Mexico Rental Car Insurance

A traveler in Mexico might delight at the low cost for renting a car inside that country. Such a traveler could well fail to notice mention on the rental agreement of a CDW, a Collision Damage Waiver. The renting agency typically describes the CDW as an inexpensive way for the renter to forestall any problems that might arise in the event that the rented vehicle became damaged.

That description is not entirely incorrect. The CDW does protect the renter from possible problems, problems that could result from involvement in a car accident. The CDW, however, has not truly earned the "right" to carry the sign "inexpensive." The CDW jacks up the amount of money owed by the renter. The purchase of Mexico rental car insurance offers the renter a money-saving alternative to the CDW.

How much can a renter save by purchasing Mexico rental car insurance? Can the renter hope to reduce his or her total costs by 20%, maybe even 25%? Actually, the renter has good reason to hope for even greater savings. The purchase of Mexico rental car insurance can reduce by 1/3 to ½ the amount of money spent on obtaining and insuring a rental car.

An American renting a car in Mexico should expect to pay about $9 per day for Mexico rental car insurance. There is usually a one time fee of around $3 added to that daily charge. When added to the cost of the rented vehicle, the rental fee and insurance expenses fall below the combined cost of a rental fee and a CDW.

The renter who purchases Mexico rental car insurance must sign a rental agreement. That agreement states the names of all the drivers covered by the rental car insurance. If someone other than those named on the agreement drives the rental car, and if that person is involved in an accident, the Mexico rental car insurance will not cover the resulting damage.

Suppose that you rent a car in the States, drive to Mexico and buy Mexico rental car insurance. Then suppose that you get stuck it a rut and a Mexican national gets behind the wheel, in order to help you extract the rental car from that rut. That "free" help could become expensive, especially if the rental car were to become damaged. Mexican law prohibits a Mexican national from driving a foreign registered vehicle.

When the renter can make a valid claim, and when the insurance provider does agree to cover damages, the renter will still be expected to come-up with some money. That money would cover deductibles, any fines charged by the Mexican authorities, and any other charges relating to the operation of the rented vehicle.