Does U.S. Auto Insurance Cover Mexico?
Many visitors decide to travel to Mexico by car and find that it is a pleasant and safe drive, but there are certain insurance requirements you need to meet before entering the country. Some U.S. or Canadian insurance policies may offer a certain amount of insurance coverage while in Mexico, but all insurance policies of this nature have certain limitations.
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Damage Coverage
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There are insurance companies that offer full damage coverage within Mexico, but all of these policies exclude theft of the vehicle -- they do not offer liability insurance. Check to see what the deductible is in these cases. Often the deductible on this type of insurance claim is much higher than what a comparable Mexican auto insurance provider has.
Limited Distance Coverage
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It is important to read through your insurance policy and find the coverage pertaining to foreign countries. Call your insurance provider and ask for the policy coverage in a foreign country to be explained thoroughly. Be aware that some insurance providers only offer coverage within a short, limited mileage from the Mexican-American Border.
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Liability Coverage
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As mentioned before, foreign insurance policies do not cover liability insurance, so even if your insurance company offers coverage within Mexico, none of the American or Canadian auto insurance companies offer liability insurance. This means if you are in an accident and are found to be at fault, you will be responsible for the damages caused to the other vehicle. This results in a great risk especially because of Mexico's severe laws regarding accidents. In Mexico, if you are responsible for an accident and the other party needs medical attention, you will go to jail until the issue is resolved if you do not have liability insurance.
Purchasing Insurance
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If your insurance company does not offer insurance coverage in Mexico but the insurance provider can sell you coverage, you should wait and purchase insurance coverage in Mexico from a Mexican provider. You can purchase full coverage at a much lower cost than that offered by your insurance carrier. Plus, there are benefits like liability insurance that a Mexican insurer can offer and a foreign insurance provider can't.
Bottom Line
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If your insurance carrier offers insurance coverage in Mexico, check to make sure it covers vehicle damages throughout the country. When you reach Mexico, purchase a basic liability insurance plan to cover damages to other vehicles should you be involved in an accident. This way your American or Canadian insurance company can cover any damages to your vehicle and your Mexican insurance can cover third party damages. If your insurance carrier does not offer you coverage throughout the country and has several limitations, purchase a full coverage Mexican plan for the time period you will be in the country.
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References
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