Southern Californians often take weekend trips across the border into Mexico. It is suggested that you ALWAYS obtain Mexican automobile insurance prior to crossing the border. Mexican authorities do NOT recognize American or Canadian issued auto insurance as valid, regardless that the American policy has Mexican coverage. If you are involved in a motor vehicle accident in Mexico, it is likely that you will be detained until the local authorities can determine who is at fault. Even if you are not at fault, under Mexican law, motorists are required to have Mexican auto insurance, or officials will want proof of financial responsibility and will expect you to post a bond to cover estimated costs before you will be released. Financial responsibility can be demonstrated either by possession of cash, approximately $5,000.00-$10,000.00, or by possession of Mexican auto insurance through and authorized company.
Article provided to the La Quinta Chamber of Commerce – GEM Publication September 2008 page 15.
http://www.lqchamber.com/pdf/gem-sep08.pdf
