There seems to be a lot of confusion about Mexican Insurance so I thought I’d take a stab at putting together this little primer. My experience is primarily in Baja but I believe that this will apply anywhere in Mexico.
NOTICE!! Change to liability requirements.
I received the following from Discover Baja on 02/08/13
Mexican Federal Law has changed regarding liability amounts for death coverage. Formerly, compensation in case of a death was calculated on 730 days of the General Minimum Wage or the Highest Professional Minimum Wage. The new law stipulates that death compensation will be based on 5,000 days of the General Minimum Wage or the Highest Professional Minimum Wage. Formerly, in general, $50,000 liability was enough. THAT IS NO LONGER THE CASE. To make matters even more complicated. each state in Mexico has a different minimum wage, so each state has a different death liability amount. To give you an idea, in Baja California (Norte) the death liability could be $143,838 per person while Baja California Sur it could be $335,223 per person.
Both of Discover Baja's insurance companies have been working with their lawyers to clarify this issue and offer new products. They have been accommodating to their customers. If you have an ACE Seguros insurance policy written before February 1, 2013, ACE will increase the liability amount to $300,000 until the end of the policy at no additional cost to you. If you have an HDI policy written before February 16, 2013, they too will increase the liability of existing policies at no additional cost.
We are writing the new liability amounts of $300,000 and $500,000 into our insurance programs. We will keep you posted of any other developments. If you have questions, be sure and give us a call.Now back to my original post
Mexico Insurance:
Applies to Baja and mainland Mexico
(A lot of this also applies to boats and trailers).
Anytime you cross the border, while it’s not a law, you should have (or get) Mexican insurance. This applies even if it’s only a short visit of a few hours. US and Canada liability insurance is not recognized in Mexico and without liability insurance, you will end up in jail if you’re involved in any kind of accident. Traffic accidents are considered felonies in Mexico and if you don’t have insurance, they hold you and impound your vehicle until fault is determined and restitution is arranged.
It is also recommended that you get the “Legal” rider; this provides you with an on-the-spot agent to help you with the paperwork and navigating the sometimes-confusing (to gringos) legal system.
On Edit (8/7/09) Mexbungalows has provided additional information on the importance of the "Legal" rider. It is much more important than I thought. I've copied his post below, and added some more comments from qtla9111 and myself;
Estimado Amigo,
Seguros para los chofers isn´t mandatory nor is insurance mandatory for automobiles. Anyone applying for a fianza de importacion temporal at Bancercito does not need to show any kind of insurance document.
Aqui en Mexico it is assumed that all drivers have the ability to satisfy any and all claims arising out of an accident. Of course it is absurd to think that many Mexican vehicles carry liability or any other type of insurance.
Drivers that are involved in a minor accident who have no way to prove financial responsibility are detener (arrested) and brought to the commandancia (police station). However, mexican law also protects the driver. if you were to run over someone who was crossing the road, and the transit police showed negligence on the pedestrian or cyclists part, you would not be held responsible. If you hit a person who is crossing under or within 150 meters of a pedestrian bridge, the driver is not liable.If the accident is serious enough, drivers are arrested and must sort things out at la commandancia. If the adjudged guilty party cannot satisfy all claims against him he will spend the nexty few days in jail and then be transferred to a state prison ¿entiendes? Prison is an extreme example but not unheard of. It would probably require a death or drunk driving conviction.Mexican coverage underwritten by anyone anywhere does not agree to satisfy claims fast enough to keep a person from going to prison. I think he meant jail, see above. Sometimes a claim can take months to sort out while the guilty party remains behind bars.
To cover this period between accident and renumeration, many Mexico Insurance based in the states offer supplemental coverage that is solely of their own origin. This coverage may go by any one of several names: Legal Fees, Lawyer, etc. It means that the alliance of surplus line brokers in the USA have established a fast-reaction fund that their agents in Mexico can access to satisfy legal claims. When the claim is settled and the broker will get his DESPOSIT GUARANTEE back once the claim is settled.
