Auto Insurance Costs For Driving In Mexico

Planning a road trip to Mexico? Don't forget that you'll need Mexican auto insurance, as US auto insurance policies typically won't cover you in Mexico. Mexican law requires all vehicles to have car insurance, and failure to comply can result in fines, penalties, and even jail time. The cost of Mexican auto insurance varies depending on factors such as the length of your stay, the type of vehicle, and the coverage you choose. Basic liability-only coverage can range from $1 to $70 per day, while full coverage can cost $150 to $200 or more. It's important to shop around and compare quotes from different providers to find the best rates and coverage options for your needs.

Minimum insurance requirements

To drive legally in Mexico, you need to have at least third-party liability coverage with the following minimum insurance requirements:

• $50,000 Mexican pesos (about $3,000 USD) for property damage.
• $100,000 Mexican pesos (about $6,000 USD) for bodily injuries.

Please note that the USD prices are based on a $17 MXN exchange rate and that the exchange rate between pesos and dollars is always fluctuating, so it is recommended to speak to an agent about the minimum liability amount for your trip to Mexico.

If you are driving without the minimum insurance requirements in Mexico and get into an accident, you could end up in jail. Even with insurance, authorities may detain you until they determine who was at fault in the accident. If you are detained or jailed, you would have to show a valid Mexican insurance policy to have the option to be released on bail.

It is generally recommended that drivers get a minimum of about $300,000 worth of third-party liability damage coverage. This is based on Mexican laws that delineate possible payouts for bodily injury or fatality. However, you should check the laws of the Mexican state (or states) you will be driving in, as the minimum may vary depending on the location.

If you are renting a car in Mexico, you will need to buy at least the liability portion of the insurance to satisfy Mexican law. It is recommended that you also buy the collision damage waiver (CDW), which covers the cost of theft or physical damage to the car while you travel. If you do not purchase this coverage, you will have to pay out of pocket for any damage you cause to the car, including if it is stolen. Inability to pay for damage may result in you being detained in Mexico.

Full coverage

If you're planning a trip to Mexico and intend to drive, it's important to understand the country's auto insurance requirements. Mexican law requires that any vehicle operating on federal roads has third-party liability insurance, which covers damage to other people's vehicles, property, and injuries in the event of an accident. This means that your US auto insurance policy will not cover you in Mexico, and you will need to purchase a separate Mexican auto insurance policy.

Cost of Full Coverage

The cost of full coverage auto insurance in Mexico can vary depending on several factors, including the length of your stay, the type of vehicle you drive, and the specific company you choose. According to AutoInsurance.com, full coverage for a two-week stay is typically about double the cost of liability insurance. They provide an example of a 2-week full coverage plan for a 2018 Jeep Wrangler 4WD, which falls in the mid-price range for vehicles, costing $10 to $70 per day.

What Full Coverage Includes

• Liability insurance with a limit of $500,000
• Physical damage coverage
• Medical payments coverage
• Legal and travel assistance
• Theft, partial theft, and vandalism coverage
• Increased labour rates for repairs in the US
• GAP coverage

Where to Purchase Full Coverage

You can purchase full coverage auto insurance for Mexico from several companies, including:

• Mexpro (through Progressive)
• International Insurance Group (through GEICO)
• Baja Bound
• AAA through Grupo Nacional Provincial S.A.
• The General Insurance through ABA Seguros, SA de C.V., ACE Seguros, S.A. de C.V., and Grupo Nacional Provincial
• Liberty Mutual Insurance through MexPro

It's important to shop around and compare quotes from different providers to find the best rates and coverage options for your specific needs.

Rental car insurance

If you're renting a car in Mexico, you'll need to be aware of the country's insurance requirements. Mexican law requires that all vehicles have car insurance, and this extends to rental cars. So, if you're planning on renting a car during your stay in Mexico, it's important to factor in the cost of insurance.

When renting a car in Mexico, you'll typically be offered a Third-Party Insurance (TI) policy. This is a basic form of personal liability insurance that covers personal injury claims or material damages to the other driver in the event of an accident. However, it's important to note that TI does not cover injuries to the renter or damage to the rental car. As such, it's generally recommended to purchase additional coverage for extra peace of mind.

