U.S. Auto Insurance May Not Cut It in Mexico

Cancun, MexicoAs Americans head out of town for their vacations, those on the way across the border to Mexico should note that their auto insurance probably doesn’t cover them while driving in the U.S.’s southern neighbor.

The primary reason for this, according to the AutoInsurance website, is that Mexican law doesn’t recognize U.S. or Canadian auto insurance policies. “Unlike the U.S. and Canada where you simply exchange insurance information then file a claim later,” the site says, “Mexican law requires that a person who causes an accident provide evidence there at the scene that s/he is able to pay for the damages. If you do not have a valid Mexican liability policy, the police will toss you in jail (and Mexican jails are notoriously bad) until you cough up the dinero.”

The website does say, however, that a basic liability policy that should cover most commonplace insurance needs in Mexico costs around $10 per month and is easy to acquire.

American motorists setting off on international vacations should also bear in mind a number of other issues when setting out on road trips, such as licensing requirements and long waits at the border.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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