Mexican Auto Insurance is based on 5 Risks:
1 Physical Damage.
Physical damage risk is part of a COMPLETE COVERAGE package that will compensate you for damages to YOUR vehicle in the event of an accident. Keep in mind that Mexico is a no-fault system which means that regardless of whose fault it is, your insurance will cover (subject to terms and conditions).
2 Total Theft
If the vehicle is stolen, this is a Risk 2 – Total Theft claim. Risk 2 is also included with a COMPLETE COVERAGE policy. Some important factors to keep in mind on this risk include Personal Property. Personal property is NEVER included in an automobile theft claim. Personal Property falls under a Homeowners or Renters insurance policy. Also important to note that special equipment, unless it is permanently attached will not be honored in a claim. Make sure the special equipment is either permanently attached, or listed as special equipment on the policy.
3 Third Party Liability
Perhaps the most important, legally required 3rd Party Mexican Liability Insurance. This coverage you can purchase individually (without risks 1 and 2 above) or you can get it included with a Complete Coverage Mexican Insurance Policy. In all States in Mexico, Liability is required for tourists driving a tourist vehicle in their Country/State. The limits of the policy are optional, with a minimum of $150,000 USD up to $1,000,000 USD.
4 Medical Payments
Medical Payments is for YOU and YOUR Insured Vehicle’s occupants. You will see this risk and coverage look like this:
What this means is $4,000 USD per person, up to $20,000 USD per incident. So, each person will have $4,000 reimbursement dollars with a maximum of $20,000 USD at the hospital. SO if you have 6 occupants, each requiring $4,000 then you might be short. But if you have 5 occupants, each needing $4,000 in medical need – you are perfect.
Some companies and brokerages allow you to upgrade this coverage.
KEEP IN MIND – MOTORCYCLE INSURANCE POLICIES EXCLUDE THIS RISK. Motorcycle Riders ride at their own risk in Mexico. There is no Mexican Insurance policy that provides for this Medical Payments coverage.
5 Legal Aid and Bail Bond
Every policy has some sort of Risk 5 that includes legal aid to the tourist, or towing coverage for the vehicle. The key factors to this coverage include:
- how much towing is included?
- How much legal aid is provided?
- Do they offer rental car coverage?
- Medical Evacuation back to Home Country?
In summary, there are two basic forms of Mexican Auto Insurance:
- Complete Coverage: All risks including Physical Damage and Total Theft (covers YOUR car)
- Liability Only: Covers only damage you cause to a third party, excludes you and your vehicle