If you’re planning to drive your car into Mexico, be it rented or owned, you must make sure that your vehicle is properly insured.
Mexican federal law requires every vehicle on a federal highway, road or bridge to carry third-party liability insurance (Ley de Caminos, Puentes y Autotransporte Federal, art. 63 Bis). And Baja Bound's FAQ says US and Canadian insurance is not considered proof of financial responsibility under Mexican law.
As such, you need to get a Mexican auto insurance policy. But many people don’t have a clear idea about the auto insurance policies work in the country. To help you out, here are some basic things to know about the insurance policies in Mexico.
Avoid buying insurance policies at the border. Opt for online services instead.
It is a common trend among American or Canadian tourists to purchase auto insurance policies at the border while entering Mexico.
A better option is to buy online before you go. It gives you time to read the insurance amount and the types of coverage the policy provides. Most companies will explain all the information thoroughly in their websites. Be sure to check who the insurer behind the policy is.
Know about the basic coverage
There are two primary coverage types provided by auto insurance companies – liability coverage and total coverage. In the event that your vehicle meets with an accident and subsequently injures another person, vehicle, or property, then the amount you need to pay to the injured party is the liability.
As the name suggests, the liability coverage only pays for damages caused by your vehicle to another person or object. It does not pay for the damage sustained by your vehicle, or the theft of the vehicle.
On the other hand, total (full) coverage also covers theft of, and damage to, your own vehicle, subject to the deductibles and limits in the policy. Baja Bound's quote form offered a choice of two deductibles and says its policies pay actual cash value (quote run, 4 October 2026). Read the terms: Baja Bound's FAQ says only its HDI Premier and Chubb Platinum policies include partial theft and vandalism. Depending on your budget and vehicle, you can choose whichever option suits you best.
What this means is that, if your car is old, not too expensive, or the repair costs for it are not too expensive, then it may be possible to pay for those costs from your own pocket. Whether to pay for total coverage depends on what you could afford to repair or replace yourself.
Read the company’s policies thoroughly and ask questions
As mentioned before, if you visit the website of Mexican auto insurance companies, you will find the details about their policies. Read all points in detail and mainly focus on what damages the policies will cover, and what they will not. You can even contact them and ask them any doubts you have.
There are two reasons why this is important. Firstly, each company has their own clauses and terms. Secondly, once you know what damages are covered by your insurance policy, you will be able to avoid any complications in the future.
Baja Bound's auto policies include legal assistance and a bail bond. So you must be sure that in case of any mishap, your policy covers the liability and the legal help you may need.
Sorted everything but the cover? Start a Mexican insurance quote.