Do I Need Travel Insurance for Mexico?

There are currently no requirements that require U.S. citizens to carry medical or travel insurance as a condition of entering the country. However, since Mexico is still considered a developing country, many Americans purchase travel insurance before going. 

There are multiple types of travel insurance, and the best travel insurance for Mexico will vary depending on your personal preferences. Frequent business travelers naturally need different coverage than extreme sports enthusiasts. The following are a few of the most common travel insurance coverages offered by travel insurance companies.

Cancel for Any Reason Coverage

When you purchase a standard travel insurance policy, you agree to a list of circumstances for which you can use your insurance coverage. Some commonly covered circumstances include a family member’s death, your traveling companion’s death or an unanticipated natural disaster. 

With a cancel for any reason (CFAR) insurance upgrade, you can claim reimbursement for any reason and are not limited to the circumstances found on your insurance policy. These policies can benefit anyone with a reason why they believe they may need to cancel a trip. For example, you can use your CFAR policy if you have been monitoring the COVID-19 situation in Mexico City and judge the risk as too high after purchasing your resort vacation.

CFAR travel insurance is supplemental and isn’t available as a stand-alone insurance option. Your CFAR reimbursement will not cover your whole trip. Your travel insurance contract will indicate how much you’ll get back and any provider exclusions.

TIP: You have a limited number of days (10 to 21 days, depending on the policy) after purchasing a nonrefundable trip to add CFAR coverage.

Gear Theft Protection

If you bring expensive equipment, such as sports gear, a professional-grade camera, a laptop or specialized medical equipment, you might want travel insurance to protect them. Your travel insurance will cover the loss up to a predetermined amount if your electronics are lost, stolen or damaged by an airline or tour operator.

TIP: Homeowners insurance and renters insurance policies often cover identity theft and personal property that’s lost or stolen outside your home, even if you’re not in your home country when it happens. So, check your existing policies to see if you’re already covered. 

Medical Emergency Insurance and Emergency Medical Evacuation

Illness and injury are among the most unwelcome occurrences during international travel. Your employer-provided health plan may have limited or no coverage in Mexico, and Medicare doesn’t cover health care outside the United States, except in rare cases.

Travel health insurance pays for emergency medical expenses during a trip. These expenses include the following:

• Ambulance service
• Chipped tooth or other dental emergencies
• Hospital fees
• Operating room charges
• Treatments and prescriptions 
• X-rays, lab tests and anesthesia

Many travel insurance plans also include emergency medical evacuation and repatriation. If you have an emergency and can’t receive local medical care, emergency medical insurance will usually cover the cost of an evacuation to an appropriate facility or back to the United States.

Most travel health insurance plans do not cover medical tourism. Check with your provider to find a plan that covers preexisting conditions.

TIP: Many Mexican medical facilities only accept cash, so ensure you receive a written expense report or bill before leaving the facility.

Rental Car Protection

Most noncommercial automobile insurance policies do not cover accidents or collisions that occur while you’re driving abroad. Some comprehensive travel insurance plans have an add-on option for rental car collision coverage if you damage the vehicle in an accident. 

This benefit doesn’t cover the personal property inside the car. It also doesn’t cover damage to another vehicle or medical care if you’re hurt in an accident involving the rental car. Your emergency medical coverage should cover this.

TIP: Your credit card company may already include coverage for damaged rental cars.

Trip Cancellation Insurance

Trip cancellation insurance will reimburse you for prepaid, nonrefundable travel expenses should you cancel your trip before departure for an unforeseen covered reason. The unforeseen circumstances potentially covered by trip cancellation insurance may include emergency surgery, the death of a family member or traveling companion, and weather conditions that make leaving home or your destination dangerous.