It's the Law: Mandatory Auto Liability Insurance in Mexico

Your U.S. Car Insurance Won't Cover You in Mexico

A law effective September 23, 2014, requires Mexico Liability Auto Insurance for all vehicles driving on Federal roads and bridges. In the past, proof of financial responsibility was required only in the event of an accident. Now, the law requires proof of Mexican Liability Insurance at all times when driving on federal roads and bridges. You can be asked for proof of insurance at checkpoints, border crossings, or traffic stops.

Federal Police will enforce this law and drivers caught without coverage will face fines starting at $200 U.S. If a driver is involved in an accident without coverage, they will face fines starting at $1,000 U.S. In addition to possible jail time and legal expenses.

Several states have implemented similar measures requiring insurance for all vehicles. Some of those states include Baja California, Morelos, DF, Tamaulipas, Nuevo Leon, Jalisco, San Luis Potosi, Zacatecas, Chihuahua, Puebla, Queretaro, Aguascalientes and Yucatan.

U.S. or Canadian auto insurance policies are not recognized in Mexico, even if it includes the Mexico Insurance Endorsement. All of Sanborn's policies comply with the requirements of this law. 

Indemnification in case of at-fault death of a third party

As a reminder, there is also a Federal law regarding the indemnification for the death of a third party on Federal roadways. You might be required to pay indemnification of up to $300,000 US dollars per death resulting from an at-fault accident.

To be protected from this potential liability, we recommend that you carry at least $300,000 CSL liability limits for Mexican Auto Insurance.