At the beginning of 2013, Mexican liability laws changed. Until then, if you were involved in a car accident in Mexico, the liability damages imposed on an at-fault driver who caused a negligent fatality in Mexico were capped at a maximum of approximately US$50,000 in total damages. As of February 2013, the liability limit increased to approximately US$300,000.
We have always recommended that you drive properly insured in Mexico, and now we recommend that your policy should cover you for at least US$300,000 in third party damages, and US$500,000 is recommended to cover any contingencies.
Your US or Canadian auto insurance policy might cover you for damages to your own vehicle and property, but it cannot cover you for third party damages, because Mexican law stipulates that only insurance companies which are licensed in Mexico can provide third party liability insurance coverage that is recognized and accepted by Mexico’s legal system.
Driving uninsured in Mexico is a big risk. If you are involved in a nasty accident, even if it’s not your fault, you will probably be arrested until blame has been assessed. Having an insurance policy will provide you with the liability cover you need for any claims against you and many policies also offer additional support services to help you through what would be a difficult time and situation.
You can learn how to protect yourself by reading our guide to Auto Insurance in Mexico. From there, you can also connect to our associate broker and get an instant quote online.