Consequences of driving uninsured in Mexico

If you become involved in a car accident in Mexico and you are not insured:

• you will become personally responsible for any damage to the third party’s vehicle (or vehicles, if it is determined that your actions were the cause of an incident involving several vehicles);
• the authorities will pursue you personally for costs related to the repair of the public highway; this includes things like road surface, barriers, signs, and lamp post repairs—and can get expensive;
• if someone is hurt or killed, all drivers will be arrested; if you are deemed to be responsible, third parties will pursue liability damages against you;
• the authorities may charge you with driving without third party insurance that is compulsory in Mexico.

What to look for in an auto insurance policy

Regardless of who you buy your auto insurance coverage from, you should check that your auto insurance policy includes these essential elements:

Financially sound insurance underwriter

Make sure that the insurance company underwriting your policy is financially sound. Policies from lesser-rated insurance companies might cost less, but that lower premium translates into a de facto higher-risk for the policy holders. Don’t just shop around for the cheapest policy—consider who’s insuring you to avoid surprises in the event that you need to make a claim.

Licensed broker

As all insurance policies are sold through brokers, ensure that the broker you engage with is licensed and that they provide full transparency of the policies they offer. You should be able to check the detailed terms and conditions of any policy before you are asked to buy.

Broker’s presence and infrastructure

Ensure that the broker you use is well established in the market.

‘Good infrastructure’ means that the broker has excellent customer services facilities, makes effective use of technology so that you can purchase your policy efficiently.

The policy ought to offer help and support services when you are in Mexico, in addition to the insurance coverage, to include local access numbers where you can call to make a claim, ask questions and report issues, and be able to talk to someone in English, especially if you don’t speak much (or any) Spanish.

Liability coverages, legal assistance, and bail bond

Ensure that any policy you purchase includes coverage for these three essential elements:

• Third party liability: the policy must cover third party liability, including your personal liability to any third parties.
• Legal assistance: good policies offer comprehensive legal assistance that will support you in the event of a serious accident or third-party claim.
• Bail bond: your coverage ought to include a ‘bail bond’ element that will cover payment of your bail bond if you become involved in a serious accident and are detained while the incident is investigated, and liability is assessed. If this process is protracted, the bail bond may get you released pending inquiries.

Local support when you need it most

In the event of an accident or incident and subsequent claim, the level of local support your broker’s insurer has in place in Mexico will make all the difference to you.

• The broker and their insurance company should provide easy access to local support services in Mexico so that in the event of a claim, you are able to call for help with the least amount of effort.
• They ought to offer support attended by an English-speaking service agent who will be able to manage your call efficiently and dispatch the help and support you need.
• The local support ought to coordinate all your needs including accident reporting, legal support, breakdown, and medical assistance (if you purchased these).

Breakdown and medical coverages

The better brokers will offer a comprehensive range of additional support services, which are optional, but are worth considering when you are driving in Mexico.  The two most important are:

Breakdown coverage

If your vehicle breaks down while you’re driving in Mexico, roadside recovery will provide you with the essential support you need to get your car repaired and mitigate risks of becoming stranded.

Roadside assistance may include things like delivery of emergency fuel, towing services, dealing with flat or damaged tires, locksmith support, jumpstart assistance, and provision of lodging and a rental car while you wait for your vehicle to be repaired, and repatriation to your home country in the event of a write-off.

Medical assistance on your road trip

A policy that provides medical coverage will provide round-the-clock medical assistance on your road trips, including in the event of a serious accident, land and air medical evacuation and coverages to support you and your travel companions, for example with accommodations and transport while you convalesce.

Making an auto insurance claim in Mexico

Your policy documentation should be clear about the procedure you need to undertake in the event of an accident or incident, and any subsequent claims.

Here is a summary of the most important points, which are relevant to terms on most Mexican auto insurance policies:

You must make the claim in Mexico

Some people wait until they get back to the US or Canada before making a claim, especially if it’s for something minor, for example, for bodywork or a hit-and-run incident in a parking lot. Insurance policies require you to make a claim while you are in Mexico and most will not process your claim if you wait until you return home, except in the most exceptional circumstances.

Calling the insurance helpline

The first call you make if you become involved in an accident should be to the insurance company’s helpline. In addition to registering your claim, they will be able to dispatch an insurance assessor to the scene of the accident, as well as plan for lawyers or other services to be put in place for you, in the event of a more serious accident.

They may also arrange for breakdown and medical services to attend the scene if you purchased these additional coverages, and they are required.

Paperwork and reimbursement

You may be asked to produce a police report as well as other relevant documentation as part of the claim procedure. In some cases, for example, for immediate repairs to get your vehicle back on the road, you may need to pay these out-of-pocket and get reimbursed when you return home.

Keep all receipts. Your insurance policy will be specific about what to do in these circumstances. In all cases, remember that you should lodge your claim in Mexico—don’t wait until you get back home.

Learn more about driving in Mexico

Mexperience offers guides and articles to help you prepare and drive confidently in Mexico

• Latest articles about driving in Mexico
• Your Mexico road trip checklist
• Dealing with minor and major road accidents
• Guide to driving in Mexico
• Guide to auto insurance in Mexico
• Get a quote for Mexico auto insurance

Auto insurance coverage valid in Mexico

Some auto insurance policies might contain wording that leads you to believe that you are covered in Mexico, but this out-of-country cover, if any is included, is limited to damage to your own vehicle and certain things you may be carrying inside your car.

