Liability Only Mexico Auto Insurance

It’s cheap. It’s legal. But is it enough?

Liability-only Mexico auto insurance is often the first option travelers choose—and sometimes, the only one they consider. It’s marketed as the budget-friendly way to drive in Mexico. And yes, it meets the law. But it’s also the thinnest layer of protection you can buy.

So before you hit the road thinking you’ve got it covered, let’s look at what liability-only insurance actually does—and what it leaves out.

It’s Legal, It’s Required—and It Might Be All You Need

Liability-only coverage is the minimum legal requirement for driving in Mexico. It doesn’t protect your car. It protects you from the costs of harming someone else.

Here’s what it includes:

• Bodily Injury to Third Parties – If someone is hurt in a crash you cause, this helps pay for their care, legal claims, or compensation.
• Property Damage to Others – If you damage another person’s vehicle or property, this pays for repairs.
• Legal Assistance & Bail Bond – Automatically included with civil liability. It gives you access to legal representation and pays bail if needed.

Most liability-only Mexico auto insurance policies offer limits from $50,000 to $500,000 Combined Single Limit (CSL).

What Liability-Only Insurance Doesn’t Cover

Liability-only means zero protection for your vehicle—none, zip, nada. It’s a legal shield for others, not a safety net for you. Here’s what liability-only leaves out:

• Collision damage
• Theft (total or partial)
• Vandalism or riots
• Weather events like hurricanes, hail, or flooding
• Damage while parked
• Medical expenses for you or your passengers

If it happens to your car, you pay.

Why It’s Still an Essential Policy

Driving in Mexico without liability insurance isn’t just risky—it’s illegal. Mexican law requires drivers to carry valid liability insurance from a licensed Mexican insurer. U.S. and Canadian policies aren’t recognized. If you get into an accident, you could face fines, impoundment, or worse.

That’s why liability-only insurance exists: to meet this legal requirement and provide a baseline of protection. And the good news? It’s affordable.

Is Liability-Only Mexico Auto Insurance Right for You?

It could be. If you’re:

• Driving an older car you can afford to replace
• Visiting a border town for a quick trip
• Comfortable with the financial risk

…then liability-only might make sense.

But if you’re:

• Driving a newer or financed vehicle
• Taking a longer trip, or going deeper into Mexico
• Concerned about theft, storms, or accidents

…then liability-only may leave you exposed.

Think of it like this: Liability-only is the seatbelt. Full coverage is the seatbelt, the airbag, and the safety cage.

How Much Liability Coverage Should You Buy?

Choosing the right liability limit isn’t just about cost—it’s about what happens when things go wrong.

Here’s how to think about it:

• $50,000–$100,000 CSL: Meets legal minimums, but could fall short in a serious accident.
• $300,000 CSL: Good protection without a big jump in premium.
• $500,000 CSL: Ideal for extended trips, city driving, or travelers who want peace of mind.

Some Mexican states have their own formulas for setting liability requirements—based on things like local wage tables and compensation guidelines. Many now exceed $100,000 per person, even for basic claims. That means the legal minimum isn’t a fixed number across Mexico—it shifts depending on where you’re driving.

We recommend at least $300,000 CSL for most travelers. It keeps you in the safe zone no matter where your trip takes you. The cost difference? Usually less than you think. But the difference in protection if something goes wrong? It could be the smartest decision you make before crossing the border.

Real-World Example: What Liability-Only Actually Covers

Let’s say you take your paid-off car to Ensenada for the weekend. While backing out of a restaurant parking lot, you hit a local’s car. The damage? $3,000. Your liability-only policy covers it. No stress.

But what if someone hits you while you’re parked—and drives off? Or your car is stolen overnight? You’re on your own.

That’s the tradeoff. You’re covered for them, but not for you.

What You Get with MexicoCovered.com

Every liability-only Mexico auto insurance policy we sell includes:

• Civil liability protection up to your selected CSL limit
• Legal assistance and bail bond coverage
• Optional upgrades like medical payments or roadside assistance, depending on the carrier

We work with top-rated companies like Chubb, GNP, and ABA to make sure you get a policy that does its job.