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

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

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

Detailed guides and articles about driving & taking road trips in Mexico

Guide to Driving and Road Trips in Mexico

The experience of driving in Mexico is captivating and rewarding. Driving your own vehicle across Mexico’s extensive and well-developed road network provides an ideal way for you to explore these diverse lands and become acquainted with the local topography, the regions, the culture, and the local people in ways that no other means of transport can match.

A safe and enjoyable road trip across Mexico, whether you come for leisure, for work, or to travel from and to your home here, requires some forethought, planning, and preparation.

Driving insights and practical handbook for drivers

Our guides and articles constitute a practical handbook for anyone who intends to drive in Mexico, whether you bring your foreign-plated car on a road trip, rent a car locally, or live here and own a car.

It’s packed with local knowledge and advice that helps you prepare for your road trips:

• when you’re bringing your foreign-plated car to Mexico, whether it’s for regular short trips across the border, for longer road trips, to live here part time, or full time;
• when you plan to drive extensively in Mexico, whether you’re coming for an extended road trip or you plan to live in Mexico and drive regularly here in a Mexican-plated vehicle;
• for trip planning and safety, this guide offers practical advice and local knowledge for anyone who is driving in Mexico, whether you have a foreign-plated car, a Mexican-plated car, or if you plan to rent a car in Mexico;
• to learn about dealing with breakdowns, accidents, and insurance claims, this guide offers comprehensive advice and guidance in case your vehicle breaks down, you’re involved in an accident, and arranging adequate insurance coverages for your vehicle and trip.

Comprehensive guide about driving and taking road trips in Mexico

Our detailed and continually updated guides help you to plan and prepare for your road trip, and drive confidently and safely with peace of mind when you’re on the road in Mexico.

Detailed insights about driving in Mexico

Our continually updated detailed guides and articles include:

Bringing a foreign-plated car to Mexico

Find out how to bring your US- or Canadian-plated car across the border, including FAQs about bringing your car to and detailed guide to temporarily importing your vehicle to Mexico, and what you need to do when you drive your foreign-plated vehicle out of Mexico.

Mexico’s tolled roads

Learn about how Mexico’s extensive network of toll roads can be accessed, including Mexico City’s elevated beltway, and explore whether a toll road or freeway is a better choice for your journey.

Practical and safety tips for driving in Mexico

Our guides and articles share practical matters of driving in Mexico and get tips and guidance to stay safe and mitigate risks, including the rules for driving foreign-plated cars in Mexico, getting acquainted with common words you’ll see in Spanish as you drive, and practical matters for road users in Mexico.

Insights for the road ahead

Our guides also share insights to help you on your journey including a road trip checklist, using gasoline service stations in Mexico, how to manage at military checkpoints, and driving restrictions in and around Mexico City depending on your vehicle.

Vehicle security in Mexico

Read out guide with tips and advice for keeping your vehicle safe and secure while driving in Mexico.

Dealing with vehicle breakdowns in Mexico

Read practical advice and insights about dealing with mechanical breakdowns when you’re in Mexico.

Dealing with road traffic accidents in Mexico

find out what the procedures are if you become involved in a minor or major road accident in Mexico.

Vehicle insurance for your Mexico road trip

We publish extensive information help you understand how vehicle insurance works and how to get peace of mind with adequate auto insurance, breakdown, and medical coverages when you’re driving in Mexico.

Continually updated articles

Connect to our sections about driving in Mexico and auto insurance in Mexico for regularly-updated information about driving and road trips in Mexico.

Taking a Mexican-plated car to the US & Canada

Foreign residents living in Mexico with Permanent Residency cannot keep a foreign-plated car in Mexico outside one of the designated free zones.

If you hold Permanent Residency in Mexico and live outside one of the free zones, you might own a Mexican-plated vehicle, and you might want to drive it to the USA or Canada on short visits—usually up to six months.

Your Mexican insurance policy probably covers damage to your own vehicle and loss of any personal items inside of it when the car is outside of Mexico (check the policy); however, it will not cover third party liabilities in the USA and Canada in the event of an accident. A special top-up insurance policy is needed.

