I am not an expert on life, but I worked in the insurance industry before I unplugged from the matrix of corporate America. Therefore, you combined my traveling to about 30 different countries (I have to count) and living a good part of my life, I think I have some advice about Mexican auto insurance.
Mexican auto insurance
If your taking an adventure, let’s say to Mexico, do you need to buy auto insurance on your car? The answer is technically no, but it is according to your peace of mind, that is if you do not get into an car accident in Mexico involving and the Police get involved.
I have never ever bought additional insurance on my world wide travels. I have been traveling to South America, Europe, Africa, Asia and never had a problem, even though I rent and even have bought cars in various countries.
I chance it. I am lucky. I am not even 100% sure if I was driving legal. I just bought the car and put gas in it on and drove on my American drivers license.
That being said, if you are cruising down to Mexico often, or even for a family vacation, unlike my adventure trips, you might want to consider it to save you headaches.
It is recommended to buy Mexican car insurance, even for day visits, when driving in Mexico. Most USA insurance plans do not cover driving in Mexico.
Why do you need Mexican auto insurance?
You are require to have Insurance from a Mexican company by Mexican law if you have an accident, even if you are not at fault. This is the biggest reason to get Mexican auto insurance on your trip to Mexico
In Mexican law drivers need “proof of financial responsibility” in the event of an accident. As an American with a car in Mexico, you either need a lot of cash or a Mexican car insurance company.
Will my U.S. or Canadian insurance cover me in Mexico?
US and Canadian car insurance companies are not “proof of financial responsibility” under Mexican law. However, there are some U.S. insurance companies that cover damages to your car, for say 20 mile penetration into Mexico, the other guys car is not covered by your US auto insurance company. And this is the reason why U.S. car insurance has to have a liability-only auto insurance from a Mexican car insurance company.
What to do about auto insurance in Mexico?
I would call my current insurance company and determine if it has this policy in affect. I think many southern California companies might. However, if not there are many per diem companies with good reputations that will give you peace of mind.
I guess I have a higher risk preference or perhaps I am over confident as a driver. But if a friend were to ask, me I would say yes get Mexican auto insurance from some American company that offers it cheap.