Should I buy Mexico Auto Insurance protection?
For starters, auto insurance is required by Mexican law, and it has to be provided by a Mexican insurance company. Regardless of your negligence in an accident, you have to be able to provide evidence of Mexico auto insurance from a domestic Mexican insurance company.
So the answer is "Yes," if you're going South of the border you need to purchase Mexico auto insurance.
When you are traveling in Mexico it is important to remember, you’re the foreigner. The only for you to demonstrate that you have the financial capability to resolve a loss is to produce your hard-earned cash or, or a Mexico auto 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.
Auto insurance from the U.S. is not considered "proof of financial responsibility" under Mexican law. Sure, some U.S. auto insurance companies cover damages to your vehicle in Mexico (usually limited to 25 – 400 miles into Mexico), they do not cover damages to others, or your liability. You still need to have at the very least a companion liability-only auto insurance policy from a Mexican insurance company.
A liability is an obligation that arises when you are responsible for damages you may have caused to others, which is enforceable, normally, by some civil remedy like monetary consideration. The liability component an auto insurance insurance policy covers damages which you might cause to others, either to property or injury.
If you getting ready to travel to Mexico, get a Mexico auto insurance policy. Give us a call at 800.789.1132 and we can connect you with one of our 3,500 authorized producers.