Chanelle Gibson

Comparison of U.S. and Mexico Auto Insurance Mexico is a frequent drivable destination for travelers from the U.S. because of its close proximity. Many who make that trip, however, fail to consider how they might need different car insurance during their time in Mexico. Most U.S. insurance policies don’t offer complete legal coverage in Mexico, even the completely comprehensive ones. Many may offer some form of extended coverage, but often with limitations on mileage or distance into the country. Those options are limited because Mexico only accepts insurance companies that are licensed in Mexico according to their laws and specifications. As such, Mexican insurance policies have their differences and similarities compared to U.S. policies. The biggest variance in car insurance between the two countries is that liability is established by civil law in Mexico. Whereas in the U.S., it is established by your individual insurance policy. As such, many policies, especially the ones offered by rental car companies, don’t offer liability coverage. The law is what determines damage and personal injury compensation, so things can still be complex adding it to a Mexican insurance policy. Another big difference is the lack of laws meant to control the industry to protect customers, so prices can vary dramatically at different insurers in Mexico. Refer to AM Best to determine which is the best choice for the coverage you want. Lastly, being under the influence of alcohol while driving invalidates Mexican car insurance. The biggest positive that U.S. and Mexico auto insurance share is that many include roadside assistance, medical bill coverage, and other perks. Policies can be long-term or short-term, and both can cover RVs, motorcycles, and trailers. As in the U.S., many companies allow you to purchase your policy online so you can set it up before you arrive in Mexico. Another similarity is that you can be arrested if you get into an accident or injure someone and do not have an insurance policy. The U.S. State Department strongly recommends all visitors in Mexico have liability insurance because you can be detained until you’re able to prove you can pay for the damages you may have caused. When traveling to Mexico, don’t take car insurance lightly. Plan ahead so that you can avoid any troubles once you arrive. Before you look into getting temporary coverage with a new company, consult with your U.S. provider to ask if they are licensed in Mexico. As with any policy, read the fine print and discuss details with your insurance agent before signing off on anything. No matter what country you’re driving in, get the best coverage that is right for you and your travels.