke So she didn't start out as a gold digger. She didn't hook up with him for the money It was another part of that gringo advantage that he had clear eyes

[03:14] You know every Latina wants a gringo with clear eyes and every Latino wants a gringo with clear eyes Hey, I'm not making this up. That's just the way it is here come on down, and you'll see for yourself Anyway, if you remember on an old show a year or so ago now I mentioned that she finally talked him into buying her a new SUV and since it's so big She can't park the thing or put it in reverse very easily. They have a driver hmm. How about that? So yes Eddie's doing a lot of the things I tell you you should never do come down here as a first-world gringo now Eddie is totally down the earth He's one of the boys and drives a seven-year-old pickup now It's because of his fiancee that he's in a gated guarded high-end home huge garden swimming pool sauna

[03:59] Six-person jacuzzi and all that but he doesn't use any of it Typical Eddie meanwhile in his class that he's got the same shirts belt shoes and leather jacket that he had when he first came Down 15 or 20 years ago what I'm saying isn't some of you guys and gals will get this he doesn't buy any clothes When he's wearing anything new it's because Claudia bought it for him after all she's in the fashion business and Eddie Always the rumpled gringo is a constant makeover case in progress for her Meanwhile she's got over a hundred pairs of shoes and when Eddie met her he said she only had four But Eddie's right when he says we all have our obsessions Nothing wrong with that as long as you've got one you can afford Hell he said when he was a teenager he had an obsession that almost killed him

[04:47] He was into midget car racing back in Texas and dropped all of his disposable income into it and then some I remember back then Eddie told me he had a lot in common with Elvis He said we both eat peanut butter and banana sandwiches Elvis because he liked him and me because that's all I can afford Now Eddie no longer has a problem with affording things He's just a good old boy who doesn't give a rip about glitz or glamour But he does love races stock car races midget car races drag racing Motorcycle go-kart dirt bike racing like Eddie says if it's got an engine in a seat I'll take a spin on so anyway Eddie like so many gringo expats Has a lot of time on his hands He's got maids and gardeners and maintenance guys and pool guys even a driver now

[05:34] So like Eddie says if you don't find a productive hobby you just might end up with a substance abuse hobby Yes to some there are a lot of substances that are worthy of abuse Especially when they're dirt cheap like they are here in Latin America Although you could have a lot of hobbies and still get into substance abuse After all wherever you go sports booze and pizza seem to come as a package deal By the way since latin's copy everything first world in gringo They do the same with hobbies too So they've got every hobby under the Sun here even what you might call upscale hobbies that only maybe Two to five percent of latin's can afford to participate in which is why if you're into car or motorcycle races You can find them. They're down here everywhere. It's all kinds of competitions

[06:19] So that means on any given weekend if you're near or around a medium or large sized land city You'll find a couple of different racetracks having events So how do they differ from racing events up in the states? Well for one thing the admission price is a fraction of what you're used to paying and it's more or less a free-for-all They don't have all the rules regs and norms that they impose on racing teams up in the states Which means of course bystanders sometimes get hurt and there's no one to sue this is Latin America You know Which is all part of the fun and the excitement after all a lot of people go to races to see people crash and get Hurt another part of the fun is they have open races too So you can come in and drive your own car or wreck your own car. However, it turns out So yes on Saturdays and Sundays

[07:04] You could hit one of the local racetracks even make a family get-together or a picnic out of it And you'll see all classes of people there Upscaled stuck up people with their bodyguards right alongside the nose ring tongue stud neck tat types Wow, try saying that five times and a couple of tequila's but mostly it's just a Latin middle and lower middle classes out to have Some fun because it's a day at the races. Oh and we mustn't forget that this is a macho Latin society So there are all kinds of beautiful sexy looking girls and very tight latex and spandex outfits Promoting and handing out free samples of products from beer to Jack Daniels junk food even bubblegum And of course, that's part of the reason why so many middle-class Latin American boys and men come out to see these events

