Auto insurance coverage valid in Mexico

Some auto insurance policies might contain wording that leads you to believe that you are covered in Mexico, but this out-of-country cover, if any is included, is limited to damage to your own vehicle and certain things you may be carrying inside your car.

The most important aspect of an auto insurance policy when you’re driving in Mexico is third-party liability, because claims for damages by third parties can be substantial.

Third party liability abroad needs a special policy

By law, US and Canadian insurers can’t provide third party liability and this coverage must be underwritten by a Mexican insurance company and be specially formed to be legally valid under Mexican law.

Third party liability covers any losses your actions might cause to others. These most commonly include (but are not limited to):

• damage to another person’s vehicle, or their property;
• injuries to another person in an accident; and
• damage to public property (e.g. road structures).

How much liability insurance is needed in Mexico?

While no one expects to be involved in an accident —and far less a serious one— when arranging coverage, it’s worth considering the worst-case scenario: that you accidentally cause serious injury or death of another person as a result of a vehicle accident.

Here in Mexico you can be made financially responsible to the other party (or their kin) if you unintentionally cause the death of another motorist, and reputable insurance brokers suggest that you have no less than US$300,000 in liability insurance and they will usually recommend US$500,000.

Get a policy covers more than just accidents

There are other factors besides financial liability to consider when you are arranging your auto insurance when you drive in Mexico.  The three most important aspects to consider when choosing a policy are:

Legal representation

If you’re involved in a serious road accident in Mexico, it’s common for those involved to be detained until the situation is assessed, fault is determined, and financial responsibility is assigned.

Due to this process, the legal representation which better policies offer will provide you with:

• local assistance to help you deal with the complex paperwork and procedures (in Spanish, and liaise with you in English);
• a fund to post a bail-bond and get you released as soon as practicable; and
• a legal team to negotiate on your behalf if fault and responsibility is assigned to you.

Medical coverage

If you or any of your vehicle’s occupants are injured in an accident, medical payments might or might not be covered. Medical coverage on auto policies vary and you’ll need to compare the choices to ensure you have an adequate amount of coverage, per person and in total.

Assistance for accidents and vehicle breakdowns

When an accident happens, what really matters is the practical support provided by an insurance policy.

If your vehicle breaks-down, or in the event of a minor accident which leaves your car damaged but readily repairable, a roadside travel assistance plan offered by the insurer can be an enormous benefit to you.

Roadside assistance can be purchased as part of an auto insurance policy and offers very practical help in what can be stressful and confusing circumstances.

• In the event of a breakdown or minor accident which leaves you stuck, help with things like gas delivery, a flat tire, a locksmith, or a tow truck to a nearby garage for essential repairs can be a phone call away.
• In the event of an accident, assistance can provide practical support and liaison with key personnel to help you recover more quickly and get back on your road trip as soon as practicable.

Learn more about driving in Mexico

Mexperience offers articles with insights to help you prepare for your road trip and drive confidently in Mexico.

• Insuring your vehicle for driving in Mexico
• Importing a foreign car or other vehicle to Mexico
• Getting a Temporary Import Permit (TIP) for your vehicle
• Your Mexico road trip checklist
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico

It’s possible to lose a great deal money (and even a life’s savings) if you are not insured or discover following an unforeseen event or natural disaster that your policy was not adequate or that the insurer underwriting the policy was not financially sound.

This article highlights practical aspects related to property insurance in Mexico to help you understand home insurance policies and choose coverages which are suitable to your needs and that will be adequate in the event you need to make a claim.

Home insurance if you own or rent in Mexico

You can arrange property insurance whether you own or rent a home in Mexico.

If you own a home in Mexico, you can insure the physical structure of the property as well as arrange coverages for loss of personal property at the home, and third party liabilities.

If you are renting a home in Mexico, you cannot insure the physical structure but you can arrange coverages for loss of personal property situated at the home and third party liability in relation to people visiting or working in your rented home.

Uninsurable residential structures in Mexico

Note that certain physical structures, especially risky ones like wood-framed buildings and palapa (palm or straw) roofing structures are usually explicitly excluded from all policies; if you must insure these, be prepared to pay a high premium to have them included in your coverages (it’s usually uneconomic to do so).

“All Risks” —vs— “Named Perils” insurance coverages

Some policies will offer “All Risks” cover, a form of comprehensive coverage that will pay out in the event of most incidents involving your home.

The better policies offer the option to cover catastrophic incidents such as hurricanes, floods, wind, fire, volcanic eruptions, and earthquakes; surprisingly, some Mexican insurers are unable to underwrite some of these events, although specialist US insurers will.

To lower the insurance premium, you can elect to limit certain “Named Perils” assigned to your policy instead of taking All Risks coverage.  When you do this, certain events will be covered while others will not.

Less expensive policies are often the “named perils” type—even though on the surface they might appear to be comprehensive. A good broker will make a clear distinction between these two during its sales offer and demonstrate the cover and price differences between options.

Property insurance —vs— property title insurance

Note that property insurance and property title insurance are different.

Property insurance coverages are paid annually and can underwrite the physical property on the land, your personal possessions at the property, and may also cover third party liabilities related to the property.

Property title insurance is a one-time insurance payment you can buy when you purchase a property that mitigates risks related to unforeseen issues or liens associated with the property’s title.  It must be purchased before you close the property transaction.

Obtaining coverage for all your dwelling spaces

Your policy should cover the main structures of your home space and provide sufficient compensation to rebuild those structures if necessary.

Optionally, you may also cover carports, guesthouses, and other outbuildings including garages, games rooms, cabañas, equipment rooms, bungalows, stand-alone studios, etc.

Some homes in Mexico are composed of several structures (for example, several buildings situated around a central courtyard) and in these circumstances, the insurance rule is usually: everything that is directly connected is treated as one building. Anything that stands alone is considered an additional building.

