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It is not like your Argentinian insurance company was ever going to pay out the claim anyway.
A lot of motorcycle travelers in this day in age, where it is considerably harder to make and save money are interested in the "most effective," way to use their resources.
Buying another traveler's motorcycle for $2-3000 US, versus the same bike from a local in that country for $6-7000 US may be a good option for that person.
I have not heard any horror stories about foreign travelers having at fault accidents and than getting locked up in South American countries for months of jail.
I think the South American countries have a vested interest in protecting the foreign tourists who are "visiting" those said countries and stimulating their economies.
The problem with TVIP's in South American countries is that they are only valid for 90 days. For most foreign travelers the 90 days is probably enough, but if you are a foreign traveler who wants to stay in that country for past 90 days you are better off paying double for the bike.
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