US & Canadian Auto Insurance While Driving in Mexico

As we explain in a related article, your US or Canadian insurance policy, however comprehensive, cannot cover you for third party liability in Mexico, so you need to purchase a Mexican auto insurance policy to be properly covered when you’re driving the vehicle here.

Can I cancel my US or Canadian auto insurance while I’m in Mexico?

Some people who drive their foreign-plated cars to Mexico and intend to stay for extended periods —or  live here for part of the year— ask us if they are able to cancel their US or Canadian insurance policy while their Mexican auto insurance policy is in force.

The answer is that you need to keep enough insurance coverage in place to maintain the vehicle’s legal registration in your home country.

For example, most US states require that you keep a policy in force that provides at least third-party liability coverage for the vehicle.  If you completely cancel your US insurance policy, most US states’ motor vehicle departments will automatically cancel the car registration, making the vehicle unregistered, and therefore illegal to drive in any country.

When you purchase Mexico auto insurance through our partner MexPro, the insurance remains valid for so long as the vehicle remains legal to drive—and this is true for other insurers, too.

Adjusting insurance coverage as you travel and back forth between Mexico, the US and Canada

Most people who intend to stay in Mexico longer term adjust their auto insurance coverage plan to maintain the minimum legal coverage requirements while the vehicle is situated in Mexico. (Precise requirements vary – check with the state your vehicle is registered with.) Then, whenever they drive back to the US or Canada, they call their agent and add the collision and comprehensive coverages back onto their home policy. So by working with your US or Canadian car insurance agent, you can reduce/increase the coverage limits as needed and end up paying less, while still maintaining insurance and keeping the vehicle registered/legal.

For full details about how to be properly covered on your next road trip in Mexico, connect to our Mexico Auto Insurance Guide, from which you can also link to live quotes and arrange your cover online through our partners, MexPro.

Learn more about driving in Mexico

Mexperience offers articles with insights to help you prepare for your road trip and drive confidently in Mexico.

• Insuring your vehicle for driving in Mexico
• Importing a foreign car or other vehicle to Mexico
• Getting a Temporary Import Permit (TIP) for your vehicle
• Your Mexico road trip checklist
• Latest articles about driving in Mexico
• Guide to auto insurance in Mexico