Insuring your personal possessions situated at the property

A good insurance policy will cover personal goods owned by you, your guests, or domestic employees when they are working at your residence. Coverage for theft of personal property varies, depending on whether it is “scheduled” (specifically listed) or not.

Some policies include coverage for certain valuable property, such as cash, securities, jewelry, fine arts, sporting equipment and property used for business purposes—up to certain limits.

If you need higher limits for specific items of property that you own, this option is available by listing them on a special section of the application and making them a type of ‘named risk.’

Third party liability protection in relation to your home in Mexico

Good home insurance policies provide coverage for personal liabilities to third parties to protect you and your family against any lawsuits or demands presented against you.

For example, if a wall collapses and injures someone who was near it at the time; or the neighbor’s property is damaged due to a falling tree from your garden, a good insurance policy will cover your liabilities in these circumstances.

Policies can also cover injuries to people visiting or working in your home, for example if your housekeeper or gardener injure themselves on the job.

Loss of home use, or rental income

If you rely on your property for work, or to bring in a rental income, you may also choose to include a “loss of use” risk coverage in your policy.

This cover provides for additional living expenses if your house is damaged and cannot be lived in for a time while it’s repaired or rebuilt.

If you rent out your home and rely on this for income, you could take the additional option to cover rental income loss, whereby you are compensated for lost income if your home becomes damaged and unavailable for rental to others (you will need to provide evidence that a rental contract exists).

Rent liability coverage

Some home insurance policies exclude coverage when your home is rented (even occasionally or part time) or add a hefty supplement to the policy’s premium to include renter’s liability as part of the coverage.

If you rent out your home in Mexico (or intend to at some point) and want your coverages to be valid when others are renting the property, check with the provider you get a quote from to see if renter’s liability coverage is included in the premium, or how much more you need to pay in premium to include it.

Insuring your condominium unit in Mexico

Condominium associations in Mexico are supposed to keep a blanket commercial policy in place to cover the entire property.

Typically, this provides insurance coverage for the building as well as communal elements of the property such as pools, garages, the interior walls, fixtures, fittings, and outbuildings associated with the development, or fraccionamiento.

The wording of these commercial insurance policies tends to be very limiting in what they will cover within the terms of a blanket condominium insurance policy and it’s prudent for individual condo owners to arrange separate insurance to mitigate expenses of paying for certain types of damage.

Exclusion of third party liability

Many Mexican-issued insurance policies exclude third party liability and renter’s liability from the standard policy and charge a substantial premium to include these as optional extras. This places an obligation on condominium owners to cover elements not included by the commercial policy on a unit-by-unit basis.

Liability to adjacent properties in the building

Don’t be lured into a false sense of security by condominium blanket coverages: in a situation where an event that happens in your condominium affects an adjacent condominium —for example, a water leak in your shower room that damages your neighbor’s room below— you will be made liable for repairs to yours and your neighbors’ damages.  Having a unit-based insurance policy in place will protect you from the expenses of these sorts of events.

Check the documentation

The key documents to check on your Condo contracts are the ‘Byelaws’ and ‘Covenants’ associated with your condominium property: these are the documents that contain the small print regarding what is and what is not covered by the condominium building’s ‘blanket’ insurance program.

Insurance for beachfront and waterside property in Mexico

It’s possible to insure property near oceans, rivers, and lakes—although premiums may be higher to reflect the additional risks which may arise from storms and flooding that can be more common in these areas.

The online insurance application form will ask you for the Mexican postal code (zip code) of the property, and this is mapped to detailed topographical and statistical data which enables insurers to assess the hydro and meteorological risks that are related to the property and quote accordingly.

Some companies may refuse to insure properties very close to the sea or other bodies of water if historical statistical data show that it’s unviable, although policies may be available from different brokers that will quote for coverage in certain acute circumstances—with higher premiums to reflect the increased risk.

Insurance for homes situated on Mexico’s Yucatán peninsula

If you own —or intend to own— a home situated on Mexico’s Yucatán peninsula, you’ll discover that getting your property insured is more difficult than if it’s situated in other regions of Mexico.

The Yucatán region’s geology, coupled with unique hurricane risks, has made it either difficult or prohibitively expensive to insure homes in this area. However, our insurance associate MexPro offers home insurance coverages in the Yucatán region.

Watercraft insurance in Mexico

A few people live on their boat moored in Mexico, while some people who own homes here near a body of water might also own a boat, a jet ski, or a yacht—and these ought to be properly insured while they are situated in Mexican waters.

The premium you pay for insurance of your watercraft is based on two factors:

• the number of days the craft will be in Mexico, and
• the value of the watercraft.

Personal injury and third-party liability cover should also be taken out in case you become involved in an accident on the water. The better policies also offer legal assistance and ‘bond’ cover in addition to the injury and liability cover.

In legal terms, accidents involving watercraft where people are injured or killed are treated in similar fashion to serious car accidents in Mexico.

If you own watercraft and and spend extended periods of time here, or live here, an annual policy may be a better investment than a short term policy covering specific dates.

Check with the broker providing your quote to find out what options they have for year-round coverage of your watercraft in Mexico.

Learn more about property insurance in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Choosing a home insurance policy
• Insuring domestic help and workers in your home
• Third party damage cover
• Latest articles about property insurance in Mexico
• Get a no-obligation online quote for home insurance in Mexico

Policy wording for Mexican property insurance

Property insurance policies sold in Mexico differ from policies you are used to seeing in your home country. The policy wording is unique, and the types of coverage offered by insurance companies is different here, so some things that you would expect to be included as standard, might not be present if you purchase your insurance in Mexico directly from a Mexican insurer.

