when renting a car in mexico which insurance do i need

by Flavio Lemke Published 3 years ago Updated 2 years ago

Is rental car insurance mandatory in Mexico?

When you get off the plane and walk to the counter of the car rental company, everything will appear to be going as planned. Then they tell you that you need to purchase mandatory liability insurance. All car rental companies in Mexico require you to purchase basic personal liability insurance, which is, at it's cheapest, about $20 per day.

How much does it cost to rent a car rental?

Rental cars can get expensive. It’s important to know how much they cost so you’re not caught off guard. On average, a compact car rental in Las Vegas costs between $50-$80 a day when including taxes and fees. A full-sized vehicle will run you about $60-$90 per day.

Is rental car insurance worth it?

The owner of your property carries insurance on the building. Renters insurance helps protect you from the loss of the personal property you own. That’s everything from your clothing to your electronics to your kitchenware and even the contents of your pantry. POLL: How Much Do You Expect Your Tax Refund To Be This Year?

Can you drive a rental car into Mexico?

Yes, you can rent a car to drive to Mexico, but specific restrictions apply. You need to rent the vehicle through a corporate account, and it must be returned in the U.S. (no one-way rentals into Mexico are permitted). If you are a U.S. citizen, you also need to purchase Mexican Automobile Liability Insurance to take a rental car to Mexico.

What is the protection coverage for a rental vehicle?

Why is mandatory car insurance required?

What is LDW in Mexico?

Is car insurance mandatory in Mexico?

Does the rental car insurance cover damage?

Can you drive in Mexico with US insurance?

Can you add peace of mind to a rental car?

See 4 more

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What kind of rental car insurance do I need in Mexico?

Third-Party InsurancePersonal Liability Insurance, also referred to as Third-Party Insurance, is mandatory when renting a car in Mexico. You cannot rent a car without this coverage. Although this is the only obligatory type of insurance, it's not always enough. In fact, it's highly recommended to opt for additional coverage.

Is liability insurance required when renting a car in Mexico?

The Third Party Liability (TPL) is mandatory in all rentals NO EXCEPTIONS. In Mexico, the Protection of Third Party Damages (Civil Liability) is required by law in all vehicles.

Do you need LDW when renting a car in Mexico?

Most Mexican rental companies offer their own insurance coverage. You should consider Loss Damage Waiver (LDW) to make sure you will have zero deductible; this will cover any damage to the rental vehicle regardless of who is at fault.

How do I get Mexican insurance on a rental car?

Mexico insurance can only be purchased at the rental counter and not online. Mexico insurance is offered at all locations in Arizona, California, New Mexico and Texas for the Hertz, Dollar and Thrifty brands.

Does my car insurance cover international rentals?

Most U.S. auto insurers won't cover you while you're driving abroad, with the possible exceptions of Canada and Mexico. So unless you have a credit card that offers rental car insurance, you'll probably need to purchase your insurance from the rental company itself.

Can I drive in Mexico with US license?

Valid U.S. Driver's License If you have a valid driver's license for any U.S. state, you can legally drive across the border to Mexico. Like your passport, your driver's license should be valid for at least another six months, just to be safe so you have no issues crossing the border into Mexico.

Is it safe to rent a car and drive in Mexico?

Renting a car in Mexico is generally safe and convenient, and it gives you the freedom to go wherever you want in your own time. However, there are some cities where it might be better to hire a driver instead.

Does Amex cover car rental insurance in Mexico?

The Amex Platinum includes rental car insurance in Mexico, however, Mexico does not recognize American insurance for injury liability. For that reason, you must have Mexican auto insurance when driving in Mexico, whether driving your own vehicle or renting one there.

What do you need to drive in Mexico?

What documents are required to drive to Mexico?A U.S. Passport (or Green Card)A U.S. Driver's License (or International Driving Permit)Proof of car registration.A Temporary Vehicle Importation Permit (TVIP)A Mexico Tourist Card/Entry Permit (FMM)A Mexico tourist auto insurance policy.

How much does Mexican car insurance cost?

How much does Mexican car insurance cost? The cost of Mexican car insurance for tourists can range from about $50 to $80 for liability-only coverage and $150 to $200 for full coverage. The specific price you pay depends on factors such as the value of your car, the length of your visit and the coverages you choose.

