U.S. Auto Insurance Ends at Mexican Border

U.S. Auto Insurance Companies do not extend coverage into Mexico. The only exception is physical damage (comprehensive and collision) coverage within 15-50 miles of the border, depending on the specific carrier. Your U.S. State issued liability auto insurance coverage stops at the Mexican border because of one reason. Mexico operates under Constitutional Law as opposed to Precedent Law in the United States.

Mexico's Constitutional Law states individuals are presumed guilty until proven innocent. Mexican Law Enforcement Officers have the right to detain anyone they feel are in violation of the law. They have the right to pull you over, search your vehicle, question you, impound your vehicle, detain/arrest you, send you to jail, and hold you until arraigned without sufficient probable cause. They can do this because you are presumed guilty until you prove you're innocent.

How does that apply to auto insurance? If a law enforcement officer feels you have broken a law while operating a vehicle, you are presumed guilty. Once a claim is filed with yours or the other party's insurance carrier, it is the responsibility of the insurance carrier to determine whether to overturn your guilt or leave you on your own for legal representation. Example, you and another vehicle have a fender bender with no clear evidence as to who was at fault. At that point, the law enforcement officer has the right to arrest both parties until arraigned in front of a judge. The judge can then rule as to who is at fault. U.S. Auto Insurance carriers are not prepared to offer liability coverage for this occurrence.

U.S. Insurance Carriers offer liability insurance with the assumption one of the parties involved in the accident are at fault, not determined by a court. U.S. Insurance carriers offer legal representation to their policy holders if a claim or suit is brought against them as a covered loss, stated in the insurance policy. If the legalities of the loss are dictated by a court, insurance carriers are not willing to offer legal representation because if they are defending the guilt party, they are spending more money than allocated in the collected premium. Mexican Insurance carriers are prepared to offer liability insurance because their policies are designed in conjunction with Mexican Constitutional Law.

Word of advise, when traveling south of the border with a vehicle, get Online Mexican Travel Insurance from one of several well established carriers. Most of the Online Mexican Travel Insurance brokers offer the same carriers such as GNP (oldest), ACE, and GE and everything you need to quote, bind and issue coverage is readily available on the website.