Familiar policies, fully underwritten in Mexico

To help foreign residents who own property in Mexico to purchase insurance products familiar to them, specialist companies based in the U.S. have developed property ownership insurance policies which reflect the wording, terms and covers included on US and Canadian policies.

The insurance policy is fully underwritten by a Mexican insurance company (by law, it has to be this way), but the U.S. companies work in partnership to create a product that is familiar to those purchasing insurance in the US and Canada, and which is legally sound under Mexican law.  The premiums are paid in US dollars and any pay-outs are also paid in US dollars.

Policies to suit your situation and needs

The home insurance policies available in the market offer a wide range of options, and you can choose what to include and what to exclude as part of your coverage plan.

Depending on where your home is situated in Mexico, the risks (and coverage) you need to insure against will vary. For example, homes near the coast should be insured against hurricane damage and earthquakes, whereas inland only cover for earthquakes (and perhaps flooding, if you home is situated near water) will be needed.

Home insurance policies cover a wide range of eventualities and the most common coverages include reimbursement of costs related to:

• Damage caused by hurricanes and earthquakes
• Damage caused by and wind storms and floods
• Injuries to housekeepers and other workers in your home
• Burglaries and vandalism
• Damages to third parties, e.g. falling trees
• Coverages for owner-specific liabilities, e.g. in condos

You can cover all risks or named perils

Policy options and choices include all risks versus named perils, whether to cover assets like outbuildings surrounding the main property, and the option to insure your personal goods.

• The better policies will include coverages for third party liability: this is  helpful in the event that someone who does not live at your home meets with an accident on your property, or where some damage is caused to a neighbor, e.g. by a falling tree.
• This article about third party liability in relation to your home shares more details.
• Other considerations to take into account when you’re assessing your insurance needs include purchasing cover for any watercraft you may own, as well as special arrangements for condos, where some liabilities are shared and some are owner-specific.

Regardless of the type of insurance you choose, the insurer underwriting the policy is far more important than the broker or agent selling you the product: in the event of a claim, the integrity of the underwriter will determine pay-outs, not the insurance broker.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Some people cross the border by road into Mexico for short periods —to work, do business, or to shop— while others will travel further into the country, traveling beyond the 35 km ‘free zone’.

US/Canadian insurance and third parties

Regardless of whether you stay in the ‘free zone’ or travel further into the Mexican interior, any coverage your US or Canadian insurance policy provides will not cover you for injury or damages your drive might cause to third parties.

They don’t because by law, they can’t: foreign insurance policies hold no legal jurisdiction in Mexico.

As a result, a brisk trade exists in the provision of specialized insurance policies to cover drivers, their vehicles, passengers, and property while the vehicle is in Mexico.

Insurance policies in English, valid in Mexico

These insurance policies are crafted in association with Mexican insurance companies, so the policy is presented in English, offered to customers with vehicles registered in the USA or Canada, and sold by insurance brokers who are licensed north of the border—but the insurance policy is underwritten by a licensed Mexican insurer, and thus legally valid in Mexico.

Driving uninsured in Mexico can lead to problematic situations arising in the event of a mishap. If you become involved in a serious car accident, all the drivers present will be arrested pending investigations, even those not at fault.

A complex legal process will ensue: if you are not adequately insured, you will have to raise your own bail bond and if you are judged to be at fault, you will become personally liable to third parties, including payment for any damaged road infrastructure.

Having an adequate insurance policy in place will settle your third party liabilities, and better policies will also provide legal counsel and bail bond payment as part of the coverages.

Online quotations, instant coverage

The process of choosing an insurance policy for driving in Mexico that suits your needs is made simple and straightforward by online quotation systems which capture key information about your vehicle and requirements, and provide a live price quote.  Insurance cover can be arranged instantly online and, in the event you need to make a claim, you will be able to dial a toll-free number and talk with English-speaking staff.

Learn more about driving in Mexico

Mexperience offers articles with insights to help you prepare for your road trip and drive confidently in Mexico.

• Importing a foreign car or other vehicle to Mexico
• Getting a Temporary Import Permit (TIP) for your vehicle
• Insuring your vehicle for driving in Mexico
• Your Mexico road trip checklist
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico

The ‘Hoy No Circula’ program

This program, that translates to ‘today (these vehicles) don’t circulate’ was originally introduced as means to reduce the number of cars circulating on roads in the Mexico City area. The restriction zone also encompasses 18 municipalities in the State of Mexico which are adjacent to the capital.

Restriction zone: View an illustrated map of the restriction zone

The restrictions are determined by three factors:

• the level of emissions generated by a vehicle, determined by a code on a holographic sticker on the vehicle; and/or
• the last number on the vehicle’s license plate; and
• environmental contingencies — enacted when air quality levels deteriorate in the Hoy No Circula zone.

‘Hoy No Circula’ Restriction Zone

The Hoy No Circula program is in force in all 16 Delegations of Mexico City (Google Map) as well as 18 Municipalities in State of Mexico (Google Map).

Restriction zone: View an illustrated map of the restriction zone

Mexican-plated vehicles not registered in these states and foreign-plated vehicles traveling in the restricted zone are not exempt from the rules.

Foreign (plated) vehicles

Any vehicle that does not have plates issued in an area where Hoy No Circula applies, whether the car is Mexican-plated or foreign-plated, is considered ‘foreign’ according to the rules.

‘Foreign’ vehicles cannot circulate:

• at least one day of the week, Monday through Friday —from 5 a.m. to 10 p.m.— determined by
• a combination of the last number on the vehicle’s license plate and the code on its holographic vehicle emissions sticker.
• See the section below about ‘holographic sticker codes’ for more details

Furthermore:

• if your Mexican-plated vehicle does not have a holographic emissions sticker, or if your vehicle has non-Mexican plates: in addition to the above restrictions, you cannot drive in the Hoy No Circula zone every weekday morning between 5 AM. and 11 AM

Emissions test and holographic stickers

If you live in and/or intend to drive regularly in or through the Hoy No Circula zone, you will need to get your vehicle ‘verified’—an annual process that requires you to take your vehicle to an approved testing center.