The most important aspect of an auto insurance policy when you’re driving in Mexico is third-party liability, because claims for damages by third parties can be substantial.

Third party liability abroad needs a special policy

By law, US and Canadian insurers can’t provide third party liability and this coverage must be underwritten by a Mexican insurance company and be specially formed to be legally valid under Mexican law.

Third party liability covers any losses your actions might cause to others. These most commonly include (but are not limited to):

• damage to another person’s vehicle, or their property;
• injuries to another person in an accident; and
• damage to public property (e.g. road structures).

How much liability insurance is needed in Mexico?

While no one expects to be involved in an accident —and far less a serious one— when arranging coverage, it’s worth considering the worst-case scenario: that you accidentally cause serious injury or death of another person as a result of a vehicle accident.

Here in Mexico you can be made financially responsible to the other party (or their kin) if you unintentionally cause the death of another motorist, and reputable insurance brokers suggest that you have no less than US$300,000 in liability insurance and they will usually recommend US$500,000.

Get a policy covers more than just accidents

There are other factors besides financial liability to consider when you are arranging your auto insurance when you drive in Mexico.  The three most important aspects to consider when choosing a policy are:

Legal representation

If you’re involved in a serious road accident in Mexico, it’s common for those involved to be detained until the situation is assessed, fault is determined, and financial responsibility is assigned.

Due to this process, the legal representation which better policies offer will provide you with:

• local assistance to help you deal with the complex paperwork and procedures (in Spanish, and liaise with you in English);
• a fund to post a bail-bond and get you released as soon as practicable; and
• a legal team to negotiate on your behalf if fault and responsibility is assigned to you.

Medical coverage

If you or any of your vehicle’s occupants are injured in an accident, medical payments might or might not be covered. Medical coverage on auto policies vary and you’ll need to compare the choices to ensure you have an adequate amount of coverage, per person and in total.

Assistance for accidents and vehicle breakdowns

When an accident happens, what really matters is the practical support provided by an insurance policy.

If your vehicle breaks-down, or in the event of a minor accident which leaves your car damaged but readily repairable, a roadside travel assistance plan offered by the insurer can be an enormous benefit to you.

Roadside assistance can be purchased as part of an auto insurance policy and offers very practical help in what can be stressful and confusing circumstances.

• In the event of a breakdown or minor accident which leaves you stuck, help with things like gas delivery, a flat tire, a locksmith, or a tow truck to a nearby garage for essential repairs can be a phone call away.
• In the event of an accident, assistance can provide practical support and liaison with key personnel to help you recover more quickly and get back on your road trip as soon as practicable.

Learn more about driving in Mexico

Mexperience offers articles with insights to help you prepare for your road trip and drive confidently in Mexico.

• Insuring your vehicle for driving in Mexico
• Importing a foreign car or other vehicle to Mexico
• Getting a Temporary Import Permit (TIP) for your vehicle
• Your Mexico road trip checklist
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico

Policy wording for Mexican property insurance

Property insurance policies sold in Mexico differ from policies you are used to seeing in your home country. The policy wording is unique, and the types of coverage offered by insurance companies is different here, so some things that you would expect to be included as standard, might not be present if you purchase your insurance in Mexico directly from a Mexican insurer.

Familiar policies, fully underwritten in Mexico

To help foreign residents who own property in Mexico to purchase insurance products familiar to them, specialist companies based in the U.S. have developed property ownership insurance policies which reflect the wording, terms and covers included on US and Canadian policies.

The insurance policy is fully underwritten by a Mexican insurance company (by law, it has to be this way), but the U.S. companies work in partnership to create a product that is familiar to those purchasing insurance in the US and Canada, and which is legally sound under Mexican law.  The premiums are paid in US dollars and any pay-outs are also paid in US dollars.

Policies to suit your situation and needs

The home insurance policies available in the market offer a wide range of options, and you can choose what to include and what to exclude as part of your coverage plan.

Depending on where your home is situated in Mexico, the risks (and coverage) you need to insure against will vary. For example, homes near the coast should be insured against hurricane damage and earthquakes, whereas inland only cover for earthquakes (and perhaps flooding, if you home is situated near water) will be needed.

Home insurance policies cover a wide range of eventualities and the most common coverages include reimbursement of costs related to:

• Damage caused by hurricanes and earthquakes
• Damage caused by and wind storms and floods
• Injuries to housekeepers and other workers in your home
• Burglaries and vandalism
• Damages to third parties, e.g. falling trees
• Coverages for owner-specific liabilities, e.g. in condos

You can cover all risks or named perils

Policy options and choices include all risks versus named perils, whether to cover assets like outbuildings surrounding the main property, and the option to insure your personal goods.

• The better policies will include coverages for third party liability: this is  helpful in the event that someone who does not live at your home meets with an accident on your property, or where some damage is caused to a neighbor, e.g. by a falling tree.
• This article about third party liability in relation to your home shares more details.
• Other considerations to take into account when you’re assessing your insurance needs include purchasing cover for any watercraft you may own, as well as special arrangements for condos, where some liabilities are shared and some are owner-specific.

Regardless of the type of insurance you choose, the insurer underwriting the policy is far more important than the broker or agent selling you the product: in the event of a claim, the integrity of the underwriter will determine pay-outs, not the insurance broker.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Our auto insurance associate, MexPro, offers auto insurance backed by A-rated underwriters that provide adequate coverage and peace of mind for your road trips in Mexico—including all-important third party liability, and practical assistance services that support you in stressful situations.

