Affordable Car Insurance Amid Rising Automotive Services Costs
In recent news, the cost of car insurance in Mexico has decreased by 1.12% over the past year, while other automotive-related services have become more expensive. According to data from Mexico’s National Institute of Statistics and Geography (Inegi), car wash and wax services have increased by 8.02% from June 2024 to June 2025, and maintenance services have risen by 6.80%. Repair services have also seen a 7.46% increase.
Car Insurance Coverage Levels Explained
Carlos Jiménez, Director of Damages and Automobiles at the Mexican Insurance Institutions Association (AMIS), emphasized that nearly all entities in Mexico mandate the purchase of a third-party damage insurance for vehicles.
- Basic Coverage: This level covers damages to third parties in the event of an accident or traffic incident. It does not cover damages to your own vehicle.
- Limited Coverage: This option covers third-party damages and also includes protection for your vehicle against theft or natural disasters like hurricanes and earthquakes.
- Comprehensive Coverage: The most extensive coverage, this option protects your vehicle from damages resulting from collisions or overturns, in addition to the benefits provided by the previous levels.
The premium cost varies depending on the coverage level and factors such as the car’s value, year, and model.
Importance of Car Insurance in Mexico
Jiménez explained that if a vehicle is involved in an accident without proper third-party damage insurance, penalties may be imposed according to each state’s regulations. Moreover, the driver would be responsible for covering any damages caused to victims out of their own pocket.
Rising Automotive Service Costs
Despite the decreasing car insurance prices, other automotive services have become more expensive. Maintenance services have increased by 6.80%, and repair services have risen by 7.46%. These rising costs could impact vehicle owners’ budgets, making it even more crucial to have affordable insurance coverage.
Current Car Insurance Landscape in Mexico
As of the end of the first half of the current year, 15.04 million vehicles were insured in Mexico, according to the latest quarterly report from the National Commission of Insurance and Bonding (CNSF). During the same period, there were 3.07 million reported accidents involving cars.
Key Questions and Answers
- Why is car insurance important in Mexico? In Mexico, it’s mandatory to have a third-party damage insurance for vehicles. Without it, drivers may face penalties and be responsible for covering damages caused to victims in accidents.
- What are the different levels of car insurance coverage?
- Basic: Covers damages to third parties in traffic incidents.
- Limited: Covers third-party damages and includes protection for your vehicle against theft or natural disasters.
- Comprehensive: Offers the most extensive coverage, including protection from collisions, overturns, and damages from natural disasters.
- How do rising service costs affect vehicle owners? Although car insurance prices have dropped, other automotive services like maintenance and repairs have become more expensive. This could put additional strain on vehicle owners’ budgets.
