If you are planning to drive your car in Mexico, you need to know that your U.S. car insurance policy will not cover you there. You need to buy a separate Mexican car insurance policy from a licensed Mexican insurance company or a U.S. company that works with Mexican insurers. This is not only a good idea to protect yourself and your vehicle, but also a legal requirement under Mexican law.
Why Do You Need Mexican Car Insurance?
Mexico has a different legal system than the U.S. when it comes to car accidents. In Mexico, car accidents are considered a criminal offense, not a civil matter. This means that if you cause a car accident in Mexico, you could face criminal charges, fines, and even jail time. You could also be held liable for any damages or injuries you cause to others, regardless of who was at fault.
To avoid these risks, you need to have Mexican liability insurance, which covers bodily injuries and property damage to others if you cause a car accident. This is the minimum coverage required by Mexican law, and you need to have proof of it when you enter Mexico. If you don’t have Mexican liability insurance, you could be detained by the authorities until you pay for the damages or injuries you caused, or until you prove that you have the financial means to do so.
Your U.S. car insurance policy may have some limited coverage for Mexico, depending on your insurance company and your policy. However, this coverage is usually not enough to meet the Mexican legal requirements, and it may not be recognized by the Mexican authorities. Therefore, you need to buy a separate Mexican car insurance policy that complies with the Mexican law and that is accepted by the Mexican officials.
How to Buy Mexican Car Insurance?
You can buy Mexican car insurance online or by phone before you travel to Mexico, or at the border when you enter Mexico. However, buying it in advance is recommended, as it will save you time and hassle at the border, and it will give you more options to compare prices and coverages.
You can buy Mexican car insurance from a Mexican insurance company or a U.S. company that works with Mexican insurers. Some of the U.S. companies that offer Mexican car insurance are Allstate, Geico, Progressive, and State Farm. You can also use a broker or an agent that specializes in Mexican car insurance, such as Mexpro, MexInsurance, or Baja Bound.
You can choose a policy that fits your length of stay, from one day up to one year. You will pay a separate premium from your U.S. car insurance policy, and your coverage will begin and end on the dates you select. If you drive outside of your policy effective dates, you will not have coverage, and you will be subject to the fines and penalties of Mexican law.
To buy a Mexican car insurance policy, you will need:
- Dates you will be traveling in Mexico
- Where you will be traveling in Mexico
- Your U.S. car insurance policy number
- Driver’s license
- Year, make, and model of your car
- Vehicle identification number
- License plate number
What Does Mexican Car Insurance Cover?
Mexican car insurance covers different types of risks, depending on the level of coverage you choose. The basic coverage is liability insurance, which covers bodily injuries and property damage to others if you cause a car accident. You can choose a policy limit, up to a certain amount, depending on the insurance company. For example, Allstate and Geico can help you get up to $500,000 in liability coverage for trips to Mexico, while The General can help you get up to $300,000. It is a good idea to buy the maximum amount of liability coverage available, as the medical and repair costs in Mexico can be very high.
In addition to liability insurance, you can also buy other types of coverage, such as:
- Collision and comprehensive insurance, which covers physical damage and theft of your car, regardless of who was at fault.
- Medical payments insurance, which covers medical expenses for you and your passengers, regardless of who was at fault.
- Uninsured/underinsured motorist insurance, which covers bodily injuries and property damage to you and your passengers, if you are hit by a driver who has no insurance or insufficient insurance.
- Roadside assistance, which covers towing, battery jump, flat tire, lockout, and fuel delivery, if your car breaks down or has a mechanical problem.
- Travel and legal assistance, which covers legal advice, bail bond, translation, and travel expenses, if you are involved in a car accident or a legal dispute.
The table below shows a comparison of the coverages and costs of Mexican car insurance from three U.S. companies: Allstate, Geico, and The General. The prices are based on a sample quote for a 30-year-old driver with a 2019 Toyota Corolla, driving in Mexico for one week.
| Coverage | Allstate | Geico | The General |
|---|---|---|---|
| Liability | $500,000 | $500,000 | $300,000 |
| Collision and Comprehensive | $500 deductible | $500 deductible | $500 deductible |
| Medical Payments | $5,000 | $5,000 | $5,000 |
| Uninsured/Underinsured Motorist | $500,000 | $500,000 | $300,000 |
| Roadside Assistance | Included | Included | Included |
| Travel and Legal Assistance | Included | Included | Included |
| Price | $78 | $84 | $65 |
Tips for Driving in Mexico
Driving in Mexico can be a rewarding and enjoyable experience, but it can also be challenging and risky, especially if you are not familiar with the local rules and customs. Here are some tips to help you drive safely and smoothly in Mexico:
- Before you enter Mexico, make sure you have all the required documents, such as your passport, driver’s license, car registration, proof of Mexican car insurance, and permission letter if you are not the owner of the car.
- Follow the speed limits and traffic signs, and be aware of the local driving habits, such as flashing headlights, honking horns, and hand signals. Be extra careful at intersections, roundabouts, and toll booths, as the right of way may not be clear or respected.
- Avoid driving at night, as the roads may not be well-lit or well-marked, and you may encounter animals, pedestrians, or vehicles without lights. Also, avoid driving in bad weather, as the roads may be slippery or flooded, and the visibility may be poor.
- Be prepared for emergencies, such as flat tires, breakdowns, or accidents. Carry a spare tire, a jack, a tool kit, a first aid kit, a flashlight, and a cell phone. If you need help, call your Mexican car insurance company or the emergency number 911. Do not leave your car unattended or accept help from strangers, as you may be a target for theft or scams.
- Be respectful and courteous to the authorities, such as the police, the military, or the customs. If you are stopped or questioned, cooperate and show your documents. Do not argue, bribe, or offend them, as you may face legal consequences or worse.
Passionate about finance news and updates, I’m your go-to guide through the twists and turns of the financial world. With a knack for breaking down complex topics into bite-sized insights, I’m here to make finance accessible and exciting for you.