What You Need to Know about Auto Insurance in Mexico

1. What You Need to Know about Auto Insurance in Mexico

2. If you plan to drive south of the border, you will almost certainly need Mexican auto insurance to comply with a "proof of financial responsibility" law. According to the U.S. Department of State (DOS), all vehicles in Mexico must have auto insurance. Auto accidents are both a civil and criminal offense in Mexico—you could face steep penalties and a long time behind bars if you do not have the right auto insurance.

3. Do I Need Special Insurance to Drive in Mexico? If you plan to drive in Mexico, you must have special insurance unless your U.S. policy covers your trip. In general, you can buy a Mexican auto insurance policy that suits your duration of stay—whether it is one day, one week, one month, or more. When purchasing your Mexican insurance, make sure you are aware of your coverage options. It is a good idea to plan ahead of time and compare quotes from various companies that provide Mexico auto insurance

4. What Does Mexican Insurance Cover? If you are responsible for an accident in Mexico, your Mexican insurance will cover your liabilities. In Mexico, having "proof of financial responsibility" is mandated by law, and buying Mexican Liability Insurance is pretty much the only way to comply with it. Liability insurance covers bodily injuries (injuries to others, including medical expenses and legal fees if you are sued) and property damage (repairs to the property you have damaged, such as other cars and fences.)

5. Does My U.S. Auto Insurance Cover Me in Mexico? Once you cross the border, your auto insurance policy in the U.S. may provide minimal or no coverage. Your auto insurance company in the United States might be willing to offer you a "limited Mexico coverage endorsement" that can extend into Mexico on a limited basis, such as for a time frame of 10 days or within 25 miles of the border. It is worth mentioning that most auto insurance policies in the U.S. exclude coverage in Mexico entirely, which means that the policy will not cover any accidents in Mexico. For specific details, consult your policy or ask your auto insurance provider to clarify your coverage.

6. Tips for Driving in Mexico Before your visit, it is a good idea to become acquainted with traffic rules and customs in Mexico. One-way signs, for example, are often seen on the side of buildings and not by the curb. Here are some other driving tips for when you are in Mexico… ●If you are taking your car outside the Mexico Free or Border Zone, you must obtain a temporary vehicle importation permit (TIP). This region encompasses areas 12 to 16 miles from the border, as well as the entire Baja peninsula and a large portion of Sonora. If you drive outside the Mexico Free or Border Zone without a TIP, your car will be impounded, and you may be arrested.

7. ●If you take a rental car across the border, you must have Mexican car rental insurance. You can purchase this insurance from the rental car company itself. Remember that certain types of rental vehicles, such as exotic cars or cargo vans, may not be allowed to travel outside of the U.S. ●Keep abreast of travel advisories. The DOS issues alert about certain threats, such as rising crime. It also details entry and exit requirements, vaccine recommendations, and embassy and consulate addresses.