Is Liability Only The Best Coverage for My Mexican Insurance Policy?


Many travelers feel that a Liability-Only Mexican insurance policy with is all they need.   A tight budget might convince you to skimp on the level of coverage you purchase. Although this does satisfy the requirement to have Mexico insurance coverage for driving, it will NOT cover your own vehicle. Be sure to consider the potential problems that could occur before making the decision to limit your protection.

What Liability Only (LO) Protection Covers

In short, LO only covers the ‘Other Guy.’  Any damage or additional benefits such as towing, theft, vandalism, etc. is not included.

The question one should ask before purchasing Liability Only is, “Am I OK walking away from this vehicle if it is involved in a collision?” If the answer is, “Yes!” then, go ahead with Liability Only.  One caveat though, if you have a TVIP (Temporary Vehicle Import Permit), you have an additional requirement.  A TVIP is required for most of Mainland Mexico.  In the event of a total loss, you will still need to transport the vehicle, at your cost, to a border Banjercito location where you can have your permit properly canceled.  A list of Banjercito locations that you can obtain or return a TVIP can be downloaded from the official government site, here.

If your vehicle is over 20 years old, you may be limited to a LO policy.

Why You Should Buy Mexican Auto Insurance.

You need to buy a policy issued by a Mexican insurance company. You can get valid coverage from

There are some insurers in the US and Canada that issue limited protection. They may cover up to 25 miles in, from the border. Your domestic insurance will not extend liability to other parties.  If an accident occurs and it is established that you are at fault, it would be very messy.

The law in Mexico makes it compulsory for all vehicles to get insured when driving in Mexico.  The minimum protection is liability-only.  Unless your car, motorcycle, or RV is over 20 years old, get full coverage.  The best advice is to match your US or Canadian insurance when buying Mexican Insurance.  This way, your risk remains the same.

A liability-only contract will only cover the damage you cause to other people or property.

Why Comprehensive Full Coverage May Be Better

Any accident can affect even the most careful driver. If you have an accident that is your fault, a comprehensive full coverage policy allows you to have your car fixed under your coverage terms. If the vehicle is a total loss, you will have money to replace that vehicle. You will also have legal help in getting the TVIP canceled out.  With liability-only protection, you would shoulder the full cost of your own vehicle’s replacement.


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9 Comments. Leave new

  • Genevieve Dubuisson
    February 21, 2017 3:53 pm

    It’s easy to hold back costs if you are not sure about the benefits of comprehensive coverage. But Mexico car insurance full coverage ensures vital protection when it comes to personal losses while travelling in Mexico.

  • Maxie Bunnell
    March 12, 2017 6:42 pm

    You overlooked to insure your car? Don’t worry, the border has available policies that you can buy, but the price isn’t as good as when you buy Mexico insurance online.

  • Mexico insurance is a general type of insurance where protection is certain against unexpected circumstances.

  • Clementine Headrick
    December 26, 2017 5:34 pm

    Anything can happen without warning and insurance is there to help. Your biggest weapon when travelling is Mexican insurance.

  • Even if you have the expensive high quality care in Mexico, the medical costs are remarkably low in price.

  • Sigrid Turley
    July 13, 2018 6:25 pm

    Avoid getting into trouble. Travel with Mexico insurance. It provides support when heading to your destination.

  • What a relief if you have Mexican car insurance! With the help of your Mexico insurance company, troubles can be handled immediately.

  • Georgiann Carlos
    October 2, 2019 6:14 pm

    Before traveling, be sure to have Mexican insurance for driving in Baja. You should know it’s adequate before entering and before leaving the city of Mexico.

  • Drusilla Jetton
    September 1, 2020 6:26 pm

    I have my US car insurance with me and that’s pretty good, but I’m still compelled to shop online to get the right Mexican car insurance.

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