Auto insurance that’s valid in Mexico

Some auto insurance policies might contain wording that leads you to believe that you are covered in Mexico, but this out-of-country cover, if any is included, is limited to damage to your own vehicle and certain things you may be carrying inside your car.

What MexPro auto insurance offers:

• Insurance from an established company specializing in Mexico auto policies underwritten by A-rated (financially sound) insurers.
• Coverage offered for Cars, SUVs, Pickups, Vans, Motorcycles, ATV/UTV, and Motorhome/RVs.
• Cover for towed units if needed.
• Choice of Liability Only and Full Coverage insurance packages to suit your needs and budget.
• Insure for a defined number of days, or choose a bi-annual or annual policy for multiple visits.
• Obtain cover for the physical damage and total theft of your vehicle, and get the all-important third-party liability—all with fixed deductibles.
• All policies include: Legal assistance (US$30,000 max); Medical expenses after an accident (US$25,000 max); Roadside Assistance and Travel Assistance.
• Trip interruption cover: Assistance to continue your trip if it’s interrupted by accident or total theft with return to place of residence; or car rental; plus lodging expenses.
• Policy wording in English with features and benefits you’re accustomed to and expect from an Insurance policy.
• Coverage terms are clearly provided by our associate, MexPro Insurance, when you get a no-obligation quote.

Do I need auto insurance for my road trip to Mexico?

Here are key points to consider when you intend to drive your car or other motorized vehicles to Mexico:

• You need to obtain an auto insurance policy that covers at least third-party liability in Mexico, because your US or Canadian policy, however comprehensive, cannot cover this.
• All MexPro’s plans cover third-party liability, and their full coverage policies will also cover physical damage and total theft of your vehicle while it’s in Mexico.
• Having roadside assistance will be invaluable if your vehicle breaks down or if you’re involved in an accident.  Legal assistance provides essential coverage while accident blame is assessed.
• Driving in Mexico uninsured is a risk, especially if you’re involved a serious accident—and whether or not the accident is your fault.
• Affordable policies are available to give you and your passengers peace of mind when you’re on the road in Mexico.

This article describes what a travel medical insurance plan is, and how you can use this type of insurance to obtain coverage when you’re in Mexico for shorter trips and extended stays not lasting more than 180 days.

What is a travel medical insurance plan?

Most trip protection insurance plans limit coverage to a maximum of 90 calendar days —three months— and if you stay over this, the insurance plan’s cover ceases to continue.

If you stay, or intend to stay, in Mexico for longer than three months, then an extended stay travel medical plan will cover you in Mexico for up to 180 days (6 months), and provide emergency medical expense coverage, including medically-warranted evacuation, during that time.

Our associate offers extended stay travel medical insurance plans to protect you from the costs of unexpected medical emergencies while you’re in Mexico.

What an extended stay travel medical plan covers

• Unexpected medical expenses while you’re on an extended stay in Mexico not exceeding 180 days.
• Emergency medical expense coverage in Mexico for physician’s fees, lab/x-rays, prescriptions, anesthetics, clinic/hospital costs up to US$100,000. Coverage for emergency dental expenses is also included up to US$750.
• Medically-warranted emergency evacuation to a hospital of your choice and covering up to US$500,000 of medical evacuation costs. Includes transporting a visitor from abroad to join you, and repatriation of minors.
• The plan extends coverage beyond Mexico to nearly all countries when you travel.
• If you unexpectedly pass away in Mexico, this insurance plans covers the cost of repatriation of your mortal remains.
• This plan does not cover prepaid trip costs (flights, hotels, cruises, tours & excursions, etc.) that you would typically find in a single-trip comprehensive protection plan.
• Premiums are based on the number of days you intend to stay in Mexico (maximum 180 days).
• Coverage limitations apply—terms are clearly provided by our associate, TME Insurance, when you get a no-obligation quote.

Is travel medical insurance plan right for me?

This plan is ideal for those who visit Mexico for extended stays up to 180 days and primarily seek protection from unexpected medical emergencies, with medically-warranted evacuation, and without seeking coverage for trip interruptions and other non-medical benefits that single-trip insurance typically offers.

If you take single trips or short visits to Mexico that will not last more than 90 days (three months), consider opting for short-term visit coverage options which offer emergency medical expense coverages in Mexico, trip-protection if your voyage is cancelled or interrupted in some ways, as well as medically-warranted evacuation to the nearest suitable facility.

If you live or stay in Mexico for over 180 consecutive days and have a medical plan that covers you in your home country, a Medical Evacuation plan for longer-term stays might suit your situation.

This article describes what a medical evacuation insurance plan is, and how you could use this type of insurance to obtain coverage when your stays in Mexico are longer than periods typically covered by trip protection plans or travel medical insurance plans.

Medical evacuation and options available for extended stays in Mexico

Medical air evacuation isn’t for patients who are mobile and suffering from turista or sea-sickness, minor injuries, or illness where they can be treated and discharged. Instead, it’s for people who suffer catastrophic illness or accidents while away from home—some cardiac events, strokes, or serious vehicle accidents where a medical evacuation may be warranted are the more typical situations.

If you stay, or intend to stay, in Mexico for longer than six consecutive months a year, evacuation insurance can be used to transport you to a hospital of your choice back home to access the medical treatment and the care needed to treat your medical condition if a catastrophic medical event befalls you or a covered family member while you’re in Mexico.

