Protecting Your Rental Car

One of the most common questions we get asked by people who are renting a car in Mexico is, ‘How much do the optional insurance coverage products cost?’

Third party insurance—which covers third parties but not the car renter in the event of a mishap—is compulsory by law in Mexico, and our car rental quotes always include this insurance.  Our quotes also include all the taxes and fees and unlimited mileage.  Rates start as low as $13 a day for an economy car.

Additional insurance products are optional, and can be purchased at the rental counter.

It’s a good idea to get yourself covered in addition to third parties, because if you don’t, you would be liable for the full retail value of the vehicle in the event that it becomes stolen or written-off in an accident.

Some credit card companies offer ‘rental car protection insurance’ automatically when you pay for the rental car using the card.  Precise coverage varies depending on the card company, so call them for advice.  If your card company does offer this useful perk, it can save you having to purchase additional insurances separately.

Here is a list of the different types of optional insurance products you can buy at the counter.  The prices noted alongside these are in addition to the daily rental fee and subject to change without notice; use them for general guidance. Mexican sales tax is currently 16%.

CDW – Collision Damage Waiver. This is an insurance product that covers the vehicle in the event of an accident or damage, with a 10% deductible.  The 10% is based on the full retail value of the vehicle, as new.  Approximate fee is US$30.00 + Tax per rental day.

LDW – Loss Damage Waiver. This is sometimes referred to as “full cover”, as it covers the vehicle for any accident or damage, as well as theft, and with zero deductible. Approximate fee: US$39.00 + Tax per rental day.

PAI – Personal Accident Insurance. This is an insurance product that will cover medical expenses for occupants in the vehicle, in the event of an accident.  If you have a travel insurance policy, you will most likely be covered already and there will be no need to purchase this. Approximate fee: US$3.00 + Tax per rental day.

ALI –Additional Liability Insurance. This insurance product extends the cover for damages to third parties up to $5,000,000 Mexican pesos. Approximate fee: US$13.00 + Tax per rental day.

TP – Theft Protection. This insurance product protects you in the event that the vehicle is stolen; it’s included with LDW if you purchase that, and some credit card companies will also cover theft of the vehicle in their policies; check the small print.  Approximate fee: US$13.00 + Tax per rental day.

Car rental itself is quite inexpensive in Mexico; it’s the insurance products which may be added on that can add significantly to your price.   If you are covered by other insurance products you have—e.g. travel insurance or credit card company insurance perks, you don’t need to concern yourself with these extras and you can enjoy low rates for car rental.  But do check the small print in all policies to ensure that they cover rental cars in countries other than your own, and that Mexico is not on any exclusion list.

We offer excellent rates on car rental in Mexico, using Hertz cars from all major airports and many main towns and cities across the country.

See Also: Guide to Renting a Car in Mexico | Guide to Driving in Mexico