Vehicle Insurance in Mexico

General information on taking out an insurance policy in Mexico, with comprehensive details on insuring a vehicle (options from third party to all risks) and making a claim...

Car insurance (seguro vehicular) is not required by law in all areas of Mexico, but new laws are coming into effect between 2014 and 2019 which will make a minimum level of car insurance obligatory in order to drive on federal roads, bridges and highways. Vehicle owners must be in possession of un seguro de responsabilidad civil – a policy with a minimum cover of 50,000 Mexican pesos for material damages and 100,000 Mexican pesos for injury or death.

Mexican states set minimum civil and criminal liability amounts a driver is responsible for in the event of death of the driver or others, therefore it is highly advisable to have car insurance to cover at least these minimum amounts.

In the states where it is obligatory, the insurance (seguro obligatorio automotriz) is regulated by the Secretaría de Gobernación and monitored by the federal police (policía federal).

Vehicle insurance in Mexico City

In Mexico City third-party liability insurance is obligatory; drivers without this insurance can be fined an amount equivalent to 20 to 40 days minimum wage.

Foreign Registered Vehicles

Foreign vehicle insurance does not cover third party liabilities in Mexico, which means additional insurance from a Mexican supplier must be purchased. If a vehicle has been imported into Mexico, then after it has been registered insurance can be bought from a Mexican policy supplier.

Insurance Companies

Third party liability provides insurance cover up to a certain amount which covers any damage (due to the fault of the insured driver) to any other party's property, or to pay compensation for a third party's personal injury and/or death.

More comprehensive car insurance policies are available which cover theft, property damage and medical expenses as well as legal advice and defense.

A large choice of insurance policy suppliers is available in Mexico. These are private companies who have received authorization from the Mexican government. Larger companies often offer more services such as health and home insurance. Policies range in price, coverage, and benefits, so it is important to go over all the details of the policy. Minimum third party liability insurance is vital. It is also very important to ensure the company underwriting the policy is of good financial standing.

Damages are divided into two types: to people and to property (daños a los bienes y a las personas). Property in this case refers to other vehicles, buildings, traffic lights, and any other kind of traffic structure. Damages to individuals covers medical costs and any other costs incurred through serious injury or death.

Further information about car insurance and what it covers is available in Spanish from CONDUSEF, the National Commission for the Defense of Users of Financial Institutions