Mexican Auto Insurance: What U.S. Drivers Need Before Crossing the Border
You're hyped about your next vacation to Mexico. You plan on spending a few weeks exploring the country's historical cities and beach towns. Even better, you've decided to drive, giving you complete control of where you go, with no flight restrictions.
But before you cross the border, you need Mexican auto insurance. Your regular U.S. auto insurance policy won't cover your trip. Find out what you need to know about making sure you're insured.
Why U.S. Auto Insurance is Not Valid in Mexico
The U.S. and Mexico have close ties. However, they are entirely separate countries with their own judicial systems and approaches to car accident claims.
Mexico only recognizes insurance policies approved for use within the country. That's understandable because those policies are drawn up to comply with local Mexican laws and regulations. Your U.S. auto insurance policy may not include all the specifics Mexico wants.
Likewise, most U.S. insurance only covers drivers while they're in the U.S. It won't transfer once they leave the country, even if they're driving the insured vehicle.
Exceptions apply to policies bought from a U.S. insurer especially for driving in Mexico.
Essential Mexican Auto Insurance Coverage
As in the U.S., Mexican insurers offer different types of coverage.
Liability Insurance
At a minimum, drivers must carry liability auto insurance in Mexico. The liability coverage pays for losses to others involved in the accident when you're at fault.
Each Mexican state sets its own minimum liability car insurance amounts, which range anywhere from $8,000 to $45,000. For maximum protection, it's best to err on the side of caution and buy excess liability coverage. That may mean purchasing a policy with a $300,000 or $500,000 minimum.
Collision and Theft Protection
Liability coverage only covers losses for others if you're at fault in an accident. It won't cover property damage to your vehicle. You can insure your vehicle when driving in Mexico with collision and theft protection. Collision insurance pays for repairs to your car, even if you're responsible for the crash. Theft protection pays to replace its value if someone steals it.
Mexican insurers may combine collision and theft protection in a loss damage waiver (LDW). If you're driving into Mexico, plan on purchasing it before you cross the border for a hassle-free experience.
Comprehensive Insurance
Comprehensive insurance pays for damage caused by situations outside your control, such as bad weather or fire. It's worth buying if your vehicle is under a loan or lease or you simply want complete protection.
Uninsured Motorist Protection
Some companies may offer uninsured motorist coverage. This add-on pays for damages if you're hit by someone without insurance or whose Mexican auto insurance policy doesn't cover all your losses.
Temporary Vehicle Importation Permit (TVIP)
Mexico requires all vehicles driven into the country with foreign license plates to have a Temporary Vehicle Importation Permit (TVIP). This legal document demonstrates your right to drive the car within Mexico during your stay. You must export the vehicle out of Mexico before the TVIP's expiration date, which is usually a maximum of 180 days for visitors or non-residents.
TVIPs are available through Banjercito, a Mexican bank that processes and issues them. You can obtain a TVIP online through the Banjercito website. Alternatively, Banjercito is located near border crossings. Some Mexican consulates in the U.S. also issue TVIPs.
Obtaining a TVIP requires a small payment. Banjercito will also request the following documents to establish your identity and proof of vehicle ownership:
- Passport or passport card
- Vehicle's title and registration
- Financing agreement
Mexico Entry Permit (FMM)
Mexico requires visitors to obtain an entry permit known as the Forma Migratoria Múltiple (FMM). The FMM is a legal document that authorities use to track entries and exits in the country. Tourists from the U.S. pay a small fee for the FMM, which is usually included with their airfare if they fly into the country. However, if you drive into Mexico, you may need to obtain an FMM in advance or at the border.
The FMM application form requests information about you and your visit, including your name, passport details, and where you plan to stay. You can complete the form and pay its fee at Banjercito offices located at U.S.-Mexico border crossings. Or you can complete your form online through the Mexican government's website.
Acquiring Mexican Auto Insurance
Numerous Mexican auto insurance providers sell coverage through their websites. A simple internet search will turn up dozens of results. However, if you're nervous about buying an auto policy from an unfamiliar company, consider working with your U.S. insurance company to get coverage.
Several U.S. providers, including Progressive and Liberty Mutual, offer temporary policies in partnership with approved Mexican insurers. These policies meet the Mexico auto insurance laws and provide customization options so you can fit coverage to your needs. By searching in advance, you may find car insurance discounts from your preferred provider, such as the company that provides your New Mexico auto insurance.
Get the Right Coverage for Your Trip
If you're planning a road trip to Mexico, you don't want to risk insurance mistakes that leave you without the coverage you need. Get ahead of the curve by getting coverage in advance.
EverQuote can help you locate a U.S. insurance company that offers temporary auto insurance for Mexico that is customized to your needs. Even better — our service is entirely free. Get started with your quote today!