Ultimate Guide To Renting A Car In Mexico In 2024

Renting a car in Mexico is an amazing (and underrated) way to explore the country. And if you know what you’re getting into, driving in Mexico can actually be a totally safe and enjoyable experience.

The truth is that driving in Mexico can be relatively easy. Unfortunately, renting a car can be filled with confusion and frustration – even for seasoned travelers. In fact, Mexico is probably the trickiest country we’ve ever experienced when it comes to renting a car. It can be overwhelming at best – and downright scammy at worst.

Finding reputable car rental agencies, dealing with pushy employees, and understanding the laws related to car insurance in Mexico can be frustrating for both Mexico first-timers and regular visitors.

But don’t worry!

After spending nearly six months in Mexico over the past few years (and counting), we’ve had our fair share of rental car adventures. And we’ve experienced it all, from the good, the bad, and the ugly!

And this post will share everything you need to know about renting a car in Mexico, including all the necessary tips to ensure a stress-free and enjoyable experience.

1. The Truth About Car Rental in Mexico

Alright, time to talk about the challenges you might face while renting a car in Mexico. It’s always best to be prepared, right?

Before you drive around in Mexico, be prepared to face one or more of these unique issues when renting your car:

This one is probably the most confusing issue when it comes to car rental in Mexico. And it can leave many people feeling like they’ve walked head-first into a terrible scam.

In short, you will be required to purchase (at least) third-party liability insurance from the agency in Mexico. This is Mexican law, and there is no reason to try and argue this point with the rental agencies.

Car rental tip: in Spanish, third-party liability insurance is known as ‘seguro de daños a terceros’ or ‘responsabilidad civil por terceros.’

Also, car rental agents will often insist that you also purchase primary insurance from them. Even if you get insurance via your trusted car rental site or have insurance through your favorite travel credit card, they will tell you that the insurance is not valid and that you MUST purchase from them.

Our recommendation is that you avoid purchasing insurance from anyone but the agency, itself.

I’ll share more details about car rental insurance in the section below ⬇️

💸 Prices are higher than they appear

You may be surprised by the low prices presented when researching car rentals in Mexico. However, those ultra-cheap results likely won’t include the additional insurance that you’ll be required to purchase. And the cost of insurance can run between $20 – $40 US dollars, per day!

This can increase the final cost of your car rental by up to 100%. And you’ll have no idea until you walk into the agency ready to drive around Mexico 😡

📅 Single day rentals are hard to come by

Many smaller agencies have a 48-hour minimum for their rentals. This is particularly frustrating when looking to go on a quick day trip to less popular Mayan ruins, remote beaches, or wherever else your Mexico adventures take you.

There’s not much you can do about this besides for researching on sites like DiscoverCars.com for agencies that do offer 24-hour rentals. Larger international agencies will be more likely

🤦‍♂️Opening hours can be wrong

This was one of the most frustrating parts of renting a car in Mexico, for us personally.

There were times when we booked a rental car from familiar international companies, had a confirmed booking, and then arrived to pick up our car to find the location closed.

In short, confirm the agency’s business hours, especially if picking up or dropping off on a Sunday. And be certain that the agency offers after-hours drop-off if that’s something you need.

🚙 The car you booked might not be there

‘What do you mean there’s no car? I reserved a car weeks ago!’

This situation happened to us, and it is a reality of renting cars in Mexico.. Thankfully we were picking up from the airport and there were other agencies around that were able to help.

How do you avoid frustrating situations like missing cars and hidden costs? Well, the best thing you can do to have a positive car-rental experience is select the highest-rated agency when searching on for the best rental car for you.

There is no substitute for dealing with a respectable company when renting a car in Mexico.

2. All About Rental Car Insurance in Mexico

As mentioned above, car rental insurance is ultimately what makes renting a car in Mexico unfamiliar and confusing.

But being prepared with the knowledge of Mexico’s unique car-rental laws and regulations will give you the confidence to manage the process in a calm and stress-free way.

So with that, here’s what you need to know about the basic car insurance types, and how they apply to Mexico

• Limited Third Parties Damage Protection (TPL): this insurance provides civil liability coverage for damages to third-party property or individuals. This is mandatory insurance!
  • Liability insurance obtained through third-party travel websites, as well as credit card or debit card insurance, are not accepted as valid coverage.
• Supplemental Liability Insurance (SLI): optional insurance that increases the coverage amount of third party liability insurance (TPL).
  • SLI is particularly useful if the TPL coverage is low, and if the credit limit on your credit card is low (see note in italics below).
• Collision Damage Waiver (CDW): this insurance covers material damage of your vehicle, and is the rental insurance offered by many credit card companies. This can also be referred to as Loss Damage Waiver (LDW).
  • This insurance is sometimes mandatory… huh? Yes, sometimes agencies in Mexico invent their own rules. It’s best to just go with the flow and get it through them. If you are able to convince them your CDW coverage is legit, they will put a larger deposit on your credit card.
  • Having proof of your credit card’s CDW insurance in Spanish may or may not result in the local agency accepting the coverage and providing you the vehicle. It is possible that they don’t give you the car, or they will opt to put an excessive deposit on the vehicle.

