Mexican Insurance Coverage

Mexican Insurance Coverage

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

Third Party Liability Insurance provides coverage for damage to the other person or their car if you are at-fault

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

Hospital in Guadalajara – Risk 4 Medical Payments cover you and your vehicle occupants Medical Needs up to limits specified

Medical Payments is for YOU and YOUR Insured Vehicle’s occupants. You will see this risk and coverage look like this:

  • $4,000pp/$20,000pi

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

The exception: Drivers License Policy

  • Drivers License Policy will cover risks 3-5 but on any foreign (not Mexican-plated) vehicle, you drive in Mexico. For more info on the Drivers License policy click here.

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