Insurance Coverage You Need in Mexico
Are you planning to visit Mexico for your next getaway? Looking at Mexico for your next professional journey? Chances are, you’ll need to be properly insured for your travels, your health, and your valuable assets like your vehicle and your house.
Mexico is more than just the United States’ Latin neighbor. With its vibrant culture, ancient ruins, incredible cuisine, and dazzling beaches, Mexico is a marvelous country for anyone to visit or settle in. However, as with all places, some potential risks or accidents can happen at any moment.
In this Pacific Prime Latin America article, we will dive deep into everything you should know about the insurance coverage you need in Mexico, from travel insurance to international health insurance, car insurance, and property insurance.
Securing Travel Insurance While Traveling to Mexico
Mexico is a popular choice for those wanting to visit Latin America. While the country is generally safe for tourists, there are still criminal activities happening in the area. Securing travel insurance acts as a safety net from the financial strains resulting from unforeseen accidents and crime.
Besides crime, Mexico is prone to natural disasters, which can completely change your itinerary for the worse. With travel insurance, you’ll be covered for trip cancellations, and medical attention (in case of an injury) without having to pay out of pocket.
Travel Insurance in Mexico and its Perks
So if you’re only planning to visit Mexico for the holidays, getting travel insurance is the best bet. Travel insurance is designed specifically for travelers, and will insure you for up to 90 days, covering travel-related accidents and basic health coverage.
Here’s what you can expect to be covered during your travels to Mexico:
- Trip delay insurance: This covers the expenses that can be incurred as a result of trip delays. This includes hotel stays and the cost of meals at an airport. This is particularly helpful should you have connecting flights on your trip.
- Trip interruption insurance: This provides coverage if your trip is cut short due to unforeseen events. Generally, you’ll be covered for economy flights back home
- Standard trip cancellation: You’ll be offered a full refund for pre-paid, non-refundable trip costs that you would otherwise lose if you need to cancel your trip. Eligible reasons for a claim include illnesses or injuries, family emergencies, and severe weather conditions.
- Trip cancellation for any reason: This is the most flexible coverage for your travel plans, as it allows you to cancel your trip for any reason, albeit no less than 48 hours before your trip starts. You can be reimbursed up to 75% of your trip’s expenses.
- Trip interruption for any reason: This allows you to return home early during your trip for any reason. You can be reimbursed up to 75% of your trip’s costs as well.
Kidnap & Ransom Insurance in Mexico
Due to high kidnapping rates in Mexico, securing yourself with kidnap and ransom insurance can prove to be especially useful if you plan to visit remote areas.
Kidnap and ransom insurance policies generally provide financial protection should there be any kidnapping or random incidents. These policies also cover the loss of ransom money during transit, as well as any additional expenses that may arise.
Securing International Health Insurance During Your Stay in Mexico
If you are planning to move to Mexico for work or to set up a business, our advice for you is to secure international health insurance. This will provide you with comprehensive coverage for up to a year, as opposed to 90 days for international travel insurance.
Furthermore, it’s worth noting that Mexico does not have any reciprocal health care arrangements with any other country. Thus, you will need to pay for any treatment you receive at a private hospital, such as doctors, medical specialists, support services, medicines, and emergency transportation.
Thus, being properly insured for medical services during your stay in Mexico is crucial.
The IMSS System: Mexico’s Universal Healthcare
Mexico has a national healthcare system called IMSS (Instituto Mexicano del Seguro Social). Mexican citizens, legalized immigrants, and those employed in the country are eligible for free treatment.
Upon application for IMSS, foreign residents can get access to certain medications, doctors, and medical facilities in Mexico. Expect to be covered for hospitalization costs, medical care costs, surgery costs, and medication costs at public health institutions.
Furthermore, the IMSS’ coverage costs are based on age, and as with any public healthcare system in the world, long wait times are to be expected for each visit.
Health Insurance Options for Expats in Mexico
Suppose you do not have expat health insurance in Mexico or are not part of the IMSS public healthcare system. In that case, the available options for expats, including short-term visitors, long-term stays, and foreign residents, are as follows:
Short Visits
The best bet for you is to secure travel insurance if you’re planning to visit Mexico for vacation or a business trip. It will cover you for a limited time when you’re traveling, so this is ideal for short visits.
Extended Stays
Should you plan on staying in Mexico longer than a short visit, but not long enough to live there (Around six months or less), then you’ll need something that will cover you more than just short-term travel insurance, which is a private health insurance plan that can offer local coverage.
Furthermore, if you already have health insurance from your home country, then we advise you to secure emergency medical travel insurance that includes emergency evacuation, should you need to fly home due to a serious medical issue.
Foreign Residents
Expats who are looking to obtain residency in Mexico should skip travel insurance altogether since it’s best for those who are traveling for a short time before returning home. The health insurance from your home country will probably not cover you if you’re abroad as well.
Thus, the best option for expats living in Mexico is to secure private international health insurance to ensure direct access to the country’s private healthcare system.
