Renting a Car in Mexico in 2023: How to Avoid Scams

Renting a car in Mexico can be a breeze if you know what to do or a horrible experience if you don’t.

My first experience renting a car in Cancun, Mexico was a nightmare, but you could say that I have mastered the art after taking many trips to this beautiful country.

#1 Car Rental in Mexico

My Go-To Site for Renting a Car in Mexico: Discover Cars

Don’t get scammed on your next car rental in Mexico – learn from my experience and choose Discover Cars for reliable full coverage insurance at the cheapest rates. 

Find Car Rental Deals in Mexico With Discover Cars

In this article, you will find everything you need to know about renting a car in Mexico, including my tips on how to get the best car rental deal and what to watch out for when driving in Mexico.

You will also find a city-by-city guide that will help you determine which is the best option for you. Spoiler Alert: renting a car in Quintana Roo (Cancun, Playa del Carmen, Tulum) is safe while it may be better to hire a driver in Mexico City or Guadalajara.

Luxury under Budget aims at helping you get the best deals by maximizing the value of your time and money. My recommendations are based on first-hand experiences and the full analysis of costs vs. benefits. This post may contain affiliate links, but that does not affect any of my evaluations. If you do decide to make a purchase, I’d appreciate it if do so through my affiliate links to support my blog and enable me to provide more free and helpful content. Now, let’s go get you that luxury travel while staying under the budget!

My Horror Renting a Car in Cancun, Mexico

Imagine, reserving a car through a popular travel site like Expedia.com for a reasonable price, only to be told upon arrival that you need to buy a costly insurance policy to even pick it up. That’s exactly what happened to me when renting a car in Cancun, Mexico for the first time!

Despite having car rental insurance coverage included with my credit card, the car rental agency insisted that I purchase their insurance – for an outrageous extra $150/day.

I fought them tooth and nail for over an hour, presenting my credit card policy and explaining that it fully covered any possible expenses. But they still refused, telling me it wasn’t valid in Mexico.

Feeling frustrated and helpless, I spent two hours arguing with them. Ultimately, I had to agree to pay the extra or put down a deposit of $20,000. The total cost ends up costing four times what I could have paid with Discover Cars!

So, don’t let this happen to you! Protect yourself and your wallet by purchasing reliable car rental insurance before you embark on your next trip. Trust me, it’s a small investment that can save you from unnecessary stress and financial loss.

✔️ Full coverage car rental insurance starts at just $7 with Discover Cars

Renting A Car in Mexico FAQs

How to Rent a Car in Mexico

If you’re planning on renting a car in Mexico, it’s important to be aware of the country’s rental car policies. Here is a guide on how to rent a car in Mexico, including information on the required documents and fees.

1. Rent a car in Mexico if you’re 21+ (but ideally, 25+)

If you are 25 and older, you will be able to rent from any rental car company in Mexico without any restrictions. For drivers between 21 and 24 years old, most rental car companies will require a $10-$15 surcharge per day.

I have heard that some car rental locations in Mexico allow people under 21 and over 18 to rent a car. However, this is not guaranteed and may come with a hefty underage driver fee. To be sure, you can check the company’s policy and call the location ahead to confirm.

2. Find the best rental car company with a good deal

I highly recommend using Discover Cars to find available cars for your dates and make sure you add Mexican insurance as it is mandatory. Discover Cars searches all available companies at once to find you the lowest rate, and their full coverage insurance is cheap. Through Discover Cars, I often find that Sixt Rent a Car and America Car Rental companies have the cheapest rates, but Hertz and Avis have bigger cars and better customer service for comparable prices.

3. Bring a valid driver’s license with you for pick-up

You can rent a car in Mexico with a valid license if your country uses the Roman alphabet. Drivers from countries like Japan, Korea, and China, which use logographic characters, may need an International Driving Permit. The International Driving Permit (IDP) translates your driver’s license into 10 different languages, which allows you to drive in more than 150 countries.

Useful Tip: If you don’t have an International Driving Permit, you can try using the Google Translate app to translate your driver’s license. Simply take a picture of your license with the app and see if it recognizes the document as a valid driver’s license. Many car rental companies may accept this as an alternative.

3. Bring a credit card or debit card for pick-up

When renting a car in Mexico, you will typically be required to swipe your debit or credit card. This is because car rental companies want to have a record of your card information in case you damage the vehicle during your rental period.

Some companies require more money to be held on file than others, but it is typically in the range of $400 to $1,000 per car. If you don’t buy insurance, the rental car company may require you to put up to $20,000 on hold. If you purchase full coverage insurance, the hold may be as low as $100 – and in some locations, they may not even ask for a hold.

Useful Tip: Credit card is the better option to use when you reserve your car rental in Mexico. When you use a debit card, funds are immediately removed from your account. After you return the car, it will take a few days for the money to be refunded. In many cases, foreign transaction fees apply. On the other hand, if you use the credit card, the amount is just on hold – a pending transaction that won’t be posted in your account.

Rental Car Companies in Mexico

What are the top Mexican car rental companies?

All major U.S. car rental companies have offices in Mexico, such as Hertz, Alamo Rent a Car, Budget, Thrifty, Enterprise, and Avis Budget Group. You will also find Europcar – a French car rental company. If you prefer to use a Mexican company, you can check out Mex Rent A Car.

What kind of Mexican rental cars will you find?

In general, you can find the same brands and models in Mexico as you can in the U.S.car rental markets. Besides common brands in rental cars like Nissan, Kia, and Chevrolet, you may find Peugeot and Renault, both French companies, in the Mexican rental car market.

Can you rent a car in Mexico and drive to the U.S?

