What Liability Limit Should I Get on My Mexico Car Insurance Policy?
Driving in any foreign country can be a daunting experience, and when it comes to Mexico, there is an extra layer of responsibility—you must have proof of financial responsibility if you cause an accident. So, you need to know what liability limit is required, and this varies by state in Mexico.
You probably already know that Mexico auto liability insurance is required. But it’s easy to forget that you must carry a liability limit in Mexico that will pay for damages as outlined by the law.
What Is Liability Auto Insurance?
Liability auto insurance covers bodily injury, property damage, medical bills, legal fees, and repairs if you are involved in an accident. Basically, it gives you peace of mind knowing that you are covered no matter what happens on the road.
Why Do I Need Mexican Liability Insurance?
Liability insurance is mandatory for all travelers driving into Mexico from abroad, so make sure you get it before crossing the border.
Foreign drivers are fully liable for any damages caused by them during their stay. If you cause an accident, your Mexican liability insurance will cover the costs of any damages you may have caused up to the liability limit you choose on your Mexico auto policy.
[Mexican liability insurance will not cover any damages to your own vehicle. For this reason, it is advisable to purchase a policy that includes physical damage coverage. Mexpro’s full coverage policies include a $500,000 liability limit, standard.]
How Does Mexican Liability Auto Insurance Work?
Liability auto insurance works differently in Mexico than in the U.S. — the settlement is paid out as a lump sum, rather than per person/per accident.
Each Mexican state can set both a criminal and civil liability amount if a driver causes an accident that results in death using this formula: Minimum wage multiplied by 5,000, plus funeral expenses per person, times up to five (or what a judge determines).
For example, the Mexican general minimum wage is $172.87 pesos per day x 5,000 = $864,350, which translates to $45,492 USD (November 2022).
The state could then multiply this figure by five, which would be $227,460 USD per person.
And remember, that states in the Free Zone, have a higher minimum wage of $260.34 pesos daily. As you can see, ensuring that you have sufficient liability coverage is a must, if you’re driving in Mexico.
What Liability Limit is Required in Mexico?
Each Mexican state separately establishes the maximum liability limit (as describe above). When purchasing your Mexico car insurance policy, you will need to choose a liability limit based on the Mexican state or states where you will be driving. See our chart below.
Liability Limits in Mexico by State
This chart can help you decide how much liability insurance to carry, based on where you will be traveling. Exchange rates have been between $19 USD and $20 USD in 2022, so all amounts are based on a $19 exchange rate. These rates are based on a per person basis. Understand that the judge has full discretion when assigning damages and can choose to go higher, depending on the circumstances.
** Source: November 2022 GNP Seguros Limites RC Estatal - Liability Limit by MX State**
In looking at the state-by-state breakdown, it is easy to see why Mexpro only offers $300,000 and $500,000 liability limits on our policies, and highly recommend the $500,000 limit.
When driving to Mexico, having adequate protection against potential liabilities related to driving abroad is essential for ensuring your safety and peace of mind. Knowing what liability limit is required in Mexico will help you in determining how to protect yourself when purchasing your Mexico car insurance policy. With the right policy in place, you’ll be covered no matter what happens on the road. So don’t wait until it’s too late—get your policy now.