American auto insurance has many facets and provide a variety of coverages, but it can’t cover everything. Once the insured vehicle use the U.S., its American auto insurance may have limited coverage or even no coverage. It’s important to inform clients planning on driving out of the country that they may not be covered unless they purchase additional insurance depending on where they’re traveling. Get Mexico Auto Insurance
Mexico is perhaps the most frequently visited country from the U.S. by car due to its proximity with the southern states. Unfortunately, Mexico does not take American auto insurance. Drivers in Mexico must carry auto insurance, but it has to be Mexican auto insurance of at least $300,000 in liability coverage. Although American auto insurance isn’t valid, American licenses can act as proper IDs in Mexico if a driver is pulled over.
What Does Mexico Car Insurance Cover?
Mexico auto insurance offers much of the same coverages that come in a full coverage American auto insurance policy. Liability insurance covers bodily injury and property damage the insured may cause while operating the vehicle and can help with medical payments as well as legal expenses if the victim decides to sue. While third-party liability is the only required insurance in Mexico, clients can also purchase:
• Physical Damage*: Physical damage coverage provides compensation for physical damage to the vehicle due to fire, wind, hail, theft, vandalism and more. This can also cover damage caused by collisions.
• Medical Payments: Medical payments coverage can help with the cost of medical expenses for the driver and their passengers after an accident.
• Roadside Assistance: Roadside assistance provides help if the car breaks down on the side of the road.
• Uninsured/Underinsured Coverage: This coverage provides compensation for accidents involving a driver not carrying car insurance.
*There are some exceptions to coverage. Policyholders cannot generally purchase physical damage coverage for Mexico auto insurance if they do not have American comprehensive and collision coverage.
Some American insurance providers offer a Mexico policy rider, which gives limited coverage for vehicles traveling to Mexico. Coverage under these riders can be small and depend on the distance the vehicle travels within Mexico. Offering full coverage Mexico car insurance can help clients protect their vehicles even out of the country, especially if their stay is extended and their vehicle must remain in Mexico. Liability insurance isn’t enough to cover the vehicle, driver or their passengers in case of an accident or environmental damage, so clients may want additional coverage in case of theft, hail, vandalism and other dangers.
How Much is Mexico Auto Insurance?
Thankfully, Mexico auto insurance is generally inexpensive for drivers. Basic liability is around $40-$50 a month while full coverage is about $100-$120 a month. The normal factors apply to Mexico auto insurance as American. These premiums are calculated depending on the driver’s:
• Policy limits
• Credit score
• Driving record
Auto insurance purchased through an American insurance agency as part of an American policy is paid on a monthly basis while Mexico auto insurance from a Mexican auto insurer for tourism is typically paid on a daily basis. Drivers who frequently travel to Mexico or plan to stay a long time may save money by simply adding Mexico auto insurance to their policy.
There are some items that must be purchased through official Mexico organizations, such as a TIP (temporary import permit) that allows travelers to bring their personal vehicle into Mexico.
All drivers considering a road trip to Mexico should be aware of Mexico’s traffic laws and repercussions.
Driving without proper insurance can lead to fines and other legal action.