Auto insurance coverage in Mexico has remained largely stagnant since the COVID-19 pandemic, with only 33.3% of the national vehicle fleet insured in 2024, according to data from the Mexican Association of Insurance Institutions (AMIS). The rate shows little progress compared to pre-pandemic levels, highlighting persistent structural challenges in financial education and policy enforcement.

AMIS reported that despite the growing number of vehicles on the road, the proportion of insured cars has not improved significantly. Coverage peaked at 35.5% in 2019, dropped to 33.2% in 2020 during the pandemic, and has since remained near that level.

“Auto insurance has not regained its growth momentum since the pandemic. This stagnation reflects a lack of awareness about the importance of protection and a low rate of policy renewal,” said Norma Alicia Rosas, General Director, AMIS.

Experts attribute the slow recovery to limited financial literacy and weak enforcement of mandatory insurance laws. Rosas noted that many drivers still see insurance as an unnecessary expense rather than a preventive tool. “There is still no deep-rooted culture of prevention. People only think about insurance when an accident occurs,” she said.

Another key factor is inconsistent enforcement of liability coverage requirements. Although federal law mandates that all vehicles carry insurance, compliance remains low. AMIS estimates that enforcement varies significantly across states, and in many regions, penalties are rarely applied.

Rosas pointed out that digital platforms and usage-based insurance models offer opportunities to expand coverage by making policies more accessible and affordable. However, she emphasized that these innovations must be supported by stronger public policies. “The market needs a joint effort between insurers and authorities to raise awareness and ensure compliance,” she said.

According to AMIS projections, gradual growth in coverage is expected over the next five years, driven by digitalization and partnerships with automakers and financial institutions. Still, the association warns that without greater consumer education, insurance penetration may remain below 40% by the end of the decade.