What Happens if Your Car Insurance Lapses in Mexico?

Trips don’t always go as planned. Sometimes things change and you end up staying away from home longer than expected. Say you intended to visit Mexico for a week and you need to stay for another three days. The coverage you purchased for your vehicle in Mexico expires at the end of the first week, leaving you without insurance. Sometimes is not days, you planned to be in Mexico for two days, and can’t make it to cross the border before the time you policy expires. What then?

First, it’s crucial to be aware of Mexico law. You cannot drive through Mexico without Mexico car insurance. American car insurance is not valid in Mexico. Some insurance agencies have Mexico endorsements, but this coverage is limited and may not cover you for a trip that lasts longer than originally expected. If you’re caught driving in Mexico without proper coverage, you can face hefty fines and even possible jail-time. Repercussions are worse if you, as an uninsured driver, causes an accident that results in bodily injury or property damage to someone else.

Due to changes in Mexican law in 2013 it is recommended to carry $300,000 in car liability coverage in Mexico car insurance.

What to Do If Your Domestic Car Insurance Lapses

If your domestic (American or Canadian) auto insurance lapses while you are in Mexico, it should not affect your Mexico auto insurance policy. You have to make sure that you have the required coverage by law when you intend to cross the border back to the United States, contact your agent to purchase the coverage you need.

Staying Longer than planned in Mexico? You Need a New Policy

If your trip is unexpectedly extended you will need a new policy. Mexico insurance does not automatically renew or allows you to “add” days to a policy that is in-effect.  You will need to contact your Sanborn’s Agent before your policy expires and ask him to issue a new policy for the days you need to continue your road trip in Mexico before you cross back to the US. You can also buy the coverage online, by accessing your account with your email address and password.

Mexico auto insurance provides the coverage you need as tourist auto in Mexico, and may be different to the one you carry in American and Canadian auto insurance. While liability coverage protects other drivers and passengers on the road, there is additional coverage to protect your vehicle especially if it financed. The longer your vehicle remains in Mexico, the more danger it is in for damage that your American auto insurance won’t cover. This includes:

• Comprehensive Coverage: This coverage provides compensation for damage to the vehicle due to fire, wind, hail, falling object, theft, vandalism and other dangers not involving collision.
• Collision Coverage: Collision coverage provides compensation for damage to the vehicle as a result of collision with another vehicle or object.
• Medical Payments Coverage: Medical payments coverage helps with the medical bills of the driver and their passengers after an accident.
• Roadside Assistance: Roadside assistance coverage can help if the driver breaks down on the side of the road.

If you are pulled over in Mexico without auto insurance, be sure to cooperate with legal officials. Be sure to carry the correct documents (including a valid driver’s license) to present when requested.