Best Vehicle Insurance In Mexico

If you're planning a trip to Mexico and intend to drive, it's important to know that you'll need Mexican auto insurance. Your US or Canadian insurance won't be recognised in Mexico, so it's essential to purchase a separate policy that complies with Mexican law. Mexican law requires all vehicles to have car insurance, and failure to comply can result in fines and even jail time. The good news is that there are several reliable options for Mexican auto insurance, including GEICO, Mexpro, and Baja Bound. These companies offer flexible policy terms, competitive rates, and comprehensive coverage options to ensure you're protected during your trip.

Why you need Mexican auto insurance

If you're driving in Mexico, you must have Mexican insurance for your vehicle. It's required by law. Mexican law requires all vehicles to have car insurance, and your US car insurance typically won't cover you unless you buy extra insurance, sometimes called Mexico tourist auto insurance or Mexican car insurance. If you don't comply with Mexican law, you could end up in jail.

Your US car insurance policy alone will not be sufficient to satisfy Mexican Federal Liability Law. To satisfy this law, you must buy a separate Mexican liability insurance policy from a licensed Mexican insurance company.

If you get into an accident anywhere in Mexico, you will not be able to use your US car insurance to cover the damages. As a result, Mexican authorities may arrest you and impound your car until the matter can be settled. Without a proper way to pay for damages, the process may take a while. Remember, too, that this discussion may all be happening in Spanish.

Getting into an accident is already enough to disturb your vacation. Don't let it ruin your travel plans by having an insurance mishap. The risk and consequences are too great to not purchase a policy before you go to Mexico. Luckily, it is easy and comparatively inexpensive to get your own Mexican car insurance policy.

You can buy a separate Mexican auto insurance policy from a Mexican insurance company or a US company that works with Mexican insurers. You can typically find a policy that fits your length of stay. For example, Allstate and Geico can secure Mexican car insurance policies that will cover trips to Mexico lasting from one day up to one year.

You will pay a premium that is separate from your US car insurance policy. Your coverage will begin and end on the dates you select. If you drive outside of your policy effective dates, you won't have coverage, and you will be subject to the fines and penalties of Mexican law.

What does Mexican car insurance cover?

Mexican law requires all vehicles to have car insurance. If you're driving in Mexico, you must have a separate Mexican insurance policy for your vehicle, which is required by law. Your US car insurance will not typically cover you unless you buy extra insurance, sometimes called Mexico tourist auto insurance or Mexican car insurance.

Liability Insurance

Liability insurance 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 (up to a certain amount). For example, Allstate and Geico can help you get up to $500,000 in liability coverage for trips into Mexico, while The General can help you get up to $300,000.

It is recommended that you buy the maximum amount of liability coverage available. This is because Mexican liability insurance works differently than in the US. If you cause an accident that results in a death, Mexico's Federal Liability Law states that your insurance must pay the Mexican state's minimum wage multiplied by 5,000, plus funeral expenses, per person. The Mexican state can then multiply this amount by up to five times (in some Mexican states, a judge will determine the limit to be paid).

Physical Damage Coverage

Physical damage coverage pays out if your car is stolen or damaged by problems such as a car accident, vandalism, fire, flood, hail, or falling objects.

Medical Payments

This covers medical expenses for you and your passengers if you are hurt in a car accident.

Legal Assistance

If you get into a car accident in Mexico, legal assistance will pay for legal expenses such as an attorney, court costs, and bail bonds.

Roadside Assistance

If your car breaks down in Mexico, roadside assistance will pay for services such as a tow truck, jump-starting a battery, a locksmith, or changing a flat tire.

Medical Evacuation

If you are injured in a car accident, medical evacuation will pay for emergency transportation to a hospital or treatment facility.

Where can I buy Mexican auto insurance?

If you're planning a trip to Mexico and intend to drive there, you'll need to purchase Mexican auto insurance from a Mexican insurance company or a US company that works with Mexican insurers.

• AAA through Grupo Nacional Provincial S.A.
• 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
• Baja Bound

You can typically buy Mexican auto insurance from a company that works with Mexican insurers, such as Baja Bound or Geico. It's a good idea to compare Mexican car insurance quotes from a few different companies to find the best price and coverage options.

When buying a Mexican car insurance policy, you will need the following:

• The dates you will be travelling in Mexico
• Where you will be travelling in Mexico
• Your US car insurance policy number (you can find it on your proof of insurance or policy)
• 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

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 and stay safe:

Understand the Requirements for Driving in Mexico:

• Obtain Mexican Car Insurance: Mexican law requires all vehicles operating on federal roads to carry third-party liability insurance to cover damage caused in an at-fault accident. Your US or foreign insurance policy will not be sufficient, and you may face legal consequences if you don't comply.
• Get a Tourist Card (FMM): Visitors to Mexico are required to obtain an FMM (Mexican Tourist Card), which you can get at the border or online. If you get it online, make sure to have it stamped at the border or an immigration office to be valid.
• Acquire a Temporary Vehicle Import Permit (TIP): If you plan to travel beyond the Mexico Free or Border Zone, you will need a TIP. This zone includes areas along Mexico's northern and southern borders, such as a large portion of Sonora, the entire Baja peninsula, and areas within 12 to 16 miles from the border in other Mexican states. Driving outside this zone without a TIP can result in vehicle confiscation and legal repercussions.

