One of the most common complaints from travelers renting a car from rental companies in Mexico is related to insurance. Many people book a car at an attractive price on the Internet, and already at the rental company’s desk they are faced with the fact that the final rental cost turns out to be much higher. The reason is almost always the same — additional insurance. It looks like they are forcing insurance.
Employees of rental companies often explain this by saying that regular car insurance issued in another country is not valid in Mexico. In most cases this is true or not entirely true. It’s just that most rental companies do not want to accept third-party policies, even if they formally operate. However, this does not mean that a guest of the state is obliged to buy the most expensive insurance package that the rental company offers him.
Mexican law requires that every vehicle have a minimum liability insurance coverage. It is called Seguro Obligatorio de Responsabilidad Civil Vehicular and covers damages to third parties. The minimum amounts set by federal law are P100,000 for personal injury or death and P50,000 for property damage. This basic insurance is usually already included in the car rental price.
The problem is that this level of protection is actually not enough. According to the Mexican Association of Insurers (Asociación Mexicana de Instituciones de Seguros), the average compensation for a fatal accident can range from 300,000 to 3,000,000 pesos. This is why rental companies often insist on purchasing additional insurance or require proof of other insurance.
Some travelers use insurance provided by their bank when they sign up for a credit card. Many banks offer this protection as a bonus for cardholders. However, in most cases it only applies to damage to the car or theft and does not include the two most important points — civil liability and bodily injury insurance. In addition, to activate such protection, you usually need to pay in full for the rental with that particular card and refuse the insurance offered by the rental company.
If a customer declines the rental company's insurance and relies on credit card insurance protection, he must be prepared for a large deposit that will be blocked on his credit card. In particular, National Car Rental has a minimum guarantee of about 10,000 Mexican pesos and up to 45,000 pesos. When purchasing insurance packages, the deposit can be reduced to 2000-4000 pesos. With Europcar, the deposit depends on the category of the car: about 5000 USD — for economy class and compact cars, about 7000 USD — for standard and SUV and up to 10,000 USD — for premium cars and vans. Rental companies always require credit cards as a guarantee and do not accept debit cards. This blocking is removed after the car is returned, but the money remains unavailable for the duration of the rental.
Basic insurance and credit card protection generally do not cover medical expenses for the driver and passengers. If there is an accident, you will have to pay for treatment yourself. It is for this reason that many visitors take out at least regular guest government health insurance before their trip. Such policies often cover emergency care and even medical evacuation.
There are options for purchasing your own car insurance before entering Mexico, which will be accepted by the rental company. But any insurance that operates in Mexico must be issued through an insurer licensed in Mexico. Even if you buy it abroad, the policy will still be issued by a Mexican insurance company. For this reason, "Mexico insurance" purchased abroad is usually a Mexican company policy sold through an international broker.
Car insurance can be purchased online abroad, but the insurance company — Mexican. For example, such policies are offered by Quálitas, Grupo Nacional Provincial, MAPFRE and others. Such policies typically cover general liability, medical expenses for the driver and passengers, legal fees and liens, and damage or theft of the vehicle. This purchase scheme is especially popular among Americans who travel to Mexico by car.
Large international insurance brands also sell auto insurance for Mexico («Mexico auto insurance»). For example, Liberty Mutual, AAA, AXA. These will still be policies from Mexican insurers, but sold through the foreign insurer's own network. Typical coverage of such policies — third party liability, vehicle damage or theft, fixed deductible.
Car rental insurance can seem like a waste of money, especially if the trip is uneventful. But if something goes wrong, not having enough insurance coverage can cost you significantly more than the vacation itself.