Many U.S. residents think they can drive across the border and return without buying separate Mexican insurance. The truth is, you can. But what if you’re caught? What if you’re in an accident?
The bare minimum car insurance policy for Mexico costs around $10/day, and after you add a broker fee, IVA tax, you might be looking at $19. For 3 days, it might be $38. Isn’t it worth it? Let’s take a look at the factors that make up the true cost of a Mexican Insurance policy.
The differences between Mexican and U.S. Car Insurance
Mexican Insurance Cost
If you are caught as a tourist without insurance, and you operate on Mexican roads, whether federal, state, or local, the fine is about $125. Not to mention you’re giving the authorities an excuse to look into other potential infractions. Worth it? No.
If you’re involved in an accident, you must present your insurance. IF it’s hard to determine who was at fault, there’s a good chance it will fall on you if you don’t have insurance. You’re a tourist – and you broke the rules so this won’t be easy on you. Technically they can impound your car, fine you, and detain you until you find a way to settle the matter. IF you know a good lawyer on standby in Mexico, or in the US who can fly down at a moment’s notice, you might be ok. But with insurance, the company will send out an attorney and/or adjuster, included in the cost. So, for $38 – get your Mexican insurance.
Let’s say you get a flat tire, or you run out of gas! What is the cost there? You will need to spend several hours on the side of the road, perhaps nervous and frustrated. Will you find someone at the hotel who can bring you gas? Do you have spare gas cans? Is one of your companions capable of repairing your car on the side of the road? What is the cost of not having Mexican insurance in this scenario? More than $38.
Variables That Affect the Cost of Mexican Auto Insurance
When you fill out your quick quote form to price insurance specific to your needs there are several factors that affect the price.
- How long will you be in Mexico?
- Which part of Mexico you expect to make a trip to
- The year, make, in addition to the model of your vehicle
- The value estimation of your vehicle
- On the off chance that you will pull anything, for instance, a trailer
- Do you want or need Complete Coverage (required if you have a lienholder)? Or does your US/Canadian insurance cover within a certain distance of the border?
There are 5 fundamental risks to the Mexican insurance policy. They include:
- Collision and Glass Breakage
- Real (physical) Injury Liability
- Restorative Expenses
- Property Damage Liability
How to Buy Mexican Insurance
When it comes to buying Mexican insurance, there are two options. You can purchase the same way you buy car insurance online through a reliable company. You can try MexInsurance.com®, for example.
The second option is to buy it at the border. If you have the time to stop at the border, take the time to check the license, and claims handling. Make sure you’re purchasing something that actually gets to the insurance company in Mexico. Normally, the cost of these policies at the border is several times more, even as much as 69%. But are they worth that much more?
Nobody wants to buy insurance, in perfect world insurance would not even be necessary. Unfortunately, our world is not perfect, so we must have insurance not only to follow the law but to protect our assets and livelihood. Make sure the broker you trust with your livelihood is trustworthy.