Be aware! Your north of the border insurance STOPS at the border. You will need to obtain Mexican car insurance to cover your vehicle while driving in Mexico.
Mandatory automobile liability insurance became law in Jalisco October 4, 1999. Vehicle insurance in Mexico is similar to north of the border. Full coverage includes collision, fire, total theft, glass (subject to deductible) and liability insurance. One major difference is the amount of liability insurance; you will find the coverage needed to be lower than back home as the court rewards are much lower. Many policies also include accident protection, road service (i.e. towing) reimbursement. Focus recommends that you get full comprehensive coverage when traveling to and driving in Mexico. No matter what the coverage you choose, be sure the policy includes legal and adjuster coverage. This is absolutely invaluable if you are involved in an accident. Small fender benders normally are settled with an offer to pay cash – could be $50 to $200 US., depending on the damage and your negotiating skills. If you have an accident involving injury, you will need legal representation. In these cases, it is normal that the vehicle(s) be impounded until fault is determined. Your Lawyer will look after your legal rights and arrange a bond.
Some companies only offer re-imbursement, which is useless if you don’t happen to have the cash on hand and cannot get it immediately locally. (Credit cards don’t often work; remember Mexico is a cash society.) Note! If your car has a financial lien against it, it will be necessary to get written permission from the lender in order to bring it into Mexico.
Tourist Auto (US & Canadian license plates) and Resident Auto Policies (Mexican License Plates) at the Best Price and Coverage for Americans and Canadians in Mexico.
Novamar Insurance Mexico, (MIM) continues to work on behalf of the expat community here in Mexico.
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Have a good trip - drive safely