Does AAA work in Mexico?

AAA can help you get what's required through one of Mexico's largest and most reputable insurance companies. Policies range from a day to a year so you can customize coverage to fit your needs.

What is Mexican collision coverage?

It is generally recommended, based on Mexican laws for possible payouts for bodily injury or fatality, that drivers get a minimum of about $300,000 worth of third-party liability damage coverage. That may be more than your limits at home, but it is considered well worth it.

Does Amex cover car rental insurance in Mexico?

Does Chase Sapphire reserve cover rental car insurance in Mexico?

The Chase Sapphire Reserve® provides primary auto rental collision damage waiver coverage. Use this card to pay for your rental car, and you'll be reimbursed up to $75,000 for theft and collision damage in the U.S. and abroad.

What do you need to drive in Mexico?

Does Mexico have car insurance?

Mexico has strict car insurance policies that tourists need to meet when driving there. Mexico requires third-party liability for all drivers within the country provided by an insurance company licensed to sell insurance in Mexico. Recommended coverage minimums fall around $300,000.

Proof of CDW Car Rental insurance required in Mexico? - Tripadvisor

Hi everyone, Question for anyone that is familiar with renting cars in Mexico.Typically when you rent a car, you have the option of buying insurance coverage from the rental agency. I have read about many scams taking place in Mexico where the agency forces you to buy insurance that you do not necessarily need.. If I have a credit card that includes Collision Damage Waiver Insurance for car ...

Is Rental Car Insurance Mandatory in Mexico?

Is Rental Car Insurance Mandatory in Mexico? Last Updated: October 16, 2018 by Roxanna Brock McDade Categories: Auto Insurance, Transportation Life has a way of keeping us on our toes, even in the middle of a dream vacation.

What is the protection coverage for a rental vehicle?

Protection coverage for the vehicle rented includes Third Party Liability with a maximum cover for personal injuries and material damages.

Why is mandatory car insurance required?

Therefore, mandatory car insurance is simply “proof of financial responsibility” to ensure that damages during an accident can be paid. Without insurance, paying for the damages will take longer to resolve and certainly put a damper on your vacation.

What is LDW in Mexico?

Loss Damage Waiver (LDW): Does not hold the driver accountable in case of damage or theft. Some major credit card companies or your auto policy insurance can cover rentals in Mexico. However, before you decline this, be sure to double-check it.

Is car insurance mandatory in Mexico?

As you can see, while car insurance in Mexico is mandatory, there’s nothing to stress about. Of course, it’s easier to simply rent a car that includes this legally required liability coverage rather than insuring your own vehicle. If that’s the case, you’re free to choose from one of our many branches across Mexico and take to the roads to discover everything this country has to offer.

Does the rental car insurance cover damage?

In case of an accident, this covers personal injury claims or material damages you cause to the other driver. However, it does not cover injuries you may suffer or damage done to the rental car. If you decide to rent with another car rental provider, review the terms and conditions before booking.

Can you drive in Mexico with US insurance?

Unfortunately, regardless of how comprehensive your US insurance policy is, it won’t cover you while driving in Mexico. Therefore, you must buy a separate insurance cover if you cross the border in your own car. This liability insurance must be purchased from a company that is licensed in Mexico.

Can you add peace of mind to a rental car?

Additional Peace of Mind Options. For better peace of mind, you can add more protection to your car rental. In case you need some extra protection, you can also opt for additional protection options. These are not mandatory, so you are free to add them for your own peace of mind while driving through Mexico.

Is it cheap to rent a car in Mexico?

When you do a search online for a rental car in Mexico, you will be surprised at how cheap the quotes are. And yes, the rental is cheap…but the insurance is not! Many major online travel booking sites will deceive you when it comes to Mexican Liability Insurance. Their quote may say “including all insurance” but that may not include Mexican Liability – so be sure to read the fine print to see what exactly it does cover.

Is it safe to drive around Mexico?

And while it’s true that some parts of Mexico should be avoided, other areas are about as safe as driving elsewhere in the world. We were traveling to the Yucatan, a relatively safe area to visit. Having the freedom of a rental car is a wonderful way to explore this area, and we had set out a pretty awesome Yucatan driving itinerary. But there are some very important things that you should be aware of, such as the mandatory Mexican Liability Insurance. After lots of research, detailed comparisons, and our personal experience, we wanted to share with you what we learned about renting a car in Mexico.