Familiarize Yourself with Driving Customs and Conditions:

• Speed and Distance Measurement: In Mexico, speed and distance are measured in kilometres. 1 kilometre is more than 1/2 a mile. For example, if you're driving at 80 mph, your dashboard will show 130 km/h.
• Fuel Measurement: Gasoline is sold by the litre in Mexico. 1 litre is a little more than 1/4 gallon. It's a good idea to calculate how many litres your fuel tank can hold to avoid being scammed at gas stations.
• Highway Driving: On two-lane highways, the shoulder is often used as a third lane for slower-driving cars. Drive on the shoulder if you're not passing someone, and move back onto the main lanes when passing.
• Signalling: Most drivers in Mexico don't use their turn signals. If a car in front of you signals left on a straight road, it usually means they are letting you pass, especially on highways where passing on the left is common. Do not signal left if you intend to switch lanes, as this indicates to the car behind you that it's okay to pass.
• Stop Signs: In Mexico, stop signs are often treated as yield signs. A complete stop at a stop sign without oncoming traffic can lead to an accident, as drivers behind you may not be expecting it. Only make a complete stop if you are merging onto a busy street with heavy traffic.
• Lane Shifting: In cities with multiple lanes, be prepared for sudden lane shifts by other vehicles. Stay alert, especially when a motorcycle or car wants to make a left turn from the far-right lane.
• Speed Bumps (Topes): Speed bumps are common in Mexico and can be quite tall. They are found on highways, neighbourhood streets, busy roads, and even inside parking lots. Slow down when approaching them to avoid damage to your vehicle.

Stay Informed and Prepared:

• Refuel and Rest Often: Refuel your vehicle when your fuel tank is half full, as gas stations can be scarce in some areas. Take breaks to stretch your legs and avoid fatigue.
• Carry Essential Items: Bring bottled water, tissues or toilet paper, and some small change for bathroom tips.
• Use Caution When Relying on Navigation Apps: Google Maps or Waze may not always be accurate or up-to-date, so plan for potential delays. Consider printing out directions beforehand, especially for remote areas with poor internet coverage.
• Be Wary of Brake Lights: Keep a safe distance from other vehicles and stay alert, as some cars may have malfunctioning brake lights.
• Enroll in the Smart Traveler Enrollment Program (STEP): This free service provided by the US Department of State Bureau of Consular Affairs will send you safety alerts and help the US Embassy contact you in case of emergencies.
• Check Travel Advisories: Stay informed about COVID-19 updates, security alerts, local laws, vaccination requirements, currency restrictions, and visa requirements before your trip.

Understand the Unique Challenges in Certain Regions:

• The Yucatán Peninsula: This tourist mecca offers well-maintained roads, good signage, and ample petrol stations. Driving here is generally straightforward and a great way to explore the area.
• Chiapas and Oaxaca: These states present more challenges with poorly maintained roads, frequent potholes, and numerous speed bumps. Locals may also set up makeshift roadblocks to sell wares or extract money from travellers. Allow plenty of time for your journey and try to avoid driving at night.
• Zapatista-Controlled Territory in Chiapas: The Zapatistas are a separatist movement aiming to secede from Mexico. They have cut down trees on main roads and restricted movement to "foreign" Mexico. Be prepared for potential diversions and delays in this area.

How Mexico vehicle insurance works

If you're planning a trip to Mexico and intend to drive there, it's important to understand how Mexico vehicle insurance works. Here's a comprehensive guide to help you navigate the process:

Understanding the Requirements

Mexico has specific insurance requirements for vehicles operating within its borders. Mexican law requires all vehicles, including cars, motorcycles, RVs, and ATVs, to carry a certain level of insurance. This insurance must be purchased from a Mexican insurance company or a US company that works with Mexican insurers. Your US or Canadian insurance policy will not be accepted, and it is your responsibility to ensure you have the necessary coverage.

Purchasing Insurance

You can purchase Mexican vehicle insurance before your trip or when you arrive in Mexico. It is recommended to buy insurance before your trip to ensure you are properly covered as soon as you cross the border. When purchasing insurance, you will need to provide information such as your travel dates, destinations within Mexico, US or Canadian insurance policy number, driver's license details, vehicle information (year, make, model, VIN, and license plate number), and any other relevant details.

Coverage Options

Mexican vehicle insurance typically offers different coverage levels, including basic liability, standard, and extended plans. Basic liability insurance covers third-party damages and injuries, while standard and extended plans may include additional coverages such as collision, theft, vandalism, medical payments, legal assistance, and roadside assistance. It is important to review the coverage options carefully and choose a plan that suits your needs.

Claims Process

In the event of an accident or incident in Mexico, it is crucial to follow the insurance provider's claims process. Remain at the scene, contact the insurance company's helpline, and provide them with the necessary information. They will guide you through the next steps, including dispatching an assessor and arranging legal or medical services if needed. Keep in mind that claims must be made while you are still in Mexico, and documentation such as a police report and relevant receipts may be required.

Choosing a Reputable Company

When selecting a Mexican insurance company or broker, it is important to consider their reputation and financial stability. Look for companies with high ratings from agencies like AM Best, as this indicates their ability to handle claims effectively. Additionally, choose a company with a strong local support system in Mexico, including English-speaking service agents, to ensure smooth and efficient handling of any incidents or claims during your trip.

By following these guidelines and understanding how Mexico vehicle insurance works, you can ensure that you have the necessary coverage and support during your travels in Mexico. Remember to review the specific requirements and options carefully to make an informed decision.

Frequently asked questions