The Cost of Mexican Car Insurance

Whether you’re on a business trip or family vacation, you need Mexican car insurance when driving south of the border. If you don’t already have this car coverage, you might be wondering how to add it to your plan and how much it will cost. That’s why we’re here. Below, we’ll break down everything you need to know about Mexican car insurance rates, policies, and requirements.

Here’s a breakdown of all the factors insurers use to determine Mexican car insurance premiums.

By Car Insurance Coverages

As you might expect, the more coverage you add to your Mexican car insurance policy, the more expensive your policy will be. To drive legally in Mexico, you need at least third-party liability coverage (property damage and bodily injury liability) with the following limits:

• $50,000 MXN pesos (about $3,000 USD) for property damage
• $100,000 MXN pesos (about $6,000 USD) for bodily injuries¹

The USD prices are based on a $17 MXN exchange rate. Because the exchange rate between pesos and dollars is always fluctuating, speak to your agent about the minimum liability amount for your time in Mexico.

If you decide to get full coverage, which is about double the cost of liability for a two-week stay, you’ll get higher liability limits as well as some combination of the following additional coverage (depending on the provider and how much coverage you want):

• Collision coverage
• Physical damage coverage (the equivalent of comprehensive coverage)
• Travel assistance
• Roadside assistance
• Theft coverage
• Medical payments coverage
• Legal assistance
• Gap insurance

By Provider

Like car insurance costs in the U.S., Mexican car insurance rates differ depending on your insurer. Most of the large providers advertise rates ranging from $1 to $70 per day.

The good news is that you aren’t beholden to any one provider, regardless of who insures your policy in the U.S. We recommend speaking to multiple companies to find the best rates and coverages for your needs.

By Vehicle Type

Vehicle type is one of the most important factors for Mexico car insurance rates. Here’s a detailed look at rates for low-cost and mid-priced vehicles.

Other than the cost of your vehicle, providers will also assess the risk of your vehicle. You can expect to pay more for your coverage if you’re driving a:

• Sports car
• Off-road vehicle
• Luxury vehicle
• Motorcycle
• Car with expensive parts to repair/replace

By Region

Insurance providers will also consider where you are traveling to in the country in order to determine your premium. In Mexico, you pay settlements for injuries, damages, or fatal crashes in lump sums rather than on a per-person/per accident basis (U.S. model). Since each Mexican state has its own criminal and civil liability penalty amounts, your premium may be higher or lower depending on the penalties and risks associated with the specific region you’re traveling to.

For example, your plan might be anywhere from $5 to $10 more per week if you plan on driving in Baja as well as Northern Mexico (as opposed to just Baja).

By Age

In Mexico, drivers between 18 and 21 tend to pay more for car insurance than drivers over the age of 21. However, providers in Mexico do not use age to determine rates between adults over the age of 21. So, if you’re comparing rates for a 22-, 36-, 52-, and 75-year-old, age will not be a reason as to why their rates differ.

By Term of Stay

Term of stay is the last major factor car insurance companies in Mexico use to set your rates. The shorter your stay, the higher your per-day rate will be. You should prepare to pay anywhere from $10 to $70 per day for shorter stays (a few days to two weeks) and as little as $1 per day for long-term stays (several months to a year).