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Why Buy Mexican Insurance?

Why Buy Mexican Insurance?

Under Mexican law, motorists are required to have insurance, or "proof of financial responsibility", in the event of an accident, even if you are not at fault. As a foreigner traveling in Mexico, the only way of demonstrating this financial responsibility is to have sufficient real currency to cover damages, or an insurance policy from a Mexican company. U.S. or any other non-Mexican insurance does not cover your liability for potential accidents, nor does it fulfill the basic requirement for insurance according to Mexican law.

  • U.S. and Canadian auto insurance policies are not recognized in Mexico; only policies from a Mexican insurance company are.
  • Each Mexican state sets potential civil and criminal liability amounts a driver would be responsible for in case of a fatality or fatalities to others. The liability amount may be as high as U.S. $300,000 per fatality or more depending upon the state you are traveling in. Read more about the law.
  • A Mexican Insurance policy greatly reduces the financial burden you might come by after an accident and may reduce jail time.
Frequently Asked Questions
Will my U.S. or Canadian insurance cover me in Mexico?

U.S. or Canadian insurance policies are not considered "proof of financial responsibility" under Mexican law. While a few major U.S. insurance companies will temporarily cover damages or theft of your vehicle in Mexico (up to a small distance south of the border) they do not cover damages to third parties (liability). A U.S. insurance policy must be accompanied by at least a liability-only policy from a Mexican insurance company.

It's important to know that your U.S. insurance company may not be an expert on Mexican insurance coverage. Therefore they may not be able to advise you correctly. Read more important points regarding U.S. and Canadian auto insurance policies and how they work (or do not work) in Mexico.

What exactly does Mexican Insurance cover?

In addition to liability and legal assistance coverage, you have the option to add collision and theft coverage and partial theft and vandalism. Most policies also offer roadside assistance. View our description of coverage for HDI Seguros or Chubb Seguros to see what is covered by our policies. You may also like to read our FAQs about Mexican Insurance.

What does "liability" mean and what does it cover?

Liability is an obligation to pay money to parties other than yourself or occupants of your vehicle. The liability component of the insurance covers damages which you might cause to other vehicles or property in an accident. It also covers costs for bodily injuries which you might cause to other parties.

For example, if you caused an accident and were found legally responsible, you would be required to reimburse the driver and passenger in the car you hit for medical expenses they incurred, expenses as determined by the Mexican court, and the value of their vehicle. The liability component of your Mexican insurance policy would pay for any of these expenses up to the limit on the policy.

What do U.S. authorities advise about driving to Mexico?

PDF from the County of San Diego: Travel advisory about Driving into Mexico: Tips for Travelers Who Drive to Mexico.

California Department of Insurance: In their online publication, they state: "Most policies do not provide coverage in Mexico, so if you plan to drive your car there, it's wise to buy that coverage separately."

Arizona Department of Insurance: In their online publication, they state: "Mexican law requires that you purchase separate liability coverage from a Mexican insurer before operating your vehicle in Mexico. Your Arizona personal auto policy may provide some limited coverage on a limited basis (within 25-50 miles of the Mexican border), but this coverage does not meet the insurance requirements of the Republic of Mexico. Failure to purchase proper Mexican liability insurance may result in many hours in a Mexican jail or a heavy fine if you are involved in an accident while operating your vehicle in Mexico."