Short-term third-party liability insurance

Policies for Mexican-plated vehicles driving into the USA and Canada can be purchased on a short-term basis only—you select the number of days you intend to visit the US/Canada as part of the quotation process.

The insurance policy will:

• Cover you in the event of an accident in the USA or Canada and provide third party liability coverage up to the value of the coverage stated on the policy.
• Provide a limited amount of coverage for medical expenses—sufficient to cover very minor incidents, but insufficient for a serious situation, so a separate medical coverage policy is recommended.
• Provide roadside assistance in the event of a vehicle breakdown while you’re outside of Mexico, and legal assistance—as described in the policy.
• You can optionally purchase other defined coverages in addition to those listed above for an extra fee.

These policies are not intended to provide comprehensive coverage but instead top-up your Mexican insurance to cover you for damages in the event of an accident or other incident involving third parties while you’re driving in the USA or Canada.

Learn more about driving in Mexico

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

• Your Mexico road trip checklist
• Who can drive a foreign-plated vehicle in Mexico
• Insuring your vehicle for driving in Mexico
• Importing a foreign car or other vehicle to Mexico
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico

Can I cancel my US or Canadian auto insurance while I’m in Mexico?

Some people who drive their foreign-plated cars to Mexico and intend to stay for extended periods —or  live here for part of the year— ask us if they are able to cancel their US or Canadian insurance policy while their Mexican auto insurance policy is in force.

The answer is that you need to keep enough insurance coverage in place to maintain the vehicle’s legal registration in your home country.

For example, most US states require that you keep a policy in force that provides at least third-party liability coverage for the vehicle.  If you completely cancel your US insurance policy, most US states’ motor vehicle departments will automatically cancel the car registration, making the vehicle unregistered, and therefore illegal to drive in any country.

When you purchase Mexico auto insurance through our partner MexPro, the insurance remains valid for so long as the vehicle remains legal to drive—and this is true for other insurers, too.

Adjusting insurance coverage as you travel and back forth between Mexico, the US and Canada

Most people who intend to stay in Mexico longer term adjust their auto insurance coverage plan to maintain the minimum legal coverage requirements while the vehicle is situated in Mexico. (Precise requirements vary – check with the state your vehicle is registered with.) Then, whenever they drive back to the US or Canada, they call their agent and add the collision and comprehensive coverages back onto their home policy. So by working with your US or Canadian car insurance agent, you can reduce/increase the coverage limits as needed and end up paying less, while still maintaining insurance and keeping the vehicle registered/legal.

For full details about how to be properly covered on your next road trip in Mexico, connect to our Mexico Auto Insurance Guide, from which you can also link to live quotes and arrange your cover online through our partners, MexPro.

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

Importing foreign-plated vehicles to Mexico

This section contains key questions and answers related to bringing a foreign-plated car or other vehicle to Mexico, with links to detailed information and helpful assistance services.

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

However, even the best maintained vehicles can experience sudden failure when you’re on the road in Mexico and you’ll need to deal with the situation, whether you’re in the middle of a town or city or on a (remote) highway.  This article shares some practical tips and advice for dealing with vehicle breakdowns.

‘Angeles Verdes’ (Green Angels) on Mexico’s highways

On Mexico’s interstate highways, Angeles Verdes (Green Angels) patrol the roads, looking for broken down vehicles, and helping with minor repairs and, surprisingly frequently, selling fuel.

• They ride green-colored trucks (thus the name); sometimes it’s a tow truck, and will provide free help, although they will charge for fuel if you need it, as well as any car parts.
• They’ll arrange to tow you to the nearest town if the situation calls for that. It’s appropriate to tip the mechanic(s).
• Angeles Verdes can help with immediate repairs and fuel, but their service does not substitute the coverages offered by an insurance based roadside assistance plan—that, in addition to mechanical support can also include rental car provision while your vehicle is being repaired, and repatriation in the event your vehicle becomes undriveable.

Dealing with roadside breakdowns

Dealing with a vehicle breakdown in Mexico will depend on where you are and what cover you have in place to help you.

