If you are a U.S. resident driving in Canada – or vice versa – and get into an accident, you can be sure (provided your premiums are paid) that you will be indemnified up to the limits of your car insurance policy.
However, if you are driving in Mexico and this happens, your own insurance policy is not going to help you. The fact is that if you plan on driving south of the border, you will need to buy auto insurance especially for the time you are in that country before you cross the border.
¿Por Que?
U.S. and Canadian insurers will normally not cover any damages that you either incur to your vehicle or cause while driving in Mexico. The only exception here is that some (not all) U.S. insurance carriers will cover damage to your vehicle if the incident occurs within 25 miles of the border. However, liability is not covered at all – and if you travel outside that 25 mile limit, you have no protection whatsoever from your U.S. insurer. This is an important point to understand, because it is the reason many people get confused over this issue and wind up with muchas problemas.
The primary reason is that Mexican courts refuse to recognize U.S. and Canadian auto insurance. If you fail to carry a Mexican liability policy and are caught, you’ll be detained – even if you have life-threatening injuries and are in serious need of medical attention.
Mexican Auto Laws
The Mexican legal system is quite different than the one you are familiar with – and because of the grinding poverty suffered by most Mexicans due to an oppressive, oligarchical regime dominated by the tiny minority of the very rich who control 99% of the wealth in that country, Mexican officials and law enforcement officers tend to be very corrupt.
Unlike the U.S. and Canada where you simply exchange insurance information then file a claim later, Mexican law requires that a person who causes an accident provide evidence there at the scene that s/he is able to pay for the damages. If you do not have a valid Mexican liability policy, the police will toss you in jail (and Mexican jails are notoriously bad) until you cough up the dinero. Chance are, you’ll have to hire a Mexican attorney to represent you – and if you think American lawyers are sharks, you ain’t seen nothin’ yet. There is no limit to what a Mexican lawyer will charge to defend you, because you are from El Norte and therefore assumed to be made of money – and they know you don’t have a lot of options.
The Good News
On the upside, getting Mexican liability insurance is not difficult nor is it expensive. It only takes a few minutes to purchase a policy online, and basic liability insurance can be obtained for about $10 a day (full coverage will cost more). It’s a little more time and expense, but it is well worth it and will save you a huge amount of time, money and hassle should you have the misfortune to be involved in a collision while driving in Mexico.
Just make certain you arrange it before crossing the border.
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