[07:51] To have a look and gawk and get some free samples from those unattainable Superhot sexy girls doing promotions like that known as mode Delos or a decans or a decanis By the way There are three kinds of job titles for ladies who do that kind of modeling or product promotion Now Eddie knows all about that stuff because his fiance is a runway model So at the high end which pays the most they're called mode Delos They do runway stuff billboards TVs and magazine ads. Yep They're the highest paid but they don't make more than a grand a month. That's the top end now That's considered big money here in Latin America. It's three or four times minimum wage and the next level Where the girls aren't quite so tall stunning and beautiful are called Eddie cons

[08:39] Those are the girls in the skin-tight clothes giving out the free stuff at events car races conventions beach parties and stuff Oh, they're beautiful enough All right But some just don't have the poise or the etiquette it takes to do the TV and the runway stuff Then you have the ladies called impulse adora sets impulse adoras their third or bottom on list the operative word in that title is impulse as an impulse adora meaning impulse by because They'll be in the grocery stores and grocery store parking lots trying to get you to make an impulse buy and though They're almost always dressed in sexy product themed or related uniforms They like the other two types of ladies in that profession models and Eddie cons have no male counterpart at all

[09:26] Hmm, and if they did for sure the guys would wear more clothes get less attention and less pay By the way, these supermarket impulse adores are more like the girl next door attractive But not runway model material now up where you come from in states This could never happen first of all I don't think you could pay a young lady up there enough to prance around in skin-tight latex or a bikini in a supermarket or Supermarket parking lot all day. I'm not kidding. You have to see it to believe it In fact, I've had countless gringo say to me on their first trip down, man I can't believe this stuff goes on if that happened up in the states should be women's right picketers everywhere meanwhile down here those jobs are in great demand by ladies because they pay a lot more than minimum wage and It is a nice safe way and a good opportunity

[10:13] for a pretty girl to get out of her low-class neighborhood and possibly meet a nice guy with a decent job and maybe even a car a Guy who could elevate her social status a bit then with just a little luck She might never have to ride that chicken bus again Now you'll find that most of those young ladies get up at four or five in the morning Hop a chicken bus from their little pueblo way out in the boonies in order to get to that Walmart by eight Then they're done at six or seven at night Take a one or two hour chicken bus home only to fight off grabby hands and pushy guys All that after being in stiletto high heels for eight or ten hours a day. That's the kind of treadmill They're on now. I found out from Eddie's fiancee Claudia that there's a huge double standard here

[11:00] Almost all the girls you see doing that kind of work aren't married Though there just might be a kid at home that mom and grandma are taken care of while she's at work Yep, errors and judgment are not uncommon in those little pueblos Because she's probably one of the best-looking girls in the neighborhood or the pueblo and is getting hit on all the time Then comes another double standard Once a girl like that does meet a young eligible up-and-coming guy at Walmart the macho hypocrisy and duality Thing kicks in and he won't let her dance in prance like that and further other people anymore Even though in most cases That's why he showed up to see the girls dance and prance at Walmart or on the beach or at a car race now the sad thing is as Eddie's fiancee Claudia mentioned a lot of these beautiful girls never do find mr.

[11:49] Right, they're looking for a guy with some money and some position and there's only a few of those guys out there Most of the handsome Latin lovers these girls hook up with are not such a good bet to begin with sure They're handsome sharp dressers the kind of disco dangerous guy a lot of young girls fall for but generally They're not very well educated They haven't got a pot to pee in except for that 250 Kawasaki or that 12 year old Toyota So there are a lot of good-looking guy Pretenders out there still living at home with their mothers But they put on a good show and since most of the girls that do those jobs can only get a few years work out Of it many settle for guys like that end up getting pregnant and it's downhill from there Besides that she says almost none of the girls