Is Mexican liability insurance mandatory?

Mexican Liability Insurance is mandatory in Mexico . If you do not have proof that you have this insurance and you happen to get into an accident, no matter how minor, you can be taken to a Mexican jail until the police can determine who was at fault (and who knows how long that may take).

Does America Car Rental have Mexican liability insurance?

If you are interested in America Car Rental, click on the banner below to search rentalcars.com . America is currently one of their vendors in the Cancun area, and their quoted price includes the required Mexican Liability Insurance!

Why rent a car in Mexico?

Renting a car in Mexico gives you freedom — both to venture off the beaten path to the Mexico hidden gems, and freedom to explore at your own pace. With many tours, you only have a limited amount of time to explore, but with your own rental, you set the schedule.

How much does it cost to rent a car in Mexico?

When renting a car in Mexico, you may see rates as low as $5-10USD per day — and if this seems too good to be true, it is. This base cost doesn’t factor in a whole slew of fees, taxes and the legally-required Mexico car rental insurance, all of which you do have to pay for.

What are the best car rental companies in Mexico?

If you prefer to use a Mexican company to support the national economy, one of the best car rental companies in Mexico is Mex Rent A Car.

How much does a car rental company charge for underage drivers in Mexico?

Some companies also rent to drivers 21-24 years of age, though they charge about $10-20USD per day surcharge for underage drivers. There are a very small minority of Mexico car rental companies that rent to 18-20 year olds. For those ages 18-24, you’ll want to double each company’s policy before booking.

What color are stop lights in Mexico?

In Mexico, stop lights go from green to yellow, to flashing yellow for a few seconds, to finally, a red light.

How much does personal liability insurance cost?

Different companies price coverage differently, but in general, Personal Liability Insurance (the minimum coverage) is about $20USD per day. For full coverage insurance, plan to pay about $40USD per day.

What are the most common cars in Mexico?

For the most part, you’ll find the same makes and models you will in the U.S., with Nissan and Chevrolet and Kia as the most common. Besides those, some common companies in Mexico that aren’t common in the U.S. include Peugeot and Renault, both French companies.

What is covered by Mexico insurance?

What’s covered by Mexico auto insurance. The specifics of a Mexico tourist auto policy vary depending on where you go to get it, and some providers offer different tiers of car insurance for visiting Mexico, but any of the following coverages are options for drivers heading to Mexico: Liability coverage. Covers you if you injure someone ...

What insurance companies offer Mexico?

As we mentioned above, many major U.S.-based car insurance companies offer Mexico tourist auto insurance via Mexican car insurance providers, including Allstate , GEICO , Progressive and Liberty Mutual. You can also go directly through a Mexican insurer that writes auto policies for visiting tourists, like Baja Bound or MexPro.

What is gap insurance in Mexico?

Loan or lease payoff. Also called gap insurance, this coverage helps you if your car is totaled in Mexico. Loan or lease payoff will pay you the difference between the value of the totaled car and what you still owe on your car loan or lease.

Do you need liability insurance in Mexico?

policies offer coverage up to a certain distance into Mexico, but according to Mexican law, you’ll need a minimum amount of liability coverage through a Mexico-specific car insurance company.

Does auto insurance include liability?

And just like with domestic auto insurance, your policy should include liability coverage and you may want to consider adding other coverage, like collision coverage, roadside assistance or gap insurance.

Does Mexico require car insurance?

Mexico law requires that drivers carry a minimum amount of car insurance through a Mexican provider.

Does Mexican insurance cover you if you have a car accident?

car insurance covers you up to a certain distance across the U.S.-Mexico border, if you cause a car accident you’ll need liability coverage through a Mexican insurer or risk being on the hook for the damage you caused. Here’s what you need to know about how — and why — you need to get temporary car insurance for driving ...

What rental companies are there in Mexico?

You’ll find a large assortment of rental car companies in Mexico, including most of the major international chains, such as Avis, Alamo, Thrifty and Hertz. There are also plenty of national car companies, which can offer better rates but you may worry that it may be harder to settle a claim if the car is damaged.

