Best Mexican Auto Insurance: What To Look For

If you're planning a trip to Mexico and intend to drive, it's important to know that your US auto insurance will not cover you. Mexican law requires that you have car insurance with liability coverage from an insurer licensed to provide coverage in Mexico. This is where Mexican auto insurance comes in. You can purchase this from providers like GEICO, Allstate, Progressive (MexPro), Liberty Mutual, and AAA, or through rental car companies. When buying a policy, you'll need to provide details like the dates you'll be in Mexico, where you plan to drive, and your US auto insurance policy number. Basic Mexican car insurance typically includes liability coverage for property damage and bodily injury, with add-ons available for physical damage, legal assistance, roadside assistance, and medical payments.

Why you need Mexican auto insurance

If you're planning a trip to Mexico and intend to drive, it's essential to understand the importance of Mexican auto insurance. Here's why you need it:

Mexican Law Requirements

Mexico has instituted laws that require all vehicles travelling on federal highways to have a minimum of third-party liability insurance. This means that if you're involved in an accident, you must be able to demonstrate your ability to pay for any damage caused. Mexican authorities do not recognize American auto insurance policies, and failure to provide valid Mexican insurance can result in arrest and vehicle impoundment.

Protection in Case of Accidents

In the unfortunate event of a car accident in Mexico, the responsible party may be held by local authorities until they can demonstrate their financial capacity to cover the damages. This can include jail time if insurance coverage is lacking. Mexican auto insurance provides the necessary liability coverage to address these concerns and protect yourself financially.

Legal Assistance

In addition to financial coverage, Mexican auto insurance often includes legal assistance. This provides valuable support in the form of legal representation and bail bond coverage. Facing a local judge and navigating an unfamiliar legal system can be intimidating, and having this assistance ensures you're not alone in the process.

Peace of Mind

Ultimately, purchasing Mexican auto insurance gives you peace of mind. Knowing that you're complying with local laws and protecting yourself in case of any incidents allows you to fully enjoy your trip. The consequences of not having adequate insurance are severe and can include fines, jail time, and vehicle confiscation.

Easy to Obtain

Obtaining Mexican auto insurance is straightforward and similar to purchasing regular car insurance. You can conveniently buy coverage online through trusted companies like AAA, Progressive, and Geico, which have partnerships with Mexican insurance providers specializing in international policies.

In summary, Mexican auto insurance is a crucial aspect of planning any trip to Mexico that involves driving. It ensures your compliance with local laws, provides financial protection in case of accidents, and offers legal assistance. By purchasing this insurance, you can travel with the confidence that you're prepared for any unforeseen circumstances.

What Mexican auto insurance covers

Mexican law requires all vehicles to have car insurance. Your regular car insurance policy will not be valid in Mexico, so you will need to purchase a separate Mexican auto insurance policy. This is because Mexican companies are prohibited from marketing in the United States, and US insurance is regulated at the state level.

There are several types of Mexican auto insurance coverage available, which can be purchased separately or as part of a package. The most important type of coverage is liability insurance, which is required by Mexican law. This covers bodily injuries and property damage to others if you cause a car accident. You can usually choose a policy limit, with some companies offering up to $500,000 in liability coverage for trips into Mexico, and others offering up to $1,000,000 in third-party liability limits. It is recommended to buy the maximum amount of liability coverage available, as Mexican liability laws can be costly.

Other types of coverage include physical damage coverage, which pays out if your car is stolen or damaged by problems such as accidents, vandalism, fire, flood, hail, and falling objects; medical payments, which covers medical expenses for you and your passengers if you are hurt in an accident; legal assistance, which covers legal expenses such as an attorney, court costs, and bail bonds; and roadside assistance, which covers services such as towing, jump-starting a battery, locksmith services, and changing a flat tire.

You can also purchase extended coverage options, which may include physical damage, theft, liability, vandalism, partial theft, medical payments, and more.

Where to buy Mexican auto insurance

When travelling to Mexico, it's important to ensure you have the right auto insurance, as your regular US or Canadian insurance most likely won't cover you. Mexican auto insurance is a legal requirement, so it's essential to organise this before your trip. Here are some options for where to purchase Mexican auto insurance:

MexInsurance

MexInsurance has been in the industry for over 50 years and is a well-known provider of Mexican auto insurance. They offer a secure, easy, and reliable service, providing up to 3 quotes from large, reputable Mexican insurance companies. Their website outlines the simple process of obtaining a quote, purchasing a policy, and printing it off, ready to go. MexInsurance also provides various other types of insurance, including motorcycle, RV, watercraft, and homeowner's insurance. They cater to clients with a range of different needs and circumstances, including those with little driving experience or a bad driving record.

Baja Bound

Baja Bound is another specialist in Mexican auto insurance, with over 25 years of experience in the industry. They offer great rates and coverage from highly-rated companies, with flexible policy terms ranging from one day to one year. Baja Bound provides 24/7 assistance and allows claims to be settled in US dollars, with repairs available in the US, Canada, or Mexico. Their website also features a range of resources to help plan your trip to Mexico, including tips for crossing the border and a travel guide.

Progressive: MexPro

Progressive offers Mexican auto insurance through MexPro, a company that provides tailored coverage for your specific travel plans. MexPro offers three different coverage levels: Basic, Standard, and Extended. The Basic plan includes liability, travel assistance, medical payments, and legal assistance, suitable for tourists or older vehicles. The Standard plan adds collision and theft coverage, ideal for longer trips or newer cars. Meanwhile, the Extended plan offers additional protection against vandalism, partial theft, and fixed deductibles, making it a good choice for extended stays or frequent visits to Mexico. MexPro also provides insurance for boats, motorcycles, RVs, trucks, and trailers.

