"Is Mexico Auto Insurance Required?"
Yes! If you plan on driving your own vehicle in Mexico, you will need to purchase a Mexico-specific auto insurance plan. US & Canadian auto insurance is not accepted as valid insurance in Mexico.
Luckily, picking up Mexico auto insurance for your vehicle is quick and easy to do.
In this article, you will learn everything you need to know about auto insurance in Mexico. Specifically:
Everything About Mexican Auto Insurance
If you’re interested to learn more, keep reading!
What Type of Mexico Auto Insurance Is Required?
At a minimum, the Mexican government requires 3rd party liability-only auto insurance. For those traveling Mexico on a budget, this is the cheapest auto insurance plan to buy.
What Is 3rd Party Liability Insurance?
3rd party liability insurance financially protects you in the case you cause damage and/or injure somebody else while you are driving.
In Mexico specifically, this insurance ONLY pays for those injured outside your vehicle. Passengers in your own vehicle are not covered.
Full Auto Insurance (Recommended)
When it comes to driving in Mexico, we highly recommend getting full insurance. It covers 3rd-party liability PLUS you, your passengers, and your vehicle.
Where To Purchase Mexico Car Insurance?
Each time we enter Mexico, we get our Mexico Auto Insurance from Baja Bound.
We compared rates of Baja Bound versus the big name auto insurance providers in the US and found Baja Bound to be more affordable.
Most importantly, the underwriters of these insurance policies is the same. No matter who is providing these plans. Meaning, the larger US auto insurance companies are adding on a significantly larger markup for the same car insurance plans.
Go with Baja Bound.
Auto insurance policies for Mexico are irrationally expensive for short term travel. But the longer you stay in Mexico, the rates quickly become cheaper and cheaper.
This was the Mexico auto insurance policies (4 options) that were presented to me. I asked for an 11-day policy but I was also given a 6-month and 1-year policy.
You can see the difference between 6-months and 1-year is negligible. But the 11-day policy is much more expensive.
I ended up choosing the 1-year policy instead and used this policy for two separate trips into Mexico.
What To Do When In An Accident In Mexico?
When you are involved in an accident in Mexico, things are slightly different than in your home country.
Initially, the other party may want to ignore your insurance and demand an up-front cash payment to settle any accident.
Police may get involved and might pressure you to make you pay cash to resolve the dispute.
Whether you decide to pay money to settle or not is up to you. BUT you always have the right to call your insurance first so that an agent can come to the accident scene and asses the damage.
Remember: If you have the proper insurance, you do not have to pay any cash up-front to anybody.
Travel / Health Insurance
While not required to enter or travel in Mexico, travel health insurance is a must-have. It’s total, comprehensive protection against illness, injury, trip cancellations, and even theft of belongings. We feel much safer on the road once we’ve purchased travel insurance.
Our go-to travel insurance provider is World Nomads.
Travel Safe & With Confidence With Proper Mexico Auto Insurance
Driving in Mexico can get hectic. Chaotic drivers, cattle ranchers on the road, and hidden motorcyclists everywhere.
Plus, many streets in Mexico are super narrow and we’ve come inches away from scraping other vehicles and property.
Though we know people who fake their insurance, we don’t recommend that at all. Picking up affordable Mexico auto insurance is the best thing you can do to calm your nerves while driving.
Read Full Guide: Everything You Need To Know About Van Life Mexico