• There is no better coverage in a breakdown situation than to have a team of mechanics and recovery vehicles prepared to come to your aid when your vehicle fails in Mexico.
• We recommend that when you purchase auto insurance you buy the optional breakdown coverage and roadside assistance. This is especially helpful if you are on a remote highway and/or it’s nighttime.
• If you are in a large town or city when your car fails, someone may come to your aid to help you move the car to the edge of the road while you wait for breakdown assistance to arrive.
• If your car is rented and the rental agreement includes breakdown coverage, call the rental car agency and ask them to mobilize their breakdown service.
• If you are on a major highway, especially toll-roads, a patrolling vehicle from the Angeles Verdes might find you and help you (see note above).
• If you have roadside breakdown coverage as part of your auto insurance coverage, you can instead contact the insurance helpline and have assistance sent to directly your broken down vehicle.
• Note that cell phone coverage can be scarce on remote roads across Mexico; tolled highways have wired phones posted every few miles. If you are on a non-tolled highway, and there is no cell phone coverage, you may need to walk to find a cellphone signal or walk back to the nearest town or village to summon help.

Roadside breakdown and medical coverages

Good insurance brokers 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 car 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

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.

Arrange breakdown coverage

Mexperience’s auto insurance associate offers a comprehensive range of additional services that provide peace of mind when you’re taking a road trip in Mexico, including roadside breakdown and travel assistance, and medical coverages that can include medical evacuation.

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

Accident procedures in Mexico may be different

Whether you are driving in the free zone or further inland, if you become involved in a road traffic accident in Mexico, it’s worth having some foresight about how the situation will be dealt with here as procedures and protocols can be different to those practiced in other countries.

What do if you experience a road a traffic accident in Mexico

In the event of an accident happening to you while you’re driving in Mexico, the first thing you should do after making sure that  your passengers are alright is to telephone the claims number provided to you by your insurer.

Minor accidents require adjusters to attend the scene

Unlike some countries where minor accidents and ‘fender-benders’ are routinely reported independently by drivers after the event, in Mexico all reported incidents —however minor or major— are attended by insurance adjusters in the moment of the event. The adjusters will assess the damage on-site and file reports on your behalf.

Most accidents tend to be minor incidents whereby some physical damage to vehicles and/or roads need to be assessed, reports filed, and paperwork signed before drivers go on their way and appropriate compensation is arranged thereafter.

If your car cannot be driven and needs a tow truck

If your car becomes damaged in an accident to a point where it can no longer be driven, then the insurance company will arrange for a tow-truck to take you and your vehicle to the nearest repair center.

Check the details of your auto insurance coverage policy to know what is and is not included in a towing service and note, if you’re driving a foreign plated vehicle, that policies will not usually cover your vehicle being towed back to the US or Canada for repairs.

Serious road accidents and injuries

If you’re involved in a more serious accident where someone is injured and medical attention is needed, the insurance help-line agent can call the appropriate emergency services to attend the scene if that has not been done already.

If the police become involved, and/or someone is killed as a result of the accident, you and the other drivers present may be arrested until fault is determined and compensation arrangements are agreed. In these circumstances, a good insurance coverage is essential because they will provide the legal support you will need to post bail and cover third party liability if it’s determined that you were at fault. You may also consider calling your home country’s consulate to let them know about your situation.

You’ll need the assistance of a qualified bilingual lawyer, and you’ll likely need to post a bail-bond to be released while investigations take place: appropriate legal and bail services are provided by the insurance company if you’re properly covered.  If you don’t have any insurance then you will need to deal with these matters yourself, in Spanish, and pay for bail and legal costs out of your own pocket.

If you or a member of your family become seriously injured in a road accident, a medical evacuation could be triggered if you have a plan in place.

Auto insurance for your road trip in Mexico

To avoid potentially very serious problems in the event of a car accident, you need to be properly insured with an insurance policy that is valid in Mexico.

Your American or Canadian auto insurance will not suffice because by law, foreign insurance policies cannot cover third party liability in Mexico. You need to purchase a special policy to ensure your journey is properly covered and that you, your car and belongings are protected in case of an accident or other mishap:

Being properly insured means that if you are involved in an accident, the most serious financial and legal consequences will be mitigated and a good insurance policy will also offer a support line that connects you with relevant service providers locally when you need them the most.

