Is car insurance necessary when travelling to Mexico?

Many don’t know that Mexico welcomed approximately 32 million international tourists in 2021 – up more than 30% compared to the preceding year, according to Statista. 

There’s plenty to see and do in Mexico. Top tourist attractions include (but are certainly not limited to) the Monarch Butterfly Biosphere Reserve, the Great Pyramid of Cholula and Copper Canyon. Whether traveling alone, with family or with friends, there’s plenty to enjoy in Mexico. But if visitors live in the UK and want to travel to Mexico or live in the US and want to travel to Mexico, do they need auto insurance to drive there? 

Here’s a guide on whether or not one needs car insurance when driving to Mexico.

Is insurance necessary?

Do tourists need car insurance if they’re driving in Mexico? The short answer is “yes”. It’s not a good idea to head to Mexico without knowing the car insurance regulations for visitors to the country. Whether traveling from overseas and renting a car in Mexico or driving one’s own car from the US, it’s important to be well-informed to avoid breaking the law.

International tourists visiting Mexico need third-party liability coverage to legally drive on the country’s roadways and highways. The insurance policy must come from an insurance company that is licensed to sell coverage in Mexico – and not all of them are, so it’s time to do some research. For an idea of how much coverage to choose, it’s best to go for approximately $300,000.

Does current coverage cover Mexico?

Before shelling out money to get a car insurance policy for a trip to Mexico, it’s worth checking to see if the current policy covers international destinations like Mexico. While there’s a possibility that it will, the chances are greater that it won’t allow for driving in Mexico.

Drivers shouldn’t be fooled into a false sense of security: the policy might offer some coverage for Mexico, but that might not be enough to qualify for driving there as a tourist. Visitors need to get sufficient coverage, which is why it’s necessary to find an insurer licensed to offer such coverage.

Insurance providers located in other countries can’t offer coverage for driving in Mexico unless they’re licensed to offer such insurance policies, but if that’s the case, there’s no need to panic. Whether there’s an existing insurance policy or it’s possible to secure coverage using someone else’s car, drivers can ask their insurers to recommend them to another provider that sells car insurance for driving in Mexico. Some offer temporary insurance for foreign license holders.

Other things to consider

When thinking about driving to Mexico or flying in and renting a vehicle, tourists will need to consider a few things: are they driving to Mexico from the US? If so, do they own the car outright or are they still paying for it? They’ll need to follow some extra steps if the vehicle is still being paid off. Specifically, an affidavit courtesy of the lienholder that approves taking the car to Mexico. What does one do if the vehicle is leased? A copy of the leasing agreement will be needed to get permission to drive the car in Mexico.

When flying into Mexico from another country with a plan to rent a car when on arrival, visitors will have to buy the necessary third-party liability coverage from the car rental company.

Do that due diligence and enjoy the trip

Mexico is a popular tourist destination, but tourists who plan to drive there or rent a car when they get there will need to get the right auto insurance coverage. An existing auto insurance policy likely won’t provide adequate coverage for driving in Mexico, so it’s essential to ensure doing the homework to secure the proper insurance policy to avoid complications.

The editorial unit