How is Mexico Car Insurance Different from U.S./Canadian Insurance?

Assuming that a Mexico car insurance policy provides the same coverage and works in the same manner as a U.S. or Canadian auto policy is a big mistake. Each insurance policy is built to address the legal obligations required by the laws of a given country, and the purchasing habits of its populous. Many similarities exist between Mexican and U.S. auto insurance policies, but there are also many differences. We explain them below.

The important differences, exceptions, and quirks found in Mexican tourist car insurance policies:

  1. If you return to the U.S. without an adjuster's report, coverage is void. ALWAYS file your claim while you are in Mexico and preferably immediately after a covered incident.

  2. Due to changes to Mexico Liability Laws you are now required to carry high death liability limits, depending on each State specific requirement of where the loss occurs.

    All our customers can purchase up to $500,000 Combined Single Limit coverage. It is now highly recommended that you use the same level of care regarding Mexico liability limits that you would use when purchasing a U.S. or Canadian auto liability policy. This radical change to Mexico Liability law means that claims for death liability in Mexico will now be similar to the damages that are often imposed by courts in the U.S. and Canada in similar cases.

  3. If two Americans have an accident in Mexico and wish to file a suit in the U.S., a Mexican auto insurance policy will not respond to a liability suit brought to the U.S. It will only respond in Mexico.

  4. Liability for Bodily Injury does not apply for the passengers of the insured vehicle. However, no-fault medical payments coverage for passengers is provided. For example: No coverage is provided for passengers of the same vehicle suing the driver.

    NOTE: Motorcycle insurance policies do not provide medical payments coverage for any driver or passenger.

  5. Damage caused by flooding due to the action of tides is not covered. Other flooding is covered.

  6. Damage caused by a person without a valid driver's license or under the influence of alcohol or drugs is not covered.

  7. Damage sustained while participating in speed trials or races is not covered.

  8. Loss or damage to under-parts of the insured vehicle as a result of overloading or rough roads is not covered.

  9. Pilferage or partial theft of parts and/or accessories is not covered. Theft coverage is provided only if the entire vehicle is stolen. Vandalism is also excluded. However, these coverage options can be purchased via our premium full coverage policies.

  10. Trailers or boats that are towed must be listed on the policy in order to be covered for physcial damage, theft, or roadside assistance. If the trailers or boats are not listed, they would only receive liability coverage.

  11. Coverage for physical damage is not included unless it is purchased and specifically described in the policy. If a premium full coverage policy is purchased, it covers collision, overturn, fire, natural phenomenon, and total theft.

  12. All 6 month policies are fully earned by the 20th day of being in effect, and all annual policies are fully earned by the 30th day. Daily polices are not eligible for refunds or cancellations after the effective date of the policy. Six month and annual policies allow for refunds and/or cancellations up to 20/30 days after the effective date, at a pro-rated daily rate, based on this cancellation window, not the term of the policy. A cancellation fee equal to half of the Policy Fee will be retained on all voided policies. Note: Six month and annual polices carry high discount rates; daily policy amounts exceed 6-month rates after an average of 27 days.

While some of these may be surprising, these are a result of Mexican Law and the nature of Mexico car insurance policies. Mexpro stays up on changes in the Mexico insurance marketplace, modifying our coverage, as needed, in order to provide the best coverage possible to our clients. We have your back!

Getting a quote and purchasing your policy takes just minutes, don't wait start now!