How Mexico Tourist Auto Insurance Differs from U.S. Car Insurance

1. Higher Liability Limits Are Required

Mexico has strict liability insurance requirements, often requiring higher death liability limits than most U.S. states. The required amount varies by state, but travelers are encouraged to purchase up to $500,000 in liability coverage for full protection.

2. Jurisdiction for Civil Disputes

In the U.S., drivers involved in an accident can typically handle claims through their insurance company. In Mexico, however, all claims and civil disputes must be handled within Mexico. Even if two Americans have an accident in Mexico, the claim must be resolved there—U.S. courts will not recognize the policy.

3. No Liability Coverage for Passengers

Unlike U.S. auto policies, Mexico auto insurance does not cover liability for injuries to passengers. Instead, you must purchase separate medical payments coverage for your passengers.

4. Limited Flood Coverage

U.S. auto insurance policies typically cover water damage. However, Mexico auto insurance excludes coverage for flooding from tidal waters. If your vehicle is damaged by ocean flooding, it will not be covered unless explicitly stated in your policy.

5. No Coverage for Unlicensed or DUI Drivers

Damage caused by an unlicensed driver or a driver under the influence of alcohol or drugs is not covered under a Mexico auto policy.

6. Undercarriage Damage Exclusions

Unlike U.S. policies, Mexico tourist auto insurance excludes coverage for damage to the undercarriage if caused by overloading or rough roads.

7. Limited Theft and Vandalism Protection

Mexico auto insurance does not cover the theft of individual parts (such as stolen tires or catalytic converters). It only applies to total vehicle theft. Additionally, vandalism is excluded unless purchased as an add-on.

8. Coverage for Trailers and Boats

If you are towing a trailer or boat, it must be listed on the policy to be covered. If the trailer or boat is not explicitly included, both the towing vehicle and trailer/boat will be excluded from coverage.

9. Physical Damage Coverage Works Differently

Like in the U.S., collision, fire, and theft coverage must be purchased separately. However, Mexico auto insurance policies may exclude specific perils commonly covered in U.S. policies. Always check your policy declarations for exact coverage details.

10 | Strict Claims Process

In the U.S., you can report a claim after returning home from a trip. In Mexico, claims must be reported while you are still in the country. If you return to the U.S. without a filed adjuster report, your claim may be denied.

11. Cancellation and Refund Policies

Mexico insurance providers often handle policy cancellations differently. Some insurers fully earn a 6-month or annual policy after just 15 days, meaning you cannot cancel or receive a refund after that period. Additionally, daily policies cannot be canceled or refunded after the start date.