Driving into Mexico? Here’s Why You Need Mexican Auto Insurance

Every year, thousands of Americans travel to Mexico by car. Many may not be aware that south of the border, their U.S. auto insurance policy becomes invalid. To avoid this unpleasant surprise, buy your Mexican auto insurance before you pack your bags and sit behind the wheel of your car.

Here’s what you need to know about automobile insurance in Mexico.

Why do I need car insurance in Mexico?

Mexico doesn’t recognize either American or Canadian auto insurance policies. Any non-Mexican insurance policy cannot cover your liability for damage caused to others in case of an accident. If you decide to enter Mexico with a car, buying a special type of auto insurance to get you covered is a smart move.

Under Mexican law, a driver has certain civil and criminal liability in case of a fatality or fatalities to others. Depending on the Mexican state, the liability amount can be as high as $3000.000 per fatality or more.

Moreover, all motorists are required to have insurance or proof of financial responsibility in the event of an accident. According to Mexican law, all drivers must at least have liability coverage, underwritten by a Mexican insurance provider.

No matter whose fault it is, if you get in a car accident, you will need to demonstrate that you have sufficient financial means to cover the damages. If you don’t have a valid auto insurance policy or enough real currency to pay for the damages, Mexican authorities can arrest you and impound your vehicle until the matter is resolved. Without a way to pay, this process may take a while.

A Mexican insurance policy can greatly reduce the financial burden of a car accident and possible jail time.

What does "liability coverage" mean and is it enough to get me covered?

Liability is an obligation to cover the damage you caused to others in an accident. Having liability coverage means that your insurance will cover the damages to other vehicles and property, as well as costs for bodily injuries you might cause to other parties.

This is what will happen if you get involved in a car accident in Mexico and are found legally responsible. You will be required to reimburse the driver and passengers in the vehicle(s) you hit for medical expenses and other expenses determined by the Mexican court, as well as the value of their car(s).

If you buy a liability-only insurance policy, your insurance will cover these expenses up to the limit on the policy. It will not, however, pay for any damage done to your own car or for medical expenses you incurred.

It’s recommended that you buy a Mexican auto insurance that also provides comprehensive and collision coverage to increase your protection.

What does Mexican Insurance cover?

Mexican auto insurance covers you in case of an accident while driving in Mexico. As a Named Peril policy, however, it can provide coverage only for what is included in the policy and described as covered.

Standard Mexican tourist car insurance recognizes five basic risks:

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

As an added bonus, Oscar Padilla Mexican Insurance policies also include Legal Service and Bail Bond.

Drive safe in Mexico with proper auto insurance coverage

The last thing on your mind while planning a trip to Mexico is worrying about a possible car accident. While if it happens, an accident can spoil your vacation, don’t let it ruin your plans by having an insurance mishap.

Only with the proper documentation and car insurance coverage in hand, you will have optimal insurance protection. You can get your Oscar Padilla Mexican insurance policy online within a few minutes, print the document and then relax and enjoy the ride! In the unfortunate event of an accident, you can rest assured that your Mexican insurance provider will handle subsequent issues.