Auto Insurance In Mexico: What's The Law?

If you're planning a trip to Mexico and intend to drive, it's important to know the country's auto insurance laws. Mexican law requires all vehicles operating on federal roads to carry third-party liability insurance to cover any damage caused in an accident. This means that your US or Canadian insurance policy won't be valid in Mexico, and you'll need to purchase a separate Mexican auto insurance policy. This insurance is mandatory and proof may be requested by officials in the event of an accident or incident. Failure to provide proof of insurance can result in fines or even jail time if you're found at fault and unable to pay for the damage caused. So, before hitting the roads in Mexico, be sure to get the necessary auto insurance coverage to stay safe and compliant with the law.

US auto insurance doesn't cover you in Mexico

If you're planning a trip to Mexico and intend to drive there, it's important to know that your US auto insurance does not cover you in Mexico. Here's what you need to know about why US auto insurance doesn't apply in Mexico and what you can do to ensure you're properly insured:

Firstly, Mexican law requires that any vehicle operating on federal roads has third-party liability insurance to cover damage caused in an at-fault accident. This law has been in effect since January 1, 2019, and it mandates a minimum of third-party liability insurance coverage for all vehicles traveling on federal highways. The liability insurance in Mexico must be provided by an admitted Mexican insurance company, and no US insurance carriers are registered with the Mexican Department of Insurance. Therefore, your US auto insurance policy will not be recognised or accepted by Mexican authorities in the event of an accident.

The consequences of not having Mexican auto insurance can be serious. If you are found at fault in an accident and cannot demonstrate your ability to pay for the damage, you may face jail time. Mexican law treats car accidents as a criminal offence, and you may be held by the authorities until your financial responsibility can be established.

To ensure you're properly insured and compliant with Mexican law, you need to purchase a separate Mexican auto insurance policy, also known as Mexico tourist auto insurance or Mexican car insurance. This insurance can be obtained from Mexican insurance companies or US companies that work with Mexican insurers, such as Geico, Allstate, or Baja Bound. The coverage options are flexible and can be tailored to your specific needs, whether you're taking a short trip or staying for an extended period.

Mexican auto insurance typically includes liability coverage for bodily injuries and property damage to others. You can choose a policy limit, with recommended coverage of at least $300,000. Additionally, you can purchase extended coverage options such as physical damage, theft, vandalism, medical payments, and more.

To purchase Mexican auto insurance, you will typically need the following information:

• Dates of your travel in Mexico
• States in Mexico you'll be visiting
• Your US auto insurance policy number
• Make, model, year, and current market value of your vehicle
• Vehicle identification number (VIN)
• License plate number

In summary, if you're planning to drive in Mexico, don't assume that your US auto insurance will cover you. Be sure to purchase a separate Mexican auto insurance policy to comply with local laws and ensure you're properly protected during your trip.

Mexican law requires third-party liability insurance

The requirement for third-party liability insurance in Mexico was implemented to ensure that those involved in car accidents receive the necessary medical treatment and repair work. By having this insurance, drivers can demonstrate their "proof of financial responsibility", ensuring that any damages caused during an accident can be promptly paid for.

In Mexico, third-party liability insurance has two main components. The first is bodily injury coverage, which pays for any medical expenses incurred by a third party as a result of an accident, up to the chosen limit. The second component covers the costs of property damage caused by the accident, including damage to vehicles, walls, fences, buildings, or any other affected property, again within the chosen limit.

It is worth noting that the penalties for not having valid insurance in Mexico can be significant. If a driver cannot show proof of insurance when requested by authorities, they may receive a fine or even face jail time if they are found at fault for an accident and unable to pay for the damages. Therefore, it is crucial for drivers in Mexico to have the required third-party liability insurance to comply with the law and avoid potential legal consequences.

To purchase third-party liability insurance in Mexico, individuals can turn to reputable Mexican insurance companies such as CHUBB, El Aguila Compañia de Seguros, and Grupo Nacional Provincial (GNP). These companies offer competitive rates and flexible coverage options to meet the specific needs of drivers.

