See my post above; this query has been merged into the active thread.
AAA Mexico Insurance: I doubt you will be able to purchase Mexico auto insurance from most agents in the USA, though AAA offers insurance through Grupo Nacional Provincial / La Provincial, which used to be my company of choice in Mexico for my own auto insurance (see following). A list of Mexican insurance companies with websites is at the end of this page; though I doubt anyone reading will be using them, it's a good list and it may be your rental company offers insurance provided by one of these Mexican government licensed companies (licensed by the Comisión Nacional de Seguros).
Originally Posted by AAA
Did you know U.S. auto insurance is not valid in Mexico? In the event of an auto accident, only a Mexican automobile liability policy is accepted by local authorities.
Our Trusted Partner
AAA provides Mexico Tourist Automobile Insurance through Grupo Nacional Provincial S.A.B., one of the largest and most reputable insurers in Mexico, and offers:
• Customizable policies for your specific needs
• Flexible options including emergency medical coverage
• Convenient service: 24/7 claims filing, bilingual adjusters, repairs in the U.S.
• Financial strength and stability rated “A” (Excellent) by A.M. Best, a leading global credit rating agency
Coverage for Anyone and Any Vehicle
Both AAA Members and non-members may purchase a policy. Coverage is available for cars, pick-ups, SUVs, RVs, motorcycles, and trailers or boats in tow, and can be purchased for periods from 1 to 365 days. Get covered now.
Sanborn's Insurance: I haven't used them in a while, but Sanborn's Auto Insurance (not related to the Sanborn's shop and restaurant chain in Mexico) also sells Mexico driving insurance. You can get an online quote. See more about Sanborn's and what kind of insurance coverage they offer here, call Toll Free: 888-215-6324 or e-mail info <at> sanbornsinsurance.com.
You will normally have no problem driving with a current driver's license / licence from your home state or location, though it may be some other nationalities may do best with an International Driver's License (I have used one at times because in Mexico a traffic stop may result in the officer taking your license to the municipal offices for later retrieval - if they keep my IDL, I can depart without waiting a day or two or three and dealing with what may be a wrongful stop.
You need at least two kinds of insurance: Collision Damage Waiver (CDW or LDW) and resultant Loss of Use (seguro contra choques or colisión), which covers you for damage caused to the vehicle and loss of use fees while the car is being repaired. The rental insurance company is happy to sell you this, because they make a large profit margin on it.
You need Third Party Liability (Seguro de Responsabilidad Civil Obligatoria - means OBLIGATORY and it is! - or sometimes seguro de Responsabilidad civil para daños a terceros.) This covers you for accidents where you cause injury or damages to others, and in Mexico it is mandatory to have this insurance. The insurance company is also your bailor, and without this you can go to jail and be held (no US rights for US citizens in Mexican jails, even calling the Consulate or Embassy, or right to an attorney, much less a free one,) and be held there until fault is assigned - and if you are accused by some locals, or a local with "palanca" (leverage) you are basically a tortilla on their comal (hot plate).
You might be offered gastos medicos a ocupantes insurance - medical insurance for the vehicle's occupants - and auxilio vial (road assistance) as well.
Your credit card, for those that have credit card coverage, provides the first kind of insurance, normally not the second (liability). Failure to purchase insurance puts you at risk and is likely to result in exorbitant holds on your credit card limit. As well, you may have to pay all the bills and then submit them to your credit card when you get home.
I'd choose a reputable car rental company and go with their insurance - as it is insurance sold through their company they have a relationship with the company. That can be useful. Cover the price of the car plus the deductible you can afford, and check what is covered. In Mexico it may be difficult to cover auto glass breakage, partial theft (meaning the side mirrors, etc.) and inquire about whether the LDW / CDW includes protection for loss of use fees.
For liability, be aware if you have trouble you will be seen as a "rich gringo staying in an expensive timeshare", so be sure to have sufficient coverage to pay for the world's smartest talking donkey.
That being said, read "Mexico" Mike Nelson's article here. Mike knows Mexico, used to work with Sanborn's Insurance (which sold Mexican insurance at many US border and nearby locations). The companies he is recommending sell mostly to Americans driving their own vehicles into Mexico.
Cheap insurance will generally have a $25,000 or $50,000 liability limit. That was good enough in the 1980's, but not in the 21st century. If you hit a vehicle worth $30,000, $40,000 or $50,000, that does not leave much room for coverage, does it? Make sure you are comparing apples to apples when you compare Mexican insurance policies. You want either at least $100,000 CSL or $150,000 CSL to be safe. Do not wimp out on your insurance premium. Save money somewhere else.
He means US dollars - a Mexican liability limit of $50,000 MXP / M/N is basically a mere $3,780.
Insurance is generally NOT valid and provides NO protection if the driver is under the influence of alcohol or drugs, whether prescribed or not; the level of tolerance is very low. Coverage may also be declared invalid if the car is driven off road or on only dirt roads. Check your T&Cs from the rental agency.
