How to Avoid Paying Car Rental Insurance in Mexico | Expert Tips

If you’re going to Mexico, you’ve undoubtedly considered hiring a vehicle. Thus, we have made this post to assist you how to avoid paying car rental insurance in Mexico. Every area of Mexico has its distinct communities, historic sites, and varied landscapes ranging from hills to jungles and beaches.

Car travel is one of the most acceptable methods to see the nation at your leisure. While you may not need a vehicle in a big city like Mexico City or Guadalajara, a rental car is necessary to explore less populated areas of Mexico like Quintana Roo, Yucatan, or Chiapas.

Despite the abundance of Mayan ruins, beaches, and natural wonders, these places lack adequate private transportation. As a result, it’s essential to figure out how to avoid paying for auto rental insurance in Mexico. Please join us!

Is Renting a Vehicle in Mexico Risky?

How To Avoid Paying Car Rental Insurance In Mexico

While it’s understandable to have worries about safety if you’ve never hired a vehicle in Mexico before, remember that there is a lot of misunderstanding regarding the subject?

Unfortunately, a lot of it gets propagated by individuals who have never done it and have a lot of unwarranted prejudice. We’re here to assure you that renting a vehicle in Mexico is entirely risk-free. However, this does not imply that you may relax your guard and disregard common sense.

To ensure your safety throughout your vacation, familiarize yourself with the area you want to visit. While tourism is a significant sector in Mexico, certain areas do not vacation due to violence. You must conduct your research before picking where to go.

How to Avoid Paying Car Rental Insurance in Mexico

How To Avoid Paying Car Rental Insurance In Mexico

You can avoid paying car rental insurance in Mexico through the following ways:

Make use of your credit cards insurance.

Rental automobile insurance is available on many credit cards. This insurance is ordinarily secondary to your vehicle coverage, so you’ll have to submit a claim with your insurer first. (Only a few credit cards come with primary insurance.)

It may, however, cover deductibles or charges not covered by your car insurance, such as loss of usage. However, you should be aware of limitations, including rentals in some international countries.

This is in addition to using cars such as big trucks or full-sized vans and driving on gravel roads. This option may also exclude full-time students from buying automobile rental insurance in Mexico.

It usually covers expenditures linked to the rental automobile, but not other cars you damage or persons or property you harm in an accident, as with most third-party coverage. When you look at the coverage supplied by some of the most popular credit cards, you’ll see that the following items aren’t covered:

  • Destruction to any car other than the rental vehicle
  • Damage to any property other than the rental vehicle
  • An injury to someone or something.

The primary thing to remember is that you must study the fine print to know what isn’t covered when you go to the rental vehicle counter. If you’re considering applying for a new credit card with rental vehicle coverage, remember that your credit score will have a role in whether or not you’re accepted. You can know where you stand by checking your credit ratings.

Invest in private third-party insurance.

You may get Third-Party Private Coverage instead of purchasing automobile rental insurance in Mexico because of the high cost.

You can typically add rental vehicle coverage with this option for a modest extra charge. However, it generally does not cover everything, much as credit card coverage.

Additionally, even if you do not obtain travel insurance, you may get coverage from a third party. For a fixed cost of $19.95 or $24.95 per rental, American Express cardholders may purchase “Premium Rental Car Coverage” for most rentals (not per day).

There is no deductible, and it is primary coverage. It also includes supplementary coverage for unintentional death and secondary medical expenditure coverage. It also covers automobiles that don’t get covered by the standard automatic coverage.

Other third-party services usually charge $7.99 a day for rental vehicle coverage covering damage and theft. This is in addition to the no-deductible personal effects coverage. However, it does not contain supplementary liability coverage or private accident insurance, as does other third-party coverage.

As a result, you’ll want to ensure you’re insured appropriately via your insurance policy. 

Driving in Mexico: Tips

How To Avoid Paying Car Rental Insurance In Mexico

Apart from learning how to avoid paying car rental insurance in Mexico, there are other tips you need to be aware of. It’s time to go on the road once you’ve rented a vehicle. You should be aware that driving in Mexico is relatively simple, but there are a few stipulations. The following suggestions will be very beneficial to you:

Keep an eye out for speed bumps.

