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Travel Insurance for backpackers at really reasonable price, I’ve recommended to my friends and bought it to cover my trip to Mexico as well.

Sample Quote:
Travel Insurance valid from 21/01/2009 until 25/05/2009
single trip valid worldwide excluding USA and caribbean covering all necessary medical stuff, baggage and money was quoted less than GBP 34 per person. The go to Mexico first and then by land to Peru.

Mine trip to Mexico (one month) was quoted GBP 24 only! The general conditions of this travel insurance are really descent. You can check it yourself down here:

AA Travel Insurance

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