Oh, and when you rent that car, check for both side mirrors, hub caps, spare tire, all tools, good tires, etc.
andphotograph it from all angles with your cell phone(or camera with time and date set), as well as having every dent and scrape documented and countersigned on the checksheet. Gasoline stations (Mexican government operated Pemex) will often not take credit cards - have pesos available. A small tip to the guy who fills your tank and may clean your windshield is normal, and - make sure the meter is "zeroed" before anyone begins filling your tank. As stations may nor be resupplied in time on occasion I'd recommend never letting your gas gauge go below 1/2.
That also means be smart - do not drive at night! Drive slower than in the USA, especially on two lane roads where a breakdown may be indicated by branches, or by a row of rocks - which may not be removed after the repaired car drives away, and where there are "sleeping policemen" or speed bumps, sometimes amazingly crude, high and bumpy, often but not always marked with a sign that says "topes" or with what look like black corrugations on a yellow sign. Yes, these do exist on the highway between Cancún and Cd. Chetumal / Belize; the sign may be ahead of the "topes" or right at them, and they may be painted or they may blend in with the highway surface.
The best sign says and shows "topes"
You may experience checkpoints manned by the military - stop, be cooperative and be prepared to show documents or answer questions, they are not looking for you, they are mostly drugs checkpoints. Of course if you are carrying any drugs, even a marijuana cigarette, or a firearm, expect trouble. Do not try to blow off a checkpoint - I have seen these folks shoot: fortunately the "shootee" was driving a VW bus with a rear engine, but it needed a new engine for further travel, once the driver convinced the military he was merely an idiot and not a drugs or weapons smuggler.
When approaching a narrow bridge or other obstruction, a driver will flash their lights - that is a claim to right of way, and if it's a large bus, beat up car or truck it is wise to give way. 
But to confuse you, sometimes drivers will flash lights to let you know there is a highway patrol ahead.
One member points out above village groups asking for money - these are most usually groups of local citizens collecting spare change for the Cruz Roja (Red Cross) or bomberos (firefighters) and the like, and generally pose no risk. If you look you are likely to see cans (often marked with a red cross) or the like. It's much like the firefighters near where I live in northern California stopping cars with boots to collect donations. Stop, smile, and give 'em a dollar or two and they will be thrilled. Hurt someone slow to get out of the way or to release a rope, and you may find yourself subject to arrest and detention. Really. At worst for assault with a deadly weapon. Can you say "carcel"? Pronounced "CAR-sell, it means jail.
If you have an accident be sure to take down the time, details of the incident, the data of the other driver(s) if any (exchange information including insurance company information) and contact your insurance company . auto rental company as soon as practical.
Vocabulary:
seguro = insurance (say-GOO-roe)
choque = crash or collison (CHOW-kay)
auxilio = help or assistance (owks-EEL-ee-owe)
llame un médico = call a doctor (YAH-may oon MEH-dee-koe)
su licencia, por favor = your license, please (sue lee-SENN-see yah pour fah-vore)
Don't get upset - remain calm, as you do not want standers by or others to escalate what may already be dramatic in their lives and scapegoat you.
(I began driving in Mexico and have driven extensively - in nearly every state - on- and off the road in Mexico and throughout Central America for over 50 years.)
Martinis at 8 offers a motorcycle insurance specialist below: http://www.mexadventure.com
List of most Mexican insurance providers:
Code:
Las aseguradorasAgroasemexwww.agroasemex.gob.mxAba Seguroswww.abaseguros.comAdventure Mexican Insurance Services (motorcycles, automobiles)www.mexadventure.comAIG Seguroswww.aigmex.com Ana Seguroswww.anaseguros.com.mxAllianz, México, S. A. Compañía de Seguroswww.allianz.com Aseguradora Interaccioneswww.interacciones.comEl Aguila, Compañía de Seguroswww.elaguila.com.mxGerling de México Seguros, S.A.www.gerling.com.mxwww.generaldeseguros.com.mx Grupo Nacional Provincialwww.gnp.com.mxHSBC Seguroswww.hsbc.com.mxQualitas Compañía de Seguroswww.qualitas.com.mxLatinoamericana Compañía de Seguroswww.latinoseguros.com.mxLa peninsular Compañía General de Seguros S. A.www.lapeninsular.com.mxPlan Segurowww.planseguro.com.mxMetropolitana Compañía de Seguroswww.metropolitana.com.mxSanborn's Mexico Auto Insurancewww.sanbornsinsurance.comSeguros Argoswww.segurosargos.comSeguros Aztecawww.grupoelektra.com.mxSkandia Méxicowww.skandia.com.mxSeguros Bancomerwww.bbvabancomer.comSeguros Banorte Generali Grupo Financiero Banortewww.banorte-generali.com.mx Seguros Comercial Americawww.ing-comercialamerica.com Seguros El Potosí, S.A.www.elpotosi.com.mxSeguros Hirwww.hirseguros.comSeguros Inbursawww.inbursa.com.mx Seguros Metlifewww.metlife.com.mxSeguros Monterrey NYLwww.monterrey-newyorklife.com.mxRoyal & Sunalliance, S. A.www.royalsun.com.mxMapfre Tepeyacwww.mapfretepeyac.com.mxPrincipal México, Compañía de Seguros, S.A. de C.V.www.principal.com.mxZurichwww.zurich.com.mx
