You should always drive in Mexico with proper insurance. An accident can pose serious risks if a driver doesn’t have adequate coverage. I talked to Oscar Padilla Mexican Insurance to learn more about the importance of insurance when entering Mexico. US and Mexican traffic laws might be similar, but it’s better to do some research and go in prepared.

Car Accidents in Mexico

There are several things to consider if you are involved in a car accident in Mexico, so it is vital to understand these points before you decide to enter the country:

Upon determining that your actions caused an incident involving several vehicles, you will be liable for any damages. You will be personally liable for costs related to the repair of public highways, such as road surface repair, barrier repair, and sign repair. Third parties may sue you for liability damages if you are deemed responsible for an accident that causes harm or death. Drivers will also be arrested. You may be charged if you are caught driving without third-party insurance, which is mandatory in Mexico.

Why You Need the Insurance

Mexican law requires that you carry liability insurance from a Mexican insurer when driving on Mexican roads.  Driving without adequate vehicle insurance is risky, as police commonly ask for insurance documents when they stop vehicles.

Police in Mexico will detain you if you are involved in a serious accident in which individuals are injured or killed. Until the other party is satisfied with the compensation you offer, you will be detained for longer. Once they are satisfied, the paperwork will be signed that will release you from police custody.

Foreign-plated Vehicle in Mexico

A valid Mexican car insurance policy must be purchased if you are crossing the border with your own vehicle from the USA or Canada. If you are in Mexico with a foreign-plated vehicle, your US or Canadian auto insurance will not cover third-party liabilities. The cost of auto insurance in Mexico isn’t high, so if you plan to drive here, you should consider purchasing specialized coverage. They can also provide emergency medical evacuation services and breakdown support. Ensure that you have comprehensive coverage if you rent a car in Mexico.

Serious accidents usually result in arrests of drivers in Mexico. Without proper insurance in Mexico, if you are involved in a serious accident, regardless of whether you are at fault, you will be subjected to considerable stress and financial hardship.

How to Insure a Foreign-plated Vehicle?

Mexico’s legal system only recognizes and accepts auto insurance policies issued by Mexican insurance companies. In Mexico, your home country insurance does not cover your liability for damage to others despite coverage for damage to your own vehicle. The only way to be properly insured in Mexico is to buy a special insurance policy either directly from a Mexican insurer or through a broker in the US or Canada who is working in partnership with a Mexican insurer.

How to Insure a Vehicle with a Mexican Plate?

You can insure a vehicle with a Mexican plate locally for use in Mexico. When choosing an insurance broker, you need to consider a few things first. Make sure they are properly licensed. Coverage options include breakdown and medical assistance. Ensures that any claims or needs you may have while driving in Mexico are handled properly. Utilizes insurance companies with a good reputation.