You can be fined or jailed without insurance

Since January 1, 2019, it has been mandatory for all vehicles travelling on Mexican federal highways to have a minimum of third-party liability insurance coverage. This means that if you are driving in Mexico, you need to have Mexican auto insurance, as your US or Canadian insurance policy will not cover you.

If you are found to be driving in Mexico without insurance, you can be fined or jailed. If you are in an accident and found to be at fault, you will be held until you can demonstrate your ability to pay for the damage caused. This can result in jail time.

In Mexico, auto accidents are considered a criminal offence as well as a civil matter. If you are in an accident, even if it is not your fault, you will be detained by the police pending an investigation. If you are found to be at fault, you will be detained until the other party is satisfied with the compensation being offered. This can be a lengthy and stressful process, and the financial burden can be significant.

In addition to the risk of fines or jail time, driving without insurance in Mexico can result in personal liability for any damage caused. If you are in an accident and found to be at fault, you will be responsible for the costs of repairing any vehicles involved, as well as any damage to public property, such as roads, barriers, signs, and lamps.

To avoid these risks, it is important to purchase a separate Mexican auto insurance policy before driving into Mexico. This policy should include liability coverage, legal assistance, and a bail bond to cover the costs of any potential accidents or incidents.

You need Mexican insurance even if your US insurance covers you in Mexico

US auto insurance policies are not valid in Mexico. If you are in an accident, your US insurance will not cover the damages, and you will be subject to Mexican law. Mexican authorities do not recognise US insurance policies, and you will be treated as uninsured. This could result in a fine, confiscation of your vehicle, or even jail time.

Even if your US insurance provider offers limited coverage in Mexico, this is unlikely to meet the legal requirements. While some insurers offer a Mexico endorsement, this is usually restricted to a small area near the border and for a limited time. For example, The Hartford has an endorsement that limits coverage to within 25 miles of the US border for trips of 10 days or fewer.

To satisfy Mexican law, you must buy a separate Mexican liability insurance policy from a licensed Mexican insurance company. This is a requirement for all vehicles on federal roads in Mexico and has been a legal requirement since 2019. This insurance must cover a minimum of 50,000 pesos in property damage costs and 100,000 pesos in personal injury expenses. However, it is recommended that you have a coverage limit of at least $300,000.

You can buy Mexican car insurance from a Mexican insurance company or a US company that works with Mexican insurers, such as Geico or Allstate. This insurance will be separate from your US car insurance policy and will require a separate premium. When purchasing Mexican car insurance, you will need to provide the dates and locations of your travel in Mexico, your US car insurance policy number, driver's license, and vehicle information.

In summary, while your US insurance may offer limited coverage in Mexico, it is not a substitute for Mexican car insurance. To comply with Mexican law and avoid potential fines or jail time, you must purchase a separate Mexican liability insurance policy.

You can get Mexican auto insurance through GEICO

Yes, auto insurance is required in Mexico. Since 2019, Mexican law has required that any vehicle operating on federal roads carries third-party liability insurance to provide coverage for damage caused in an at-fault accident. This means that your US auto insurance policy will not cover your vehicle while driving in Mexico.

To get a Mexico auto insurance quote, you'll need to provide some details, including:

• When and where you're traveling in Mexico
• The type of vehicle you need to be insured
• The duration of your trip

You can get a quote, choose the policy that's right for you, and buy it online. Mexico car insurance is competitively priced, with standard or extended coverage options, including physical damage, liability, vandalism, partial theft, medical payments, and emergency roadside assistance.

All policies are insured by highly-rated Mexican insurance companies, like Grupo Nacional Provincial and El Aguila Compañía de Seguros. They're issued by a fully-licensed US insurance broker, International Insurance Group, Inc., which issues over 100,000 Mexico auto policies each year.

Frequently asked questions