What a medical evacuation insurance plan covers:

• Medically-warranted evacuation from Mexico to a hospital of your choice covering up to US$500,000 of medical evacuation costs.
• Includes transporting a visitor from abroad to join you and repatriation of minors
• Return of an unattended vehicle if you drove your foreign-plated car to Mexico.
• If you unexpectedly pass away in Mexico, this insurance plan covers the cost of repatriation of your mortal remains.
• This plan does not cover prepaid trip costs (flights, hotels, cruises, tours & excursions, etc.) nor does it cover emergency medical expenses in Mexico.
• Premiums are based on covered travelers’ ages and the number of days of coverage you need (364 days, maximum).
• Terms are clearly provided by our associate, TME Travel Insurance, when you get a no-obligation quote.

Is an extended stay medical evacuation insurance plan right for me?

A medical evacuation insurance plan is ideal for people who are in Mexico for short or long-term stays and have active medical insurance coverage for treatment in their home country—which is typically required to be accepted by a receiving hospital for a medically-warranted evacuation.

People who choose a medical evacuation plan will typically pay for any medical expenses in Mexico out of pocket, or buy a basic healthcare plan locally, and use the evacuation insurance only in scenarios where a catastrophic medical event befalls them or a member of their family and a medical transport is warranted while they’re in Mexico.

If your stays in Mexico are shorter and will not last more than 180 consecutive days (six months), consider opting for a travel medical plan for extended stays that covers out-of-pocket emergency expenses as well as a medically-warranted evacuation to a hospital of your choice.

If you take single trips or short visits to Mexico that will not last more than 90 days (three months), consider opting for short-term visit coverage options which offer emergency medical expense coverages in Mexico, trip-protection if your voyage is cancelled or interrupted in some ways, as well as medically-warranted evacuation to the nearest suitable facility.

The ‘Hoy No Circula’ program

This program, that translates to ‘today (these vehicles) don’t circulate’ was originally introduced as means to reduce the number of cars circulating on roads in the Mexico City area. The restriction zone also encompasses 18 municipalities in the State of Mexico which are adjacent to the capital.

Restriction zone: View an illustrated map of the restriction zone

The restrictions are determined by three factors:

• the level of emissions generated by a vehicle, determined by a code on a holographic sticker on the vehicle; and/or
• the last number on the vehicle’s license plate; and
• environmental contingencies — enacted when air quality levels deteriorate in the Hoy No Circula zone.

‘Hoy No Circula’ Restriction Zone

The Hoy No Circula program is in force in all 16 Delegations of Mexico City (Google Map) as well as 18 Municipalities in State of Mexico (Google Map).

Restriction zone: View an illustrated map of the restriction zone

Mexican-plated vehicles not registered in these states and foreign-plated vehicles traveling in the restricted zone are not exempt from the rules.

Foreign (plated) vehicles

Any vehicle that does not have plates issued in an area where Hoy No Circula applies, whether the car is Mexican-plated or foreign-plated, is considered ‘foreign’ according to the rules.

‘Foreign’ vehicles cannot circulate:

• at least one day of the week, Monday through Friday —from 5 a.m. to 10 p.m.— determined by
• a combination of the last number on the vehicle’s license plate and the code on its holographic vehicle emissions sticker.
• See the section below about ‘holographic sticker codes’ for more details

Furthermore:

• if your Mexican-plated vehicle does not have a holographic emissions sticker, or if your vehicle has non-Mexican plates: in addition to the above restrictions, you cannot drive in the Hoy No Circula zone every weekday morning between 5 AM. and 11 AM

Emissions test and holographic stickers

If you live in and/or intend to drive regularly in or through the Hoy No Circula zone, you will need to get your vehicle ‘verified’—an annual process that requires you to take your vehicle to an approved testing center.

After the test, you’ll be issued with a holographic sticker to place on your windshield; the number on that sticker will depend on the level of emissions the vehicle generates, and that will determine how often, and when, your vehicle can circulate in the Hoy No Circula zone.

Holographic sticker categories

There are five holographic sticker categories: 00, 0, 1, 2, and Exempt:

• If your vehicle is issued with a 00, 0, or Exempt sticker, you can drive without restrictions inside the Hoy No Circula zone, although note that if there is an environmental contingency in place, 00 and 0 stickered vehicles become restricted too;
• If your vehicle is issued with a holographic sticker bearing number 1, your vehicle is restricted one day a week depending on the last number of the license plate and two Saturdays a month—from 5 a.m. to 10 p.m.;
• If your vehicle is issued with a holographic sticker bearing number 2, your vehicle is restricted one day a week depending on the last number of the license plate and every Saturday—from 5 a.m. to 10 p.m.;
• If your vehicle is issued with an ‘Exempt’ sticker, there are no restrictions on when the vehicle can be drive in the Hoy No Circula zone;
• Use the online calendar tool to determine what days you can and cannot drive if your vehicle is not exempt.

Vehicles exempted from Hoy No Circula

Certain vehicles are exempt from the restrictions.  If your vehicle meets one of these criteria, it is exempt, and can circulate without restrictions inside the Hoy No Circula zone.

Important: Note that some of these exemptions may be withdrawn in the event of an environmental contingency in the restricted zone.

