If you’re planning to drive in Mexico, it’s crucial to be aware of the legal requirements. Mexican law mandates that you carry proof of liability from a Mexican domiciled insurance company. While some U.S. insurance companies offer coverage for physical damage and collision risks within a certain distance of the border, this doesn’t meet the legal requirements in Mexico. At a minimum, you’ll need “Liability Only” coverage from a Mexican insurance provider. It’s important to note that if you’re involved in an accident in Mexico and are unable to show proof of liability, you may be detained, and your vehicle impounded.