Does My Car Insurance Cover Me in Mexico?

Mexico Car Insurance Requirements

Not only does your car insurance policy not cover you when driving in Mexico, but it doesn't even comply with the country's insurance laws. According to the U.S. State Department, any driver involved in an accident in Mexico may be arrested if they don't have proper insurance, even if they're not at fault.

To stay protected and abide by the law, you must purchase a separate Mexico auto insurance policy that adheres to Mexican car insurance requirements.

• Drivers in Mexico must carry a minimum amount of liability coverage. That means you must carry bodily injury and death liability coverage worth a minimum of 100,000 Mexican pesos (roughly $5,000 U.S.). You'll also need property damage liability coverage of at least 50,000 Mexican pesos (roughly $2,450 U.S.).
• The policy must be issued by Mexican licensed insurers. Your liability insurance must be issued by a Mexican-licensed insurer. However, many U.S. insurers work with licensed providers in Mexico, so check if your insurance carrier can include the coverage required by Mexican law. For example, Progressive partners with MexPro, a broker specializing in Mexico auto insurance, to offer temporary coverage for its policyholders.
• You must carry proof of insurance in Mexico. Law enforcement may request proof of insurance whether you're involved in an accident or pulled over for a routine traffic stop, so be sure to keep it handy.

Just as in the United States, auto insurance companies typically recommend purchasing more than the required liability amount. If the unthinkable happens and you're responsible for a fatal accident, Mexico's federal liability law requires compensation equal to 5,000 times the state's minimum wage, along with funeral expenses for each victim. On top of that, the state may multiply that amount up to five times. Depending on where the accident occurred and that state's minimum wage, your liability could easily climb up to $500,000.

If you're financing your vehicle, your lender may require you to purchase extended liability coverage if you plan on driving in Mexico. Check with your lender to confirm their requirements.

Learn more >> How Much Car Insurance Do I Need?

Types of Mexican Auto Insurance Coverage

Liability coverage is the only type of auto insurance you're required to carry when driving in Mexico. However, you may want to consider additional coverages for increased protection.

Here are some of the most common types of auto insurance in Mexico:

• Liability insurance: As mentioned, Mexican law requires you to carry a minimum amount of liability insurance, but you can purchase coverage for up to $1 million. If your U.S. insurer works with reputable Mexican insurance companies, it's a good idea to get your policy through them.
• Physical damage coverage: Some U.S. auto insurers offer a limited Mexico coverage add-on, which may apply this additional coverage to trips into Mexico within a specified range of the border. Check with your car insurance provider to confirm if this option is available. Even if you have this additional physical damage coverage, you still must purchase liability coverage from a Mexico-licensed insurer and carry proof of insurance.
• Bail coverage: Consider adding bail and legal assistance coverage from $30,000 to $500,000 to cover bail bonds, attorney and legal fees. This coverage may give you legal support and help you navigate the court process, which could potentially keep you out of jail after an accident.
• Theft coverage: You might want to purchase partial or full theft insurance in case your car is stolen while you're traveling in Mexico.
• Medical payments: This insurance covers medical expenses for you or your passengers if you're injured in an accident while driving in Mexico.

Which Insurance Companies Offer Mexico Auto Policies?

You don't have to get your Mexican tourist auto policy from the same company as your regular auto insurance, but it's a convenient option if your insurer partners with a licensed provider in Mexico. Alternatively, go directly through a broker such as MexPro, which specializes in selling car insurance to cover tourists in Mexico.

Some insurance providers that can help you get coverage in Mexico include:

AAA

In addition to Mexico home and watercraft insurance, AAA offers Mexico auto insurance for up to six months or a year. As it does in the United States, AAA offers its members discounts—in this case, a 15% reduction on premiums and 25% off the policy fee.

To streamline the application process, gather some information beforehand, including your:

• Travel dates
• Vehicle information (model, make, year and market value)
• Towed unit information (if applicable)
• AAA member number (to receive discount)
• U.S. insurance policy information

You don't have to be a member to sign up for Mexico car insurance through AAA; you can quickly purchase a policy online. This way, you can get the coverage you need and print proof of insurance before your trip.

Allstate

Partnering with Mexican insurance companies, Allstate can help you secure tourist insurance with customizable terms, whether you're traveling to Mexico for a few days or a year. In addition to required third-party liability coverage, Allstate recommends their clients look for policies that include:

• Bodily injury
• Medical payments
• Legal assistance
• Roadside assistance
• Medical evacuation
• Loan or lease payoff

Many of Allstate's recommendations address issues you might face if you get in a car accident in Mexico. If your budget allows, getting coverage for legal assistance after an accident or roadside assistance in an unfamiliar place may be wise.

