Does Your California Car Insurance Travel South of the Border?
It's summer, the time to stretch your legs, relax your inhibitions. Hundreds of fun loving Californians hop the border to celebrate el sol in true Mexicano style, kicking back with a Michelada cocktail on the beach and dancing the night away. And of course, they're taking their cars across the border. No one wants to think about boring things like car insurance when they're enjoying a Mexican vacation, but you have to ask-are you covered by your California car insurance when you go across the border?
The Mexican beaches and resort draw thousands of tourists every year.
|
|
"Generally, Mexico does not recognize liability insurance issued in California. If you are involved in an accident in Mexico, you are subject to Mexican legal requirements. Therefore, it is strongly recommended that Mexican insurance be purchased prior to entering that country." California Department of Insurance |
|
"Mexican law requires that you purchase separate liability coverage from a Mexican insurer before operating your vehicle in Mexico….Your Arizona personal auto policy may provide some limited coverage on a limited basis (within 25-50 miles of the Mexican border), but this coverage does not meet the insurance requirements of the Republic of Mexico. Failure to purchase proper Mexican liability insurance may result in many hours in a Mexican jail or a heavy fine if you are involved in an accident while operating your vehicle in Mexico." Arizona Department of Insurance |
Many companies offering car insurance policies to Americans vacationing south of the border understand that while you would probably love to consider a permanent relocation to Mexico you're probably not going to be there long enough to lock into an annual contract. When looking for some information on how to buy Mexican insurance we consulted with Bajabound.com, a company that specializes in offering Californians car insurance when they're headed to Baja (or anywhere in the country).
Companies like Bajabound offer daily, six month or annual insurance terms. Whether you'll be paying in pesos or dollars for your repairs depends on the company, but you're going to find a number of coverage options that may take you by surprise. You're definitely going to need liability coverage, but because you're an American crossing over onto Mexican soil you may find yourself the victim of so-called Napoleonic law, in which you're considered guilty until proven innocent instead of the other way around. Even if you didn't have legal assistance as part of your California car insurance coverage you're going to want it when you travel down into Mexico.
Mexican car insurance liability requirements are a minimum of $20,000 (U.S. dollars, that is) per incident; however, you're probably going to want a little more coverage than that. Much like minimum responsibility requirements in the U.S., minimum liability is rarely enough if you're in a serious accident. Most U.S. and Canadian citizens choose to purchase a minimum of $50,000 or more to make sure their vacation isn't ruined by finding out they're underinsured.
Mexico is a great place to spend your vacation, and if you're thinking about hopping south of the border we recommend you go for it. Acapulco and Cancun are beautiful any time of year, although Mexican tourists complain about the insects making pests of themselves from June to September. Just don't forget that your California car insurance doesn't extend to the beaches of Baja. Make sure you pick up a Mexican insurance policy before you start cruising those heavenly highways.