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Semana Santa is the week before easter, holy week. Millions of people from TJ and Mexicali go down to all the camping spots south on vacation and rage. Spots that are usualy desolate will have people camping. About the insurance issue, if something happens on Mex 1 there is a green angel patrol which goes up and down the road and helps out. I have seen them in San Filipe, but I don't know if they patrol the roads south where the paveed road ends. Don't be afraid of the Army guys at the checkpoints, they are there to help too, and are usually so bored they'll jump at the chance, and have always been real cool to me.
Insurance is a touchy subject. I have heard horror stories of people having to wait a week for a claims adjuster to go out and file a claim. If you make a claim "I'm not positive on this" the police will hold your vehicle untill the adjuster arrives. That's for accidents, don't know about breakdowns. Crowds or no crowds you'll have a good trip.
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