Yes, it's legit. I have been stuck there and spent the night between the Bolivia and Argentina. I arrived on a Sunday evening. Thye let me go through the bolivian side, but the argentina side refused me cause i don't have insurance. You can walk into the city and buy the insurance for something like 1 month/$40 (car). They will give you the address on the Argentina side.
But if it is sunday, you cant buy it. And if you are unlucky, they will not let you back up to bolivia, because there's a rule saying you have to let 24 hours between exit/reentry in bolivia.
Think about me if you also have to sleep between the two countries.
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