Full Coverage Mexico Auto Insurance

You think you know what “full coverage” means. You’ve paid for it. You’ve trusted it. But in Mexico, it’s a different game.

In the United States or Canada, “full coverage” is a shortcut—a mental bundle that means you’re protected. But south of the border, the term changes meaning. And unless you understand it, you could be driving blind.

This is your no-nonsense guide to full coverage Mexico auto insurance—what it really includes, what it doesn’t, and why it matters when you’re driving in Mexico. Not fluff. Not jargon. Just the facts that matter when you’re behind the wheel.

What Is “Full Coverage” in Mexico?

First, let’s dispel a myth: there is no standardized or legal definition of “full coverage” in Mexico. What you’re really buying is a bundle of specific coverages that, together, provide more complete protection. At a minimum, this typically includes:

• Civil liability coverage (required by Mexican law)
• Property damage (similar to collision)
• Total theft coverage

Some policies may also include medical payments and roadside assistance—those are optional. Legal services and bail bond coverage, on the other hand, are included automatically when you buy civil liability coverage.

So when someone tells you they have full coverage in Mexico, you have to ask: what exactly does that include?

Civil Liability Coverage: The Legal Foundation

Driving in Mexico without civil liability insurance isn’t just risky—it’s illegal. Mexican authorities won’t recognize your U.S. or Canadian policy, and without proof of local liability insurance, you could face fines or worse.

Civil liability coverage pays for damages or injuries you cause to others. If you’re in an accident and at fault, this coverage helps with:

• Bodily injury to third parties
• Damage to third-party property
• Legal assistance and bail bond (included in most policies)

You can typically choose your limit—from $50,000 to $500,000 combined single limit (CSL). Higher is better, especially if you’re driving in areas with higher vehicle or medical costs.

Physical Damage Coverage: For Your Own Vehicle

This is the part of “full coverage” that protects your own vehicle against damage. In Mexico, it’s typically called Property Damage or Physical Damage, and it includes more than just collision:

• Collision with another car or object
• Rollovers
• Damage during transport (like falling off a ferry ramp)
• Riot, strike, or vandalism-related damage
• Natural events: hail, flood, hurricane, earthquake

Each carrier treats these risks slightly differently. For instance, GNP categorizes some weather-related losses under a different section with a higher deductible. But the principle is the same: if your vehicle is damaged by a covered peril, this coverage pays to repair or replace it, minus your deductible.

Total Theft Coverage: If Your Vehicle Is Stolen

Mexico does not automatically include theft coverage unless you select it.

Full coverage policies generally include total theft—but not partial theft. That means your car is covered if it’s stolen entirely, not if someone steals your stereo or spare tire. Some carriers, like Chubb (via the ABA Extended policy), offer add-ons for partial theft and vandalism.

Theft coverage includes:

• Theft of the entire vehicle
• Damage resulting from theft (if vehicle is recovered)

Deductibles apply. Most carriers have a separate deductible for theft, often $1,000 or 5% of vehicle value.

What “Full Coverage” Doesn’t Cover

Even with all three core protections, you’re not covered for everything. Common exclusions include:

• Driving off-road or on unpaved, non-conventional roads
• Invalid or expired driver’s license
• Driving under the influence of alcohol or drugs
• Racing or using the vehicle in competition
• Passenger injuries (unless medical payments is added)
• Personal belongings inside the vehicle
• Damage from fraud, extortion, or pre-existing conditions

Each policy has its own exclusions, but these are standard across most Mexico tourist auto policies.

Optional Add-Ons That Extend Full Coverage

If you want protection that feels truly complete, consider these add-ons:

• Medical Payments: Covers injury-related medical costs for you and your passengers
• Deductible Waiver: Removes your collision deductible if a third party is at fault and uninsured
• Roadside Assistance: Often included (e.g., MexVisit®), covers towing, lodging, and travel help
• Legal Assistance: Automatically included with civil liability coverage. Provides access to legal representation and bail if you’re involved in an accident
• GAP-Like Coverage: Adds 15% to the vehicle value in a total loss, available on some extended policies

These endorsements enhance what most people think of as “full coverage” and are especially useful for longer trips or newer vehicles.

A Real-World Example

Here’s what a full coverage policy might look like:

• Liability: $300,000 CSL
• Physical Damage: Included
• Total Theft: Included
• Deductibles: $500 (collision), $1,000 (theft)
• Add-ons: Medical payments, roadside assistance, legal aid

Should You Buy Full Coverage for Your Trip?

The $20 Question That Could Save You $20,000

It depends on your risk tolerance and the value of your vehicle.

Choose full coverage if you:

• Have a newer, leased, or financed car
• Are taking a long road trip through unfamiliar areas
• Want peace of mind against common risks like theft or accidents

If you’re driving an older vehicle with little value, or only crossing briefly into Mexico, a liability-only policy may suffice. Just be sure you understand what you’re giving up.

Want more perspective? [Should I Buy Full Coverage for My Mexico Road Trip?]