Buying Auto Insurance for Baja & Mexico

Below, please find a brief description on Mexican auto insurance for those planning on driving into Baja California or mainland Mexico.

Why Buy Mexican Auto Insurance?

• Insurance from a Mexican company is required by Mexican law in the event of an accident, even if you are not at fault.
• A Mexican Insurance policy greatly reduces the chances that you will face jail time, and limits the financial burden you might come by after an accident.
• A Mexican Insurance policy provides coverage for damage to your vehicle or its total loss.

Under Mexican law, motorists are required to have insurance, or "proof of financial responsibility", in the event of an accident, even if you did not cause it. As a foreigner traveling in Mexico, the only way of demonstrating this financial responsibility is to have sufficient real currency to cover damages, or an insurance policy from a Mexican company. U.S. or any other non-Mexican insurance does not cover your liability for potential accidents, nor does it fulfill the basic requirement for insurance according to Mexican law.

Mexican Insurance FAQ's

1. What does Mexican auto insurance cover?

Once you cross the border into Mexico, your U.S. or Canadian insurance cannot legally help you prove your financial responsibility in Mexico. While a few major U.S. insurance companies cover damages to your own vehicle in Mexico up to a small distance south of the border (usually no more than 25 miles), they do not cover damages to other parties. In the event of an accident where you are at fault, Mexican insurance will instantly show authorities that you are able to pay damages third parties. Policies may also include coverage for physical damage to your vehicle, total theft of your vehicle, medical payments for the driver and passengers, legal aid, bail bond and roadside assistance. Partial theft (of vehicle parts) and vandalism are also available with some policies.

2. What is a liability-only policy?

A liability-only policy will cover damages you cause to third parties. Unlike a full coverage policy, liability-only does not cover physical damage or total theft of your vehicle. Our liability-only policies also include medical payments for occupants of your vehicle (except for motorcycles), legal aid and bail bond, and roadside assistance (for most vehicles). Keep in mind the majority of drivers in Mexico do not have insurance. If you purchase a liability-only policy and are hit by an uninsured driver, the policy will not cover damages to your vehicle.

3. What is a full coverage policy?

A full coverage Mexico insurance policy covers physical damage and total theft (deductibles apply) of your vehicle. If you purchase a full coverage A full coverage policy also includes a liability limit to cover damages you may cause to third parties, medical payments for occupants of your vehicle (except for motorcycles), legal aid and bail bond, and roadside assistance (for most vehicles). Other benefits offered by the policies may include medical assistance, medical references, land medical transportation, air medical transportation, trip continuation assistance, and tourist information.

4. Does Mexican car insurance cover personal items inside my vehicle?

No. Personal items may be covered by your homeowner's or renter's insurance policy. Generally these types of policies offer worldwide coverage. Contact your carrier for details.

5. What information is needed to complete a policy?

To buy a Mexican insurance policy, you will need your driver's license, vehicle registration, U.S. or Canadian insurance information, and lien holder information (if applicable).

Thank you to Geoff Hill, Vice President, Business Development for Baja Bound Insurance Services, Inc. Mexican insurance information provided by Baja Bound Insurance Services.