Although you won’t be asked for proof of insurance when you cross the border or in the rare event that you are pulled over on the highway, but Mexican auto insurance should never be considered an option. Procedures following an auto collision, in Mexico, differ dramatically from those in the United States and a fender bender without insurance is a sure-fire way to ruin your vacation.
When an accident occurs in Mexico and the parties have no insurance, everybody goes to jail while the authorities sort out who may be liable for what. Having Mexican auto insurance is your get out of jail free card. Without it there is no way to determine how long you’ll be eating stale tortillas and sloppy beans. Historically, if Mexicans are involved in a wreck without insurance, all parties will flee the scene; this is something that Americans just can’t fathom.

Mexican auto insurance is relatively inexpensive compared to policies sold in the United States. Liability insurance is all you really need to stay out of the slammer, but for newer cars, full coverage is offered at very economic rate. Liability insurance, for a five day trip into Mexico may be priced at no more than around fifty dollars and full coverage of $15,000.00 only about fifty percent more.
The larger cities in all the border states have agencies that sell Mexican auto insurance and are easily found in the phone book. In the border towns insurance agencies (Seguro) are more plentiful than curio shops. It used to be more economical to buy insurance in Mexico but that is no longer the case. The most convenient way to buy your insurance is on the Internet; it only takes a couple minutes, a few clicks and a credit card. 

United States and Canadian agencies cannot sell Mexican insurance so you’ll be dealing with Mexican companies. For the most part they are honest, efficient and when claims are filed, they handle them more expediently than their north of the border counterparts. If you need it, nothing else will quite do, so don’t leave home without it.