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.
