Q: Why do I need Mexican insurance?
A: Mexico does not have compulsory automobile insurance. The basic difference between Mexico's and United States financial responsibility law is that anyone involved in an accident in Mexico must have the means to respond to damages or injuries for which they may be responsible which in Mexico would be in the form of either cash or a Mexican insurance policy.
Q: Does the U.S. insurance policy cover in Mexico?
A: Before leaving home, you should inquire if your U.S. or Canadian insurance policy will cover damage suffered by your vehicle in Mexico. Ask if the policy has restrictions or limitations in regards of number of miles from the border or number of days in Mexico. Once you have familiarized yourself with your own auto policy and the extend of its coverage in Mexico, you can then proceed to create more qualified decision towards your Mexican insurance needs. However, Mexican authorities do not recognize the liability coverage on your U.S., or any other non-Mexican automobile liability policy. Only a Mexican automobile liability policy is acceptable evidence of financial responsibility. Therefore, it is strongly recommended that Mexican insurance be purchased prior to entering that country. Some California issued policies do extend limited physical damage (comprehensive and collision) coverage on vehicles for a limited distance while operating in Mexico.
Q: How is the value of the vehicle determined?
A: Your local car dealer or your insurance agent should be able to help you determine your vehicle's value. The Kelley Blue Book of used cars values may also be used as a guide. Be sure to add those extras you want insured should you have a loss. Remember, our trailers and Cars are always worth more to us owners than they might be to someone else. We advise you not to under-insure.
Q: What if a have a loan on my vehicle?
A: If you have a loan on your vehicle or trailer, most lenders will require that they be furnished a copy of your policy indication that the unit is insured while it is in Mexican territory. Upon request, we will supply a "lien holder" copy of the policy naming your bank or financial institution as lender. Always make sure you allow enough time before your trip into Mexico to allow for the handling of paperwork.
Q: If I tow a trailer, boat or another vehicle, do I need to insure them?
A: No, but it must be listed on the policy with the towing vehicle, otherwise the towing vehicle's insurance could be voided in the event of an accident or loss.
Q: If I am borrowing a vehicle, will I need any special documents?
A: Yes, you should obtain a notarized affidavit or permission from the legal owner.
Q: What is Liability Only?
A: The liability only policy provides the minimum vehicle insurance required by the Mexican government. Included in this coverage is property damage caused by your vehicle, legal liability for injuries or death of persons not in your vehicle and medical expenses for you or other persons in your vehicle.
Q: What is legal Aid Coverage?
A: In Mexico, a traffic accident is considered a felony, it is possible that the authorities will detain you with your vehicle impounded, until they conclude their investigation. Legal Aid helps prevent this, with one phone call an attorney will come to your assistance and negotiate your immediate release as well as the release of the vehicle.
Q: What are some situations that are not covered?
A: Generally, it is not cover:
Q: What happens if I have an accident?
A. All claims must be reported in Mexico to your insurer's adjustor/claims service center BEFORE you leave the country. Failing to do so subjects the claim to denial by the insurer.