Important: car accidents in Mexico are treated as crimes, and resolving the costs and liabilities or resolved on site. Make sure you have enough credit limit on your card to pay for damages on the spot, before filing for reimbursement later. If you don’t have a large credit limit, purchasing additional liability insurance (SLI) is recommended.

Do you loved Mexico? Read these posts next:

• Yucatan Peninsula: 30 Things To Know About The Yucatan Peninsula Before You Go
• Oaxaca City: 35 Things Nobody Tells You About Visiting Oaxaca, Mexico
• Isla Holbox: 10 Things Nobody Tells You About Holbox Island (We Didn’t Like it)

3. How to Simplify Car Rental in Mexico

In addition to insurance-related issues, another challenge could be finding a car for your specific dates. Especially in popular tourist towns like Cancun, Playa del Carmen and Cozumel.

So how do you deal with these things?

Well, reading this post is a great start!

Your next step should be to visit our favorite car rental site for booking a car in Mexico – DiscoverCars.com.

Here are the essential tips for renting a car with DiscoverCars:

• Filter for highly-rated agencies! We recommend booking with agencies rated 8 and above, whenever possible. They won’t always be the cheapest, but you won’t be faced with hidden costs and sketchy rental agencies.
• Make sure you know what insurances are included in the base cost. Third part liability insurance is unlikely to be included in the price, regardless of rating. You will likely have to pay between $15 – $30 over the base rate for the mandatory insurance.
• Book in advance to ensure they have sufficient inventory. Airport agencies are more likely to have a larger number of vehicles.

Getting a checklist ready to rent a car in Mexico is fairly straightforward, but there are a few essentials you’ll need:

• 🪪 Driver’s license: Most rental companies accept foreign driver’s licenses, so you won’t need an international driving permit if you have a valid license from your home country.
• 🛂 Passport: Though not always requested by the agency, it’s best to bring your passport in case they do.
• 🗓️ Minimum age: Drivers must generally be at least 21 years old, though some companies may charge extra fees for drivers under 25. Make sure to read the fine print if this is relevant to you. Some do require the driver be 25 or older.
• 💳 Credit Card: A credit card is typically required to place a security deposit. The deposit amount can vary greatly depending on the agency. If are able to decline primary insurance with car rental agency in Mexico, a larger deposit will be held on your card until you return the vehicle.
• 🚗 Insurance: Again, liability insurance is mandatory in Mexico. Make sure to clarify what’s covered.

Okay, so despite the challenges, it’s still totally worth making the effort to travel around Mexico with your own car.

Renting a car in Mexico offers the freedom to explore off-the-beaten-path destinations that are not always easy to reach by bus, taxi or Uber. Whether you’re heading to secluded cenotes near Merida, beating the crowds at popular Mayan ruins, or exploring hidden beaches, having your own car means you can take things at your own pace.

We loved driving through remote and undiscovered parts of the Yucatan Peninsula, and we were very pleasantly surprised by the ease of driving though this part of Mexico.

6. Where to Rent a Car in Mexico?

Our favorite place to look for great prices on rental cars in Mexico is Discover Cars.

Through Discover Cars, you can easily filter for highly-rated agencies, find the most appropriate pick-up location for you, and book your perfect car with confidence.

Remember, booking from airport locations can show higher prices, but they typically have a larger inventory of vehicles. Airport rental agencies will likely give you a greater probability of having the car you need. On the other hand, city locations might be best when looking for a last-minute rental close to your accommodation.