Exemptions include:

• the vehicle has been tested and ‘verified’ (see above), and has a holographic sticker displaying the number 00 or 0 on the windshield;
• the vehicle has a Tourist Pass (see next section);
• the car is solar/electric powered;
• the vehicle has Mexican-issued plates with disabled or ‘antique/classic car’ emblems on them;
• the vehicle has an ‘Exempt’ holographic sticker.
• Other exempt vehicles include: funeral hearses, federal transport vehicles, school buses, emergency vehicles, and vehicles displaying ‘trade plates’ (used by car dealerships).

Hoy No Circula ‘Tourist Pass’

If you intend to visit the Hoy No Circula zone for a defined period (or drive through it) you can apply for a ‘tourist pass’ for your vehicle.

A vehicle tourist pass:

• Exempts the vehicle from restrictions for a defined period;
• Can be requested only once every six months for 14 days each time; or twice every six months for 7 days each time
• Can be requested for 3 days during Mexico’s long-weekend holidays
• Foreign-plated vehicles can apply for the tourist pass, provided that the car was manufactured from 1993 onwards
• You apply for the tourist pass online. You’ll need to print out the two permits the system will send to you (one for Mexico City and the other for the State of Mexico) and display these prominently in your windshield when you are driving in the Hoy No Circula zone.

However:

• Vehicles less than eight years old with Mexican plates from: Mexico City, the State of Mexico, Querétaro, Puebla, Hidalgo, Guanajuato, Michoacán, Morelos, or Tlaxcala cannot apply for this pass as they can verify their vehicles in those states and obtain a holographic sticker with a 0 or 00.
• Tourist passes are suspended if there is an environmental contingency;
• Mexican- and foreign-plated vehicles manufactured before 1993 cannot apply for this pass.

Penalties for non-compliance

Traffic police in Mexico City and the State of Mexico are especially vigilant regarding this matter and are quick to pull drivers over for non-compliance.

If you drive your vehicle through the Hoy No Circula zone and you don’t have the prescribed permit or exemption, your car will be stopped, towed, and impounded (at your expense), and you’ll have to pay:

• a fine, that is determined between 20 and 30 days of UMA; plus
• towing and impoundment release fees that will add about an additional $2,000-$3,000 Mexican pesos; thus
• a violation will cost several thousand Mexican pesos (a few hundred US dollars) plus at least half a day of your life that you won’t get back—and significant hassle.

Further information

Here are some online resources about Hoy No Circula for further reference:

• Hoy No Circula information and online calendar
• Latest updates from CA Megalopolis, an integrated multi-state agency that keeps the public updated about Hoy No Circula
• Apply for a Tourist Pass online
• Tourist Pass FAQs
• Environmental contingency (air quality) news
• Vehicle verification info and testing centers

Learn more about driving in Mexico

Mexperience offers articles with insights to help you prepare for your road trip and drive confidently in Mexico.

• Insuring your vehicle for driving in Mexico
• Importing a foreign car or other vehicle to Mexico
• Getting a Temporary Import Permit (TIP) for your vehicle
• Your Mexico road trip checklist
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico

Medical insurance for short visits to Mexico

If you’re visiting Mexico for a short period —on a vacation or short business trip, for example— travel insurance policies which cover you for a limited time while you’re away from home should suffice.  These might be provided by your current healthcare provider—but double-check as many policies exclude or significantly limit out of country coverage.  Learn more about getting short-term emergency and medical expenses insurance coverage for your visit to Mexico.

Medical insurance for Extended Stays in Mexico

If you plan to be in Mexico for an extended stay —for longer than 90 days and less than 180 days— for example, you might take a sabbatical, a volunteer job, or plan to stay in Mexico part-time, then a short-term travel insurance policy won’t cover you as they are limited to 90-day stays in Mexico.  You can however obtain emergency & medical insurance for extended Stays in Mexico on a policy that will last for visits up to 180 calendar days, about six months.

Health insurance for foreign residents in Mexico

If you intend to apply for, or have, legal residency in Mexico, a travel insurance policy won’t be valid as these are designed for people who come to Mexico for a defined period and return to their country of residence, or travel back and forth between Mexico and another country.

Therefore, if you plan to reside in Mexico, you should consider health insurance coverages that will be valid and provide adequate care for your needs.  Here are the options:

Mexico’s IMSS medical coverage

Foreign residents (temporary or permanent) can apply for the Mexican public healthcare insurance system known an IMSS on a voluntary basis which provides access to certain doctors, clinics and hospitals in Mexico.  Some medications are also covered under this plan.

Coverage costs depend on your age; restrictions and limitations apply and, like all publicly-funded healthcare systems, patient demand is usually higher than the supply of services, so you may have to wait for care. (Note also that people who are enrolled in IMSS through an employer get priority over those who enroll voluntarily.)  This article explains the IMSS medical insurance system in Mexico.

Private medical insurance in Mexico

Most foreign residents who can afford to do so will take out a private medical insurance plan that covers their personal needs and gives them direct access to private doctors, clinics and hospitals in Mexico.

Policies are crafted to the individual situation of the person, couple, or family, and premiums depend on things like your age, term of coverage, coverages included, and the deductible you are willing to pay in the event of a claim.  Learn more about private health insurance providers in Mexico.

Medical evacuation from Mexico

If you are resident in Mexico and continue to have health coverage in your home country then you might consider a medical evacuation plan to enable you to get home for treatment and to convalesce close to your own doctors and family in the event that you experience a serious accident or health event (e.g. heart attack) while you are here.  Note that medical evacuation insurance coverages only cover evacuation costs in serious cases and so you’ll need to get routine or non-critical health matters attended to in Mexico.  Learn more about medical evacuation plans.