[12:36] She knows saves a single dime it all goes to clothes and bangles and things In fact Claudia estimates about one in five girls ends up with the good life after her modeling career is ended So in fact these ladies that are born and beautiful the ones that have an advantage like that Do have their chance to get out of the Pueblo to get out of the neighborhood But most of them end up right back there with a couple of kids, but I digress as usual anyway Ex-pat Eddie who is always a lover of fast cars motorcycles and racetracks Well, wouldn't you know it he ended up putting some money into a car and sponsoring a crew So now he has a hobby that's keeping him very busy Yep Once in a while he even gets behind the wheel and does a few laps By the way, he's been trying to drag me to one of those things and think I'll go pretty soon

[13:22] It sounds like fun. Anyway, as it turns out two Sundays ago after one of those races By the way, his car came in fourth out of 11 cars Eddie was with Claudia He was driving a SUV at the parking lot down the main road that would end up at the Pan American highway He said finally they hit the open road. They were out of the congestion He said he was going about 35 miles an hour when the guy in front of him swerved and slammed on his brakes to avoid a dog and Eddie slammed on his brakes to avoid rear-ending the guy so the Next thing he heard was his own tire squealing and then the tires of the car behind him squealing and boom Eddie in his nearly brand new SUV gets rear-ended The impact of that shot Eddie's car forward and he rear-ended the guy who had brake for the dog

[14:09] Now luckily Eddie said there was a cop on a motorcycle in the other lane and he saw the whole thing came right around Now, you know a lot of times Latins without car insurance will just do a hit and run But the cop was here so they had to stop So anyway, the three damaged cars pulled over the cop slowly walked around the cars looking at the damage Now Eddie has full coverage on his SUV because it's virtually new So before he even got out of the car He called up the insurance companies hotline and here's what they told him on the phone first They said is anyone hurt and Eddie said no, I don't think so people are out and walking around Then the insurance person on the phone asked if anyone had called the cops and Eddie said there was one already on the scene Now remember all this is going down in Spanish because Eddie's way off the gringo tourist trail

[14:58] Oh, and by the way, this is one of the biggest insurance companies in Latin America It's no fly-by-night operation either Then the insurance guy told him to get out of the car Take a picture of the cars the people and the license plates Then he said I'm gonna tell you something very important. Now. Don't give anything out except your data Don't say anything else not until we get there and even if it was your fault don't admit Responsibility and don't sign anything either not until we get there and sure enough about 10 minutes later an insurance van showed up Now Eddie said he opened the back of the van and there was a little sitting area inside Nice and comfy a coffee maker and a microwave too like a little kitchenette So Eddie and his fiance got in the van and told the story and the insurance adjuster said I'll do all the talking

[15:48] Don't say a word Now earlier when the cop came over to the car and tapped on Eddie's window and asked him What was going on Eddie said I just called my insurance company and handed the cop his insurance card and the cop Backed off and just stood there outside Obviously, he knew the procedure when there was an accident and an insurance company was involved Then the insurance adjuster says to Eddie have you been drinking and Eddie said are you kidding? We're coming back from a car race for a cripes sake everyone drinks at those things then get this He gets Eddie back to the van They closed the door and he pulls out a breathalyzer kit and after Eddie blew into it He said alright, let's talk the cop But remember just your dad and the cop said to the guy who hit Eddie have you been drinking?

[16:34] Let me smell your breath. Then he made him walk a straight line. Now. This guy was obviously a little rip Now the first guy the guy that started the chain reaction by hitting the brakes for the dog He was just a regular 50 ish family guy didn't seem ripped at all just all Nervous because you see he didn't have insurance and as it turns out the guy that rammed Eddie Didn't have insurance either the guy in front driving a Mazda that was probably 12 years old the guy in back who rammed Eddie Driving a big old high lux pickup all chromed up and tricked up, but he didn't have insurance either So what he turns to the insurance guy and says this isn't right I'm the only guy with insurance here who's paying for all this and he said well We're not paying for the damage on either one of those other cars are not insured

