Mexican Insurance

By Hugh and Carol Kramer

“Do I REALLY need Mexican insurance while driving in Mexico?”

Mexican law is very clear about what is required for an out-of-country visitor to operate a motor vehicle in the Republic of Mexico.  Drivers are financially liable for any physical damage or bodily injury they might cause and they must carry proof of this liability from the time they cross the border.

Acceptable proof can be a pre-arranged bond with a Mexican bank, cash on your person at the time of accident ($50,000-60,000 is suggested), or an insurance policy to cover this liability underwritten by a Mexican insurance company.

For all practical purposes, the most sensible way to meet this requirement for proof of liability is through a Mexican vehicle insurance policy.

It should be noted that auto insurance policies underwritten by a non-Mexican company (including all U.S. and Canadian insurance companies) are not recognized in Mexico. If your current insurance policy provides coverage, for example, up to 50 or 75 miles into Mexico, this still DOES NOT fulfill the requirement of Mexican law for proof of liability underwritten by a Mexican company.

If you have an accident or are stopped by the police for some other vehicle-related problem, and you do not have Mexican insurance, you can be arrested, have your vehicle impounded and face a stiff penalty for violating the law, in addition to being liable for the damages you caused.

If you have an accident and carry at least a Mexican liability insurance policy, you will be in compliance with the law. Check with your Canadian insurance company for the mileage limitation for any physical damage coverage it may provide for accidents in Mexico.

What Kinds of Coverage are Offered?

In purchasing Mexican vehicle insurance, you will first need to choose whether to get full coverage or a liability-only policy, then the term length and other options.

FULL COVERAGE includes coverage for:

  • Collision, Upset and Glass Breakage
  • Fire and Total Theft
  • Property Damage Liability
  • Bodily Injury Liability
  • Medical Expenses
  • Roadside Assistance

LIABILITY ONLY includes coverage for:

  • Property Damage Liability
  • Bodily Injury Liability
  • Medical Expenses
  • Roadside Assistance (with some policies)

LEGAL PROTECTION provides coverage for any accident-related legal costs such as attorney fees, court costs and/or bail bond.

Drivers License policies are also available, providing liability-only coverage for the driver, who may regularly drive more than one car or pickup. It will not provide coverage while driving a motor home, motorcycle or other high-risk vehicle, or if pulling a towed unit.  

Remember that only Discover Baja offers its members the value-priced HDI and ACE annual tourist policies providing coverage for any 90 or 120 days of travel in Baja or the full territory of Mexico during the course of a year. These exclusive policies are not available to the general public.

Hugh and Carol Kramer are founders and owners of Discover Baja Travel Club.  For 21 years they have been providing Mexican insurance, tourist permits, fishing licenses, information and assistance for travels to Baja.