May I suggest that anyone wishing to verify or query this information get in touch with the Lewis & Lewis brokerage in California. They have a website and toll free telephone number.If your US insurance does not provide for Fire/Theft/Collision coverage on your vehicle in Mexico, (and most don’t) then it is recommended (and probably required by your lien holder) that you get a full coverage policy, not just Liability/Legal. These policies are based on the current bluebook value of your vehicle. You will have to provide this dollar value so check it on the internet ahead of time. One source for this is the online NADA Guides at
NADA Guides. This site covers autos, RV’s, boats, and motorcycles.
Historically, the way the policies are priced (both full and liability/legal), if you’re going to spend more than 3 weeks in Mexico, it’s cheaper to get a full-year policy. Get quotes both ways.
If you're using the Discover Baja website, be aware of the "1 year/90 day" option. This is only offered by GE-Seguro and is normally a lot cheaper than other options. What it is, is a policy that covers you for a total of 90 days in a years time. If you're going to be crossing the border multiple times during the year, it's the only way to go. The 90 days don't have to be in a continuous block, you can use a week (or month) now and another one later. Of course, the strange thing about it is, I can't figure out how they would know how long you've been in Mexico, since they only stamp your FM-T on the first crossing, and just look at it on subsequent crossings.
If your vehicle(s) are financed, you will also need a letter from the lien-holder authorizing you to take the vehicle across the border. Most lien-holders require that they be listed on the Mexican insurance policy so you should get that letter before buying the insurance.
On Edit (05/09/09). Even if your registration does not list a lien holder, remember that most financing contracts do not allow you to take the vehicle out of the country. The penalty for doing so can be quite expensive, ranging from a fine or increase in interest rate all the way up to requiring you to pay up in full or lose the vehicle. So at least read the contract very carefully; better yet, call your agent and ask!
Another thing to remember, most RV/Auto/Boat policies don’t cover theft of personal items (except for full-timers RV policies). This is normally covered by your home-owners (or renters) insurance, which in most cases also isn’t valid in Mexico. So check with your home-owner carrier and consider picking up a personal property rider from your Mexican provider or adding it to your US policy (if it applies in Mexico).
A word of warning; not all of the insurance sellers along the border are legit so, if you’re buying at the border, make sure you pick a good one. Insurance is probably the easiest item to take care of for a border crossing because you can do it in advance, either buy it through a travel club or on-line.
Most of the on-line sites allow you to get a quote, pay for the policy, and print out the policy, without getting out of your pj’s.
Two of the better known Baja travel clubs (their insurance also covers mainland Mexico) and what they offer are :
Vagabundos del Mar: FMT (visa), Insurance, Fishing License, Boat License, Travelers Aid, On-Line Forum, Med Evac Services, Caravans, Fiestas, Tours & on-line road, weather, and fishing reports. Discounts at most RV parks and many restaurants and other business’s in Baja. Club also has functions and get-togethers in the US.
Insurance is through AdaVis Insurance, Quotes and purchase on-line or by telephone.
Discover Baja: Same as above (with the exception of the U.S. get-togethers), plus Spanish lessons and Satellite Phone rentals.
Insurance is through GE Seguros & ACE Seguros. Quotes and purchase on-line.
One of the on-line sites is
MexPro. They will give you quotes from 5 of the major Mexican insurance companies. They also offer their own medical evac and road service riders on all of the quotes.
For more, just Google “Mexico Travel Clubs” or check out
Mexonline TravelMexico Insurance Agencies: Just Google “Mexico Insurance” or see
Mexonline Legal for a list with links. Lewis & Lewis and Sanborns are both popular with RV’ers.
Since I’ve never been involved in a claim in Mexico I can’t speak from personal experience about the service, but I’ve used both Lewis & Lewis and ADA Vis (through the Vags’). The Vags were the lower of the two.
If I’ve erred or missed something, please let me know or add it to this thread.
On edit, activated links.
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