Mexican insurance provies coverage for tourists when they are driving in the Republic of Mexico. This type of insurance was created because U.S. insurance policies are not recognized by authorities in Mexico in the event of an accident. Because of this, the minimum insurance requirement to drive in Mexico is to have liability coverage from a Mexican underwriter. A “liability only” policy provides coverage for medical expenses and property damage to third parties if you are involved in an accident. “Full coverage” policies are available as well, and they include physical damage and theft coverage for your vehicle, as well as the liability aspect. Some Mexican insurance underwriters also provide partial theft and vandalism coverage as an optional endorsement.