After the test, you’ll be issued with a holographic sticker to place on your windshield; the number on that sticker will depend on the level of emissions the vehicle generates, and that will determine how often, and when, your vehicle can circulate in the Hoy No Circula zone.

Holographic sticker categories

There are five holographic sticker categories: 00, 0, 1, 2, and Exempt:

• If your vehicle is issued with a 00, 0, or Exempt sticker, you can drive without restrictions inside the Hoy No Circula zone, although note that if there is an environmental contingency in place, 00 and 0 stickered vehicles become restricted too;
• If your vehicle is issued with a holographic sticker bearing number 1, your vehicle is restricted one day a week depending on the last number of the license plate and two Saturdays a month—from 5 a.m. to 10 p.m.;
• If your vehicle is issued with a holographic sticker bearing number 2, your vehicle is restricted one day a week depending on the last number of the license plate and every Saturday—from 5 a.m. to 10 p.m.;
• If your vehicle is issued with an ‘Exempt’ sticker, there are no restrictions on when the vehicle can be drive in the Hoy No Circula zone;
• Use the online calendar tool to determine what days you can and cannot drive if your vehicle is not exempt.

Vehicles exempted from Hoy No Circula

Certain vehicles are exempt from the restrictions.  If your vehicle meets one of these criteria, it is exempt, and can circulate without restrictions inside the Hoy No Circula zone.

Important: Note that some of these exemptions may be withdrawn in the event of an environmental contingency in the restricted zone.

Exemptions include:

• the vehicle has been tested and ‘verified’ (see above), and has a holographic sticker displaying the number 00 or 0 on the windshield;
• the vehicle has a Tourist Pass (see next section);
• the car is solar/electric powered;
• the vehicle has Mexican-issued plates with disabled or ‘antique/classic car’ emblems on them;
• the vehicle has an ‘Exempt’ holographic sticker.
• Other exempt vehicles include: funeral hearses, federal transport vehicles, school buses, emergency vehicles, and vehicles displaying ‘trade plates’ (used by car dealerships).

Hoy No Circula ‘Tourist Pass’

If you intend to visit the Hoy No Circula zone for a defined period (or drive through it) you can apply for a ‘tourist pass’ for your vehicle.

A vehicle tourist pass:

• Exempts the vehicle from restrictions for a defined period;
• Can be requested only once every six months for 14 days each time; or twice every six months for 7 days each time
• Can be requested for 3 days during Mexico’s long-weekend holidays
• Foreign-plated vehicles can apply for the tourist pass, provided that the car was manufactured from 1993 onwards
• You apply for the tourist pass online. You’ll need to print out the two permits the system will send to you (one for Mexico City and the other for the State of Mexico) and display these prominently in your windshield when you are driving in the Hoy No Circula zone.

However:

• Vehicles less than eight years old with Mexican plates from: Mexico City, the State of Mexico, Querétaro, Puebla, Hidalgo, Guanajuato, Michoacán, Morelos, or Tlaxcala cannot apply for this pass as they can verify their vehicles in those states and obtain a holographic sticker with a 0 or 00.
• Tourist passes are suspended if there is an environmental contingency;
• Mexican- and foreign-plated vehicles manufactured before 1993 cannot apply for this pass.

Penalties for non-compliance

Traffic police in Mexico City and the State of Mexico are especially vigilant regarding this matter and are quick to pull drivers over for non-compliance.

If you drive your vehicle through the Hoy No Circula zone and you don’t have the prescribed permit or exemption, your car will be stopped, towed, and impounded (at your expense), and you’ll have to pay:

• a fine, that is determined between 20 and 30 days of UMA; plus
• towing and impoundment release fees that will add about an additional $2,000-$3,000 Mexican pesos; thus
• a violation will cost several thousand Mexican pesos (a few hundred US dollars) plus at least half a day of your life that you won’t get back—and significant hassle.

Further information

Here are some online resources about Hoy No Circula for further reference:

• Hoy No Circula information and online calendar
• Latest updates from CA Megalopolis, an integrated multi-state agency that keeps the public updated about Hoy No Circula
• Apply for a Tourist Pass online
• Tourist Pass FAQs
• Environmental contingency (air quality) news
• Vehicle verification info and testing centers

Learn more about driving in Mexico

Mexperience offers articles with insights to help you prepare for your road trip and drive confidently in Mexico.

• Insuring your vehicle for driving in Mexico
• Importing a foreign car or other vehicle to Mexico
• Getting a Temporary Import Permit (TIP) for your vehicle
• Your Mexico road trip checklist
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico

This article introduces you to property insurance choices and guides you through important considerations as you search for and choose a home insurance policy for your needs and lifestyle situation.

Principal coverages offered by insurance policies for your home in Mexico

Depending on your needs, circumstances, and budget, you can insure your property entirely or partially.

The insurance premium will depend on key variables related to the risks you want underwritten, including: the location and type of your property, its age and replacement cost, and what events you want coverage for.

You can insure your home in Mexico for:

• Structural damage caused by natural phenomena like wind, floods, earthquakes and hurricanes, as well as damage caused by acts of vandalism and burglary (owners only).
• Loss or damage of personal possessions in the event of flooding or theft (whether you own or rent).
• Third party liabilities related to owning or renting property, for examples if a tree falls on your neighbor’s house or your housekeeper is injured while working in your home (whether you own or rent).

Property insurance policies in Mexico

Property insurance policies in Mexico are different to policies sold in the U.S. and Canada. The policy wording is different, and the types of coverages offered are different, so some things that you might think are included as standard, might not be if you purchase your insurance in Mexico directly from a Mexican insurer.