• Learn about auto insurance for road trips across Mexico
• Get an online quote for Mexico auto insurance

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

Your US or Canadian insurance policy, however comprehensive, won’t cover you in Mexico, but affordable insurance policies valid in Mexico are available…

Auto insurance for driving in Mexico

We recommend that you always drive properly insured in Mexico.  The risks of driving without adequate coverage are significant, especially in the event of a serious accident.

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 and sign and lamp 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.

Third party liability

Under Mexican law, you must have liability insurance from a Mexican insurer to drive your vehicle on Mexican roadways.  Driving without adequate insurance for your vehicle is a risk, as police routinely ask to see insurance documentation when they stop road vehicles.

If you become involved in a serious accident in Mexico, where persons are hurt or killed, you will be detained by the police until blame is assessed. If it is deemed that you are to blame, you will be detained for longer until the other party (parties) are satisfied with any compensation being offered by you (or more likely your insurance company) at which point they will sign the paperwork that will have you released from police custody.

Good insurance policies offer legal counsel and bail bond services so that, in the worst-case scenario, you have the legal support and financial assistance you will need.

If you are driving your own car across the border from the USA or Canada into Mexico, you must purchase an insurance policy that is legally valid in Mexico.

• However comprehensive your US or Canadian auto insurance policy is, it will not cover you for third party liabilities when your foreign-plated vehicle is present in Mexico.
• You can purchase specialized auto insurance coverages for Mexico which are not expensive and will give you peace of mind when you’re driving here. They can also provide additional services including breakdown support and medical evacuation coverages.
• If you are renting a car in Mexico, be sure that you are comprehensively insured in that vehicle.

Although your US or Canadian car insurance policy may be comprehensive and might also extend some limited damage coverage in Mexico, you will still need to purchase special policy that is legally valid for third party liability in Mexico.

In the event of an accident, presenting a US or Canadian auto insurance policy will be of no use because these documents have no legal force in Mexico, and the companies backing them will not settle any claim arising when you’re driving outside of the US/Canada.

Drivers who become involved in serious accidents in Mexico are usually arrested pending investigation. If you are not properly insured in Mexico and become involved in a serious accident —even if you’re not at fault— the procedures will place considerable stress and financial burden upon you.

This section of the guide describes how auto insurance works in Mexico and how to go about buying the additional insurance protection you need to ensure that you, your passengers, and your vehicle are properly insured when driving on Mexico’s roads—and that in the event of a serious accident, you are properly covered by a legally valid and adequate insurance policy.

Insuring your foreign-plated car in Mexico

Only insurance companies that are licensed in Mexico can issue auto insurance policies that are recognized and accepted by Mexico’s legal system.

A few US or Canadian-based insurance companies will extend cover for physical damage on cars and RVs while they are situated in Mexico, but they cannot and do not provide third party liability insurance—that is obligatory when you are driving in Mexico.

So, although your home country insurance may cover damage to your own vehicle, they will not cover your liability to others in Mexico.

Therefore, a special insurance policy is necessary to be properly insured in Mexico that is issued directly by a Mexican insurer, or through a broker in the US or Canada that is working in conjunction with a Mexican insurance company.

Important note: When you take your vehicle to Mexico, you need to keep enough insurance coverage in place to maintain the vehicle’s legal registration valid in your home country.  See this article for details about this requirement.

Insuring a Mexican-plated car

If you own a Mexican-plated car, you can purchase insurance locally for the vehicle’s use in Mexico.  Download our free eBook: the guide to the cost of living in Mexico, for details and connections to local auto insurance companies that insure Mexican-plated cars.

Driving a Mexican-plated car to the USA

If you intend to drive your Mexican-plated car to the USA, you will need to purchase a special top-up insurance policy to cover your third-party liability there.  You can get a quote online and purchase ‘northbound’ auto insurance via Mexperience.

Who’s insuring you?

Buyers purchasing insurance for their vehicles in Mexico are often misled by believing that they can rely on the broker, rather than the insurance underwriter, to professionally manage any claim that may arise during their stay in Mexico.

