Mexican Auto Insurance: How Much Does It Cost?

Mexican law requires all vehicles to have car insurance. If you're planning a road trip to Mexico, it's important to know that you need Mexican liability insurance for your vehicle. This means insurance from a Mexican insurance company, as US auto insurance policies will not cover your car in Mexico and do not comply with the country's insurance requirements. The cost of Mexican car insurance for tourists can range from about $50 to $80 for liability-only coverage and $150 to $200 for full coverage. The specific price you pay depends on factors such as the value of your car, the length of your visit and the coverages you choose.

Cost of Mexican car insurance for tourists

Mexican law requires all vehicles to have car insurance. If you're a tourist driving your own vehicle into Mexico, your US auto insurance policy will not cover you, and you will need to buy a separate Mexican liability insurance policy from a licensed Mexican insurance company.

The cost of Mexican car insurance for tourists depends on several factors, including the length of your trip, the value of your car, and the type of coverage you choose.

Length of Trip

Mexican car insurance policies can be purchased for different lengths of time, typically ranging from one day to one year. Daily rates are ideal for short stays, while six-month or annual policies may be more cost-effective for longer stays or frequent visits. For example, a one-year "Liability Only" policy can cost around $142, while a six-month policy is approximately 15-20% cheaper.

Value of Your Car

The cost of a full-coverage policy depends on the actual cash value (ACV) of your vehicle. The higher the value of your car, the higher the insurance cost. For instance, insuring a 2018 Jeep Wrangler 4WD for $29,000 for three days in Mexico would cost around $29,000.

Type of Coverage

Mexican car insurance typically includes liability insurance, which is mandatory, and optional coverages such as physical damage, medical payments, legal assistance, and roadside assistance.

Liability-only coverage can range from $50 to $80, while full coverage can cost between $150 and $200. The specific price will depend on the coverage options you choose, such as medical payments, roadside assistance, and legal assistance.

It's important to note that Mexican liability insurance works differently from US insurance. In the event of an accident resulting in a death, the insurance company must pay the Mexican state's minimum wage multiplied by 5,000, plus funeral expenses, per person. The state can then multiply this amount by up to five times, which can result in a significant financial burden. Therefore, it is recommended to purchase the maximum amount of liability coverage available.

Additionally, some companies may charge higher premiums for drivers under 21 or over 80 years old.

When planning a trip to Mexico, it is essential to consider the cost of car insurance and ensure you have adequate coverage to comply with Mexican law and protect yourself financially in the event of an accident or vehicle-related issues.

What does Mexican car insurance cover?

Mexican law requires drivers to have liability insurance. This covers property damage and injuries caused to others in an accident. The minimum requirement is 100,000 Mexican pesos (around $5,000) for bodily injury and death liability coverage, and 50,000 Mexican pesos (around $2,500) for property liability damage. However, it is recommended to purchase a higher level of liability coverage, as Mexican liability law can be complex and result in high payouts. For example, if you cause an accident that results in a death, your insurance must pay the Mexican state's minimum wage multiplied by 5,000, plus funeral expenses, per person. The state can then multiply this amount by up to five times.

In addition to liability insurance, you may want to consider other types of coverage to protect yourself and your vehicle. Physical damage coverage will pay out if your car is stolen or damaged by problems such as accidents, vandalism, fire, flood, hail, and falling objects. Medical payments coverage will help cover the cost of treating injuries to you and your passengers after an accident. Legal assistance coverage will pay for legal expenses if you are involved in an accident, and roadside assistance can provide services such as towing, jump-starting, locksmith services, and flat tire changes.

When purchasing Mexican car insurance, you can choose from different coverage levels depending on your needs and the length of your stay. Basic coverage typically includes liability, travel assistance, medical payments, and legal assistance. Standard coverage adds collision and theft protection, while extended coverage includes basic and standard coverage, plus vandalism, partial theft, US repairs, and fixed deductibles. You can also add endorsements to your policy, such as the Limited Mexico Coverage Endorsement, which extends your US coverage to a certain distance into Mexico.

Eligibility requirements for Mexican car insurance

To be eligible for Mexican car insurance, you must be driving in Mexico. US car insurance policies do not cover you in Mexico, so you will need to buy a separate Mexican liability insurance policy from a licensed Mexican insurance company. This is a legal requirement.

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

• The dates you will be travelling in Mexico
• The states in Mexico you will be travelling to
• Your US car insurance policy number
• The make, model, year and current market value of the vehicle you will be driving
• The vehicle's identification number (VIN)
• The license plate number

If you are under 21, you may have to pay an additional fee. If your vehicle is over 20 years old, you may only be eligible for liability coverage. If your US insurance policy does not include collision and comprehensive coverage, you will be ineligible for physical damage and theft coverage in Mexico.