In many places of Mexico, speed bumps are ubiquitous, particularly around crosswalks and bus terminals. Some of these speed bumps are relatively tall, and if you strike them at full speed, they may do severe damage to your car. Although road signs usually indicate speed bumps, you should always slow down when driving through Mexico’s cities and villages.

Don’t try to save money by pumping your petrol.

When you arrive at a Mexican gas station, an employee will fill your automobile with gas. Make sure to tell them how much petrol you’ll need and how much it will cost before they start.

Also, since many employees working at gas stations get paid minimum pay, you may leave a little tip before leaving.

Expect to be stopped at military checkpoints.

Military checkpoints are prevalent in Mexico, particularly along the country’s tourism routes. If requested, be ready to stop and open your car for examination. Unless you manage to raise suspicion, you will most likely be asked a few easy questions as a tourist.

Grab some Spanish.

When it comes to traveling throughout the nation, knowing some basic Spanish may be a game-changer. It will assist you in communicating in petrol stations, restaurants, travel companies, and other locations.

The farther you go away from a tourist area, the fewer people speak English. As a result, knowing a little Spanish might come in handy. The last thing you may want is to get stranded without knowing what to say or having to use your phone to translate a simple sentence. Several useful applications might assist you in learning Spanish in advance of your trip.

Carrying cash is a brilliant idea when driving in Mexico, from tipping gas station personnel to giving a few dollars to strangers who may come up to wash your windows while you are stuck in traffic. In addition, street vendors selling beverages and snacks on the roadside only take payment.

In Mexico, kilometers are used instead of miles.

If you are visiting Mexico from the United States, you should know that the country utilizes kilometers rather than miles. A mile is about 1.6 kilometers long. However, the best way to avoid trouble is to stick to the posted speed limit when driving.

Make use of toll roads

Toll roads aren’t the cheapest option (you’ll need cash in your car to pay), but they’re the best if you’re traveling between large cities and need to get around quickly. They are also safer to travel than more minor side roads. They’re also safer for your car because they’re free of potholes.

Stick to the rules

Following the rules is your primary option for staying out of trouble. Wear your seatbelt, stick to the posted speed limit, and put your phone down. This will allow you to avoid unwanted attention and getting pulled over by the cops.

Take a daytime drive

Depending on which part of Mexico you want to visit, you may wish to stick to daytime driving. Some places of Mexico get regarded as less safe than others, so make sure you have the most up-to-date data before you go. If you’re visiting Mexico from the United States, look up information on the US State Department’s website before you go.

Frequently Asked Questions

Can I avoid paying car rental insurance in Mexico?

Yes. You can avoid paying car rental insurance in Mexico through the tips highlighted above.

What is the cost of renting a vehicle in Mexico?

The cost of renting a vehicle in Mexico varies based on the season and the location. A rental automobile with full insurance coverage, on the other hand, should cost about $40-45 per day.

When renting a vehicle in Mexico, do I need additional insurance?

No. You won’t need to get additional auto insurance from the rental car provider. Because your vehicle insurance may cover a rented automobile, this is a good idea.

If you have such coverage on your insurance, it might assist pay for the rental car’s repairs if damaged in an accident. A deductible will apply once again.

How much does Mexican vehicle insurance cost?

The cost of Mexican auto insurance varies depending on the business, but you should budget $20-25 per day for primary liability and $40-45 per day for comprehensive coverage.

Full coverage (the most costly option) has no deductible so that you won’t be liable for any damage. However, minor problems like missing keys or broken tires may not get covered by the insurance, which is why you must check all the specifics with your agent.

Typically, a vehicle rental firm places a hold on your credit card (about $200-300 USD) and then releases it after you return the car without any damage.


In conclusion, insurance, insurance comes with various merits. But if the price tends to be relatively high, you can skip it. Thus, the above highlights how to avoid paying car rental insurance in Mexico will aid you immensely.


Adam Grabois is an expert in all aspects of Insurance and Property with 20 years of experience. He is a licensed broker of all lines including property, casualty, life, and health. As a licensed adjuster, he is well-versed in all aspects of insurance, and he owns All Needs Insurance agency in Florida.

He attended Tufts University where he earned his undergraduate degree, followed by a Master's degree from Columbia University.

Adam shares his breadth of experience by helping many businesses and individuals manage risk and protect themselves financially. He now shares this with the audience of the "Pro Insurance Info" website.

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