7. Nine Essential Tips for Driving in Mexico!

1. Protect yourself from scams: Make sure to point out any damage to the car to the rental agent when reviewing the state of your vehicle and take photos and a video of the damage before you leave the lot!
2. Traffic Laws: Obey local traffic laws (duh). Seatbelts are required, and speed limits are posted in kilometers per hour. You may encounter police checkpoints, which are routine in some areas.
3. Road Safety: Toll roads (known as cuotas) are generally well-maintained and safer than free roads (libres), which may have more potholes or be less direct. Avoid driving at night in rural areas, as roads can be poorly lit and animals may wander onto the highway.
4. Drive Defensively: Some drivers may not follow traffic to the same extent as in your home country. Stay alert, especially in busy areas and on rural roads.
5. Speed bumps: known in Mexico as ‘topes,’ these giant mounds of asphalt are often hard to see and they will destroy the bottom of your vehicle if you aren’t careful. Pay attention for signs stating ‘topes,’ and generally assume that they will be present when driving off the highway.
6. Carry Your Documents: Always have your driver’s license, vehicle registration, proof of insurance, and identification with you. Police may stop you to check these documents.
7. Gas Stations: In Mexico, gas stations are full-service. That means an attendant will fill your tank for you. Be sure to tip a small amount (10-20 pesos). Watch closely to make sure the pump is set to zero before the attendant starts to avoid any misunderstandings or overcharging.
8. Parking: Always park in well-lit, populated areas, and when possible, use paid parking lots or garages. Avoid leaving your car on the street overnight in unfamiliar neighborhoods.
9. Put away your things: Don’t leave valuables in plain sight when parking your car, or better yet, don’t leave them in your car at all.

8. Car Rental in Mexico FAQs

🚨 Is it safe to rent a car in Mexico?

We never felt like our personal safety was ever at risk when driving around Mexico. Main roads and highways are generally in good condition in popular areas, and excessive traffic is really only a probably in and around major cities.

The biggest concern for the average person driving in Mexico are hidden speed bumps that can launch your poor rental car into the sky. Don’t say we didn’t warn you!

💨 How fast can you drive?

Speed limits in Mexico vary depending on the area, typically ranging from 40 to 110 km/h.

In urban areas, the limit is usually 40-50 km/h, while highways generally allow 80-110 km/h. On rural roads, speed limits often range between 60-90 km/h. It’s easy to move between different speed zones without realizing it, so be sure to pay close attention to road signs to stay within the legal limits.

🚔 What if police pull you over and ask for a bribe?

Thankfully, this situation has never happened to us, and it is statistically unlikely that you will be pulled over by corrupt cops.

But as always, it’s good to be prepared.

If you are pulled over by sketchy police looking to shake you down, having the appropriate documents and insurance will reduce the risk of them suggesting you owe a fine. However, don’t hand them your passport or driver’s license – because you won’t have an easy way out of your predicament if they have leverage over you.

Also, don’t have a large amount of cash stashed in a place where the officer can see what they are after. That will only encourage them to keep pushing.

Furthermore, stay calm and kindly ask for a written citation. This is like calling their bluff. These citations are legally meant to be paid by mail or at the police station, and they will need to join you to the police station for it to be settled there.

Finally, record the time and location of the incident, including the police vehicle identification number and the police officer’s badge number.

🤷 Is driving in Mexico difficult?

This answer to this question depends on what part of Mexico we’re talking about.

For example, roads in the Yucatan Peninsula are generally in good shape and are surprisingly quiet outside of areas like Cancun and Tulum. Contrast that to the traffic-filled streets around Mexico City or Guadalajara, and it’s like comparing apples to oranges.

Driving through the big cities is probably not recommended for anyone not already familiar with driving in countries with more aggressive driving styles.

🧭 Do I need a GPS when driving in Mexico?

Highways are generally well marked, but driving through towns and cities will definitely be confusing for first time visitors. We definitely recommend being prepared with some kind of map – like Google Maps – to make sure you don’t get lost.

You can use your phone’s GPS if you have international data service. Alternatively, you can download offline maps or add a GPS to your rental as an additional service.

Click here if you want to get local data coverage on your trip!

💰 Are toll roads common in Mexico?

Toll roads are extremely common, particularly between major cities. They are generally better maintained than other roads and driving Mexico’s toll roads can feel like driving anywhere else in the world.

Just be prepared to pay in cash at toll booths 😉

Final Thoughts: Is Renting a Car in Mexico Worth It?

Renting a car in Mexico is a fantastic way to see the country beyond the main tourist hubs. And despite the challenges outlined in this post, we still think the pros of having your own car far outweigh the cons.

With the proper preparation, a calm attitude, and an understanding of local laws, your road trip through Mexico can be a smooth and memorable experience!

Remember to check out Discover Cars for the best offers on rental cars in Mexico 🇲🇽

Let us know in the comments if you have any questions!

Thanks for reading!

Gordon

Want more tips on visiting Mexico? Read these posts next:

• Yucatan Peninsula: 30 Things Nobody Tells You About Visiting Mexico’s Yucatan Peninsula
• Cozumel Travel Guide: Travel Tips & Things To Do In Cozumel, Mexico
• Cozumel Beaches: Find Your Perfect Beach In Cozmuel With This Ultimate Guide
• Cancun vs Cozumel: Discover If Cancun or Cozumel Is The Best Beach Destination For You!