To bridge this gap, specialist companies based in the U.S. have developed property ownership insurance coverages which reflect the wording, terms, and coverages typically included on US and Canadian policies.

The insurance itself is underwritten by Mexican insurance companies (by law, it must be this way), but the U.S. companies work in partnership with Mexican underwriters to create an insurance coverage that is familiar to those purchasing insurance in the US and Canada (or those who want a US-style policy), and which is legally valid under Mexican law.

Some homeowners in Mexico purchase property insurance from a Mexican insurer direct that charges premiums in Mexican pesos and pays out in Mexican pesos; others purchase from a specialist US-based company that offers US style insurance with premiums in US dollars and pay outs in US dollars.

Buying insurance for your home in Mexico

Should you buy your insurance from a local Mexican broker or a specialized US firm?  Here are some key points to consider about each route:

Buying from an insurance broker in Mexico

When you buy home insurance from a Mexican broker you will typically:

• obtain coverages sold with Mexican-style terms and characteristics, often different to those offered in the US and Canada and which may offer less coverages or have limitations you are not accustomed to;
• have policy wording presented in Spanish, so you will need to be able to read Spanish fluently or have someone translate and/or explain the policy terms to you;
• need to file insurance claims in Spanish and any discussions or disputes about claims will need to be argued in Spanish; you will need to get an interpreter to deal with claims if your Spanish is not that good;
• pay your insurance premiums in Mexican pesos and any claims will be paid out in Mexican pesos.

Buying insurance from a specialist US firm

When you buy home insurance from a specialist US firm you will typically:

• obtain coverages sold with US-style terms with the same kinds of characteristics you see on insurance policies offered in the US and Canada;
• have a policy sold and worded in English;
• be able to file claims and undertake discussions about claims in English;
• pay your premiums in US dollars with any claims paid out to you in US dollars.

Should you choose a Mexico or US based home insurance policy?

If your Spanish is good, you have a decent local insurance broker contact, and you’re satisfied with the coverages offered by a Mexican-style insurance policy, then a local insurance policy will suffice, although there’s no harm in obtaining a quote offered by US-based policies to compare coverages and rates.

We recommend that you consider the services of US-based specialists set-up specifically to service foreign-home ownership in Mexico if your Spanish is not fluent and if you don’t have much experience of buying insurance in Mexico.

It’s also important to consider that, in the event you need to claim, you will find yourself in a stressful situation, and having an insurer that has issued a policy in English, in terms you are familiar with, and covering events which you are used to seeing covered in an insurance policy will be worth any additional premium on the day you may need to make that telephone call to file a claim.

Further, US-led policies can include coverages (for example, third-party liability cover) as standard, whereas many Mexican policies do not cover these without them being specifically scheduled—and with significant additional premiums.

Learn more about property insurance in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Practical checklist for home insurance coverages
• Earthquakes in Mexico
• Hurricane season
• Windstorms in Mexico
• Latest articles about property insurance in Mexico
• Get a no-obligation online quote for home insurance in Mexico

Arranging coverages for your activities, assets and health in Mexico

Getting quotes and arranging insurance is straightforward using online services.  Use the table below to connect to insurance brokers who can give you a no-obligation quote and arrange policy coverages to suit your needs and lifestyle.

Learn about insurance services in Mexico

We have published guides to help you learn about the different insurances available to support your lifestyle including:

Auto Insurance: If you’re bringing a US or Canadian-plated car to Mexico, your home country insurance policy will not cover you for third party liability.  Getting suitable coverage for your vehicles (car, ATV, RV, motorcycle, and towed units) is straightforward and affordable, and includes services that will support you in the event of an accident.  Learn about Auto Insurance for Mexico.

Health Insurance: If you plan to stay in Mexico longer term, a health insurance plan that will give you access to health services at Mexican clinics and hospitals is an ideal way to mitigate medical expenses that can arise from accidents and illness. Learn about health insurance options for Mexico.

Medical Evacuation: If you have a good medical healthcare plan in your home country, a comprehensive Medical Evacuation insurance that will transport you from a hospital in Mexico back to your hospital, doctors and network of choice is available.  Learn about Medical Evacuation from Mexico.

Property Insurance: When you own a home in Mexico, it’s wise to keep the property insured against common risks including theft of your personal goods in the home, third party liabilities (e.g. a tree falling onto your neighbor’s property), fire, and natural disasters.  Learn more about insurance for your home in Mexico.

Travel Insurance: If you’re only visiting Mexico for a short period, travel and trip curtailment insurances are available to cover unforeseen travel and medical expenses while you’re away from home.  Learn more about travel insurance.

Consequences of driving uninsured in Mexico

If you become involved in a car accident in Mexico and you are not insured:

• you will become personally responsible for any damage to the third party’s vehicle (or vehicles, if it is determined that your actions were the cause of an incident involving several vehicles);
• the authorities will pursue you personally for costs related to the repair of the public highway; this includes things like road surface, barriers, signs, and lamp post repairs—and can get expensive;
• if someone is hurt or killed, all drivers will be arrested; if you are deemed to be responsible, third parties will pursue liability damages against you;
• the authorities may charge you with driving without third party insurance that is compulsory in Mexico.

What to look for in an auto insurance policy

Regardless of who you buy your auto insurance coverage from, you should check that your auto insurance policy includes these essential elements:

Financially sound insurance underwriter

Make sure that the insurance company underwriting your policy is financially sound. Policies from lesser-rated insurance companies might cost less, but that lower premium translates into a de facto higher-risk for the policy holders. Don’t just shop around for the cheapest policy—consider who’s insuring you to avoid surprises in the event that you need to make a claim.

Licensed broker

As all insurance policies are sold through brokers, ensure that the broker you engage with is licensed and that they provide full transparency of the policies they offer. You should be able to check the detailed terms and conditions of any policy before you are asked to buy.