Geico

You can add a short- or extended-term tourist car insurance policy from Geico to cover your car when visiting Mexico. These policies can cover you on a day-to-day basis or for months at a time, depending on your needs. Coverage options include:

• Physical damage
• Liability (up to $1 million)
• Physical damage
• Vandalism
• Total theft
• Medical payments
• Gap coverage

When getting a quote from Geico for Mexico tourist coverage, be ready to provide your current U.S. auto policy information as well as the dates and destination of your trip. The company will also need to know your license plate number, make and model of your car, vehicle identification number (VIN) and valuation on your car.

Liberty Mutual

Through its partnership with broker MexPro, Liberty Mutual offers coverage for tourists to Mexico in a customizable format that lets drivers pick their coverage based on the insurance plan. To get a quote from Liberty Mutual, drivers should have the following information ready:

• Dates of travel
• Vehicle make, model and year
• Vehicle value
• Tow-behind item information
• VIN
• License plate number
• Current insurance information
• Lienholder information, if applicable

Liberty Mutual suggests that its customers purchase at least $300,000 in third-party liability and up to $500,000 if possible.

Coverage can be had within the same day and proof of insurance printed at home.

Progressive

Progressive can help you get auto insurance for Mexico through its partner MexPro, which offers basic, standard or extended coverage for driving in Mexico:

Basic:

• Third-party liability
• Travel assistance
• Medical payments
• Legal assistance

Standard (in addition to basic):

• Collision
• Theft

Extended (in addition to basic and standard):

• Vandalism
• Partial theft
• United States repair
• Fixed deductibles

Progressive suggests basing your coverage choice on the amount of time you plan to be in Mexico as well as the age of your vehicle. Newer cars or cars that will spend several months in Mexico may do better with extended coverage. For cars over 20 years old, only liability insurance is available.

How to Get Car Insurance for Your Mexico Trip

Follow these simple steps to make sure you have the right coverage when driving your car in Mexico.

1. Choose an Insurance Provider

Whether you work with your existing car insurance provider or go through another company or broker to get car insurance for visiting Mexico, you'll need to sign up for a specific policy just like your existing car insurance. Most major U.S. insurers (see list above) work with Mexico-licensed carriers to offer liability policies that comply with Mexican laws. Coverage costs vary among insurers, so consider getting multiple quotes to find the most suitable provider.

Learn more >> How to Choose the Best Car Insurance Company

2. Gather Important Documents

When you're ready to apply for your new policy, be prepared to provide some key details about your car, insurance and travel plans. Gathering this information ahead of time may save you a lot of time. Here's what you'll need:

• Your driver's license number
• License plate number
• Car make, model and year
• VIN
• U.S. auto insurance policy number
• Travel dates and destinations

3. Purchase Mexico-Compliant Insurance

Remember, you must carry at least 100,000 Mexican pesos in death liability coverage and 50,000 Mexican pesos in property damage liability to comply with Mexico's laws. These requirements can change, so be sure to check for the current minimum coverage before your trip by contacting your insurance provider.

Beyond the required minimums, consider optional coverages like physical damage protection, theft protection and bail assistance. Discuss your needs with your insurance agent to ensure you're fully covered for your travels. Once your policy is finalized, make sure to carry proof of insurance with you on your trip.

Mexican Rental Car Insurance

If you plan on renting a car in Mexico, you'll need to purchase local insurance. Mexican law requires third-party liability coverage, which rental companies typically include in their daily rates.

Keep in mind, basic liability insurance only covers damage to others and their property, not the car you're driving. Consider getting additional coverage, like collision and theft protection, which you can typically purchase from the rental company. It's a good idea to call the rental provider before your trip to research coverage options and prices to help you make the best decision.

If you hope to use rental car insurance provided by your travel credit card, be warned: It will likely not apply to rentals in Mexico, as they need insurance from Mexico-licensed providers.

Save on Car Insurance Year-Round

If you plan on driving in Mexico, it's essential to take extra steps beforehand to make sure you're properly insured. Mexico's laws require you to carry a minimum amount of third-party liability insurance, but it may not be enough. Consider extending your coverage with higher policy limits, collision coverage and other options to improve your protection.

If you're looking to save money on car insurance for everyday driving in the U.S., check out Experian's car insurance marketplace. It allows you to shop and compare quotes from over 30 top insurers so you can dial in the right balance of price and coverage for your needs.