Supplemental Liability Insurance (SLI) is one option for enhancing your protection. This provides additional liability coverage in the event of an accident, protecting you against claims made by a third party for bodily injury or property damage. Another option is a Loss Damage Waiver (LDW), which relieves the driver of financial responsibility in the event of damage to or theft of the rental vehicle. It's worth checking with your credit card company or auto policy insurance provider to see if they cover rentals in Mexico before deciding on an LDW.

Personal Accident Protection is another optional coverage that provides monetary compensation in the event of the driver's invalidity or death. This may be particularly useful if your health insurance doesn't cover ambulance, doctor, or hospital expenses.

When renting a car in Mexico, it's important to understand the requirements and limitations of the rental company's insurance policy. In some cases, you may need to purchase additional coverage directly from the rental agency. Additionally, certain types of vehicles, such as exotic cars, cargo vans, or large passenger vehicles, may not be allowed to cross the border. Therefore, it's crucial to check with your rental agency before finalising your plans.

The cost of rental car insurance in Mexico can vary depending on factors such as vehicle type, length of travel, age, and region. It can range from a few dollars to $50 or more per day. When renting a car, it's essential to consider your specific needs and budget and choose the coverage that best suits your situation.

Eligibility for Mexican car insurance

Mexican law requires all vehicles to have car insurance. If you plan to drive in Mexico, you will need to buy a separate Mexican liability insurance policy from a licensed Mexican insurance company. This is because your US auto insurance policy will not cover your vehicle while driving in Mexico and will not comply with the insurance requirements there.

You can buy a Mexican car insurance policy from a Mexican insurance company or a US company that works with Mexican insurers. Some examples of the latter include:

• Geico through Grupo Nacional Provincial and El Aguila Compañía de Seguros
• Progressive Insurance through MexPro
• The General Insurance through ABA Seguros, SA de C.V, ACE Seguros, S.A. de C.V and Grupo Nacional Provincial
• Liberty Mutual Insurance through MexPro
• AAA through Grupo Nacional Provincial S.A.
• Baja Bound

To buy a Mexican car insurance policy, you will need:

• The dates you will be travelling in Mexico
• Where you will be travelling in Mexico
• Your US car insurance policy number
• Your driver's license (if you are under 21, you may have to pay an additional fee)
• The year, make and model of your car
• The vehicle identification number
• The license plate number

If you are renting a car in Mexico, you can buy auto insurance at the rental counter agency. If you plan to rent a car in the US and drive into Mexico, check with your rental agency first. Not all rental agencies will allow you to drive to Mexico or may restrict travel to certain areas.

How to get a quote

To get a quote for auto insurance to drive in Mexico, you can either ask an agent or fill out a brief application on the company's website.

• Determine your insurance needs: Consider the level of coverage you require. Mexican law requires third-party liability insurance for any vehicle operating on federal roads. However, you may want to opt for full coverage, which includes additional protection such as physical damage, medical payments, and legal assistance.
• Gather necessary information: To obtain a quote, you will need to provide certain details, including the dates you'll be travelling in Mexico, the states you plan to visit, your US auto insurance policy number, vehicle information (make, model, year, and current market value), vehicle identification number (VIN), and license plate number.
• Contact insurance providers: You can reach out to insurance companies that offer Mexican auto insurance, such as GEICO, Progressive (through MexPro), International Insurance Group (through GEICO), or MexPro directly. You can also consider using a price comparison website to compare quotes from multiple providers.
• Provide the required information: Once you have selected an insurance provider, you will need to share the information gathered in step 2. This can be done by filling out an online form or speaking with an agent.
• Review the quote: After submitting your information, the insurance company will provide you with a quote detailing the cost and coverage options for your trip. Review the quote carefully to ensure it meets your needs and budget.
• Purchase the policy: If you are satisfied with the quote, you can proceed to purchase the policy. Make sure to review the terms and conditions, including the coverage limits, exclusions, and effective dates of the policy.

It is important to note that insurance requirements and rates can vary depending on your vehicle type, length of stay, and destination within Mexico. Additionally, some US insurance companies offer Mexican coverage through partnerships with Mexican insurers, so it is worth checking with your current provider or a specialist broker.

Frequently asked questions