Understand Mexican Auto Insurance Puzzle for Car Rentals

Car renting in Mexico is similar to renting in the U.S. You will find an array of models to select, but navigating through the country’s infamous mandatory insurance law needs to be researched carefully.

Image:mexicaninsurance.com

Similar rules for car rentals include -

·         Credit card

·         Driving license

·         Passport

·         Book a week prior to attain best rates

·         Drivers under 25 years pay more

·         Pickup & drop off, at the airport can cost 10% more

·         Check the vehicle and  mark every scratch or ding, so you never get charged

Remember Mexican car rental prices look amazingly cheap on websites, but insurance is not included. It can double or triple the rent price. Ignoring to invest is a foolish thing and is similar to buying a comprehensive package without being familiar of what you are buying.

Understand the Mexican car insurance puzzle

Various levels of coverage are provided by Mexican rental companies, but only one is obligatory and other products are optional.

·         Mandatory car insurance

Third party insurance - When renting a vehicle in Mexico, 3^rd party insurance is legally compulsory. It covers 3^rd party damages in case of collision, but does not cover renter’s liability for rented vehicle. Mexican authorities do not accept auto liability coverage issued in the U.S. or provided through credit car insurance. 

·         Optional insurance products

Collision damage waiver (CDW) - It covers the car damage in mishap with 10% deductible. This 10% charge is based on vehicles total retail value.

Loss damage waiver (LDW) - It is just like a full cover against damage or accident or theft with 0% deductible. In event of collision, you do not have to pay any damage caused despite the car’s value.

Personal accident insurance (PAI) - In this product, medical expenses of car occupants involved in an accident gets covered. However, you already carry travel insurance or some kind of health coverage so this is not needed.

Additional liability insurance (ALI) - The policy extends the coverage for damages to 3^rd party.

Theft Protection (TP) - Coverage against car theft is basically covered with LDW or several credit card agencies cover this aspect in the offered policies, if you use credit card for payments. Check if it is applicable in Mexico.

To make things short, renters are responsible for rental vehicle damage, even if it is not due to their negligence. Mexican authorities have a right to detain you till financial matters get settled. If you lack third party liability coverage, then your memorable destination will include time spent in Mexican jail for some time.

Remember that when you decline some coverage, because of credit card coverage, buying it will offer ‘legal help’ or ‘bail bond coverage’. This can keep you away from going to jail under specific circumstances. Therefore, check small prints in every policy to make sure they provide rental car coverage in foreign countries, besides your own. Make sure that Mexico is not added in its exclusion list.

If you are unsure about what kind of coverage to buy, then visit https://www.mexicaninsurance.com/ for more information. In the end, it is personal choice to buy optional insurance products, but make sure you get third party liability insurance policy written by a licensed Mexican insurance company.