[17:21] So don't worry Then after the insurance adjuster and the cop and the other parties filled out some paperwork Eddie and the adjuster went back into the van then he said something strange that sort of shocked Eddie The adjuster said I'm a hundred percent on your side We are your insurance company, you know, but you're lucky No one got hurt or no one had to go to the hospital and he said why? He said if you have insurance The first thing they'll do is you'll undergo a blood alcohol test your insurance company mandates it If you look on page six of your policy Then he pulled out his iPad and clicked until he got to page six of Eddie's policy It says here if your blood level alcohol reading is between point zero and point eight

[18:07] You'll have 100% coverage minus deductible as the policy states Then he said but if your alcohol level is point eight to one point five Then we'll apply a double deductible to damage to cars or other vehicles in the accident Then Eddie said what you might explain that to me a bit our policies and most other car insurance policies state If you get into an accident and are found to have those higher blood level alcohol limits The 3% deductible no longer applies. It'll be double or 6% deductible So for example in your case your cars were at $30,000 and 6% of that is $1,800 that would be your deductible if your blood alcohol level at the time of an accident was between point eight and

[18:57] 1.5 which is right where you tested then he said if you get in an accident and your blood alcohol level is over 1.5 you've violated your insurance contract and there will be no coverage at all So in effect they're saying they'll cover you if you're driving drunk just not too drunk So that means if you're comfortably numb that is with a blood alcohol level of below 1.5 Which by the way is about double the legal limit for a DUI in the states Then you get slightly penalized a slap on the wrist a double deductible That would be 6% of the present value of your car versus 3% That's it. However down here. They don't take your car away They don't give you tickets or take away points and the other big difference is down here in Latin America

[19:44] They ensure the car which means any person driving it and the passenger. So again as for DUI infractions It's sort of like back in the 50s and 60s in the states So is that good or bad? Well, you be the judge of that now I understand in the states these days if you get a DUI you have to buy a certain Kind of mandatory risk insurance if you want to get back on the road not to mention all the classes and stuff You have to take over down here in Latin America. It's not like that at all Expat Eddie scanned his entire car insurance policy and sent it over to me now remember only about 5% of Latin drivers are covered by any kind of car insurance at all and only 2% have full coverage. Oh, and by the way for all of you attending my July 2017 expat insider seminar I'm gonna give you a copy of expat Eddie's full coverage insurance policy and a copy of a basic car

[20:35] Liability coverage policy to now since most people never read their insurance policies up in the states How could they ever expect to go through one they get down here in Spanish? That said I'll hit some of the highlights now So you'll be more well informed than practically anyone else I know so as mentioned Eddie's cars worth around 30,000 bucks and he pays around $75 a month for full coverage, which includes by the way full triple-a on the road service That means if you get a flat tire run out of gas or just get lost You can call the number and they'll be there to help you out. So they'll come out charge your battery change your tire Toya, but with Eddie's policy get this they say they'll only do that six times a year Then after that they'll start charging which begs the question

[21:21] How many times is your car break down a year more than six times hell if it breaks down three times a year You should sell it. You've got a lemon now with Eddie's policy It says his coverage is good in every country in Central America Oh, and if you find you're living in South America, you can get policies like this that cover every country in South America, too Now listen to this the policy also states We guarantee that will show up within 30 minutes when you call for road assistance And if we don't make it in 30 minutes the following year when your policy is due you get the next year for free Can't beat that. But why are they doing it? Well, that's because in Latin America where you got that money on a time That seems to be everywhere and insurance companies have to be Johnny on the spot

[22:07] You get in an accident or have car trouble. You want someone there right away You expect that kind of service so car insurance companies at least are putting their money where their mouth is All right, fair enough. So I'll ask you this question How long does it take for an insurance adjuster to arrive on the scene up in the States? I don't know you tell me now It's especially amazing that you could be drunk over the limit almost twice over the legal US limit Get in a car accident and still get covered. Jeez. I wonder how long that's gonna last by the way I've had some gringos and expats tell me Johnny, you know if full coverage for a $30,000 book value vehicle is only around 75 bucks a month man. That sounds ridiculously cheap In fact, most people up in the States pay twice that or more for pretty much the same coverage

