NEW LAW: Mandatory Auto Liability Insurance in Mexico
A new law effective September 23, 2014, requires Mexico Liability Auto Insurance for all vehicles driving on Federal roads and bridges. In the past, proof of financial responsibility was required only in the event of an accident. Now, the law requires proof of Mexican Liability Insurance at all times when driving on federal roads and bridges. You can be asked for proof of insurance at checkpoints, border crossings, or traffic stops.
Federal Police will enforce this law and drivers caught without coverage will face fines starting at $200 US dollars. If a driver is involved in an accident without coverage, they will face fines starting at $1,000 US dollars.
Several states have implemented similar measures requiring insurance for all vehicles. Some of those states include Baja California, Morelos, DF, Tamaulipas, Nuevo Leon, Jalisco, San Luis Potosi, Zacatecas, Chihuahua, Puebla, Queretaro, Aguascalientes and Yucatan.
U.S. or Canadian auto insurance policies are not recognized in Mexico, even if it includes the Mexico Insurance Endorsement. All Sanborn's policies comply with the requirements of this law.
Indemnification in case of at-fault death of third party.
It is also important to remember that there were changes the Federal Law issued in December 2012. In case of an at-fault accident resulting in the death of a third party on Federal roadways, you will be required to pay indemnification of up to $300,000 US dollars per person.
To be protected from this potential liability, we recommend that you carry at least $300,000 CSL liability limits for Mexican Auto Insurance.