Car Insurance Coverage in Mexico

A driver in Washington State sits at the border crossing with Canada waiting to be interviewed by a customs officer. During that wait he might be thinking about meeting up with friends or relatives in Vancouver. He might be thinking about sites he plans to see while in Canada. He may be thinking any number of things; he probably won’t be thinking about is car insurance. But the California driver crossing the border into Mexico doesn’t have that luxury.

The United States and Canada have a reciprocal agreement whereby both recognize car insurance policies written by companies in the opposite country. There is no such agreement between our country and Mexico. So while you can travel in Canada without buying Canadian car insurance, you cannot do so in Mexico. If you plan to drive your car south of the border you must purchase an insurance policy written by a Mexican company and recognized by the Mexican government.

Short Trips versus Long Trips

The good news about driving in Mexico lies in the fact that you can get a pretty cheap car insurance policy to cover a short-term visit. The bad news is that Mexico has some very strange and strict laws concerning car insurance and accidents. Let’s start with distance first.

Mexican law creates a “buffer zone” in which Americans can operate their vehicles while still considered being in the country on a short-term basis. There are two types of zones known as the Border Zone and the Free Trade Zone. If you plan to venture outside one of these two zones Mexico requires you to file for recognition as a vehicle importer. And unfortunately, imported vehicles command a higher price for car insurance.

Accidents and Criminal Investigations

The other quirky thing about Mexican traffic law is the fact that all auto accidents, no matter how minor, are investigated as criminal matters until it can be determined otherwise. Practically speaking, this means an American driver would automatically be suspected of a crime if he was involved in an auto accident.

If the crime investigation reveals the driver did not have proper auto insurance that individual is quite likely to do some time in jail. In cases where a court forgoes jail time, he still could face severe fines, vehicle seizure, and a temporary or lifetime ban on re-entering Mexico.

Purchasing Cheap Mexican Car Insurance

Fortunately for Americans, purchasing cheap Mexican car insurance is fairly simple. There are lots of companies offering policies online you can purchase in just a matter of minutes. Should you prefer to get your policy through a human agent, there is no shortage of Mexican insurance companies located in border cities.

The most important thing to remember is to get your insurance documents written in English. Either that, or be fluent in Spanish. You don’t want to pay for a policy that provides you with little or no actual coverage. The only way to know that is to read it for yourself.

 

Happy trails!

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