AAA Mexico Insurance

AAA offers exclusive member benefits for Mexican auto insurance, including discounts of up to 15% on premiums and 25% on policy fees. Their website allows members and non-members alike to purchase a policy for select travel dates, up to six months, or annually. In addition to auto insurance, AAA also provides homeowner's and watercraft insurance for Mexico.

It's important to research and compare the different options to find the best coverage for your specific needs and budget. These companies provide a range of choices to ensure you can drive safely and securely during your time in Mexico.

Top providers of Mexican auto insurance

When travelling to Mexico, it is important to ensure you have the right auto insurance coverage. Here are some of the top providers of Mexican auto insurance and what they offer:

MexInsurance

MexInsurance has been in the industry since 1956 and is a well-known provider of Mexican auto insurance. They offer secure, easy, and reliable online services, working for their clients and not the insurance companies. MexInsurance provides up to three quotes from some of the biggest insurance companies in Mexico. They offer comprehensive coverage for vehicles with foreign plates in Mexico, including motorcycles, RVs, and watercraft. MexInsurance also provides liability insurance for US-registered vehicles, catering to drivers with varying levels of experience and driving records.

AAA Mexico Insurance

AAA offers exclusive member benefits for Mexican auto insurance, including discounts of up to 15% on premiums and up to 25% on policy fees. Their locally-recognized Mexico auto insurance covers autos, homes, and watercraft. AAA members can purchase the insurance online, enter their membership number, and then print their policy. AAA's Mexican auto insurance can be purchased for specific travel dates, up to six months, or annually. They also offer homeowner's insurance and watercraft liability coverage for those travelling to Mexico with their boats.

Mexico Insurance Services

Mexico Insurance Services provides top-notch technology that prioritizes customer experience and privacy. They work with reputable Mexican insurance companies, ensuring they meet strict criteria for revenue and positive claims handling experience. This company ensures your sensitive information remains secure until you file a claim. Mexico Insurance Services offers a range of insurance products, including Mexican auto insurance, motorcycle insurance, RV insurance, and watercraft insurance. They also cater to US-registered vehicles and provide liability insurance.

When choosing Mexican auto insurance, it is important to consider your specific needs, compare quotes, and ensure you are getting the coverage required for your vehicle and travel plans.

Tips for driving in Mexico

Driving in Mexico can be a stressful experience, especially in the less-visited regions away from the beaches of the Yucatán peninsula. Here are some tips to help you navigate the roads of Mexico:

Know the Measurement System

Speed and distance are measured in kilometres in Mexico. For example, 50 km is 30 miles. Gasoline is sold by the litre, with 1 litre being equal to a little over a quarter of a gallon. It is a good idea to calculate how many litres your tank can hold to avoid being scammed at the pump.

Understand the Highway System

The shoulder on a two-lane highway in Mexico is often used as a third lane. You are expected to drive on the shoulder if you are not passing someone. If you don't, you may be tailgated or cause an accident if you have to stop suddenly.

Learn the Local Signalling

Most drivers in Mexico don't use their indicators, and if someone is signalling left on a straight road, they are usually indicating that it is safe to pass, not that they are turning. Do not turn on your left indicator if you intend to switch lanes, as this could be interpreted as a signal for the car behind to pass.

Treat Stop Signs as Yield Signs

Mexicans treat stop signs as yield signs. Making a complete stop at a stop sign without oncoming traffic can lead to an accident, as the driver behind may not be expecting it and crash into you.

Be Alert for Speed Bumps (Topes)

Speed bumps, or "topes", are common in Mexico and can be found on highways, residential streets, and even inside parking lots. They are often poorly marked and can be quite tall, requiring drivers to slow down significantly or even come to a complete stop.

Be Wary of Roadblocks

In poorer states like Oaxaca and Chiapas, locals may put up makeshift roadblocks to sell wares or extract money from travellers. If you feel generous, you can pull over and buy something, but if the situation seems threatening, it is best to keep driving.

Know the Zapatistas Territory

The Zapatistas are a separatist movement that controls a large amount of territory in Chiapas. They have cut down trees on main roads to restrict movement, which can cause significant diversions. This area can be stressful to drive through, as Mexican law has limited jurisdiction, and you may encounter young men carrying machetes and separatist political slogans.

Allow Plenty of Time and Avoid Driving at Night

Driving in Mexico can be slow going due to poor road conditions and frequent speed bumps. Allow plenty of time to reach your destination before nightfall, as driving at night is not recommended due to poor lighting, inconsistent signage, and the presence of drug cartels on the roads.

Don't Rely on the Police for Help

Unlike in some countries, the police in Mexico may not be a source of help if you encounter a problem. They may be unhelpful or even make matters worse. If you need assistance, it is better to ask a friendly-looking local.

Be Prepared for Extra Charges When Renting a Car

When renting a car in Mexico, expect to pay for several compulsory add-ons, such as insurance and a temporary hire car permit. There may also be a significant surcharge for returning the car to a different location.

Keep Your Fuel Tank Topped Up

While fuel stations are generally well-stocked in Mexico, it is a good idea to keep your tank topped up as detours and unexpected delays are common.

Get Mexican Auto Insurance

Having Mexican auto insurance is mandatory in Mexico, and your foreign insurance will not cover you. AAA and MexInsurance are two companies that offer Mexican auto insurance.

Frequently asked questions