Mexican law only recognizes auto insurance purchased from companies licensed (located) in Mexico, as a result your U.S. or Canadian Auto Insurance is not recognized as valid insurance in Mexico.
Mexican law requires that vehicles must be insured to be driven on public Mexican roads and Highways.
Mexican law requires that vehicles be driven only by their owners, or that the owner be inside the vehicle. If not, the car may be seized by Mexican customs and will not be returned under any circumstances.
Mexican law requires that vehicles be driven only by a person with a valid driver's license. As a result make sure you carry a valid driver’s license at all times.
If you are involved in an automobile accident, you will be taken into police custody until it is determined who is at fault and whether you have the ability to pay any penalty.
U.S and Canadian auto insurance polices exclude Mexican third party liability claims.
Most U.S and Canadian auto insurance polices exclude physical damage (collision, theft and vandalism) claims in Mexico. In case you have the impression your auto insurance covers physical damage losses in Mexico check your U.S. policy before you buy your Mexican auto insurance and drive into Mexico.