US drivers are required by law to buy Mexican insurance, which you can easily purchase online before crossing the border. You can also buy insurance at the two last exits prior to crossing the border into Mexico (open 24/7). It is quick and easy and costs about $15/dayCar.
Your hosts here at Las Gaviotas Rentals recommend that you purchase Mexican liability car insurance thru the US based company BajaBound. This can be done online prior to your departure. Below is a link to their web site.
- 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.
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.
Will my U.S. or Canadian insurance cover me in Mexico?
Regardless of what your U.S. or Canadian insurance company may tell you, their policies are not considered “proof of financial responsibility” under Mexican law. While a few major U.S. insurance companies cover damages to your vehicle in Mexico up to a small distance south of the border (usually no more than 25 miles), they do not cover damages to other parties. This is why any U.S. policy must be accompanied by at least a liability-only policy from a Mexican insurance company.
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, while in Mexico you caused a serious highway accident in which you hit and totaled another car, resulting in several injuries needing medical attention. After it was found that you were legally responsible for the accident, you would be required to reimburse the driver and passenger in the car you hit for medical expenses they incurred, plus other expenses as determined by the Mexican court, and the value of their vehicle. The liability component of your insurance policy, be it liability-only or full coverage, would pay for any of these expenses up to the limit on the policy.