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Mexican auto insurance 101

If you are driving in Mexico, Mexican law now requires you to have a Mexico auto insurance policy to cover you, your family, your car, and any liability for damage you may be responsible for in an accident. Because Mexican auto insurance works differently from a U.S. policy, we’ve outlined a few of the main differences below.

Liability

Mexican car insurance covers you in the event that you have an accident while driving in Mexico. Despite how big or how small any damage is that results from an accident, the authorities will require that all involved parties show that they have the ability to pay for it. It is important to note that a typical U.S. liability policy does not cover liability claims in Mexico. Also, Mexican authorities do not recognize U.S. liability coverage and require that liability for damage caused to others be provided by a licensed Mexican insurance company. As a result, without Mexican liability insurance or some other way of paying for the damage, the authorities may detain you until they have completed their investigation.

Legal assistance

With a Mexican auto insurance policy, you’ll have access to a lawyer paid for by the insurance company to negotiate on your and the insurance company’s behalf.

Medical payments

A Mexican auto policy will provide medical payment coverage for the occupants of your vehicles.

Physical damage and theft

This coverage can be purchased to cover traditional losses involving collision, theft, fire, and other risks. It is important to determine the actual cash value of your vehicle because the company will pay the actual cash value minus the deductible in the event of a loss.

Travel and roadside assistance

Can you imagine having your car breakdown in a foreign country? Coverage for travel assistance can also be purchased and can provide a locksmith, a tire change, gas, or even a tow truck.

Knowing that you are covered for liability, medical payments, physical damage, and roadside-related issues in Mexico will keep you on the right side of the law and provide peace of mind so you can focus on your trip.