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US and Canadian Car Insurance in Mexico
US and Canadian car insurance is unlikely to be valid in Mexico. At best, they might cover damage to your car, but third-party liability coverage requires a Mexican policy issued by a licensed Mexican insurer only, and you need to have third-party liability coverage when driving in Mexico.
In this Pacific Prime Latin America article, we cover what you need to know about car insurance in Mexico and how you can safely drive in Mexico, knowing you are covered. Read on or contact our insurance advisors for tailored insurance advice for you now!
US and Canadian Car Insurance Coverage in Mexico
Some comprehensive car insurance from the US or Canada might provide coverage for your car, your belongings inside the car, or your medical treatment in case of a driving accident in Mexico. However, for third-party liability coverage, you need Mexican insurance.
What is Third Party Liability Coverage?
Third-party liability coverage covers loss when your action causes harm or damage to others. Some common third-party liability includes:
- Damage to another person’s vehicle or property
- Injury to another driver or their passenger in an accident
- Damage to road structure such as signs or poles
Mexican law requires that you have third-party liability insurance when you drive in Mexico, and your third-party liability insurance must be issued by licensed Mexican insurers only.
Foreign insurers cannot provide third-party liability insurance in Mexico, including American and Canadian insurers.
It is not uncommon for police to check for insurance documentation on the road. Therefore, it is highly advisable to purchase your car insurance from licensed Mexican insurers for your stay in Mexico.
How Much Coverage Do I Need for Mexico Car Insurance?
Many states in Mexico require coverage limits of at least around USD $5,400 for bodily injury and death liability and USD $2,700 for property damage. The exact number will vary from state to state.
However, some insurers might recommend you consider the worst-case scenario: your accident results in the death or serious injury of another driver or their kin.
Under Mexican liability law, you can be held responsible for the financial penalty if your accident results in casualty. The financial penalty is usually the state’s minimum wage multiplied by 5,000, plus funeral expenses, per person.
This penalty can be multiplied up to five times depending on the specific regulation of each state.
This is why insurers might recommend higher coverage limits, from USD $300,000 to 500,000, if you are considering driving to Mexico.
Other Coverages You Can Look For When Driving to Mexico
Apart from third-party liability insurance that is required by Mexican law, there are other coverages that could be helpful for you should the worst come to pass, such as medical coverage, legal representations, roadside assistance, and more.
Medical Coverage
Not all car insurance includes medical coverage should you or your travel companion become injured in an accident. Having medical coverage, either as a part of your car insurance or as a dedicated health insurance plan, can be helpful if you or your companion need medical assistance.
Legal Representation
If you are involved in a major car accident in Mexico, you might be detained, alongside other motorists, for police interrogation until the true nature of the accident can be established. Local legal representation can help you navigate this complex procedure, especially if you don’t speak Spanish.
Roadside Assistance
Roadside assistance can cover services you might need for minor road accidents or car breakdowns, such as tow trucks, jump-starting batteries, locksmiths, or flat tire changes.
Medical Evacuation
Medical evacuation provides emergency transportation to the nearest available medical facilities if you suffer injuries in an accident.
Pacific Prime has compiled a list of Insurance Coverage You Need in Mexico, whether for a short trip or a long-term stay. Check it out now for more information!
Cancelling Your U.S. or Canadian Car Insurance While Travelling in Mexico
Cancelling your car insurance in the U.S. or Canada can risk your vehicle registration being terminated. Your vehicle must be legally registered and legal to drive for your Mexican insurance to be valid.
Some drivers consider cancelling their U.S. or Canadian car insurance while staying in Mexico, especially if they plan to stay long-term. This is understandable, as you usually need to pay a separate premium for your Mexican insurance and the insurance in the U.S. or Canada.
However, please note that your vehicle must be legal to drive for your Mexican policy to be valid.
Canada and most U.S. states require that you have enough car insurance coverage to keep your car legally registered. If you do not have enough coverage, especially for third-party liability, your car registration can be terminated.
Vehicles without registration cannot be legally driven in any countries, including Mexico, and this can affect your Mexican insurance’s validity.
You can talk with your insurers to have your U.S. or Canadian coverage reduced to the minimum level required by law while you’re staying in Mexico.
Once you’re back, you can contact your insurer to have your U.S. or Canadian coverage restored to your preferred level. This way, you can avoid paying high U.S. or Canadian premiums while you are in Mexico.
Find the Right Mexico Car Insurance
Finding the right insurance policy can be a headache, with their different coverage limits, exclusions, and premiums. This is where Pacific Prime Latin America can jump in. We do the legwork of comparing and finding the right insurance plans for you.
With over 20 years in the insurance industry, Pacific Prime leverages its deep ties with top insurers to identify insurance plans that will work best for its client’s objectives and budget.
Contact us now for a free, no-obligation plan comparison!
Coming to Pacific Prime, she is ready to utilize her experience for the new pursuit. With a strong passion for storytelling and writing, she hopes her words could help bring people closer to the best international health insurance plan that works for them. After all, as a writer, there is no greater honor than when one’s words can add clarity to the world of the readers.
Apart from writing, she is an avid planespotter. On the weekends, you can expect to find her loitering around the airport, gawking at all the aircrafts taking off and landing. When the weather does not permit planespotting, you can find her huddling on her cozy couch, watching ballet and figure skating as well.
- US and Canadian Car Insurance in Mexico - February 11, 2025
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