What is Mexican Car Insurance, and Why Do You Need It?

Every year thousands of Americans drive into Mexico. Many may not know, however, that their American car insurance is invalid in Mexico. If you enter Mexico with a rental car or one that you own, you need a special type of car insurance. So whether you want to take a leisurely road trip through our neighbor to the south, or are going there to conduct business, here’s all you need to know about Mexican auto insurance.

Why do you need car insurance in Mexico?

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

How do you buy Mexican auto insurance?

The best way to buy Mexican car insurance is the same as regular car insurance: you can purchase coverage online through a trusted car insurance company.

Large insurers like AAA, Progressive and Geico have partnerships with Mexican insurance companies that specialize in international policies. There is also the option to purchase a policy at the border, but the cost is usually much more expensive than if you bought one ahead of time online.

Overall, a Mexican car insurance policy will look similar to an American one. The company will ask for:

Unlike with American car insurance, you won’t be required to provide detailed information about your driving record.. Coverage consists of a lump-sum liability limit, some sort of first-party medical insurance benefits and uninsured motorist insurance. BetterMexican car insurance policies may also have the option to add endorsements, such as rental car insurance, roadside assistance and even coverage to pay for plane tickets should something happen to your car.

Lump-sum liability is the equivalent to combining bodily injury and property damage liability insurance in the U.S. Rather than having two separate capped values, which are further divided into a "per accident," and "per person" basis, the lump sum can be allocated for as much as is needed in a property or bodily claim.

Car insurance requirements for driving in Mexico

You must carry Mexican liability coverage to drive legally in the country.. If you're involved in an accident while driving in Mexico, the maximum amount you may have to pay out if another party is injured or killed in an accident varies depending on where in the country you’ll be driving. Therefore, you should check the laws of the Mexican state (or states) you will be driving in, as it’ll impact the amount of car insurance you'll need.

It is generally recommended that drivers get a minimum of about $300,000 worth of third-party liability damage coverage. This is based on Mexican laws that delineate possible payouts for bodily injury or fatality. But you should check the laws of the Mexican state (or states) you will be driving in. Should an accident happen, the maximum amount you may have to pay out if another party is injured or killed may vary depending on where in the country it occurs.

That minimum may be more than your limits at home, but it is considered well worth it. If you do not carry collision or comprehensive coverage on your current American policy, you will be ineligible for it in your Mexican insurance policy.

How much does Mexican car insurance cost?

Policies generally come in packages that are priced daily, semi-annually or annually. Depending on the duration of your stay, a daily package may end up costing as much as a six-month package.The Mexican car insurance quotes below reflect the price of a policy for a car worth $15,000, that has optional full coverage (including $300,000 worth of liability coverage).

These three companies are the ones referred to by AAA, Progressive and Geico, but each insurer underwrites the Mexican auto insurance policies themselves.

How do you file a claim?

If on your road trip in Mexico, you get into an accident, the individual Mexican insurance companies will handle the claims. It should be clear that while Progressive and Geico may direct you to these policies, they are not your insurer. If you need assistance with your Mexican auto insurance policy, Geico and Progressive are partnered with MexPro and International Insurance Co., who will provide any extra help.

Once you purchase your policy online or through an agent, you will get a series of numbers you can call to file a claim in the event of an accident. The company will then send an adjuster to the scene to assess the damage. You must also file a police report.

It’s most important that you comply with the insurance company every step of the way and get them the forms and paperwork they need. MexPro does say, however, that if you feel like your treatment is not adequate, they may be able to step in and assist.

Mexico car rental insurance

If you travel to Mexico and then rent a car, or you drive a rental car to Mexico, you will still need insurance. Most major car rental services operate in Mexico, including Hertz, Enterprise, Avis and Alamo, to name a few. All of these companies provide their own Mexican rental car insurance policies for their vehicles. You must buy at least the liability portion of that insurance to satisfy Mexican law.

One exception to purchasing Mexican rental car insurance would be if your credit card provides car insurance coverage for rentals in foreign countries, including Mexico. Some credit cards, especially those tailored for travel, do. Make sure to check with your credit card company or read the terms and conditions of the card to find out what is covered before leaving the United States.. Many cards only provide you with the CDW, but not the liability insurance for your rental car.

Mexico motorcycle insurance

If you're riding a motorcycle in Mexico, you can similarly purchase insurance online or through a company that offers international motorcycle insurance. Most policies offer liability insurance, but we recommend that you look for a Mexico motorcycle insurance policy that also offers coverage for physical damage to your bike as well as for theft. A full-coverage policy will cost more, and may be harder to find, but it can easily be worth the investment if anything happens to your motorcycle while traveling.

Just note that a Mexican motorcycle insurance policy usually won't include first-party medical insurance, so you may need to purchase this separately through a travel health insurance policy.