Mexican Insurance

Why, Where and What about Mexican Insurance

WHY Get Mexican Vehicle Insurance? “I’m just going on a day trip to Baja California to do some sightseeing or fishing,” you say. As harmless and benign as this sounds, unexpected life-changing events may transpire. Don’t take a chance. Once you’ve determined your Mexico destination, call the Vagabundo office to obtain the vehicle insurance coverage you’ll need. You’ll be pleasantly surprised how affordable our Mexican insurance is. Regardless of US/Canadian coverage for Mexico, you are still required to obtain Mexican liability insurance. Mexico does not recognize US/Canadian Liability.

Determine WHERE in Mexico You’ll Be Going. We have two area vehicle coverages – all of Mexico or only the northwestern portion at a lower premium level. Wherever you will be going in Mexico, pay close attention to your current automobile insurance at home. More than likely this will cover you only in the United States or Canada. In any event, the Mexican government does not recognize such policies as valid.

Determine WHAT You Want Your Mexico Insurance to Cover. Do you want to cover collisions? Accidental rollovers? Or broken glass? What type of vehicle do you want to insure – car, motorcycle or motorhome? Are you going to be towing anything, or using a boat? It’s a good idea to take stock of what you will be driving and taking with you to Mexico.

Vagabundos: Mexican Vehicle Insurance Pioneers

The non-profit Vagabundos del Mar Boat and Travel Club was “born” in 1966 when a few good buddies began adventuring into Baja California and mainland Mexico, looking for good fishing spots. In 1971, “the Vags” were incorporated as a non-profit social club, dedicated to helping members make friends and have fun. Today, the Vags are Baja’s oldest travel club, with 12,000+ members. The club is still non-profit, and still dedicated to its original mission:

“Helping our members travel safely, economically and enjoyably in all of North America, especially Baja California.”

As our membership increased and folks started spending more and more time in their Baja Peninsula and Mexican recreation land, especially during the winter season when the snow was flying, Club Management began to search for ways to allow members the flexibility of staying south of the border for longer periods of time without having to pay the enormous Mexican insurance premium daily rates at the border.  The idea of Club rates, for a special, safety-minded group surfaced.  As a group, our insurance loss ratios are low and this in turn allows the Mexican insurance company to grant lower rates.

We are pleased to be able to make purchasing Mexican vehicle insurance much easier for our members. By clicking on the Insurance Quote button you are on the way to printing out a policy in a few minutes and being on your way.

What you get is low-cost insurance that is backed by solid claims adjustment – without which insurance has no real value. Our policies also include the all-important Legal Aid, which engages a Mexican attorney if one is needed for a vehicle accident.

The purchasing power of thousands of members, the fact that we are the only non-profit Baja Peninsula and Mexican travel club and our minimal number of claims has allowed us to continue to negotiate the low-cost premiums that we offer our members.

For those of you who are not yet members, but wish to enjoy our money-saving premiums, click on the Club Membership button.

Club Management has learned over the years the value of having a Mexican company and Insurance Broker that pays claims timely and helps members out of a jam.  No one wants to be in an accident, and that is doubly true when in a foreign country.  We review our insurance program annually and add new features, such as a special rate for a territory most traveled and adjust premiums to give our members the best deal.  For more than 40 years we have been and are non-profit with service to the members, including the best Mexican insurance, foremost in mind.

Questions about your insurance policy you need to answer before going to Mexico

  1. Does your policy cover medical payments for the people in your vehicle?
  2. What is your third-party liability limit?
  3. Does your policy cover damage to your vehicle?
  4. If it does cover damage to your vehicle – what is the shop rate for repairs?
  5. What is your deductible?
  6. Are you covered in the event you need a tow?
  7. Are your towed items covered?
  8. Is there a separate deductible for your towed unit?
  9. If you have a towed unit and do not list it on the policy will that void your coverage?
  10. Is your towed unit covered once it is detached from the power unit?
  11. Are you covered if an uninsured motorist hits you?
  12. Are your personal items covered if damaged or stolen from the vehicle? (Camera, laptop etc.)

If you have a standard full coverage policy your shop rate is $35 per hour
If you have a premier full coverage policy your shop rate is $75 per hour

Safe Driving in Mexico

Members learn from other members and by reminders from Club Management the keys to staying safe on Mexican roads –

  • Driving at safe speeds, mostly under 50 miles per hour; keeping a sharp eye for any hazards
  • Not driving at night when trucks and buses drive and the black cows in open range are likely to be on the highway
  • On the narrow, two-lane road with no shoulders, slow down to where you are comfortable when oncoming traffic comes toward you
  • Try to gauge the time and distance to pass on a straight-away rather than a hill or curve with oncoming traffic
  • Pass very carefully when passing vehicles going in the same direction.

Making sure your vehicle is in tip-top condition is another important rule.  Members are good about sharing hazards and road conditions when traveling and these are in turn passed on to the entire membership.


It is important to understand the Terms and Conditions of the Mexican policy and the limitations on labor rates, towing etc. Vagabundos can answer any questions you have about the policies we offer, travel information and driving safety; we cannot adjust or negotiate claims.

Some U.S. and Canadian policies may cover your vehicle for physical damage. However, the Mexican government doesn’t recognize U.S. or Canadian liability insurance as valid insurance in Mexico.

Your local car dealer or insurance agent should be able to help you determine your vehicle’s value. The Kelly Blue Book of used car’s values may also be used as a guide. Be sure to include those listed extras you want insured should you have a loss. Remember, our cars and trailers are always worth more to us than they might be to someone else. We advise you to neither over-insure nor under-insure. You will need receipts for any extras installed aftermarket.

Most lenders will require that they be furnished a copy of your policy indicating that the unit is insured while it is in Mexico. Upon request, we will enter the lien holder’s name (your bank or financial institution) on the policy. Always make sure you allow enough time before your trip into Mexico to allow for the handling of paperwork.

You should obtain a notarized affidavit of permission from the legal owner. Unless you are getting a Driver’s License policy, the policy will need to be in the legal owner’s name and they must be a member to purchase insurance.

The Liability Only policy provides the minimum vehicle insurance accepted by the Mexican government. Included in this coverage is property damage caused by your vehicle, legal liability for injuries or deaths of persons not in your vehicle and medical expenses for you or other persons in your vehicle.

Only if you will drive in mainland Mexico. The Temporary Vehicle Importation Permits are not required for travel on the Baja California Peninsula.

Our Insurance Covers Legal Aid at No Extra Cost. In Mexico a traffic accident is considered a felony if there is substantial damage to property or injury to people. In such cases it is possible that you may be detained by authorities and your vehicle may be impounded until they conclude their investigation as to responsibility for damages and how they are to be paid. Legal Aid helps prevent this. With one phone call an attorney will come to your assistance and negotiate your immediate release, as well as the release of your vehicle. Additionally, if someone other than the passengers of your vehicle gets injured or killed you’ll have coverage for legal assistance.