I was asked to make this a 'sticky" thread, and I've separated it form the original thread (which had no action since 2007, but can be read
here).
The biggest questions seem to be:
Q. Do I really need Mexican auto insurance to drive in Mexico?
A. Absolutely! Liability insurance is
mandatory in Mexico now; your US or Canadian insurance policy not valid in Mexico and your credit card collision protection will not provide liability coverage (nor coverage for specialty vehicles nor on dirt roads). Driving in Mexico as a foreigner without insurance can subject one to a fine of $200 US dollars; driving and becoming involved in an accident without coverage, fines start at $1,000 US dollars and can involve being detained until the issue is sorted out (you pay enough money to pay all damages, and even treatment, recovery and lost wages if there's injury involved - and can ironically include extra money to get adequate food and treatment in detention.
Q. Can I get Mexico insurance in the USA?
A. You may be able to - keep on reading.
Q. What happens if I do not have Mexico insurance and I am involved in an accident?
A. In Mexico, your insurance provider is your guarantor of bail; failure to provide proof of coverage may result in detention (AKA "Mexican jail" - yes, it's at least as bad as you imagine) until things are sorted out - and it can take time to do that.
Accidents
do happen - Mexico officially registers over 500,000 traffic accidents annually, with 20,000 deaths and 750,000 injuries (Academy of Easy Driving). You think Mexico is unsafe because of crime? Drive without being aware of the challenges (e.g. at night in rural areas, in Mexico City particularly during rush hour,) and without insurance and your risk is high.
Mexico requires insurance issued in Mexico (your own country's insurance policy will not cover you in most of Mexico, with the possible exception of insurance that may cover you in border zones for short periods of time). There are agents, such as AAA and others, in the USA that are allowed to sell Mexico auto insurance.
One site states:
There are several types of damages that could happen that result in liability exposure in Mexico in relation to car accidents. The bulk is listed below:
• Actual damages: Damages based on the actual value of the other person’s vehicle, plus their wages and medical expenses.
• Moral damages: These equate to the United States pain and suffering damages. This is not always used in the Mexican courts but will likely add up to a quarter of the overall damages.
• Various: In many Mexican courts the judges are given the option of giving out extra damages as they see fit. Depending on a case’s facts there may be an exception that leads to more damages then would otherwise stand. (Causing injuries while driving drunk or affected by medications, even if covered by prescription, would likely add quite a bit.)
Liability exposure in Mexico comes down to the two basic forms of liability. Nearly every case falls into one of these two categories-
civil liability and
criminal liability.
Civil liability: Civil liability usually isn’t recommended for those who are seeking damages because of the lower limits set by the courts on what a person can claim. If you are seeking maximum benefits you probably wouldn’t choose a civil liability case.
Criminal liability: In criminal liability cases the damages cannot be subject to the limits set for civil liability cases. The victim also doesn’t have the legal need to hire an attorney or not will the court appoint a free attorney - they can handle their own case if they want.
(I certainly do NOT recommend this! - JD)
There is always some confusion over how much you may be liable for in a Mexican liability case (civil). Many people believe that their insurance plans will act as a safety net for nearly any problem and it just isn’t that way. In Mexico, just like any other country, a US citizen is dropping many of their rights when they leave the States. Here are the basics of what a person could and will be liable for:
• Funeral expenses
• Damage to another person’s property caused by you
• Damage to another person’s vehicle
• Medical expenses such as hospitalization and medication
• Lost wages
• Moral damages, which most likely won’t go over one fourth of the total damages
See below for a quote from "Mexico" Mike Nelson
Liability exposure is currently less then the US, which surprises most and it is on its way of changing. The actual costs of judgments in Mexico are less then the US as well! Knowing what you are liable for and what liability case is all so important when dealing with liability exposure in Mexico.
(Mexico Insurance Services)
Criminal liability would include driving under the influence (alcohol and drugs, even medicinal) - and insurance companies will generally waive their responsibility for such instances, as they might for driving under certain conditions (driving under the influence of illegal, prescription, OTC drugs or alcohol, driving off-paved roads and 4WD trails).