It’s possible to lose a great deal money (and even a life’s savings) if you are not insured or discover following an unforeseen event or natural disaster that your policy was not adequate or that the insurer underwriting the policy was not financially sound.

This article highlights practical aspects related to property insurance in Mexico to help you understand home insurance policies and choose coverages which are suitable to your needs and that will be adequate in the event you need to make a claim.

Home insurance if you own or rent in Mexico

You can arrange property insurance whether you own or rent a home in Mexico.

If you own a home in Mexico, you can insure the physical structure of the property as well as arrange coverages for loss of personal property at the home, and third party liabilities.

If you are renting a home in Mexico, you cannot insure the physical structure but you can arrange coverages for loss of personal property situated at the home and third party liability in relation to people visiting or working in your rented home.

Uninsurable residential structures in Mexico

Note that certain physical structures, especially risky ones like wood-framed buildings and palapa (palm or straw) roofing structures are usually explicitly excluded from all policies; if you must insure these, be prepared to pay a high premium to have them included in your coverages (it’s usually uneconomic to do so).

“All Risks” —vs— “Named Perils” insurance coverages

Some policies will offer “All Risks” cover, a form of comprehensive coverage that will pay out in the event of most incidents involving your home.

The better policies offer the option to cover catastrophic incidents such as hurricanes, floods, wind, fire, volcanic eruptions, and earthquakes; surprisingly, some Mexican insurers are unable to underwrite some of these events, although specialist US insurers will.

To lower the insurance premium, you can elect to limit certain “Named Perils” assigned to your policy instead of taking All Risks coverage.  When you do this, certain events will be covered while others will not.

Less expensive policies are often the “named perils” type—even though on the surface they might appear to be comprehensive. A good broker will make a clear distinction between these two during its sales offer and demonstrate the cover and price differences between options.

Property insurance —vs— property title insurance

Note that property insurance and property title insurance are different.

Property insurance coverages are paid annually and can underwrite the physical property on the land, your personal possessions at the property, and may also cover third party liabilities related to the property.

Property title insurance is a one-time insurance payment you can buy when you purchase a property that mitigates risks related to unforeseen issues or liens associated with the property’s title.  It must be purchased before you close the property transaction.

Obtaining coverage for all your dwelling spaces

Your policy should cover the main structures of your home space and provide sufficient compensation to rebuild those structures if necessary.

Optionally, you may also cover carports, guesthouses, and other outbuildings including garages, games rooms, cabañas, equipment rooms, bungalows, stand-alone studios, etc.

Some homes in Mexico are composed of several structures (for example, several buildings situated around a central courtyard) and in these circumstances, the insurance rule is usually: everything that is directly connected is treated as one building. Anything that stands alone is considered an additional building.

Insuring your personal possessions situated at the property

A good insurance policy will cover personal goods owned by you, your guests, or domestic employees when they are working at your residence. Coverage for theft of personal property varies, depending on whether it is “scheduled” (specifically listed) or not.

Some policies include coverage for certain valuable property, such as cash, securities, jewelry, fine arts, sporting equipment and property used for business purposes—up to certain limits.

If you need higher limits for specific items of property that you own, this option is available by listing them on a special section of the application and making them a type of ‘named risk.’

Third party liability protection in relation to your home in Mexico

Good home insurance policies provide coverage for personal liabilities to third parties to protect you and your family against any lawsuits or demands presented against you.

For example, if a wall collapses and injures someone who was near it at the time; or the neighbor’s property is damaged due to a falling tree from your garden, a good insurance policy will cover your liabilities in these circumstances.

Policies can also cover injuries to people visiting or working in your home, for example if your housekeeper or gardener injure themselves on the job.

Loss of home use, or rental income

If you rely on your property for work, or to bring in a rental income, you may also choose to include a “loss of use” risk coverage in your policy.

This cover provides for additional living expenses if your house is damaged and cannot be lived in for a time while it’s repaired or rebuilt.

If you rent out your home and rely on this for income, you could take the additional option to cover rental income loss, whereby you are compensated for lost income if your home becomes damaged and unavailable for rental to others (you will need to provide evidence that a rental contract exists).

Rent liability coverage

Some home insurance policies exclude coverage when your home is rented (even occasionally or part time) or add a hefty supplement to the policy’s premium to include renter’s liability as part of the coverage.

If you rent out your home in Mexico (or intend to at some point) and want your coverages to be valid when others are renting the property, check with the provider you get a quote from to see if renter’s liability coverage is included in the premium, or how much more you need to pay in premium to include it.

Insuring your condominium unit in Mexico

Condominium associations in Mexico are supposed to keep a blanket commercial policy in place to cover the entire property.

Typically, this provides insurance coverage for the building as well as communal elements of the property such as pools, garages, the interior walls, fixtures, fittings, and outbuildings associated with the development, or fraccionamiento.

The wording of these commercial insurance policies tends to be very limiting in what they will cover within the terms of a blanket condominium insurance policy and it’s prudent for individual condo owners to arrange separate insurance to mitigate expenses of paying for certain types of damage.

Exclusion of third party liability

Many Mexican-issued insurance policies exclude third party liability and renter’s liability from the standard policy and charge a substantial premium to include these as optional extras. This places an obligation on condominium owners to cover elements not included by the commercial policy on a unit-by-unit basis.

