A new law effective September 23, 2014, requires Mexico Liability Auto Insurance for all vehicles driving on Federal roads and bridges. In the past, proof of financial responsibility was required only in the event of an accident. Now, the law requires proof of Mexican Liability Insurance at all times when driving on federal roads and bridges. You can be asked for proof of insurance at checkpoints, border crossings, or traffic stops.
Federal Police will enforce this law and drivers caught without coverage will face fines starting at $200 US dollars. If a driver is involved in an accident without coverage, they will face fines starting at $1,000 US dollars.
Several states have implemented similar measures requiring insurance for all vehicles. Some of those states include Baja California, Morelos, DF, Tamaulipas, Nuevo Leon, Jalisco, San Luis Potosi, Zacatecas, Chihuahua, Puebla, Queretaro, Aguascalientes and Yucatan.
U.S. or Canadian auto insurance policies are not recognized in Mexico, even if it includes the Mexico Insurance Endorsement. All Sanborn’s policies comply with the requirements of this law.
Indemnification in case of at-fault death of third party
It is also important to remember that there were changes the Federal Law issued in December 2012. In case of an at-fault accident resulting in the death of a third party on Federal roadways, you will be required to pay indemnification of up to $300,000 US dollars per person.
To be protected from this potential liability, we recommend that you carry at least $300,000 CSL liability limits for Mexican Auto Insurance.
Buyers Guide Mexico Insurance
As a general guide, you should look for a policy that covers:
Medical Expenses to at least US$5m: This should include the costs of repatriation back home should you or members of your family require it. If you have a health care plan which covers the major costs once you get home, you may only need a top-up insurance plan to pay your repatriation costs. Commercial airlines will not fly you home if you are seriously ill or incapacitated a private air charter will be required. They are expensive and an insurance plan should allay those fees.
Personal Accident Cover: Your insurance should provide cover for any permanent bodily injuries you may sustain. Temporary material losses, for example, loss or delay of baggage or delay and/or cancellation of your flights should also be included.
Theft of Personal Items: These should include luggage and small amounts of cash (usually up to a couple of hundred dollars). If you are carrying items of particularly high value (e.g. a very expensive watch) be sure to check this is covered explicitly in the policy.
Third Party Liability: Your plan should cover your liability to third parties in case you accidentally hurt them in some way; this is normally standard in a comprehensive insurance plan. Your insurance should also cover legal assistance costs, should you need them while traveling in Mexico.
Travel Assistance: Check carefully to see what travel assistance is offered by your plan. Travel assistance is different from insurance per se; Assistance includes things like putting you in touch with appropriate local doctors, finding a local lawyer who speaks English if you need one, and getting messages to loved ones back home if you cannot do that yourself.
Auto Insurance: The auto insurance market is very competitive and some firms try to grab your attention with headline offers. A good, reputable firm will offer a fair premium and, in return, provide comprehensive cover options with excellent service and after-care. When things go wrong, it’s the service, instead of the price, which makes all the difference.
A good Auto Insurance policy should include comprehensive cover, third party-liability insurance, legal representation and bail-bond cover in case you are arrested following a severe car accident in Mexico.
Check that your auto insurance policy is underwritten by an insurance company that is financially-sound. It is the insurance company, not the broker, under-writing your auto coverage in Mexico.
Adventure/High Risk Activities: If you are taking part in adventure travel or activities otherwise considered high risk by an insurer (even if you personally don’t consider them to be high risk).