Unfortunately many people believe this myth. Again unfortunately, it is because most of our U.S. insurance companies giving credence to this belief by implying their Mexico Border Endorsement provides coverage in Mexico. It “might” for physical damage (damage to YOUR vehicle) but NOT for the 3rd party liability exposures you encounter in Mexico.
First, a brief explanation. Automobile insurance is broken down to specific parts or types of coverage. 3rd Party Liability is the part of your auto insurance that provides monterary compensation to “others” that you have either injured or caused property damage to. It is not for you, it is your fiscal responsibility to pay a 3rd party when you are at fault in an covered accident. Just a brief note about Mexico and their 3rd Party Liability requirements, click here for the latest information regarding those limits. Special note: Your destination may entail driving through various Mexican States. It is wise to at least purchase the States highest 3rd party liability limits that you travel.
Mexico’s vehicle laws are implemented differently than those in the U.S., and require payment at the time of the accident, OR, you must posses a valid Mexico Tourist Auto policy from a Mexican insurance company. The authorities will negotiate with the Mexican insurance companies Claims Department, or Adjusters.
So your U.S. auto insurance is not applicable when in an accident in Mexico. Restitution is immediately required, and trust me, your U.S. insurance company is not going to send their U.S. Adjuster to Mexico to ajudicate your claim. Therefor, you will be required to pay out of your back pocket the damages or repair costs to the 3rd party on the spot, OR, they may impound your vehicle until restitution is made, OR, they could, and this is extremely rare, incarcerate you until restitution is made.
You may say, but my policy says I am covered, and I am an American! GOOD LUCK with that gem of a statement as your vehicle is impounded while you go back to the U.S. to get $ for this claim. OR, you can speak to your U.S. insurer, who will happily explain to you “NO problem” just bring us a copy of all the police reports and tow or drive your vehicle back to the U.S. and we will gladly pay your claim! There are numerous other scenarios where this can just only get worse, but I am not about to dissuade you from traveling to Mexico, just be wise and purchase your Mexican Tourist Auto policy prior to leaving the U.S. Inexpensive and very simple…
Another thought. I have recently pursued and have made avialable on line, the Mexico Border Endorsments from Nationwide (Texas) and Allstate (Texas). They are vague at best without specific coverage definitions, and also realistically convey that their coverage is not recognized in Mexico. Why they make it part of the policy, I will never know.
To view these documents, click on the following:
Nationwide (Texas) Mexico Border Endorsment
Allstate (Texas) Mexico Border Endorsment
We hope this helps with any questions or concerns you have about your U.S. Auto insurance and the implications that could arise if you depend solely upon that as your proof of insurance in Mexico.
For all of your Mexico Tourist Auto, Homeowners, Motorcycles, Boats and International Health Insurance needs, please call us at 1-800-434-3966 OR Email us at firstname.lastname@example.org or visit us at mxici.com to issue your own policy. We appreciate your business!