• The insurance company underwriting your policy is much more important than the broker that sells you the policy. As all insurance policies are sold through brokers, it’s important to know which insurance company (or companies) are underwriting the policies being sold to you by the broker.
• Regardless of how reputable or well-intentioned an agent or insurance broker may be, if they place your coverage with a troubled insurer, you could experience some unpleasant surprises when you make a claim. Insurance from a more stable and financially strong insurance company may cost more, but the additional premium represents a lower risk to you in the event of a claim.
• Protect yourself and your investment by asking the broker “who underwrites your policies?” and make sure that the insurance companies being used to underwrite your policy have a strong, stable, history.
• AM Best is a US-based ratings agency that provides an annual rating for Mexican insurance companies. Not all Mexican insurance companies are rated by AM Best and of those that are, few have a “A or better” rating—that defines the company’s risk profile as “Good, or Excellent.”

Tips for choosing an insurance broker

When you choose a broker, pick one that:

• is properly licensed;
• offers a comprehensive range of coverages including breakdown and medical as options;
• has the customer service infrastructure needed to properly take care any claims and needs while you’re driving in Mexico; and,
• operates using well-rated insurance companies.

Mexperience’s insurance associate offering auto insurance for Mexico only works with Mexican insurance companies that have an “A or better” AMB rating.

What to look for in a Mexico 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; as we remarked in a previous chapter in this section—consider who’s insuring you.

Licensed broker

As all insurance policies are sold through brokers, ensure that the broker you engage with is licensed and that they offer 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, and that the policy offers help and support services when you are in Mexico, in addition to the insurance coverage;
• this includes things like local access numbers where you can call to make a claim, report issues—and 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.

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 car 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

An auto insurance 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.

Mexperience’s auto insurance associate offers a comprehensive range of additional services that provide peace of mind when you’re taking a road trip in Mexico.

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).

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.  See the section about dealing with road accidents in this guide.

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.

Buying Mexico auto insurance online

Buying online before your trip instead of buying when you get to the border enables you to consider the coverages you need patiently with care, review the terms to be sure the coverage meets your needs, and arrange the policy online and get instant coverage starting from the date of your trip.

Mexperience is pleased to introduce our readers to our insurance associate, MexPro—a leading US-based broker specializing in Mexico auto insurance:

• Browse and choose from a range of competitively priced auto insurance policies
• Get coverages issued by a fully licensed US insurance broker and backed only by “A or better” rated Mexican insurance companies
• Coverages include a comprehensive range of services including third-party liability, legal counsel, and bail bond
• Optional coverages for breakdown and medical assistance to give you peace of mind on your road trip
• First-class customer service and claims aftercare facilities
• Full transparency about policy types and wording before you buy
• Buy from an experienced broker that sells over 100,000 Mexico auto insurance policies every year

Learn more about driving and road trips in Mexico

Mexperience offers local knowledge, tips, and guidance for driving and road trips in Mexico

• Latest articles about driving in Mexico
• Free eBook: Comprehensive guide to Driving in Mexico
• FAQs: Importing a foreign-plated vehicle to Mexico
• FAQs: Temporary Import Permits for taking vehicles to Mexico
• Road trip checklist for your journey in Mexico
• Guides to transportation in Mexico
• Keeping your car legally registered in the US or Canada when you drive in Mexico
• Get a quote online for Mexico auto insurance

Learn more about insurance coverages in Mexico

About Mexico Travel Insurance

When you travel in Mexico, whether it’s for pleasure or business, you will need to be properly insured for your travels, your health as well as your vehicle, if you take one across the border from the USA in Mexico.

Travel Accident Insurance

Some US and Canadian health plans provide (usually limited) health coverage in Mexico, but not all, so you need to check beforehand. Even if they do, you should ask about what arrangements they have in the event you suffer an accident—read our guide below for details.

Medical Insurance

If you live in Europe, Canada, or Australia and are used to health care ‘free at point of delivery’ (or through a Government-based insurance program) be aware that Mexico does NOT have reciprocal agreements with any other country for health care services.

Health services and treatment under the US-sponsored Medicare System is not available in Mexico, either.

