Insurance Laws in Mexico

If you plan to drive south, understand the Mexico car insurance laws. You must have Mexican car insurance at the very least a liability-only policy or driver’s license policy. Your US car insurance policy will not cover you for injury or damages if you get into an accident south of the border. Some U.S. and Canadian companies extend their domestic coverage within a certain distance of the border but this ONLY COVERS damage or theft to YOUR car. they can’t do anything for damages to the third party. You will be detained without car insurance from a Mexican company until damages can be recovered.

This is something that not many people in the United States know. Also, why they get into big trouble when they are in an automobile accident in Mexico.

In order to make sure that you have proper coverage and protection when driving in the country, you should purchase Mexican car insurance before you leave for your trip.

In fact, you should do some thorough research, find out as much as you can about Mexican auto insurance law and buy the right coverage well before beginning your journey.

Mexico Car Insurance Laws

Effective September 23rd, 2014, law requires Mexico Liability Auto Insurance for every vehicle that drives on federal roads and bridges. In the past, it was only in the event of an accident you need proof of financial responsibility.

Today, the law in Mexico requires proof of Mexican Liability Insurance at all times when anyone drives on federal roads and bridges. The authorities can ask you for proof of Mexico car insurance at border crossings, checkpoints or traffic stops.

This law is enforced by the federal police and drivers who are caught without proper coverage will have to pay fines starting at $200. Drivers who are involved in an automobile accident without coverage will have to pay fines starting at $1,000.

These fines are in addition to possible jail time and legal expenses. You should make sure to buy Mexico car insurance that provides comprehensive coverage and legal protection.

You should know that there is also a federal law regarding indemnification. This is in case of an at-fault death of a third-party on federal roadways.

If you are at fault in an accident in Mexico, you may pay indemnification of up to $300,000 per death. It is wise to carry a minimum of $300,000 CSL liability limits for Mexico car insurance.

Buy Mexico Car Insurance Before Your Trip

You should purchase a Mexico car insurance policy to cover and protect you. You can get the best policies from Mexico Insurance Services, Inc. To find out more or get a quote, visit

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