While vehicle insurance is not required by law in Mexico, it is a very good idea to have. Without it, even the most minor auto accident can become a huge problem. And regardless of what your insurance company tells you, Mexican authorities will not recognize yours or any foreign insurance coverage. If you want to be covered while driving in Mexico…and you do…you have to carry Mexican Liability Insurance.

Mexican insurance is easy to get and can be purchased for as short a time as one day and for as long as a year. Every border town from the Pacific Ocean to the Gulf of Mexico has quick and easy insurance "drive-thru" facilities. If you plan to venture south of the border frequently, you can save a lot by purchasing an annual policy. Annual policies usually charge you for only the days that you are actually in Mexico. Also, consider where exactly you’ll be traveling. Most companies offer rates for "limited territory" trips. If you plan to stay in Baja for example, don’t pay for coverage in the whole country.