Vehicle Insurance

Insuring your vehicle in Mexico is essential. You MUST have insurance if you are driving a US or Canadian car, truck, RV or other vehicle across the border. If you are renting a car in the US and driving south you will need to pay an additional premium to be covered across the border.

You can buy auto insurance on the border, but buying auto insurance at a retail outlet (ports, convenience stores, supermarkets) will almost certainly cost you more. It’s better to arrange your auto coverage online before you travel—you will get a better price, you can arrange instant coverage online and you’ll arrive at the border fully covered without having to do any further paperwork.

Property Insurance

Insuring your property in Mexico is an essential service you need to consider as part of your budget planning. Covering your house, personal property, and any watercraft your own will mitigate your risks in the event of unforeseen circumstances. For a further information, connect to Insuring Your Property in Mexico, our complete guide on the Real Estate section of Mexperience.

Buy Insurance in Your Country of Residence

You must buy travel insurance in your country of residence. It can be purchased at airports and convenience stores, but at a higher premium than if you buy ahead of time, online.

This guide will give you an excellent overview of what you need to know to get properly insured at the best possible price in Mexico.

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Mexico Travel Medical Insurance

If your travel to Mexico is not covered by your home Private Medical Plan, you will need to buy insurance separately. Mexico does not have any reciprocal health care arrangements with any other country so any medical attention you require, for example, doctors, medical specialists, support services, medicines and emergency transportation (ambulance, air ambulance or in severe circumstances home repatriation) will need to be paid for in full if you are not otherwise insured against these events.

See Also: Healthcare Services in Mexico

Why do I need a health cover plan for travel in Mexico?

Mexico has a national health care system called the IMSS (Instituto Mexicano de Seguro Social); however, only Mexican Nationals and legalized immigrants who pay into the system on a regular basis through their salaries are entitled to free treatment; and this includes emergency medical treatment offered by IMSS.

Mexico does not have any reciprocal health care agreements with any other country in the world. This means that you MUST pay for any treatment you receive from private medical professionals as well as medicines and support services from private clinics and hospitals. Although private health care is less expensive in Mexico than in the USA, the sums for treatment—especially emergency treatment—can quickly add up. All private medical care facilities require a credit card and/or proof of insurance before they will treat you. Being properly insured for medical care when you visit Mexico is essential.

I already have private health cover at home!

Some private health care plans offer cover for travel overseas. However, this cover is usually limited in terms of days allowed overseas, services covered—or both.

It’s also important to check what services they have in place to support you once you are abroad. The key questions to ask are:

• Does the policy cover you overseas—and specifically in Mexico?
• Does your medical plan provide a Mexican toll-free access number with English-speaking operators on stand-by to assist you anytime?
• What choice of clinics and hospitals do you have?
• Does your plan cover specialist care and any special requirements you or your family may have?
• What are the limitations and what are the excess fees?
• How many days may you be abroad before the cover expires?

Check with your health care company to ensure you’re properly covered (see our Buying Guide, below, for guidelines).

If their policy falls short, you may usually purchase a top-up plan or find a specialist provider who can supply you with the right cover for your specific needs.

Travel Insurance vs. Travel Assistance

When you’re buying travel insurance, it’s important to check what support services the insurance plan offers you once you are in Mexico. Travel Assistance and Travel insurance are different products.   Travel Insurance is a policy that covers you for certain events or situations.  Travel Assistance is the “service surround” that may or may not be included as part of a Travel Insurance product.  Good Travel Assistance support services within a Travel Insurance package may offer the following services:

• A help-line to answer general questions about your insurance product and its support services
• A 24/7 toll-free emergency contact number staffed by English speaking agents
• Assistance with finding a doctor, a private clinic, or a lawyer if you need one
• Call your loved ones at home to pass on any messages if you are unable to do so personally
• Generally help you with questions, concerns, solicitation for advice in regards to situations and events covered by their insurance product

Check for the extra services on offer when you’re choosing your insurance product. Many insurance companies offer “bread and butter” (standard policy) cover for roughly the same price. However, when you’re in an emergency situation, it is the extra support they have (or perhaps don’t have!) in place—in the form of Travel Assistance—that could make all the difference to you.