Where to buy Mexican car insurance

If you're planning a trip to Mexico and intend to drive there, it's important to know that your US or Canadian auto insurance policy will not cover you. Mexican law requires that any vehicle operating on federal roads carries third-party liability insurance, so you'll need to purchase a separate Mexico tourist auto insurance policy.

There are several companies that offer Mexican car insurance, including:

Progressive

Progressive offers three different coverage levels that you can keep for as long as you need, from one day to one year. The basic coverage level includes liability, travel assistance, medical payments, and legal assistance. The standard plan offers basic coverage as well as collision and theft, while the extended option includes basic and standard coverage, plus vandalism, partial theft, US repair, and fixed deductibles. You can get a quote and purchase a policy online.

GEICO Insurance Agency

GEICO offers competitively priced Mexican car insurance with short and long-term options that can be easily customized. Extended coverage options include physical damage, theft, liability, vandalism, partial theft, medical payments, and more. You can get a quote, select your coverage, pay online, and get instant proof of insurance all through their website.

MexAdventure

MexAdventure has been in the Mexico insurance industry for over 12 years and partners with four Mexican insurance companies. Their online quoting system provides insurance quotes from all four companies, allowing you to compare rates and coverage options to choose the best price and coverage for your needs. You can purchase and print your policy or save a digital copy to your mobile device.

Baja Bound

Baja Bound are Mexican insurance specialists with over 25 years of experience. They offer great rates and coverage from highly-rated companies, flexible policy terms, liability limits from $100,000 to $1,000,000, and full-coverage policies. You can get a quote and purchase a policy online, and they also offer a 24/7 assistance hotline for legal and roadside assistance or to report a claim.

Variables that affect the cost of Mexican car insurance

The cost of Mexican car insurance is determined by several variables, and it's essential to understand these factors to make informed decisions about your coverage options. Here are the key variables that can affect the cost of Mexican auto insurance:

Length of Stay

The duration of your stay in Mexico is a significant factor in determining the cost of your Mexican car insurance. Most Mexican car insurance policies are priced daily, and the per-day rate decreases as the length of your stay increases. For instance, the daily rate for shorter stays, ranging from a few days to two weeks, can be anywhere from $10 to $70. In contrast, long-term stays of several months to a year can result in significantly lower rates, as low as $1 per day. Therefore, if you're planning an extended stay in Mexico, consider purchasing a six-month or annual policy to take advantage of more affordable rates.

Vehicle Type and Value

The type and value of your vehicle play a crucial role in determining the cost of Mexican car insurance. Insurers assess the risk associated with your vehicle, and certain factors can increase your premium. For example, if you're driving a car with expensive parts or one that is costly to repair or replace, you can expect to pay higher insurance rates. Additionally, the year, make, and model of your vehicle are considered when calculating your premium. Providing accurate information about your vehicle's specifications and market value is essential when obtaining a quote.

Destination in Mexico

The region you plan to visit in Mexico can also impact the cost of your car insurance. Each Mexican state has its own criminal and civil liability penalty amounts, which means your premium may vary depending on the specific region you intend to travel to. For example, driving in both Baja and Northern Mexico may result in a higher premium compared to staying solely in Baja. Therefore, it's important to be clear about your travel destinations within Mexico when obtaining a quote for car insurance.

Age of Driver

Age is another factor that can influence the cost of Mexican car insurance. In Mexico, drivers between the ages of 18 and 21 typically pay higher insurance rates than those over 21. However, it's worth noting that age is not a determining factor for rates among adults over 21. So, when comparing rates for individuals aged 22, 36, 52, and 75, age-based differences in rates are unlikely to be a factor.

Coverage Options

The amount of coverage you choose for your Mexican car insurance policy will also affect the cost. Similar to car insurance in the U.S., the more coverage you add, the higher your premium will be. At a minimum, you are required to have third-party liability coverage, which includes property damage and bodily injury liability. However, you may decide to opt for full coverage, which typically costs about twice as much as liability insurance for a two-week stay. Full coverage provides higher liability limits and additional protection, such as physical damage coverage and medical payments coverage.

Insurance Provider

Just as with car insurance in the U.S., the cost of Mexican car insurance can vary from provider to provider. It's a good idea to compare quotes from multiple companies to find the most competitive rates and coverage options that meet your specific needs. Some American insurance companies, such as GEICO, Progressive, and Allstate, offer Mexican coverage through partnerships with insurers in Mexico. Alternatively, you can contact a Mexican insurance provider directly or work with a company like Mexpro, which offers bilingual services and additional coverage options.

Frequently asked questions