Broker’s presence and infrastructure

Ensure that the broker you use is well established in the market.

‘Good infrastructure’ means that the broker has excellent customer services facilities, makes effective use of technology so that you can purchase your policy efficiently.

The policy ought to offer help and support services when you are in Mexico, in addition to the insurance coverage, to include local access numbers where you can call to make a claim, ask questions and report issues, and be able to talk to someone in English, especially if you don’t speak much (or any) Spanish.

Liability coverages, legal assistance, and bail bond

Ensure that any policy you purchase includes coverage for these three essential elements:

• Third party liability: the policy must cover third party liability, including your personal liability to any third parties.
• Legal assistance: good policies offer comprehensive legal assistance that will support you in the event of a serious accident or third-party claim.
• Bail bond: your coverage ought to include a ‘bail bond’ element that will cover payment of your bail bond if you become involved in a serious accident and are detained while the incident is investigated, and liability is assessed. If this process is protracted, the bail bond may get you released pending inquiries.

Local support when you need it most

In the event of an accident or incident and subsequent claim, the level of local support your broker’s insurer has in place in Mexico will make all the difference to you.

• The broker and their insurance company should provide easy access to local support services in Mexico so that in the event of a claim, you are able to call for help with the least amount of effort.
• They ought to offer support attended by an English-speaking service agent who will be able to manage your call efficiently and dispatch the help and support you need.
• The local support ought to coordinate all your needs including accident reporting, legal support, breakdown, and medical assistance (if you purchased these).

Breakdown and medical coverages

The better brokers will offer a comprehensive range of additional support services, which are optional, but are worth considering when you are driving in Mexico.  The two most important are:

Breakdown coverage

If your vehicle breaks down while you’re driving in Mexico, roadside recovery will provide you with the essential support you need to get your car repaired and mitigate risks of becoming stranded.

Roadside assistance may include things like delivery of emergency fuel, towing services, dealing with flat or damaged tires, locksmith support, jumpstart assistance, and provision of lodging and a rental car while you wait for your vehicle to be repaired, and repatriation to your home country in the event of a write-off.

Medical assistance on your road trip

A policy that provides medical coverage will provide round-the-clock medical assistance on your road trips, including in the event of a serious accident, land and air medical evacuation and coverages to support you and your travel companions, for example with accommodations and transport while you convalesce.

Making an auto insurance claim in Mexico

Your policy documentation should be clear about the procedure you need to undertake in the event of an accident or incident, and any subsequent claims.

Here is a summary of the most important points, which are relevant to terms on most Mexican auto insurance policies:

You must make the claim in Mexico

Some people wait until they get back to the US or Canada before making a claim, especially if it’s for something minor, for example, for bodywork or a hit-and-run incident in a parking lot. Insurance policies require you to make a claim while you are in Mexico and most will not process your claim if you wait until you return home, except in the most exceptional circumstances.

Calling the insurance helpline

The first call you make if you become involved in an accident should be to the insurance company’s helpline. In addition to registering your claim, they will be able to dispatch an insurance assessor to the scene of the accident, as well as plan for lawyers or other services to be put in place for you, in the event of a more serious accident.

They may also arrange for breakdown and medical services to attend the scene if you purchased these additional coverages, and they are required.

Paperwork and reimbursement

You may be asked to produce a police report as well as other relevant documentation as part of the claim procedure. In some cases, for example, for immediate repairs to get your vehicle back on the road, you may need to pay these out-of-pocket and get reimbursed when you return home.

Keep all receipts. Your insurance policy will be specific about what to do in these circumstances. In all cases, remember that you should lodge your claim in Mexico—don’t wait until you get back home.

Learn more about driving in Mexico

Mexperience offers guides and articles to help you prepare and drive confidently in Mexico

• Latest articles about driving in Mexico
• Your Mexico road trip checklist
• Dealing with minor and major road accidents
• Guide to driving in Mexico
• Guide to auto insurance in Mexico
• Get a quote for Mexico auto insurance

Health Insurance for Short Visits to Mexico

If you’re visiting Mexico for a short period —on a vacation or short business trip, for example— travel insurance policies which cover you for a limited time while you’re away from home should suffice.  These might be provided by your current healthcare provider (but double-check the small print), through an employer’s health plan if you’re here on a short business visit, or through purchase of a short-trip travel insurance policy.  You can learn more about short-term travel health insurance on our guide to insurance in Mexico.

Health Insurance for Extended Stays in Mexico

If you plan to be in Mexico for an extended stay, but don’t intent to take-up residence in Mexico – for example, you might take a sabbatical, a volunteer job, or plan to stay in Mexico for six months or less, then a short-term travel insurance policy might not cover your needs.  In these circumstances, you may consider a private health insurance policy that covers you locally and, if you retain health coverages in your home country, you might also consider taking out a medical evacuation plan in the event of a serious medical incident that requires you to be flown home for treatment and recovery.

Health Insurance for Foreign Residents in Mexico

If you intend to apply for, or have, legal residency in Mexico, a travel insurance policy won’t be valid as these are designed for people who come to Mexico for a short defined period and return to their country of residence.  If you have health insurance cover in your country of residence, the policy might cover you if you’re living abroad (but probably won’t) and in most cases you would need to evacuate back to your home country to avail yourself of any coverages.  Therefore, if you plan to reside in Mexico, you should consider health insurance coverages that will be valid and provide adequate care for your needs.  Here are the options:

Mexico’s IMSS Medical Insurance

Foreign residents (temporary or permanent) can apply for the Mexican public healthcare insurance system known an IMSS on a voluntary basis which provides access to certain doctors, clinics and hospitals in Mexico.  Some medications are also covered under this plan.  Coverage costs depend on your age; restrictions and limitations apply and, like all publicly-funded healthcare systems, patient demand is usually higher than the supply of services, so you may have to wait for care. (Note also that people who are enrolled in IMSS through an employer get priority over those who enroll voluntarily.)  This article explains the IMSS medical insurance system in Mexico.