Health Insurance for Longer Stays in Mexico

Travel insurance plans that cover you for health events and accidents in Mexico usually require you to be resident elsewhere (i.e. your home country) and will only cover you abroad for a limited period of time: typically 30-90 days.  If it transpires that these conditions are not met, then the insurance policy will become void.

If you intend to stay longer, or move here to live or retire in Mexico then you’ll need to consider alternatives to a travel insurance coverage plan.  To get a better understanding of the options read this article on Health and Medical Insurance Options for Mexico.

If you obtain legal residency in Mexico, then you can choose to buy-in to Mexico’s public health system known as IMSS.  Although legal foreign residents with Residente Temporal or Residente Permanente can apply for Mexico’s IMSS health insurance on a voluntary basis (you don’t have to be employed here to access it), 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.  Note that visitors in Mexico under the auspice of a visitor visa (FMM) are not eligible for IMSS health insurance.

Private health insurance Plans in Mexico

If you shop for healthcare plans in Mexico you’ll find a wide range of insurance companies that, for a monthly premium, will provide you with private health coverage.  In the event that you or a member of your immediate family are taken ill or suffer an accident, the insurance company will cover the medical fees.  What (and moreover, how much) is covered depends on what health care plan you choose to buy. The more cover you need and the older you are the more expensive the premiums and/or deductibles will become. Other factors (such as whether you smoke or take regular exercise at a gym) may also influence the price of your premiums.

Company insurance plans

Most large companies provide a health care plan as part of their remuneration package, so if you come to Mexico to work for a corporation, you’re likely to be covered under that firm’s insurance scheme.  If you work for a company that doesn’t offer health insurance, or your work freelance, or you are retired in Mexico, then a personal private plan is an option to consider if you don’t want to join the IMSS program.  You should shop around for the best deal and find a plan that matches your individual circumstances, potential needs, and budget.

Mexico Auto Insurance

See Also: Complete Guide to Mexico Auto Insurance

If you are driving your own car, truck, RV or other vehicle from the USA or Canada over the border by road into Mexico, your US/Canadian auto insurance policy will NOT cover you in Mexico!

You do not need to show insurance documentation to import your car into Mexico; however, if you have an accident in Mexico and you are not properly covered, life can suddenly get very complicated for you.

For example, if you are involved in an accident where one or more people are injured or killed, you WILL be arrested until blame is assessed. During this process you will need the support of a lawyer, and a comprehensive insurance plan.

If you are involved in a car accident where no one is hurt or killed, the authorities will still pursue you personally for costs related to the repair of the public highway if you are not insured. Third parties may also pursue personal damages against you for any property that was damaged.

Read our comprehensive advice about Auto Insurance in Mexico for further details about insuring your car to drive Mexico.

Medical Evacuation from Mexico

While Mexico offers patients an ample choice of quality medical care facilities in-country, there are times when a Medical Evacuation may be necessary or preferable to medical treatment locally.  Medical evacuation from Mexico is typically undertaken when people have a catastrophic illness or accidents, primarily cardiac events, strokes, or serious injuries and vehicle accidents. Patients might also be medically evacuated when they need a transport to a specialty hospital or when their medical condition has been stabilized locally, but ongoing care  is best undertaken at a medical facility near to family back home or where their primary healthcare plan can cover such care.

Read our comprehensive Guide to Medical Evacuation from Mexico for full details about what it is, who needs it, and how to arrange coverage for your stay in Mexico.

Buyer’s Guide Mexico Insurance

As a general guide, you should look for a policy that covers:

Medical Expenses to at least US$5m: This should include the costs of repatriation back home should you or members of your family require it. If you have a health care plan which covers the major costs once you get home, you may only need a top-up insurance plan to pay your repatriation costs. Commercial airlines will not fly you home if you are seriously ill or incapacitated—a private air charter will be required. They are expensive and an insurance plan should allay those fees.

Personal Accident Cover: Your insurance should provide cover for any permanent bodily injuries you may sustain. Temporary material losses, for example, loss or delay of baggage or delay and/or cancellation of your flights should also be included.

