Club Dust does not recommend you taking your own vehicle across the border. If you get in an accident you will be fined regardless if you are at fault or not. Even with buying Mexican insurance the deductibles are high and if you do get into an accident the insurance will pay only the going labor rate in Mexico for any repairs that are necessary. If you still want to take your vehicle into Mexico please realize you are completely responsible and not part of Club Dust's transportation logistics.
Insurance from a Mexican company is required by Mexican law in the event of an accident, even if you are not at fault.
Insurance greatly reduces the chances that you will face jail time if you are involved in an accident while driving in Mexico.
Insurance provides some coverage for damage to your vehicle or it's total loss if you buy the complete coverage as shown on the link below.
For more information for Auto and Health Insurance while in Mexico click on Baja Bound.