Private Medical Insurance in Mexico

Most foreign residents who can afford to do so will take out a private medical insurance plan that covers their personal needs and gives them direct access to private doctors, clinics and hospitals in Mexico.  Policies are crafted to the individual situation of the person, couple, or family, and premiums depend on things like your age, term of coverage, coverages included, and the deductible you are willing to pay in the event of a claim.  You can complete this health insurance request and our associate will contact you personally to discuss your situation and needs, and provide a no-obligation quote for you to review.

Medical Evacuation from Mexico

If you are resident in Mexico and continue to have health coverage in your home country then you might consider a medical evacuation plan to enable you to get home for treatment and to convalesce close to your own doctors and family in the event that you experience a serious accident or health event (e.g. heart attack) while you are here.  Note that medical evacuation insurance coverages only cover evacuation costs in serious cases and so you’ll need to get routine or non-critical health matters attended to in Mexico.

Who is eligible for Medicare

Medicare is only available to legal residents of the USA who are of a certain age (or with specific medical situations).  Here are some helpful links for further research; we also recommend you talk to your insurance broker or healthcare providers about your individual situation.

• This Medicare page contains an eligibility questionnaire, and
• This page on the Medicare Interactive website describes the Medicare situation for those who live abroad; and
• This page on the Medicare website describes Medicare policies when outside of the U.S.

Access to Medicare outside of the USA

Outside of the 50 States and the District of Columbia, Medicare is only available in Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.

Medicare may pay for specific types of medical care in a foreign country if a foreign hospital is closer to the nearest U.S. hospital should a medical emergency arise while you’re in the U.S., or traveling through Canada between the continental U.S. and Alaska; or if you live in the U.S. and the foreign hospital is closer to your home than the nearest U.S. hospital that can treat your medical condition.

If you’re traveling on a ship, Medicare might pay for medically-necessary services provided the vessel is not more than 6 hours away from a U.S. port.

In all cases, Medicare drug plans don’t cover prescription drugs you may buy outside the U.S.

You can get full details about the policies and coverage here on the U.S. Medicare official website.

Alternatives to Medicare when you’re in Mexico

When you’re planning to live in Mexico and need to consider health insurance coverages, there are several options you can consider.

Mexico’s IMSS coverage

As an alternative to Medicare, some foreign residents in Mexico opt to take Mexico’s government-sponsored IMSS health coverage under an insurance program that charges based on age-brackets; typically between US$50-$70 per month for someone of retirement age.  Conditions and exclusions apply, and you must be a legal resident of Mexico to avail yourself of this coverage.

Private medical insurance

Private medical insurance is widely available in Mexico, with policies priced depending on the coverages you seek, your age, health, and medical history.

Medical evacuation insurance

If you’re only in Mexico for short periods, and you have coverages which give your healthcare options in your home country, you might consider a medical evacuation insurance plan to help you get back home in the event of medical emergency.

Discover options for healthcare coverages in Mexico

For details and descriptions of the various healthcare coverages available to foreign residents, read our article about Health and Medical Insurance Options for Mexico that includes options for short visits, extended stays, and long-term residency.

Mexico’s provinces, especially those colonial towns and cities that are within an easy drive of Mexico City, are well stocked with aging homes, many of which were constructed between the early 1950s and late 1970s—although some also date back to the colonial era.  They stand today in silent witness to eras long past and their owners (or heirs) remain custodians of these properties, responsible for their upkeep.

The idyllic countryside home in Mexico

These homes —typically country-style houses with attractive and colorful landscaped gardens, a swimming pool, and a terrace to while away long evening conversations with friends and family— often served as second homes owned by those holding significant professional, government, or corporate appointments, or by families with wealth bequeathed through generations.

Long before online marketplaces offered to match empty homes with potential renters, these properties would remain mostly vacant, save for the gardener and housekeeper who would take care of matters until the owners and their family and friends descended upon the property at weekends, and during school holidays, as a form of ritualistic retreat into the Mexican countryside.

The colorful gardens, the charming views, the refreshing pool, the invigorating morning air, and the laidback feel of the Mexican countryside extended a helpful escape from urban routines, and provided open spaces for children, their siblings and friends to play and etch some additional memories into the journey of their childhood.

Shifting sands across the generations

Forty or more years later, the lives and situations of the owners and their children (or grandchildren) are often far removed from the memories that echo in the rooms and gardens of these old properties.

Some of these owners move to their country home when they retire, or when a spouse dies. Those with generous pensions may live out the remainder of their days in the countryside, with family visiting at weekends and holidays; whereas others with less cash to throw around tend to rent rooms or bungalows on the property to generate additional income and cope with the expenses of managing a large country home.

Some owners have turned to online marketplaces like Airbnb to rent out these old houses, although many discover that doing this imposes significant demands that are not readily apparent to novice proprietors, and they might decide after some experience in this market that the effort required to deal with tenants —along with a whole raft of special challenges that come with renting out older houses— is not worth the net income derived from embarking on the endeavor.

The demands of owning older houses in Mexico

Anyone who owns or occupies a country house with a large garden and a swimming pool knows that these require constant attendance, and structures that remain empty or unoccupied for extended periods often decay in haste, however keen the hired housekeeper or gardener might (or might not) be.

In situations where the original owners have died, the estate usually passes into hands of the children, who now assume title and responsibility for the spaces where they once played unburdened by the weights of adulthood and property management.

They begin to discover that houses which might be listed for sale at online listing portals for several million pesos can call for hundreds of thousands of pesos in ready cash every year to upkeep.

