What to Look for When Buying Mexico Auto Insurance Coverage

We recommend that you always drive properly insured in Mexico.  The risks of driving without adequate coverage are significant, especially in the event of a serious accident.

Consequences of driving uninsured in Mexico

If you become involved in a car accident in Mexico and you are not insured:

• you will become personally responsible for any damage to the third party’s vehicle (or vehicles, if it is determined that your actions were the cause of an incident involving several vehicles);
• the authorities will pursue you personally for costs related to the repair of the public highway; this includes things like road surface, barriers, signs, and lamp post repairs—and can get expensive;
• if someone is hurt or killed, all drivers will be arrested; if you are deemed to be responsible, third parties will pursue liability damages against you;
• the authorities may charge you with driving without third party insurance that is compulsory in Mexico.

What to look for in an auto insurance policy

Regardless of who you buy your auto insurance coverage from, you should check that your auto insurance policy includes these essential elements:

Financially sound insurance underwriter

Make sure that the insurance company underwriting your policy is financially sound. Policies from lesser-rated insurance companies might cost less, but that lower premium translates into a de facto higher-risk for the policy holders. Don’t just shop around for the cheapest policy—consider who’s insuring you to avoid surprises in the event that you need to make a claim.

Licensed broker

As all insurance policies are sold through brokers, ensure that the broker you engage with is licensed and that they provide full transparency of the policies they offer. You should be able to check the detailed terms and conditions of any policy before you are asked to buy.

Broker’s presence and infrastructure

Ensure that the broker you use is well established in the market.

‘Good infrastructure’ means that the broker has excellent customer services facilities, makes effective use of technology so that you can purchase your policy efficiently.

The policy ought to offer help and support services when you are in Mexico, in addition to the insurance coverage, to include local access numbers where you can call to make a claim, ask questions and report issues, and be able to talk to someone in English, especially if you don’t speak much (or any) Spanish.

Liability coverages, legal assistance, and bail bond

Ensure that any policy you purchase includes coverage for these three essential elements:

• Third party liability: the policy must cover third party liability, including your personal liability to any third parties.
• Legal assistance: good policies offer comprehensive legal assistance that will support you in the event of a serious accident or third-party claim.
• Bail bond: your coverage ought to include a ‘bail bond’ element that will cover payment of your bail bond if you become involved in a serious accident and are detained while the incident is investigated, and liability is assessed. If this process is protracted, the bail bond may get you released pending inquiries.

Local support when you need it most

In the event of an accident or incident and subsequent claim, the level of local support your broker’s insurer has in place in Mexico will make all the difference to you.

• The broker and their insurance company should provide easy access to local support services in Mexico so that in the event of a claim, you are able to call for help with the least amount of effort.
• They ought to offer support attended by an English-speaking service agent who will be able to manage your call efficiently and dispatch the help and support you need.
• The local support ought to coordinate all your needs including accident reporting, legal support, breakdown, and medical assistance (if you purchased these).

Breakdown and medical coverages

The better brokers will offer a comprehensive range of additional support services, which are optional, but are worth considering when you are driving in Mexico.  The two most important are:

Breakdown coverage

If your vehicle breaks down while you’re driving in Mexico, roadside recovery will provide you with the essential support you need to get your car repaired and mitigate risks of becoming stranded.

Roadside assistance may include things like delivery of emergency fuel, towing services, dealing with flat or damaged tires, locksmith support, jumpstart assistance, and provision of lodging and a rental car while you wait for your vehicle to be repaired, and repatriation to your home country in the event of a write-off.

Medical assistance on your road trip

A policy that provides medical coverage will provide round-the-clock medical assistance on your road trips, including in the event of a serious accident, land and air medical evacuation and coverages to support you and your travel companions, for example with accommodations and transport while you convalesce.

Making an auto insurance claim in Mexico

Your policy documentation should be clear about the procedure you need to undertake in the event of an accident or incident, and any subsequent claims.

Here is a summary of the most important points, which are relevant to terms on most Mexican auto insurance policies:

You must make the claim in Mexico

Some people wait until they get back to the US or Canada before making a claim, especially if it’s for something minor, for example, for bodywork or a hit-and-run incident in a parking lot. Insurance policies require you to make a claim while you are in Mexico and most will not process your claim if you wait until you return home, except in the most exceptional circumstances.

Calling the insurance helpline

The first call you make if you become involved in an accident should be to the insurance company’s helpline. In addition to registering your claim, they will be able to dispatch an insurance assessor to the scene of the accident, as well as plan for lawyers or other services to be put in place for you, in the event of a more serious accident.

They may also arrange for breakdown and medical services to attend the scene if you purchased these additional coverages, and they are required.

Paperwork and reimbursement

You may be asked to produce a police report as well as other relevant documentation as part of the claim procedure. In some cases, for example, for immediate repairs to get your vehicle back on the road, you may need to pay these out-of-pocket and get reimbursed when you return home.

Keep all receipts. Your insurance policy will be specific about what to do in these circumstances. In all cases, remember that you should lodge your claim in Mexico—don’t wait until you get back home.

Learn more about driving in Mexico

Mexperience offers guides and articles to help you prepare and drive confidently in Mexico