Thousands of American citizens drive into Mexico every year. Some are on vacation, some are on business, and all should consider buying Mexican auto insurance to avoid a spate of potential hassles.
Mexican authorities can also void your insurance if they find you were under the influence of drugs or alcohol during the accident.
You don't have to buy liability insurance to drive in Mexico, but the Texas Department of Insurance strongly recommends it. TDI Commissioner Jose Montemayor says consumers should not count on their U.S. auto policy for protection.
"Drivers involved in accidents must either have liability insurance recognized by the Mexican government or prove they have the money to pay any claims against them," Montemayor says. "Mexico does not recognize auto liability policies issued by U.S. insurance companies. It is important, therefore, to buy liability coverage from authorized Mexican casualty insurance companies before driving any distance into Mexico. These companies also can provide physical damage insurance for your car."
In general, Mexican liability policies will cover you for up to $100,000 in property damage and the cost to treat injuries you cause. This is known as a "combined-single limit."
Some companies offer "split liability limits," which reduce the cost of the policy and the amount of coverage you have for property damage and bodily injury. A typical split-limit liability policy will cover you for no more than $40,000 in bodily injury for one person, $80,000 for all injured people, and $40,000 for property damage. The split limits are more than most state minimum liability requirements in the U.S.
You also can buy a "Mexico Coverage Broad endorsement” that extends your auto coverage for an unlimited number of trips and an unlimited length of stay, but only within 25 miles of the U.S.-Mexican border.
Mexican liability policies also include guaranteed legal assistance, roadside assistance and towing coverage, as well as medical payments coverage. You can purchase collision and comprehensive coverage for additional fees, but Mexican law does not require it.
You might be able to add an endorsement to your current U.S. policy that will cover you when you drive in Mexico. For example, if your trip to Mexico is less than 25 miles inside the border and fewer than 10 days, you might be eligible for limited liability coverage.
Another policy add-on you can buy is the "Mexico Tourist Coverage Limited" endorsement. It extends your liability insurance to Mexico. It only pays if you bought a Mexican liability policy, exhausted its benefits, and are sued for damages in a court in the United States. Unlike the other Mexican endorsements, this one provides coverage for trips of any distance or duration.
Before you enter Mexico, you'll likely have to check in at a border station. Make sure to have your vehicle title, drivers’ license and passport. There you'll have to prove you own the vehicle, provide identification, and prove you are a U-S citizen. Proof of insurance is not required, but Mexican authorities might prevent your entry into the country if you don’t have Mexican auto coverage. If you don't have insurance, you can purchase it at the border.
You might also have to post a bond for your car. The bond only costs a few dollars if you pay for it with a credit card, but can be far more expensive if you pay with cash.
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