Why isn’t my Canada or U.S. car insurance enough for driving in Mexico?

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Why isn’t my Canada or U.S. car insurance good enough for driving in Mexico?

There is sometimes a perception that Mexican insurance is a supplement to a domestic at-home car insurance policy. However, a lack of understanding could leave you in a bind and faced with huge losses because of an incorrect assumption. Your U.S. or Canada-based policy becomes null and void when you cross the border into Mexico. There are territorial exclusions on US and Canadian car insurance policies. Although there may be some policies that claim to provide in-Mexico benefits, these are physical damaged based and in effect for a few miles along the border areas of the country. They certainly do NOT cover liability exposures which if not covered can easily land you in jail until the damages are paid in full.

Mexican car insurance is necessary for several reasons. If you are involved in an accident, the authorities will first be sure than any injuries are handled and that everyone is cared for appropriately. After this, money becomes the next concern. You will need to demonstrate that you are able to financially handle your responsibility for any damages related to the accident. Your foreign policy isn’t recognized by the Mexican government, and failure to purchase Mexican insurance online before you enter the country could leave you facing serious financial and legal issues. Your Mexican car insurance policy can spare you an uncomfortable stay in the bare bones facilities of a Mexican jail.

While you may feel confident if you’ve purchased a Mexican insurance policy, an insufficient amount of liability coverage could also cause problems. Just as in your domestic at-home policy, you get what you pay for. If you invest in Mexican car insurance for liability-only needs, you can be stranded without a vehicle and without the means to have your transportation repaired or replaced. While you may avoid legal troubles because you have carried enough liability coverage, you might want to think carefully about investing just a bit more money so that you can recover your vehicles physical damage losses with a full coverage Mexican insurance policy.

Remember the following points when you buy Mexican insurance:

  • Your U.S. or Canada policy is not recognized by Mexico authorities and is invalid
  • Inadequate Mexican car insurance online limits of liability can expose you to legal and financial problems in the event of an accident
  • You need to keep proof of your Mexican insurance policy handy and available during your trip to avoid trouble; your documents can be printed out easily at home, and carrying a spare copy with you ensures that you have the needed proof of ability to pay instantly so you will avoid being detained
  • Liability-only coverage may leave you exposed to serious financial loss if you have an accident because your vehicle is not covered for theft or collision

Our agents are prepared to provide email or telephone support if you are unsure of your options. We also provide you with helpful resources to use if you do experience an accident during your travels in Mexico.