Liability to adjacent properties in the building

Don’t be lured into a false sense of security by condominium blanket coverages: in a situation where an event that happens in your condominium affects an adjacent condominium —for example, a water leak in your shower room that damages your neighbor’s room below— you will be made liable for repairs to yours and your neighbors’ damages.  Having a unit-based insurance policy in place will protect you from the expenses of these sorts of events.

Check the documentation

The key documents to check on your Condo contracts are the ‘Byelaws’ and ‘Covenants’ associated with your condominium property: these are the documents that contain the small print regarding what is and what is not covered by the condominium building’s ‘blanket’ insurance program.

Insurance for beachfront and waterside property in Mexico

It’s possible to insure property near oceans, rivers, and lakes—although premiums may be higher to reflect the additional risks which may arise from storms and flooding that can be more common in these areas.

The online insurance application form will ask you for the Mexican postal code (zip code) of the property, and this is mapped to detailed topographical and statistical data which enables insurers to assess the hydro and meteorological risks that are related to the property and quote accordingly.

Some companies may refuse to insure properties very close to the sea or other bodies of water if historical statistical data show that it’s unviable, although policies may be available from different brokers that will quote for coverage in certain acute circumstances—with higher premiums to reflect the increased risk.

Insurance for homes situated on Mexico’s Yucatán peninsula

If you own —or intend to own— a home situated on Mexico’s Yucatán peninsula, you’ll discover that getting your property insured is more difficult than if it’s situated in other regions of Mexico.

The Yucatán region’s geology, coupled with unique hurricane risks, has made it either difficult or prohibitively expensive to insure homes in this area. However, our insurance associate MexPro offers home insurance coverages in the Yucatán region.

Watercraft insurance in Mexico

A few people live on their boat moored in Mexico, while some people who own homes here near a body of water might also own a boat, a jet ski, or a yacht—and these ought to be properly insured while they are situated in Mexican waters.

The premium you pay for insurance of your watercraft is based on two factors:

• the number of days the craft will be in Mexico, and
• the value of the watercraft.

Personal injury and third-party liability cover should also be taken out in case you become involved in an accident on the water. The better policies also offer legal assistance and ‘bond’ cover in addition to the injury and liability cover.

In legal terms, accidents involving watercraft where people are injured or killed are treated in similar fashion to serious car accidents in Mexico.

If you own watercraft and and spend extended periods of time here, or live here, an annual policy may be a better investment than a short term policy covering specific dates.

Check with the broker providing your quote to find out what options they have for year-round coverage of your watercraft in Mexico.

Learn more about property insurance in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Choosing a home insurance policy
• Insuring domestic help and workers in your home
• Third party damage cover
• Latest articles about property insurance in Mexico
• Get a no-obligation online quote for home insurance in Mexico

Arranging coverages for your activities, assets and health in Mexico

Getting quotes and arranging insurance is straightforward using online services.  Use the table below to connect to insurance brokers who can give you a no-obligation quote and arrange policy coverages to suit your needs and lifestyle.

Learn about insurance services in Mexico

We have published guides to help you learn about the different insurances available to support your lifestyle including:

Auto Insurance: If you’re bringing a US or Canadian-plated car to Mexico, your home country insurance policy will not cover you for third party liability.  Getting suitable coverage for your vehicles (car, ATV, RV, motorcycle, and towed units) is straightforward and affordable, and includes services that will support you in the event of an accident.  Learn about Auto Insurance for Mexico.

Health Insurance: If you plan to stay in Mexico longer term, a health insurance plan that will give you access to health services at Mexican clinics and hospitals is an ideal way to mitigate medical expenses that can arise from accidents and illness. Learn about health insurance options for Mexico.

Medical Evacuation: If you have a good medical healthcare plan in your home country, a comprehensive Medical Evacuation insurance that will transport you from a hospital in Mexico back to your hospital, doctors and network of choice is available.  Learn about Medical Evacuation from Mexico.

Property Insurance: When you own a home in Mexico, it’s wise to keep the property insured against common risks including theft of your personal goods in the home, third party liabilities (e.g. a tree falling onto your neighbor’s property), fire, and natural disasters.  Learn more about insurance for your home in Mexico.

Travel Insurance: If you’re only visiting Mexico for a short period, travel and trip curtailment insurances are available to cover unforeseen travel and medical expenses while you’re away from home.  Learn more about travel insurance.

This article describes what a trip protection plan is, and how you can use this type of insurance to cover your trips to Mexico.

What is a trip protection plan?

When you’re visiting Mexico on a short-term basis —for no more than 90 consecutive days— a trip protection plan (sometimes referred to as trip cancellation insurance) will mitigate the costs of unexpected travel and medical expenses in the event of delays, interruptions, cancellations, as well as medical emergencies and evacuation.

Our associate offers trip insurance plans which protect the investment you’ve made in your trip to Mexico and alleviate the costs of unexpected emergency medical situations.

