Updated March 2, 2015
The State Office of Risk Management (SORM) initiated a Statewide Automobile Insurance Program. Part of the program includes optional Automobile Liability Insurance for vehicles traveling to Mexico on state business. Coverage is provided for state owned vehicles and non-owned vehicles.
Driving in Mexico creates an unusual exposure for state agencies. Mexico does not require automobile liability insurance. However, drivers can be held criminally and financially responsible for any auto accidents they cause. If an accident results in an injury, the Mexican police may detain you until they determine who is at fault. You will have to show that you either have insurance recognized by the Mexican government or the financial ability to pay any judgment against you.
The purchase of automobile insurance through an approved Mexican insurer is highly recommended by SORM. The coverage offers a choice of liability limits of $300,000 or $500,000, legal assistance up to the policy limit, and medical expenses of $10,000 per person and $50,000 per accident. The premium is a per day charge and will be based on the number of days vehicles are in Mexico. For insurance purposes, any time a vehicle crosses the international border, it is considered covered for an entire day.
A minimal non-working deposit is required which is based on the estimated usage. If the deposit is not used, it will be fully earned. A simple application will be necessary to commence coverage. The agency will prepare a quarterly report providing the number of days vehicles in Mexico. If the deposit has been exhausted, the agency will owe an additional premium.
If your agency would like to participate in this program, please contact us by e-mail or phone: 512-936-2942.