Important Facts You Need to Know About Mexican Auto Insurance

Are you planning on owning or operating a car in Mexico? Are you considering driving your car down from the US or Canada? Today’s blog covers some very important facts that you must know to make sure that you are properly covered while driving in this country.

Do I have to purchase Mexican Auto Insurance?

Yes. If you are in involved in an accident Mexican law requires that you be financially liable for physical damages or bodily injuries.

Do I need Mexican insurance if my car is insured in the US?

Yes. U.S. or Canadian insurance is not recognized by Mexican law. Your U.S. auto insurance policy cannot pay damages that you would legally owe to others if you are involved in an accident. You have to show proof of liability for any physical and bodily injuries caused by an accident, so you must have at least liability coverage from a Mexican insurance provider.

What is partial theft and vandalism coverage?

It includes theft of anything stolen that originally came on the vehicle and has a $1,000 deductible. Anything inside of a vehicle is not covered. If your car is vandalized there is a $500 deductible. These are excluded for most policies unless you purchase special premier or platinum coverage for your vehicle.

My car is very old. Can I still get insurance?

Vehicles over 15 years old are generally only insurable for liability-only.

Can anyone drive my car after it is insured?

Yes. The only exception is if you purchase a driver’s license policy instead of a liability or full coverage policy. This will cover you to operate any car or pickup truck and does not insure a specific vehicle.

Can I be covered to drive more than one car in Mexico?

Yes. A driver’s license policy provides liability-only coverage for you as the driver, so you can drive more than one car or pickup truck. However it does not provide coverage for driving a motor home, motorcycle or other high-risk vehicles.

What should I do if I’m in an accident?

Report it immediately by calling 911 and wait for the police to arrive. Remember to get a copy of the police report. Afterwards you must get in contact with your insurance company as soon a possible to report the accident. It is important that you do not sign anything until your insurance company is involved. This includes settlement agreements with other parties. If you do this you could void your insurance coverage.

Is there a deductible?

Yes. There is a $500 minimum deductible for physical damage to your vehicle and $1,000 for total theft. If there is a collision you will be responsible for paying the deductible when the repair is made. For vehicle theft, the deductible is the amount the insurance company will deduct from the vehicle value before paying you.

How are claims paid?

The amount of the loss is determined after you make the claim and all of the information has been gathered.

Can I drive someone else’s car in Mexico?

Yes, but it requires a notarized letter of permission from the owner. It will state that they give you authorization to drive the car into Mexico. The policy will then be made out in the owner’s name and yours.

What happens if I get into an accident with an uninsured motorist?

Full-coverage policies provides coverage for physical damage and medical coverage for you and the passengers in your car. Liability-only policies provide medical benefits and legal costs, but do not cover the damage to your vehicle.