What a trip protection plan covers

• Comprehensive trip protection plans with a choice of three tiers of coverage for short-term stays in Mexico that won’t exceed more than 90 consecutive days.
• Delays, interruptions or cancellation of your travel plans.  Compensation if your flight gets delayed or your bags are delayed or become lost or stolen; and reimbursement of you non-refundable trip costs if you need to cancel your visit to Mexico due to unexpected situations including illness, job loss or transfer, as well as certain weather, disaster and other unforeseen events.
• Unexpected emergency medical expense coverage in Mexico for physician’s fees, lab/x-rays, prescriptions, anesthetics, clinic/hospital costs up to US$100,000; cover for emergency dental expenses is also included up to US$5,000 depending on the plan tier you choose.
• Medically-warranted emergency evacuation to the nearest suitable medical facility and covering up to US$500,000 (depending on plan tier) of medical evacuation costs. Includes transporting a visitor from abroad to join you, and repatriation of minors.
• A 24/7 travel assistance service is included in all plan tiers offering non-insurance travel assistance services, for example if you need help with replacing a lost passport, prescription refills, legal referrals, and emergency cash advances among others.
• Highest tier of the plan also offers coverages for Non-medical emergency evacuation, car rental damage, sports rental equipment coverage, lost golf days & lost ski days, and replacement of frequent-traveler points.
• Premiums and plan options are based on several factors including trip duration and cost, and travelers’ ages. This plan is available for your next visit provided your stay does not exceed 90 days.
• Terms are clearly provided by our associate, TME Travel Insurance, when you get a no-obligation quote.

Is a trip protection plan right for me?

This type of plan is ideal for people who make short trips to Mexico—that don’t exceed 90 days.

If your visits to Mexico are longer than 90 days and will not exceed 180 consecutive days (six months), consider opting for Travel medical insurance instead.

If you stay in Mexico for over 180 consecutive days a Medical Evacuation Insurance plan might suit your needs in situations where a critical medical issue warrants a medical evacuation.

This article introduces you to property insurance choices and guides you through important considerations as you search for and choose a home insurance policy for your needs and lifestyle situation.

Principal coverages offered by insurance policies for your home in Mexico

Depending on your needs, circumstances, and budget, you can insure your property entirely or partially.

The insurance premium will depend on key variables related to the risks you want underwritten, including: the location and type of your property, its age and replacement cost, and what events you want coverage for.

You can insure your home in Mexico for:

• Structural damage caused by natural phenomena like wind, floods, earthquakes and hurricanes, as well as damage caused by acts of vandalism and burglary (owners only).
• Loss or damage of personal possessions in the event of flooding or theft (whether you own or rent).
• Third party liabilities related to owning or renting property, for examples if a tree falls on your neighbor’s house or your housekeeper is injured while working in your home (whether you own or rent).

Property insurance policies in Mexico

Property insurance policies in Mexico are different to policies sold in the U.S. and Canada. The policy wording is different, and the types of coverages offered are different, so some things that you might think are included as standard, might not be if you purchase your insurance in Mexico directly from a Mexican insurer.

To bridge this gap, specialist companies based in the U.S. have developed property ownership insurance coverages which reflect the wording, terms, and coverages typically included on US and Canadian policies.

The insurance itself is underwritten by Mexican insurance companies (by law, it must be this way), but the U.S. companies work in partnership with Mexican underwriters to create an insurance coverage that is familiar to those purchasing insurance in the US and Canada (or those who want a US-style policy), and which is legally valid under Mexican law.

Some homeowners in Mexico purchase property insurance from a Mexican insurer direct that charges premiums in Mexican pesos and pays out in Mexican pesos; others purchase from a specialist US-based company that offers US style insurance with premiums in US dollars and pay outs in US dollars.

Buying insurance for your home in Mexico

Should you buy your insurance from a local Mexican broker or a specialized US firm?  Here are some key points to consider about each route:

Buying from an insurance broker in Mexico

When you buy home insurance from a Mexican broker you will typically:

• obtain coverages sold with Mexican-style terms and characteristics, often different to those offered in the US and Canada and which may offer less coverages or have limitations you are not accustomed to;
• have policy wording presented in Spanish, so you will need to be able to read Spanish fluently or have someone translate and/or explain the policy terms to you;
• need to file insurance claims in Spanish and any discussions or disputes about claims will need to be argued in Spanish; you will need to get an interpreter to deal with claims if your Spanish is not that good;
• pay your insurance premiums in Mexican pesos and any claims will be paid out in Mexican pesos.

Buying insurance from a specialist US firm

When you buy home insurance from a specialist US firm you will typically:

• obtain coverages sold with US-style terms with the same kinds of characteristics you see on insurance policies offered in the US and Canada;
• have a policy sold and worded in English;
• be able to file claims and undertake discussions about claims in English;
• pay your premiums in US dollars with any claims paid out to you in US dollars.

Should you choose a Mexico or US based home insurance policy?

If your Spanish is good, you have a decent local insurance broker contact, and you’re satisfied with the coverages offered by a Mexican-style insurance policy, then a local insurance policy will suffice, although there’s no harm in obtaining a quote offered by US-based policies to compare coverages and rates.

We recommend that you consider the services of US-based specialists set-up specifically to service foreign-home ownership in Mexico if your Spanish is not fluent and if you don’t have much experience of buying insurance in Mexico.

It’s also important to consider that, in the event you need to claim, you will find yourself in a stressful situation, and having an insurer that has issued a policy in English, in terms you are familiar with, and covering events which you are used to seeing covered in an insurance policy will be worth any additional premium on the day you may need to make that telephone call to file a claim.

Further, US-led policies can include coverages (for example, third-party liability cover) as standard, whereas many Mexican policies do not cover these without them being specifically scheduled—and with significant additional premiums.

Learn more about property insurance in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Practical checklist for home insurance coverages
• Earthquakes in Mexico
• Hurricane season
• Windstorms in Mexico
• Latest articles about property insurance in Mexico
• Get a no-obligation online quote for home insurance in Mexico