Benefits of Private Individual Health Insurance
So what exactly does an individual health insurance plan cover? Below are the benefits that you can expect:
- Inpatient benefits
- Outpatient benefits
- Maternity insurance
- Dental insurance
- Vision insurance
- Top-up insurance
- International coverage
Health Hazards in Mexico
While Mexico is generally quite safe, some health hazards do exist. There is a risk of contracting mosquito-borne diseases such as the Zika virus, dengue fever, and chikungunya.
Unfortunately, no anti-viral treatments are available for these types of infections, so wearing long-sleeved clothes or applying mosquito repellants is necessary for prevention. Additionally, there is a low risk of contracting malaria, but expats should still take precautions nonetheless.
Vehicle Insurance in Mexico
If you are planning to drive, insuring your car in Mexico is crucial, as Mexican law requires all vehicles to be insured. If you are driving from the U.S., your car insurance policy back home will not be enough for the Mexican Federal Liability Law.
To satisfy this law, you must buy a separate Mexican liability insurance policy from a licensed Mexican insurer.
Moving on, you can buy a separate car insurance policy from either a Mexican insurance provider or a U.S. company that works with Mexican insurers. These policies are generally available to accommodate various lengths of stay.
Moreover, you will have to pay a separate premium from your U.S. car insurance policy. The coverage will be effective only for the specific dates you select. If you drive outside of the policy’s effective dates, you will not have coverage and may be subject to fines and penalties under Mexican law.
To purchase a Mexican car insurance policy, you will need to provide the following information:
- The dates you will be traveling in Mexico
- The regions or areas in Mexico you plan to visit
- Your U.S. car insurance policy number (found on your proof of insurance or policy documents)
- Your driver’s license (additional fees may apply if you are under 21 years old)
- The year, make, and model of your vehicle
- The vehicle identification number
- The license plate number
What Does Car Insurance in Mexico Cover?
Under Mexican law, you are required to have liability insurance. If you cause a car accident, this coverage protects you from costs related to bodily injuries and property damage to others. You can generally choose a policy limit up to a certain maximum amount offered by the insurer.
Furthermore, it is advisable to purchase the maximum liability coverage available. If an accident you cause results in death, the Mexican Federal Liability Law requires your insurance to pay the state’s minimum wage multiplied by 5,000, plus funeral expenses, per person.
The state can then multiply this amount by up to five times, depending on the specific Mexican state’s regulations.
Other Coverage Types for Driving in Mexico
Liability insurance alone will not cover damages to your vehicle or injuries suffered by you and your passengers. To bridge these coverage gaps, you can purchase additional protection, such as:
- Physical Damage Coverage: Provides compensation if your car is stolen or damaged due to events like accidents, vandalism, fire, floods, hail, or falling objects.
- Medical Payments: Covers medical expenses for you and your passengers in case of injuries from a car accident.
- Legal Assistance: Pays for legal expenses like attorney fees, court costs, and bail bonds if you get into a car accident in Mexico.
- Roadside Assistance: Covers services like tow trucks, jump-starting batteries, locksmiths, or flat tire changes if your car breaks down in Mexico.
- Medical Evacuation: Pays for emergency transportation to a hospital or treatment facility if you are injured in a car accident.
Property Insurance in Mexico
The responsibilities that come with owning property in Mexico are the same as owning property anywhere else. Protecting your valuable physical assets from unexpected events is a crucial factor, especially when you are preparing your annual budget.
Choose Policies that Suit Your Needs
Depending on where you live in Mexico, the risks and coverage that you’ll get will differ. Coastal homes, for example, should be insured against hurricane damage and earthquakes. For inland homes, the basic coverage should include cover for earthquakes, and flooding, if needed.
The general home insurance coverage in Mexico should include, but not be limited to:
- Damage as a result of hurricanes and earthquakes
- Damage as a result of wind storms and floods
- Injuries to housekeepers and other workers in your home
- Burglaries and vandalism
- Damages to third-party properties, such as falling trees
- Coverage for liabilities specific to property owners, e.g. condominiums
Let Us Help You Get Insured in Mexico
With plenty of insurance options in Mexico, it can be nerve-wracking and just to compare different insurers and policies. From travel insurance, international health insurance, auto insurance, and property insurance, it can take a lot of time to make important decisions.
Fortunately, working with a reputable broker such as Pacific Prime Latin America ensures you’ll get the best plan for your specific requirements and budget. We compare insurance plans from the top insurance providers in Mexico and across the globe to help you secure the plan you need.
Contact us now for impartial insurance advice and a free quote today!
After obtaining his Bachelor’s Degree in Social Sciences, International Relations from Mahidol University International College, Veerabhatr has forged his career as a content writer in the travel, lifestyle, and real estate industries, writing in both English and Thai. He now continues to hone his skills as a writer at Pacific Prime, looking to engage and educate the audience by simplifying insurance.
Writer by day, and a DJ by night, Veerabhatr is a staunch music lover, and listens to all spectrums of genres available. He also loves to drink beer (moderately), eat all types of food, go to the beach, and learn about different cultures across the globe. He is also a die-hard fan of football and motorsports.
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