Theft of Personal Items: These should include luggage and small amounts of cash (usually up to a couple of hundred dollars). If you are carrying items of particularly high value (e.g. a very expensive watch) be sure to check this is covered explicitly in the policy.

Third Party Liability: Your plan should cover your liability to third parties in case you accidentally hurt them in some way; this is normally standard in a comprehensive insurance plan. Your insurance should also cover legal assistance costs, should you need them while traveling in Mexico.

Travel Assistance: Check carefully to see what travel assistance is offered by your plan. Travel assistance is different from insurance per se: Assistance includes things like putting you in touch with appropriate local doctors, finding a local lawyer who speaks English if you need one, and getting messages to loved ones back home if you cannot do that yourself.

Auto Insurance: The auto insurance market is very competitive and some firms try to grab your attention with headline offers.

A good, reputable firm will offer a fair premium and, in return, provide comprehensive cover options with excellent service and after-care. When things go wrong, it’s the service, instead of the price, which makes all the difference.

A good Auto Insurance policy should include comprehensive cover, third party-liability insurance, legal representation and bail-bond cover in case you are arrested following a severe car accident in Mexico.

Check that your auto insurance policy is underwritten by an insurance company that is financially-sound. It is the insurance company, not the broker, under-writing your auto coverage in Mexico.

Read our Comprehensive Guide to Auto Insurance in Mexico for full details.

Adventure/High Risk Activities: If you are taking part in adventure travel or activities otherwise considered “high risk” by an insurer (even if you personally don’t consider them to be ‘high risk’), read the information below about Insurance for Adventure Activities in Mexico

Key Tips for Buying Mexico Insurances

• Travel insurance must be purchased in the country where you are resident before you travel. You cannot buy travel insurance for yourself in Mexico, other than rental car insurance;
• If you leave buying insurance to the last minute, you will probably not get coverage for delayed or cancelled flights (especially if they are due to strike action) and you will probably pay more for your cover by buying it from a retail outlet, for example, at the airport;
• When you buy insurance, keep in mind that service and after-care are extremely important. When things go wrong, it’s good after-care service that will really help to make your situation better;
• Check the credentials of all insurance brokers: reputable firms work with established names in the insurance market and will be properly licensed;
• Buy Insurance Online! Because operating costs are lower, cover can be arranged instantly by sending you electronic documentation by email. Buying your Mexico travel insurance online will almost certainly work out less expensive than buying it in a retail outlet—especially airports and land border crossings.

Coverage for High Risk Activities in Mexico

Ensure you’re properly covered for ‘High Risk’ activities!

In addition to the comprehensive travel insurance outlined above, you need to take out additional cover for you and your family if you are planning (or may have a chance of) taking part in any adventurous activities, or activities that insurers consider to be “high risk”.

If you are taking part in (or there is a possibility that you might take part in) any adventure activities, such as (but not limited to) Mountaineering, Scuba Diving, Skiing, Power-boating, Jet Skiing, Mountain Biking, climbing, caving, bungee jumping and the like, be sure to check your existing coverage (if you have medical and travel insurance already). Many insurers will exclude coverage of injuries sustained during such “high risk” activities.

Make absolutely sure that any high risk activities are explicitly specified on your insurance policy documentation as being covered in the event of an accident. You will need to pay an additional premium to get coverage for activities defined as adventurous or high risk by insurance companies—even if you personally don’t consider them to be high risk!

If you are doing anything that may be considered “high risk” by an insurer (that is, out of the scope of ‘normal vacation activity’), be sure to check with your insurer and cover yourself and your family accordingly.

If you are uncertain, ask your insurance company and, if necessary, get agreement of the specific activity included in the wording of the policy between you and the insurer.

Buy Mexico Insurance Online to Save Money

Buying Mexico Insurance online will save you money and give you the peace of mind of being covered by the time you arrive in Mexico—no last minute rush at the border crossing or the airport lounge (where insurance is usually more expensive).

You can learn about arranging insurance online from these guides:

See Also: Guide to Mexico Auto Insurance

See Also: Guide to Healthcare Insurance in Mexico

See Also: Guide to Mexico Property Insurance

See Also: Guide to Medical Evacuation Planning