Planning to take a trip and drive to Mexico? Or maybe to a more specific location, say, planning to drive to Baja? Before you pack your bags, here are some important facts you need to understand.
If you're planning to drive down to Mexico without Mexico auto insurance and by some unfortunate twist of fate, you get involved in a vehicular accident and you don't have the necessary means to compensate for any damages caused or the resources necessary to obtain legal counsel, you could very easily end up in prison. Don't take that risk!
Before taking a drive to Mexico or to Baja, as a responsible driver you should arrange and apply for a Mexican auto insurance policy. Insuring your automobile or vehicle for taking a trip to Mexico is very important. Vehicle insurance is a must if you are driving an American or Canadian vehicle, whether it's a car, van, truck or RV, across the Mexican border. The law in Mexico requires drivers to have a minimum of $50,000 worth of proof of financial liability for any sort of bodily injury or property damage they instigate to others involved in the accident. Purchasing an insurance policy endorsed by a Mexican company is the only sensible means to avoid a run-in with the law, as Mexican authorities do not acknowledge foreign insurance policies for privately owned vehicles or automobiles in Mexico. Only licensed Mexican insurance companies are able to provide the necessary auto insurance coverage that is acknowledged and accepted by the legal system in Mexico. Without proper insurance, a minor vehicular accident could very well turn into a nightmare, necessitating jail time and enormous monetary penalties.
As Mexican law requires that the liability insurance must be obtained from a licensed Mexican company, then it also means that your auto insurance policy must be issued by a Mexican insurance company, or arranged via a broker in the US that's affiliated with a Mexican insurance company. Another way is to arrange your vehicle insurance coverage online before you decide to travel as you can get insured at a much better price, arrange immediate coverage online and won't have to worry about filing all the necessary paperwork.
All insurance policies are purchased from brokers. It's essential that you know which insurance company is endorsing the policy you are purchasing from the broker, as the insurance company who is endorsing your policy is more important than the broker selling you the policy. In selecting a broker, pick one that is properly licensed and has the necessary resources to appropriately attend to your claim and needs when you're in Mexico.
There are well over 50 insurance companies in Mexico. Make sure you ask your insurance broker about the size and financial stability of the Mexican auto insurance company they work in conjunction with. Purchasing insurance from a more reliable and financially stable insurance company may be more expensive, but the supplementary premium presents a lower risk to you in the event of claim. Guard yourself and your financial investment by ensuring that the insurance company who endorses your insurance policies has a reliable, stable and strong history.
