Do I really need Mexican Insurance?

Insurance from a Mexican company is required by Mexican law in the event of an accident, even if you are not at fault.

A Mexican Insurance policy greatly reduces the chances that you will face jail time, and limits the financial burden you might come by after an accident.

A Mexican Insurance policy provides coverage for damage to your vehicle or its total loss.

Under Mexican law, motorists are required to have insurance, or "proof of financial responsibility", in the event of an accident, even if you did not cause it. As a foreigner traveling in Mexico, the only way of demonstrating this financial responsibility is to have sufficient real currency to cover damages, or an insurance policy from a Mexican company. U.S. or any other non-Mexican insurance does not cover your liability for potential accidents, nor does it fulfill the basic requirement for insurance according to Mexican law.

Will my U.S. or Canadian insurance cover me in Mexico?

Policies from U.S. and all other non-Mexican insurance companies are not considered "proof of financial responsibility" under Mexican law. While a few major U.S. insurance companies cover damages to your own vehicle in Mexico up to a small distance south of the border (usually no more than 25 miles), they do not cover damages to other parties. This is why any U.S. policy must be accompanied by at least a liability-only policy from a Mexican insurance company.

What does "liability" mean and what does it cover?

Liability is an obligation to pay money to parties other than yourself or occupants of your vehicle. The liability component of the insurance covers damages which you might cause to other vehicles or property in an accident. It also covers costs for bodily injuries which you might cause to other parties.

Contact your PHD Protection Team and see how a properly structured insurance program can work for you and your family!