Mexico Car Insurance

Your Mexican auto insurance policy will cover the mandatory third party liability insurance. Your existing Canadian or U.S. vehicle insurance policy is not valid for this purpose once you cross the border into Mexico. Your Mexican insurance policy may also cover the damages or losses arising out of collision or theft, medical costs incurred following an accident, legal assistance, bail bond, and roadside assistance. Vandalism and theft coverage are also offered under full coverage policies.

The minimum legal limit for liability coverage in Mexico for bodily injury and property damage combined stands at $20,000 U.S. However, it is always advisable to carry sufficient coverage over and above the minimum limit in order to reduce the financial risk. If you own a home, business or other financial assets, it is safer to purchase adequate Mexican liability insurance.

Your Canadian or U.S. insurance policy may offer coverage only for theft or physical damage to your vehicle. Even such coverage may be limited only up to a fixed mileage range into the border of Mexico. As per the Mexican law, no American or Canadian insurance provider can offer coverage for third party liability in Mexico. This coverage is mandatory in Mexico, which must be obtained only through a Mexican car insurance provider. You should also clarify the coverage for theft or damages with the U.S./Canadian provider before traveling so that the chances of any misunderstanding are minimized.

Common vehicles that are covered by leading Mexican insurance providers include cars, RVs and Motorhomes, vans, pick-ups, SUVs, motorcycles, and towed vehicles and objects such as boats, trailers, campers and ATVs. Buses and box trucks are also insured by the leading insurers in Mexico.

As per the Mexican law, you can drive your U.S. or Canadian automobile in Mexico if you have the liability-only auto coverage for the minimum amount of $20,000 U.S. Unlike a full coverage policy which also covers the risk of theft and property damages, liability-only policy only covers you against the risk of claims raised by a third party. Some policies may also include legal assistance and bail bond costs, medical costs for the vehicle occupants and roadside assistance along with third party liability coverage. With this policy, if your vehicle is damaged due to the fault of an uninsured driver, you cannot receive compensation from the insurance company.

A full coverage Mexican vehicle insurance policy includes liability to cover damages and personal injury that may be caused to third parties due to your fault, and also medical costs for vehicle occupants, legal assistance and bail bond, and roadside assistance costs. Full coverage also includes physical damage, destruction, and total theft of your automobile. Deductibles may apply, depending on the terms and conditions of the policy you choose.

You can cancel your Mexican vehicle insurance policy if the policy has not yet come into force. However, once the policy has already started, you may or may not receive a refund on cancelation. This will depend upon the terms of the policy and how much time has elapsed since the policy came into force. Asking for your money back after the necessary time has expired is often times futile; perhaps you will receive something in return but nothing is guaranteed unless otherwise stated.

In most cases, it is possible to make changes in your policy until the policy has come into force.

No Mexican vehicle insurance company will usually offer coverage for a vehicle that is involved in off-roading or racing. Mexico has a number of dirt roads that are valid municipal roads, and your coverage is valid on such roads. However, if the road is impassable, you cannot get coverage for using such paths.

You can buy two types of boat insurance coverage in Mexico. The first coverage will be applicable when the boat is being towed, and the other coverage will apply when the boat is on the water. The coverage ceases once the boat is disconnected from the trailer.

The claims reimbursement process in Mexico is quite similar to the process in Canada and U.S. Once you have filed your claim with the insurance company, they will collect all necessary information and determine the amount of loss occurred. If your vehicle is in need of repairs, a repair shop will be agreed upon and the repair work will done. You must remember that the insurance claim must be filed while you are in Mexico, and have not yet returned back to your home country.

Most of the Mexican vehicle insurance policies offer roadside assistance in Mexico. This service is available round the clock, and the insurer person can simply call the phone number provided on the policy to ask for assistance. This coverage usually includes flat tire service, fuel service, jumpstart service, lock out service, and towing. Bail bond and other types of legal assistance are also available round the clock with many policies. Other benefits may include medical assistance, land or air medical transportation, medical references, tourist information, and trip continuation assistance. You do not know what is going to happen when on a road trip; having more contingencies covered only increases the chances you will be covered and not stuck with a additional bills.