Republic of Mexico law does not accept foreign auto policies, including Canadian Car insurance. So if you drive South of the Border without buying a Mexican Auto Insurance policy and are then caught in an auto accident, you run the risking going to jail until you provide compensation to cover your new debt. This debt runs deeper than the people and vehicles involved in the accident, you may also have to help cover the livelihood of the families of those injured as well.

In Mexico as well as Canada, auto insurance coverage and premiums depend on the program you pick. Canadian minimum liability limit is normally $200,000 in the provinces with the exception of Quebec where the liability limit is $50,000. In the Republic of Mexico, there is no minimum liability limit , however, most reputable Mexican car insurance agents start car liability limits at $50,000 and most insureds purchase a minimum of $100,000. This policy provides payment in dollars in the event you are at-fault for third party property damage or injury to other people.

US and Canadian travelers take extra care in choosing an insurance company at home, but fail to protect themselves adequately while driving in Mexico on vacation or business. This is understandable because Mexico insurance coverage can be confusing.

Mexico applies Napoleonic law, so it is critical that you are protected from being “confined” in case you are determined to be responsible in a car accident. Mexico is excluded for damages to others in all United States and Canadian issued “Liability” or “Full Coverage” insurance policies and most do not cover collision to you vehicle (some allow collision coverage near the border areas so check with your agent).

To help find top quality Mexican Auto Insurance protection, astute motorists begin by checking financial $ strength, independent ranking, and loss handling reputation and ability of their potential insurer as a first step and then compare internet features, limits, and rate quotes that satisfy their needs as a 2nd step.

There are numerous differences between US, Canadian and Mexico automobile Insurance policies. Mexico law states that insurers who are licensed and recognized by Mexico authorities are allowed to provide “liability” insurance covering you against bodily injury or property damage you might do to others. The Republic of Mexico has no policy that dictates insurers to be tested and ranked to evaluate finances or claims paying ability

Your US or Canadian policy may extend physical damage coverage within past the US border for a limited number of miles. (Most do not) Please check with your insurance agent before you leave home. Car Insurance for Mexico is sold a la carte, with numerous unrated insurers limiting coverage in order to appear to reduce price, as there is no “standard” policy coverage.

It should not be surprising, that the insurance companies with the best reputation for paying claims fairly tend to be rated companies. Claims for Property Damage to 3rd parties are finalized on an “actual cash value” basis, guided by Mexico practice of law. Check Kelly Blue Book or N.A.D.A. Guide (nada.com) for correct ACV values