Mexican auto insurance is an absolute must when driving in Mexico.  If you do not have, at the very minimum, liability insurance and you are involved in a traffic incident (accident, theft) and you are found to be at fault by the Mexican authorities you will face jail time until you can pay full restitution.  Also, drunk driving in Mexico is illegal and is punishable by law and Mexico auto insurance will deny a claim if the driver has been driving under the influence.  Use common sense and designated drivers!

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