Insurance Across Borders—Understanding the Legal Frameworks for Auto Insurance in Mexico and the US
Many Americans traveling to Mexico by car have yet to learn that their US auto insurance won't cover them after crossing the border. Continue reading to learn why that is the case and how to ensure you are fully protected during your road trip. Will my US auto insurance provide coverage in Mexico? Your US car insurance does not meet Mexico's legal requirement for liability coverage because the Mexican government does not accept or recognize US insurance coverage. You are basically uninsured if you are driving in Mexico with only your US insurance. So, how do you stay protected on Mexican roads? You need Mexico car insurance , or insurance issued by a Mexican company. If you get in a car accident in Mexico, you need to show you have enough money or assets to pay for damages resulting from the accident or "proof of financial responsibility." There are only two ways to prove your financial responsibility—drive with large amounts of cash or buy a separate Mexican lia...