[22:56] Well, if that's the way you feel go ahead and do it now, of course, whatever you drive down here I always recommend you have third-party liability coverage And if you shop around you can get that for around 200 bucks or less a year Third-party liability doesn't cover theft or collision, but you knew that already right and you know There are bad boys down here that do steal cars, but they steal new and light new cars So I do recommend if you have a brand new car or a car that's two or three years old get full coverage It is cheap, but don't forget about that three percent deductible Yeah, remember down here most full coverage insurance policies have a three percent deductible So it's three percent of the book value of your car in the States. You choose your deductible down here

[23:43] you might be able to do that, but I haven't seen any policies that let you and I think why that is is because the insurance business is so new down here There just aren't a lot of options to choose from not yet anyway But there is one thing you have to remember bodywork and mechanical repairs are very cheap here in Latin America and 900 bucks here Will go two three four even five times farther than it will at a repair shop up in the States And since insurance companies are out to make money not lose it even if you have full coverage insurance It's set up so the insurance companies almost never have to pay for a fender bender because the cost of repairs are so cheap down here They almost always fall under the cost of the deductible now I've seen quite a few repair bills when it comes to body work and stuff and I'll tell you in my 27 years down here

[24:32] I've had a few fender benders and a few times I've been side swiped and I'll tell you I've never had some mechanical work done or body work. That's been over 400 bucks Anyway, you get the idea Then there's always that question. How do you pick a car insurance company in Latin America? Well, wherever you happen to be there are almost always at least a half dozen companies in some places more than a dozen and it's always wise to pick one that's associated with one of the big banks in the country and For a good reason a lot of big banks own their own insurance companies Same thing with health insurance many big banks own health insurance companies here, too So generally it can't go wrong if your insurance company is affiliated with a big bank now remember unlike this states When you buy a car insurance policy down here, it's for the car not the person

[25:21] Which is why when a kid turns 16 and he wants to drive you don't have to go out and get him a policy Anyway, here's something weird comes off of Eddie's policy It says if there's an accident and the person driving the car has his license expired for more than 180 days Or if the driver of the vehicle does not have a valid license The car will not be covered for that accident. How about that? So in the end what happened to Eddie? Well, remember the insurance adjuster did the breathalyzer test But it doesn't matter the only breathalyzer tests that matter are if they're done at the hospital and they're only gonna be done at The hospital someone's injured. So Eddie's insurance policy on that car was in full force minus that normal three percent deductible

[26:09] 900 bucks now because it was the other guy's fault completely. He'd been rear-ended. Remember the insurance company It is taking that guy to court They're going for the three percent deductible so Eddie can get reimbursed and he just might get that dough though It could take years or never by the way cost around six hundred US dollars for Eddie to get his car fixed It was the front and the rear bumpers. Of course, that was under the nine hundred dollar deductible So it came out of Eddie's pocket. Well, like he said if it comes it comes but he's not holding his breath That's for sure. Let's get towards the end this show now, and I've got more to say about car insurance business So stay tuned But let me remind you once again if you want to sign up for my July 2017 Exped insider seminar just go to www.thenewexpat.com

[26:54] Click on the seminar link for full info and while you're checking that out You'll find out how to kill two birds with one stone That is come down to the seminar and at the same time start your permanent or temporary Residency in Guatemala while you still can and for those of you who can't make it down to the seminar get boots on the ground In Latin America, the very next best thing is to sign up for my expat essentials course smart gringos Really need a plan. It's gonna hit the fan up north, you know So to get yours organized and really moving along check out expat plan be calm and sign up for my expat essentials course South of the border This is the expat files living in Latin America If you want me to help you out with your own plan B

[27:40] Just schedule a one-on-one consult send me an email the expat files at gmail.com And if you want to learn how to move forward with your own plan B from right up there in the states go to www.expatplanb.com and check out my three videos. See ya nos vemos