Mexico Insurance Questions and Answers

Q: Does my U.S. insurance policy cover me in Mexico?

A: Some U.S. and Canadian policies may cover your vehicle for physical damage. The Mexican government, however, doesn't recognize U.S. or Canadian policies as valid insurance in Mexico.

Q: How is the value of my vehicle determined?

A: Your local car dealer or your insurance agent should be able to help you determine your vehicle's value. The Kelly Blue Book of used cars values may also be used as a guide. Be sure to add those extras you want insured should you have a loss. Remember, our trailers and cars are always worth more to us owners than they might be to someone else. We advise you not to under-insure.

Q: What if I have a loan on my vehicle?

A: If you have a loan on your vehicle or trailer, most lenders will require that they be furnished a copy of your policy indication that the unit is insured while it is in Mexico Upon request, we will supply a "lien holder" copy of the policy naming your bank or financial institution as lender. Always make sure you allow enough time before your trip into Mexico to allow for the handling of paperwork.

Q: If I tow a trailer, boat, or another vehicle, do I need to insure them?

A: No, but it must be listed on the policy with the towing vehicle, otherwise the towing vehicle's insurance could be voided in the event of an accident or loss.

Q: If I am borrowing a vehicle, will I need any special documents?

A: Yes, you should obtain a notarized affidavit of permission from the legal owner.

Q: What is Liability Only?

A: The Liability Only policy provides the minimum vehicle insurance required by the Mexican government. Included in this coverage is property damage caused by your vehicle, legal liability for injuries or death of persons not in you vehicle, and medical expenses for you or other persons in your vehicle.

Q: Do I need a Mexico Car Permit?

A: Only if you plan to drive in mainland Mexico beyond the border areas, or plan to transport a vehicle by ferry from Baja California to mainland Mexico. Permits are not required for travel on the Baja California peninsula.

Q: What is Legal Aid Coverage?

A: In Mexico, a traffic accident is considered a felony, it is possible that you will be detained by the authorities, with your vehicle impounded, until they conclude their investigation. Legal Aid helps prevent this, with one phone call an attorney will come to your assistance, and negotiate your immediate release, as well as the release of the vehicle.

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Mexican Insurance Information

When traveling in Mexico it's important to remember the legal system is different than in the United States. As in the U.S., the possibility exists of being involved in an accident. The Mexican Government treats these accidents seriously; under Mexican Law, they are considered both civil and criminal offenses. It is a felony, not a misdemeanor.

It's interesting that most of us buy insurance on our cars, homes and lives in the U.S. with a great deal of care and consideration. However, when we visit Mexico, we seem to forget the need for this important and legally required coverage and casually purchase it at a drive-in agency at the border as a last minute decision. At this point, sometimes a last minute decision can be a rushed decision and a bad decision.