Mexico Auto Insurance

For U.S. residents planning on traveling to Mexico in the near future, for business or pleasure, it is important to find out the insurance requirements and laws for those driving in that country. The following information is provided by the US state dept.

Insurance

Mexican auto insurance is sold in most towns and cities on both sides of the border. U.S. automobile liability insurance is not valid in Mexico nor is most collision and comprehensive coverage issued by U.S. companies. Therefore, when crossing the border, be sure to purchase auto insurance adequate for your needs in Mexico. A good rule of thumb is to buy coverage equivalent to that which you carry in the US.

Motor vehicle insurance is invalid in Mexico if the driver is found to be under the influence of alcohol or drugs. Regardless of whether you have insurance, if you are involved in an accident, you will be taken into police custody until it can be determined who is liable and whether you have the ability to pay any judgment. If you do not have Mexican liability insurance, you are almost certain to spend some time in jail until all parties are satisfied that responsibility has been assigned and adequate financial satisfaction received. There may also be criminal liability assigned if the injuries or damages are serious.

On many of the toll highways you may be automatically covered by the insurance that is included in the toll fee. This can provide added coverage for you in certain situations.

Rental Cars

Renting in the United States

Many car rental companies in the United States have clauses in their contracts prohibiting drivers from traveling out of the country. The Mexican police are aware of these restrictions and will sometimes impound rental vehicles driven from the United States. When renting a vehicle in the United States, be sure to check with the rental company to see if your contract allows you to drive it into Mexico.

Renting a Car in Mexico

The standard insurance included with many car rental contracts in Mexico provides only nominal liability coverage, often as little as the equivalent of $200. Because Mexican law permits the jailing of drivers after an accident until they have met their obligations to third parties and to the rental company, renters should read their contracts carefully and purchase additional liability and comprehensive insurance if necessary."... More Info. (source: http://travel.state.gov/travel/tips/regional/regional_1174.html)