These aging properties with their extensive gardens, pools, and outbuildings tend to hold less interest in the everyday lives of the original owners’ children and grandchildren usually because the offspring have neither the free time nor the economic means to inhabit them as they and their parents did during the era of their childhood.

Priorities shift in unforeseen ways and negotiating use of the space with siblings (and their own families), as well as arguments over the running costs and stewardship of the property adds to the complexity of holding title.

Quandaries can emerge for the present owners of these aged homes, for example:

• for some, it’s emotionally difficult to sell and accept the passing of one’s life time;
• disagreement about what to do with the property may exist between family members;
• legal documents might not be in good shape after parents die, making a sale more complex;
• arguments may ensue about the distribution of costs for essential upkeep; and
• heirs might not agree on the price to sell at, or whether to sell at all, nor how to share occupation of the property in the meantime.

And thus, homes which were joyful retreats of weekend cheer and a place to while away school holidays might now lay mostly unoccupied, echoing with memories and ghosts of a lifestyle passed, and an era long departed.

These types of situations serve as reminders that properties, in kind with their owners, pass through cycles and that the habits and spoils of one generation are not promised to another.

Buying older properties in Mexico

For potential buyers, some of these properties offer attractive plots of land with mature trees and fine views—but buyer beware, there are more than just ghosts and memories lurking in the walls and foundations of older properties.

Experienced buyers shopping for an older home know that they’ll need to make a capital outlay over and above the agreed sale price to make repairs and bring structures and interiors up to date. They’re also mindful that the attention required to maintain and secure the property doesn’t go away, even after a refit.

The negotiated price ought to reflect the investment that will be required to restore the property’s structures if these have fallen into decay, with additional provision added for contingencies. Potential owners ought also to reflect on their own situation and intentions regarding the property and its location, considering their life stage, as well as current and future needs.

Some people argue that buying vacant land and building a home on it using new materials, the latest construction techniques, and applying modern building standards to one’s own design is preferable to taking ownership of an older home.  By the same token, older homes have stood the test of time; tend to be situated in established neighborhoods with ready access to local services and amenities, can occupy exceptional plots of land that may be difficult to find elsewhere, and have mature gardens with trees and other plants that may otherwise take many years to grow and flourish.

When purchasing an older home, especially where several heirs may share ownership, additional patience and flexibility will probably be needed as the decision-making process to sell is inevitably met by objections and discussions internally—deliberations which buyers tend to be oblivious about, and are often the core reason why a seller doesn’t immediately accept a full asking-price offer.  If one heir has a strong character and can steer the family into a constructive decision, this can help to expedite the transfer of the property to the buyer.

The cycle doesn’t stop with your purchase

As new buyers take possession of their provincial retreat, they begin to breathe new life into the spaces—remodeling, redecorating, and planting fresh flowers and saplings that will grow along with a new generation of people who muster and dwell together in these spaces.

Wise owners will make suitable provision for the asset without delay and take into consideration the changing cycles that touch all our lives, regardless of circumstance.  Being cognizant of this —especially if your heirs are or might be abroad— helps to consider the effects of the passage of time beyond one’s own.

Making appropriate provision and leaving instruction to others in matters of passing the torches you carried from one generation to another is part-and-parcel of responsible land and property custodianship in Mexico.

Learn more about property management in Mexico

Mexperience publishes a range of free eBook guides about property and real estate in Mexico:

• Changing cycles of neighborhoods in Mexico City
• Charms and compromises of countryside living in Mexico
• Key factors to consider as you plan your lifestyle in Mexico
• Learn about home maintenance and security in Mexico
• View the latest articles about real estate in Mexico
• Comprehensive guides to buying and selling real estate and renting property in Mexico

Protect your personal items and defend against litigation

Although home insurance is not obligatory by law in Mexico (if your property is mortgaged, the lender may insist the property is covered), it’s prudent to factor-in a property insurance policy to your annual budget to protect your assets and, importantly, to defend against third party liabilities.

Third party liability in relation to home ownership doesn’t seem as obvious a risk as it is with driving a car, but in the event of an accident or mishap involving your property, your liabilities as home owner to third parties will become apparent.

Storm damage can leave you liable

Consider the trees in your garden. Trees falling in a wind storm can come down with tremendous force, and will easily cause material damage to your own property—and possibly to your neighbor’s. In acute cases they can cause bodily harm or fatalities.  Mexico experiences stormy days, even in the highlands away from the coasts, and some of those storms will cause trees to fall down.  Garden walls can also be subject to sudden and unexpected collapse, especially during an earthquake, or if they are old or have weakened foundations.

Condo unit ‘bloc’ coverages are limited

A common situation where homeowners unwittingly become exposed to liabilities is when they own a condominium, or live inside a gated community. They think the insurance policy —paid for through their Home Owner Association fees— that covers the building or the estate also covers them personally.  It usually doesn’t.  For example, when a water leak from the kitchen or shower room in your condo causes damage to units below yours, the repair bill becomes your responsibility.

Domestic workers and accidents

Another situation where homeowners can become liable is in relation to the domestic help they employ.  A lot of foreign residents in Mexico hire maids and gardeners.  If your maid falls down the stairs when she’s cleaning, or your gardener hurts himself while working in your garden, you become responsible to them in those situations.  Read this article to learn more about insuring domestic workers in your home in Mexico and how an adequate insurance policy can cover you.

Home insurance as an integral part of  your budget

Home insurance policies are often overlooked and sometimes ignored as an unnecessary expense by foreign homeowners here in Mexico, especially those with homes situated away from hurricane-prone areas. While hurricanes are among the most apparent risks in relation to property, powerful wind storms inland can also cause serious property damage, and give rise to third party liability in relation to events and people related to your home: if for no other reason, you should consider your insurance arrangements to mitigate those liabilities.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
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