Important Changes to Mexico's Federal Law

Changes in the law affect your Mexican insurance policy.

It is recommended to carry maximum liability limits.

About the Federal Law:

  • Generally, liability has increased by 7 times in many Mexican states in case of fatalities to third parties.
  • In case of fatalities to third parties, compensation shall be the amount equal to 5,000 x the Mexican state minimum wage, plus funeral expenses. Each state may multiply this amount up to 5 times.
  • Under the old Federal law, the amount calculated was 730 x the Mexican state minimum wage, meaning much less exposure.
  • Some states do not have specific limits, judges determine the limit to be paid.

Example for Baja California Norte:

Criminal liability - Under the new law: 5000 x $64.76 Pesos (current Baja Norte minimum wage) = U.S. $25,698 per person (based on $12.60 exchange rate).

Many Mexican states are also potentially able to enforce a civil penalty, sometimes equal to or higher than the criminal penalty.

Civil liability - Under the new law: 5000 x $64.76 Pesos x 5 = U.S. $128,492 per person (based on $12.60 exchange rate).

View State Liability Limits Chart


What This Means as a Policyholder

In case a policyholder is found to be liable for the death of another person or persons, significantly higher criminal and/or civil liability limits may be enforced. Auto related deaths in Mexico are more likely criminal, instead of civil cases, however a judge will determine if the criminal route, civil route or both routes will be taken.

Changes Made by Our Insurance Companies

In response to the law, our insurance companies have made the following changes:
  • ACE Seguros - Policies bought on or before February 6, 2013 retroactively include increased liability of $300K for bodily injury in case of fatalities to third parties.
  • HDI Seguros - Policies bought on or before February 15, 2013 retroactively include an excess liability limit of $300K in case of fatalities to third parties.
  • Mapfre Seguros - No policy change made. It is important to review your current liability limits with Mapfre and decide if you would like higher limits.

Policies bought after the above dates do not include additional liability. Please consider higher limits while quoting coverage.

Are higher limits mandatory?

No, they are recommended due to higher exposure in case of death caused by a policyholder. You may still purchase lower limits if you wish.

Possible Future Mexican State Law Changes

In response to the Federal Law changes, some Mexican states may be changing their state laws. Therefore the current stated maximum limits for some Mexican states may change in the future.

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