Can an American driver leave Mexico?

In other words, Mexican authorities may not allow an American driver to leave Mexico until the injured parties receive an acceptable settlement.

Do rental cars in Mexico require a security deposit?

Even if you can demonstrate that you have a valid liability policy that covers Mexico, the rental car company might demand a security deposit that’s returned at the end of the rental. (Note that hefty security deposits are commonplace around the world.)

Is it cheaper to rent a car with liability insurance?

Given the potential penalty if there is an accident, it’s safer and cheaper to fork up for a more expensive car rental rate that includes the legally required liability coverage.

Is there a free car rental in Mexico?

Car rental rates in Mexico can be so low that they’re practically free. Seriously, we’ve seen weekly rates in the single digits in resort cities like Cancun. But as with everything in life, there’s no such thing as a free almuerzo.

Is Mexico lenient on insurance?

The legal system in Mexico is much less lenient if an accident occurs, so the insurance stakes are higher. Think twice before declining any insurance until you triple check what coverage you have.

Do you need a driver's license to rent a car in Mexico?

In many ways, renting a car in Mexico is much like in the United States. You need a major credit card, valid driver’s license and passport. Drivers under 25 will pay more. It’s more expensive to pick up and drop off at an airport. And you should always inspect the rental vehicle car before you drive away, and photograph the condition of the car when you return it.

What kind of Mexican cars are for rent?

For the most part, you’ll find the same makes and models you will in the U.S., with Nissan , Chevrolet and Kia as the most common. Besides those, some common companies in Mexico that aren’t common in the U.S. include Peugeot and Renault, both French companies.

What are the top Cancun car rental companies?

All the big name car rental companies also have a rental office in Cancun, like Avis, Budget, Thrifty and Enterprises. If you prefer to use a Mexican company to support the national economy, one of the best car rental companies in Mexico is Mex Rent A Car.

Should I rent a car in Cancun?

Car rentals in Cancun give you freedom! With your own car, you can venture off the beaten path in Mexico to see the lesser-visited cenotes, pueblos magicos (magic towns) like Valladolid and Izamal, ancient sites and Mayan Ruins near Cancun.

Is it safe to rent a car in Cancun Mexico?

Yes — For the vast majority of travelers, Cancun is one of the overall safest places in Mexico. That’s not to say bad things don’t happen; they do. However, if you’re prepared (which you will be after you read this article!), you should be perfectly safe renting a car in Cancun.

What Does Mexican Car Insurance Cover?

You are required by Mexican law to have liability insurance. If you cause a car accident, this covers bodily injuries and property damage to others. You can typically choose a policy limit (up to a certain amount). For example, Allstate and Geico sell up to $500,000 in liability coverage for trips into Mexico, while The General sells up to $300,000.

What to do if your car breaks down in Mexico?

Roadside assistance. If your car breaks down in Mexico, this pays for services such as a tow truck, jump-starting a battery, a locksmith or changing a flat tire.

What is a limited Mexico coverage endorsement?

From your own insurance company with a Limited Mexico Coverage Endorsement. This extends your U.S. policy within a certain distance of the U.S. border.

What happens if you don't comply with Mexican law?

And if you don’t comply with Mexican law? You could end up in jail, where the views are much less stunning and cuisine is decidedly worse.

What is physical damage insurance?

Physical damage coverage. This pays out if your car is stolen or damaged by problems such as a car accident, vandalism, fire, flood, hail and falling objects.

What is a TIP in Mexico?

Get a Temporary Vehicle Import Permit (TIP). The Mexico Free or Border Zone is an area along Mexico’s northern and southern borders, including a large portion of Sonora, the entire Baja peninsula, and areas between 12 to 16 miles from the border in all other Mexican border states. Any travel beyond the Border Zone requires a TIP. If you travel outside the Border Zone without a TIP, your car could be confiscated and you could go to jail.

Does USAA cover Mexico?

For example, USAA has policies that extend coverage for trips to Mexico within 75 miles of the U.S. border.

What is the protection coverage for a rental vehicle?

Protection coverage for the vehicle rented includes Third Party Liability with a maximum cover for personal injuries and material damages.