Mexico Car Insurance: What Is It and Do You Need It?

If you're planning on driving in Mexico, you'll need to purchase a Mexico car insurance policy—your U.S. policy won’t cover you.
Written by Jessica Barrett
Reviewed by Kathleen Flear
If you’re driving in Mexico, you will need to purchase a Mexico car insurance policy as your U.S.
car insurance
won’t cover you.
  • Your American auto insurance policy usually won’t cover you if you’re driving in Mexico.
  • You can purchase car insurance for Mexico from certain U.S. insurance providers or a Mexican car insurance company.
  • Mexican insurance policies should include legal assistance in case you get into a serious accident.
  • Rates vary based on your vehicle, driver profile, and coverage but are typically less than you’d pay for a U.S. insurance policy.

U.S. car insurance probably won’t cover you in Mexico

Your U.S. car insurance policy likely won’t satisfy Mexican
liability insurance
requirements, so you’ll need to purchase Mexico auto insurance if you’re going to be driving in Mexico.
You have two options:
  • Purchase a Mexico car insurance policy from a Mexican insurance company
  • Purchase a Mexico car insurance policy from an American insurance company that offers Mexican insurance coverage
If you get into an accident in Mexico and someone is injured, you may be arrested and your car impounded until the authorities can sort out the situation—so you want to make sure you have the right insurance coverage.

American car insurance companies that offer Mexico car insurance

If you want to purchase Mexican auto insurance from an American insurer, here are some of your options:
The Mexico Tourist Auto Insurance Policy coverage includes standard and extended options:
  • Liability coverage
  • Physical damage
  • Vandalism
  • Partial theft
  • Medical payments
  • Roadside assistance
Drivers over the age of 21 who hold a similar policy in the U.S. can purchase Mexico Tourist Auto Insurance that includes the following coverage options:
  • Physical damage and theft
  • Medical payments for the policyholder and passengers
  • Legal assistance after an accident
  • Loan/lease payoff
  • Roadside assistance
  • Medical evacuation after an accident
Liberty Mutual insures cars, motorcycles, RVs, and other towable vehicles with Mexican auto insurance that includes:
  • Third-party liability ($300,000 to $500,000)
  • Collision
  • Theft
  • Optional fixed deductible
Progressive offers Mexican insurance for cars, motorcycles, and RVs in three tiers:
  • Basic: liability, travel assistance, medical expenses, roadside assistance, legal assistance
  • Standard: basic coverage + collision and theft
  • Extended: standard coverage + vandalism, partial theft, domestic repair, and fixed deductibles

Mexican car insurance companies

If you want to purchase Mexico car insurance from a Mexican provider, here are some options:
  • ACE Seguros
  • El Aguila
  • Grupo Nacional Provincial
Your best bet is to contact a trusted Mexican car insurance agent who can compare rates and ensure you get the coverage you need.

Auto insurance coverage you’ll need in Mexico

You’ll want to ensure that your Mexico insurance policy satisfies Mexican insurance requirements. Here’s what you’ll need:
  • Liability insurance: The general recommendation is $300,000 of third-party liability damage coverage
And here are some optional car insurance coverages that are highly recommended:
  • Rental reimbursement insurance
    : Covers the cost of a rental vehicle while yours is being repaired after a covered claim.
  • Roadside assistance
    : Responds if you break down and need a tow, tire change, battery boost, and more.
  • Legal assistance: If you get into an accident and someone is injured, you may be arrested while the authorities sort things out—so it’s a good idea to ensure your policy offers free legal assistance.
  • Collision insurance
    : Covers damages if you get into a collision with another vehicle or stationary object.
  • Comprehensive insurance
    : Covers damages that are unrelated to a collision, such as vandalism, theft, or weather events.
Note that if you don’t carry
full-coverage car insurance
on your U.S. policy, you won’t be able to add it to your Mexican one.

How to buy Mexico car insurance

When you’re ready to purchase car insurance for your trip to Mexico, here’s the information you’ll need to provide:
  • Make, model, year, VIN, and license plate of your car
  • Value of your car
  • Type of coverage and limits you want
  • How long you’ll be in Mexico
  • Where you’ll be in Mexico
  • If you have any underage drivers (under 21)
  • If you’re towing anything (an RV, for example)

You’ll need insurance coverage for a rental vehicle in Mexico

If you’re renting a car instead of driving your own, you’ll also need insurance coverage. 
  • Third-party liability insurance is mandatory across the country and you will not be able to rent a vehicle without it—liability limits may vary by state
  • You can purchase liability insurance through your rental agency for about $15 per day
  • Optional coverages include collision, medical, roadside assistance, and zero-deductible—and some agencies bundle these into protection packages
Most credit cards offer a collision damage waiver (CDW) but do not provide liability coverage—so you’ll need to purchase this while renting a car.
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