The answer about the necessity of car insurance in Mexico is no, and yes, if you are driving in the Free Zone, Baja, and parts of Sonora. Only a handful of Mexican States have mandatory liability insurance laws. In most Mexican states, car and vehicle insurance is not required. This is because in Mexico it is “assumed” that if you drive or own a vehicle, you have the means to pay for any damages caused while driving there.
What About Third Party Damage Inside the Free Zone?
If you cause third party bodily injury you will go to jail. And, if you cause third party damage to government infrastructure (i.e. light pole or bridge) you will also go to jail. These are felonies in Mexico. And, in Mexico you are presumed guilty until proven innocent. To comply with the law and avoid being stuck in jail, you must obtain Liability insurance that automatically includes Legal Aid (bail bond).
What happens if you do not have Mexican car insurance and cannot pay for damages in the event of an accident? If you do not have Mexican car liability insurance and are involved in an accident you will likely go to jail until fault is determined. If you are at fault, you are required to pay all damages immediately. If you do not, you will be detained in the Mexican jail, and most likely, your vehicle impounded, until you can pay. You may also be charged large fines.
If you have a lien on your vehicle in the U.S., you will need physical damage coverage. In addition, you are required to have permission from the lien holder to drive the vehicle into Mexico.
These laws apply whether you are one mile or 1000 miles inside the Mexican border, and whether or not you are in the free zone or not.
Some U.S. car insurance companies claim to cover you while driving a short distance into Mexico. but U.S. and Canadian auto insurance is not valid in Mexico. The Mexican government only recognizes companies authorized to do business there. In order to be covered, you must have coverage from a Mexican domiciled insurance company.
Many American brokers sell Mexican insurance online and you can purchase from stands near and at the border. However, you want to be careful from whom you choose to purchase insurance.
In the U.S. the A.M. Best Company, rates companies on financial stability and creditworthiness. It is important to be insured by reputable, A-rated insurance companies in Mexico to be sure you are covered in the event of an accident.
Outside the Mexico Free Zone
If traveling beyond the Mexico Free Zone, law requires car insurance. And, you cannot get into Mexico without Mexican car insurance. In order to travel beyond the Mexico Free Zone (usually 20 km past the border) you are required to obtain a Vehicle Import Permit. In order to obtain the import permit you must provide a valid registration and proof of valid insurance.
Claims
If involved in an accident you must make your claim while in Mexico. Your coverage will be void if you re-enter the U.S. and try to make your claim.
You want to be covered by a company you can reach immediately. You want to be sure you are provided a toll-free number in Mexico where someone is available 24 hours a day – seven days a week, for making a claim.
Additional Coverage
Mexico auto insurance is different than U.S./Canadian car insurance policies. Vandalism and partial theft are often not included. If these are options you wish to purchase, be sure to add them to your policy.
Many online companies offer additional travel insurance coverage, included with the car policy, that covers physical damage, theft, liability, roadside assistance, legal assistance, medical payments, medical evacuation, and return tickets home.
Even though Mexican car insurance is not always required in order to drive your vehicle into Mexico, it is highly advised. Nobody wants to spend his or her vacation in a Mexican jail, or have their car stolen with no insurance to buy them a new one. Buy Full Coverage Mexico Insurance before your trip so you can vacation with peace of mind and focus on all the fun activities in Mexico!
Roxanna Brock McDade - Roxanna Brock McDade Writer, Web Designer, SEO Professional
