Before loading up the mini-van and setting out for a Mexican adventure one should address several important facts about auto insurance. Although, there is no law requiring a driver to have insurance in Mexico however, the traffic laws are very strict on a driver who has the misfortune of causing an accident. The saying goes, "el que pega paga" (he who hits pays). According to the Mexican Consulate, a driver who is at fault in a collision is liable for damages to the other vehicle or property. The guilty party's car can be impounded in any accident until the driver pays or proves they have insurance that can pay for the damages. A motorist who breaks the law by driving drunk or causing bodily injuries in an accident can face jail time and criminal charges.
For the U.S. motorist, they are covered by their existing insurance, purchased in their home state. Most U.S. insurance policies cover your vehicle for travel 25 miles from the U.S.-Mexico border. This covers travel in many border towns such as, Ciudad Juarez, Tiujana, and Matamoros. Some car owners may make the mistake of misunderstanding the foreign travel section of their policy and confuse travel into Mexico with Canada. Regular U.S. insurance policies are honored throughout Canada. Travel past the 25 mile limit into Mexico requires the purchase of an additional insurance policy, underwritten by a Mexican company.
According to Roy Portillo, an El Paso, Texas Allstate agent, his company can write insurance for travel into Mexico at their office through a Mexican partner company. Agencies like Portillo's can be found all along the border. The policy, purchased through Seguros Tepeyac, costs $20-$30 per day depending on the value of the insurance needed.
Enterprise Rent-A-Car of El Paso requires car renters planning to travel into Mexico to purchase insurance from Enterprise at $15 per day.
When traveling in Mexico remember to always have your policy with you and if you're in an accident, contact your agent immediately. For trips further than the 25 mile limit, it is best to follow Sanborn's Insurance Agent, Gloria Nunez' advice. "If you are involved in an accident [in Mexico] you have to be prepared to cover damages right then and there. the only way to do that is if you're a millionaire or if you have an insurance policy."
Questions about travel and insurance into Mexico should be addressed to your insurance agent or any one of several Mexican Consulate offices located throughout the United States.
Sources: Jim Weddell, El Paso Times, Roy Portillo, Gloria Nunez.