The kinds /varieties of specific offerings one can find in a Mexican insurance policy:
- Responsabilidad Civil Obligatoria - daños terceros (mandatory civil liability/ third party damages - a pedestrian, a house or animal)
- Responsabilidad Civil Voluntaria (voluntary civil liability)
- Asistencia en viaje (travel assistance)
- Seguro del conductor (driver's insurance)
- Defensa Jurídica (judicial defense)
- Robo (theft - which can be partial or total, usually only total is offered)
- Incendio (fire)
- Lunas / cristal (windshield and other windows)
- Préstamo de reparación (repairs loans)
- Defensa en Multas (fines defense)
- Retirada del permiso de conducir (driver's license cancellation)
- Grandes daños (major damage)
- Daños propios (personal damages)
- Vehículo de sustitución (replacement automobile)
- Deducible - the all-important deductible
- Comprehensivo - comprehensive (but check to see exactly what that means)
theft (robo parcial) - rear view mirrors, tire changing equipment, hubcaps, etc. are generally never covered. Damage to the same and windows are generally never covered. When you check out a rental car, protect yourself - be sure everything is there - hubcaps, auto jack and handle, etc. and nothing is broken, dented or scratched - note it on the checkout sheet AND photograph the vehicle from every angle with your camera or cell phone, as it is highly likely you will be charged for any missing or broken items.
You will want a policy that is "all risk " (todos riesgos) that has sufficient coverage you are protected - USD $300,000 is the minimum, more is better, depending on which state you'll be driving / renting in. (required liability insurance varies by state). I would recommend for liability protection these days. (It goes without saying that every animal you kill was unique, it was about to make a television appearance and show it had a vocabulary of several hundred words and could figure complex tax forms, and every pedestrian you hit was on his / her way to becoming Mexico's greatest prodigy or neurosurgeon. Some things do not change just because you are in a different country.
)
If you are thinking of driving in Mexico one site to visit is that of ex-Sanborn's Road log guru Mike "Mexico" Nelson,
here. I've long corresponded with Mike (decades) and his road logs were the Sterling currency for Americans and Canadians going to drive in Mexico. He's been driving and logging the roads of Mexico (some of them more trails than roads) since 1968 - not quite as long as I have been, in my automobiles, 4WDs and VW campers, but definitely more comprehensively.
"Mexico" Mike says:
Article 502 of the Labor Law states: "In case of death, the compensation due to persons shall be the amount equal to the amount of “Five thousand {5,000} days of The General Minimum Wage or the highest Professional Minimum Wage, plus funeral expenses." [The old law was 730 days of the daily wage or about USD$47,000 per death]. This makes USD$300,000 a prudent minimum coverage and $500,000 is not excessive.
If you are going to be driving in Mexico and are thinking of insurance, Mike is out of the business now, but he's a straight shooter, offers many tips on his site and has some cogent things to say and recommendations for insurance providers on his site, including "Is Mexico safe"? (read it!) as well as
Remember: Mexican insurance companies are your guarantor / bailor if you get into an accident - and you do not want to go to a Mexican jail whilst the judicial and police authorities "sort out" who is guilty! Mexican law is based on
Napoleonic Code that does not presume ininocence, not the English Common Law that does presume innocence. in Mexico, you are wholly subject to Mexican law; none of the rights you may have and rely on at home apply in Mexico.
"Mexico" Mike Nelson (Mike was the Sanborn guy for a long time, if you purchased their insurance some years ago you got his Mexico travel log as a valuable "freebie" on the side). Mike lists some good insurance companies, though perhaps not all, but he also mentions some companies are not so good, even though they might cost you more... please, read on, you will be rewarded!
I've been driving in Mexico since 1956, and gave driven extensively on everything from highways to Mexico City to very remote off-road areas, in a variety of automobiles from my old Plymouth station wagon, Toyota FJ-40 Land Cruiser, VW bus to a variety of rental cars.
I used to purchase
locally - even as a US resident, I used to purchase a policy from an agency (Allen W. Lloyd y Asociados, SA de CV, which also provides a variety of investment, financial, real estate and insurance services,) Guadalajara offices that made it cheaper and more comprehensive for me to be insured, especially against "daños terceros" (third party liability). If you drive your own vehicle or drive frequently, a longer term policy may be cheaper for you than several short-term policies.
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