Driving in Mexico is relatively straight forward. We like to recommend renting a car. It’s an easy way to get around and with so many things to see and dirt roads to explore having your own car can make your time here that much richer.
While driving is easy enough, choosing your rental car and sorting through insurance and additional fees at pick up takes some planning ahead. We don’t want you to second guess your choice to rent a car. We want to encourage you arrive at the rental counter armed with information and a good plan.
Quick Tip from LG Team: When renting vehicles, we like to choose an agency (usually not an international brand) which INCLUDES insurance in the rate. Be sure to read the fine print disclosing exactly which types of insurance are included. Renting from an agency which includes insurance costs in the posted rate can go along way in avoiding the stress and frustration of unexpected costs at pick up. The LG Concierge Team works with excellent car rental agencies, who fully disclose their rates prior to rental. Contact our Concierge Team today. We can help!
All drivers are required to have liability insurance.
Knowing this before you arrive at the rental counter will alleviate the frustration travelers feel once they discover that advertised low daily rates can be very misleading. If an accident does occur, the Mexican legal system is much less lenient than you may be accustomed to. No matter how careful you are while driving, some things will be out of your control. It’s possible, that if you are in accident while in Mexico authorities can arrest you and impound your vehicle until they can determine who is at fault and financial damages can be covered. Liability insurance that may be provided by your credit card will not be recognized in Mexico.
If you are determined to be at fault, you could be detained until money matters are settled. For this reason, car protection and liability insurance is so important. Having the proper insurance will ensure that there is proper and sure means of payment. Therefore, mandatory car insurance is simply “proof of financial responsibility” ensuring that damages from an accident can be paid. Without insurance, paying for the damages will take longer to resolve and certainly interrupt your vacation.
When you arrive at the rental car, your agency representative will present you a brief description of insurance coverage available along with the additional charges for each type. Third Party Insurance is mandatory. You can decline other optional insurance types, but you may find that the rental car agency will place a $2,500 US hold on your credit.
Types of Insurance
MANDATORY: THIRD PARTY INSURANCE (TI) This basic personal liability insurance that will satisfy the mandatory insurance requirement. 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. You will still be liable for any damages to your vehicle.
OPTIONAL: Supplemental Liability Insurance (SLI): This is additional liability insurance that protects the renter against claims made by a third party for -bodily injury- and/or property damages sustained due to an accident while the renter is operating a -rental vehicle-.
OPTIONAL: 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.
OPTIONAL: Personal Accident Protection: This is monetary compensation in the event of invalidity or death of the driver. If your health insurance doesn’t include ambulance, doctors, and hospital, you might find this useful.
Car rental rates, with optional insurances included, are really no more expensive in Mexico than in the US or Europe. The frustration people might encounter usually comes from being unaware of the additional fees they will face at the service counter. We encourage you to plan ahead and read the fine print so that you know what you should expect to actually pay in rental fees and deposits when you pick up your car.
Quick Tip from LG Team: When receiving your rental car, pay close attention to vehicle inspection. Make your own notes and TAKE YOUR OWN PHOTOS. This will help to avoid any disparites when returning your vehicle.