New Liability Laws in Mexico
Require Higher Insurance Liability Limits!

In late 2012, Mexico federal law dramatically increased the liability compensation amounts for fatalities.

Adventure Mexican Insurance now recommends MUCH HIGHER liability limits for your Mexican auto insurance policies! In the event that a third party is killed, the at-fault party could now be liable for 7 times more compensation than before this new law went into effect.

In response to this new law, the Mexican insurance companies are now offering higher liability limits. We highly recommend purchasing as much liability coverage as possible, with a minimum of at least $500,000 USD in third party liability.

The new changes to code 502 of the Mexican Federal Law:

NEW CODE (as of November 30, 2012): In case of fatalities to third parties, the compensation due shall be the amount equal to 5,000 x the Mexican state minimum wage, plus funeral expenses. Each state may multiply this amount up to 5 times.

OLD CODE (prior to November 30, 2012): 730 x the Mexican state minimum wage, plus funeral expenses. Each state may multiply this amount up to 5 times.

Instead of multiplying by 730 days, the new code now multiplies the days of minimum wage by 5,000 days! This increases the potential fatality liability compensation amount by 7 times!

To make things more complicated, each Mexican state has different minimum wage amounts, and each state has different laws on how to apply the calculations.

Many popular Mexican tourist states now have a fatality liability compensation amount of $350,000 USD - $550,000 USD (per fatality)

Please see the Fatality Liability Limits for each Mexican State:

Recommended liability limits for your Mexican auto insurance policy:

We now offer up to $800,000 USD in third party and Excess Death liability coverage!

More liability insurance is always better, but you also have to consider your budget.

The highest amount of third party and fatality liability insurance we offer is a total of $800,000 USD liability which is achieved by purchasing $500,000 USD of Combined Single Limit third party liability coverage, then adding on the Excess Death Liability of $300,000 USD to your Mexican auto insurance policy. This product is offered through HDI Seguros on our website. (can also be purchased over the phone by calling our offices). This is the highest liability limit on the market! However, these liability limits also generate a more expensive insurance premium which may not fit every customer's budget.

At a minimum, we recommend purchasing at least $300,000 USD of liability coverage, and we strongly suggest increasing those limits to $500,000 USD (keep in mind that the new federal fatality compensation laws are per fatality, so the amount could obviously increase in the unfortunate event of multiple fatalities).

Two of our Mexican insurance companies, HDI Seguros and ANA Seguros, have developed a specific Excess Death Liability option which can be a cost effective way to increase your Death Liability exposure.

Our other 2 Mexican insurance companies, ACE Seguros and Mapfre Tepeyac, have elected to simply raise the amount of third party liability they offer. ACE Seguros now offers up to $500,000 USD in third party liability, and Mapfre Tepeyac offers $300,000 USD.

The good news is that Adventure Mexican Insurance works with 4 of the best Mexican insurance companies, so we are guaranteed to have the best and most cost effective options for your specific needs. Please feel free to call our trained insurance agents if you have any questions. We can make sure you get the right coverage for your needs.

Recommendations for each company

Review the fatality compensation chart for the Mexican states you will traveling in. Example, if you will be driving in the state of Baja Sur, you will find the maximum compensation amount per fatality is around $335,000 US Dollars (based on a 13 pesos to 1 dollar exchange rate). At a minimum, we would recommend at least $400,000 USD of combined liability coverage - but you must also keep in mind that those limits could go higher if there are multiple fatalities. The state of Yucatan, has a fatality compensation amount of roughly $550,000 USD, and Baja Norte has a fatality compensation amount of roughly $150,000 USD.

For our example, we will use a recommendation of $500,000 USD of liability coverage:

ACE currently does NOT offer a separate Excess Death Liability coverage, so we recommend purchasing their $500,000 CSL third party liability option.

HDI offers an Excess Death Liability coverage, so we recommend a minimum of $200,000 CSL third party liability plus the $300,000 Excess Death Liability option. NOTE: For the state of Yucatan, we recommend even higher limits of $300,000 CSL and $300,000 Excess Death Liability.

ANA Seguros offers an Excess Death Liability coverage, so we recommend a minimum of $200,000 CSL third party liability plus the $300,000 Excess Death Liability option. NOTE: For the state of Yucatan, we recommend even higher limits of $300,000 CSL and $300,000 Excess Death Liability.

Mapfre Tepeyac currently does NOT offer a separate Excess Death Liability coverage, so we recommend purchasing their highest liability limit of $300,000 CSL third party liability option.