If your next vacation takes you beyond American borders, you’ll want to consider how this might affect your auto insurance coverage. For south of the border excursions, the U.S. State Department claims you should assume that your American auto insurance policy will not cover you for any traffic accidents that may happen in this region. To acquire proper coverage, you will have to purchase Mexican automobile liability insurance from an insurance company with proper authorization from the Mexican government.
According to the law in Mexico, drivers must be able to pay for all damages to the involved party when the accident occurs. Failure to purchase Mexican insurance can significantly limit your ability to pay for these damages, which AAA claims could even result in jail time while an investigation is being conducted. Although the consequences for not having Mexican auto insurance are harsh, the solution is relatively easy. According to AAA, you can purchase valid Mexican auto insurance fairly easily from a broker that sells it along the border. This is usually the most effective method, since you would not even have to cross the Mexican border to purchase the necessary insurance, which would drastically reduce your risk of getting into an uncovered accident.
Although Mexican law does not require you to purchase collision insurance, it is certainly worth considering to ensure protection on your vehicle in case of an auto accident. Collision coverage included in your American insurance policy may not cover damage that occurs while you’re in Mexico, so it’s important to understand the risk you are taking if you fail to purchase Mexican collision coverage. Some additional considerations to make when purchasing Mexican auto insurance is including coverage for legal aid and bail bond as part of your insurance policy. This may be necessary since Mexican law tends to assume that all parties involved in a crime are guilty until proven innocent, which could lead to your detainment until the police reach a consensus.