Car Rental Insurance

Renting a car in Mexico is more expensive than renting a car in the USA. The principal reason for this appears to be the additional cost of the insurance required to protect the vehicle.

When you book a Mexico car rental online, the fee presented on-screen includes a basic insurance policy.   If you don’t extend that basic cover, in the event of an accident, theft, fire or total loss of the vehicle, the rental company will present you with a excess charge, usually based on a percentage of the commercial value of the vehicle ‘as new’.  The fee is usually between seven and twenty per cent of that amount, depending upon the vehicle type and the agency’s terms.

For example, if the car you’re renting has a commercial value of US$15,000, and the car rental company requires you to cover ten per cent of the vehicle’s value in case of any damage or loss, your excess fee would be US$1,500 in the event of any mishap.

When you arrive at the rental counter, you will have an option to “top up” the basic insurance which either limits the excess fee or provides “full cover” for the vehicle.   These options are essentially additional insurance products and the fees can double the price of your initial car rental quote.

You might have a charge card that covers you for car rental insurance when you use the card to settle the purchase.  The cards which provide this type of insurance usually carry a premium fee of their own – check with your financial institution for details.  In the event that you use a separate insurance policy (whether provided via charge card or other means) to provide “top up” cover for your rental vehicle, verify that it’s valid for rentals in Mexico and also find out what the arrangements are in the event of an accident or loss – you may need to pay the rental agency’s hefty excess fee up-front before your insurer reimburses you.  If you don’t take out additional insurance you’ll be asked to sign a section on the rental agreement that makes you explicitly responsible for the vehicle whilst it’s in your care.

Whether you obtain an online quote for car rental with Mexperience (we work via an agreement with Europcar in Mexico) or any other agency, the quote you see won’t include the “full insurance cover”, so keep this in mind when you budget for your car rental in Mexico.   The exact cost of the additional cover varies depending on the vehicle type and duration of the rental, and you’ll be presented with additional cover options when you arrive at the counter to receive the car.  As a rule of thumb, if you double the price you are quoted online, you should find that the total rental price, with “full cover” included, should be slightly less than that.

Our guides to Driving in Mexico and Car Rental in Mexico give comprehensive advice and tips about taking a road trip and renting a car.