While most U.S. rental car companies allow customers to drive a rental vehicle into Mexico, few Mexican rental companies allow customers to drive a rental vehicle from Mexico to the U.S.

Mexican Car Rental Insurance

Do I still need to purchase Mexican Car Insurance if I have Auto Rental Collision Damage Waiver through my credit card?

Some travel credit cards, such as Chase Sapphire Preferred, will provide auto rental Collision Damage Waiver (CDW) as one of the travel protection benefits. In most cases, Collision Damage Waiver allows you to decline the rental car company’s coverage with confidence and still be covered. I have never had issues with the credit card’s auto insurance in any other country, but as I have told you above, Mexico was a different story.

In Mexico, it’s at the rental car company’s discretion whether they want to accept Collision Damage Waiver or not. Unfortunately, most car rental companies won’t. If you don’t purchase car insurance in advance and wait till you check in to pick up the car, they will charge a ridiculous amount of money for the insurance or require a security deposit of up to $20,000!

It’s honestly not worth the trouble of arguing with the rental car company, so I’d suggest you add insurance as you make the purchase online. If you book through Discover Cars, the insurance is actually very cheap, and it will save you a lot of headaches. The full coverage insurance option would allow you to essentially return the car in any condition, without having to pay anything.

Another thing to keep in mind is that if you opt for the auto rental insurance that comes with your credit card, you will still need to pay for all damages when you return the car in Mexico. On top of all this, filing a claim with the credit card company can take weeks or even months to complete. In some cases, you may not get the full reimbursement.

How much is Mexican car insurance per day?

From my experiences with Discover Cars, Personal Liability Insurance costs between $6-10 USD per day. The insurance covers against injury or damages to a third party in the case of an accident. For full coverage insurance where you will fully be covered, you can expect to pay about $7-15 USD per day.

With Personal Liability Insurance (sometimes called Third Party Insurance), you will be responsible for a deductible ($1000 to $5,000), whereas, with the full coverage insurance, your deductible would typically be $0.

What is a deductible with car insurance?

Just like with health insurance or any other type of insurance, a rental car insurance deductible is the amount of money you are responsible for paying before the insurance starts to chip in. For example, if you cause damage of $2,100 while your insurance has a $2,000 deductible, you will have to pay $2,000 deductible before the insurance pays the rest (which is $100 in this case) – which makes the insurance pretty much useless.

That’s why it’s important to purchase full coverage insurance with a low or $0 deductible. That way, if you do cause an accident, your insurance will cover the repairs and you won’t have to worry about coming up with the money yourself.

Discover Cars charges as low as $7 per day for full coverage insurance! ✔️BOOK NOW

Mexican Car Rental Scams

What is the Mexican Car Rental Scam?

Car Rental Scam often happens when renters do not read the fine print and are unaware of the additional taxes and fees. That can happen anywhere, not just in Mexico.

The most common Mexican Car Rental Scam is related to insurance. If you find a cheap car rental online for $5-$9/day – it’s most likely too good to be true.

If you forget to add insurance at check out and show up to the rental car location for pick-up, you will be charged an extra $50-$100 per day for insurance from the rental car company or be required to put down a $10,000-$20,000 deposit.

How to avoid this common Mexico car rental scam?

When renting a car in Mexico, it’s important to be aware of the extra costs that will be tacked on. Although rates that start as low as $5 per day are tempting, remember that this is just the beginning. You’ll need to add on taxes and fees, as well as the required Mexican car rental insurance.

To avoid getting scammed, don’t be tricked by the lowest price. Be sure to check what is listed in the price of the rental to see what is included. Did the price include taxes and fees? Did it come with insurance?

City by City Guide: Renting A Car vs Hiring a Driver in Mexico

Renting a car in Mexico is a safe and convenient way to explore this beautiful country. However, there are some places where it might be better to hire a driver instead. You can follow this city by city guide for more information on renting a car vs hiring a driver in Mexico.

🏖️ Renting a Car in Cancun (Quintana Roo, Mexico)

Cancun is the gateway to many popular vacation spots in the Mexican state of Quintana Roo, such as Playa del Carmen, Tulum, Coba and Xcaret – which are accessible by car. From Cancun, you can also reach Chichen Itza, one of the Seven Wonders of the World, in under three hours.

If you’re looking for convenience and affordability, the best place to rent a car in Cancun is at Cancun International Airport (where you will fly in and fly out) or Cancun Hotel Zone (if you stay at an all-inclusive resort in the Hotel Zone and airport transfer is already included). You’ll find a wide range of rental car companies there, with vehicles to suit all needs.

Is there Uber in Cancun?

Uber has been on and off in Cancun for a while due to so many protests from taxi unions. In 2023, Uber is not available in Cancun and Riviera Maya (the coastal region south of Cancun in Quintana Roo).

Do you need a car in Cancun?

With a rental car, you can venture off the beaten path to see Mexico’s lesser-known cenotes, ancient sites and Mayan Ruins. Not only will you have the freedom to explore on your own schedule, but you’ll also enjoy the convenience of having your own vehicle. Thanks to the excellent roads and signage in Cancun, you’ll be able to get around with ease.

However, if all you want is some sun and relaxation, skip the car rental. You can use taxis and public transportation to get around and book all-inclusive excursions to explore the most popular attractions and activities in Cancun.

Is it safe to rent a car and drive in Cancun, Quintana Roo?

There are plenty of rental car options available in Cancun and it’s a very safe place to drive. The roads in Cancun and the surrounding areas in Quintana Roo are very good and well-maintained, with the signs very similar to the US. Sometimes driving on the highways in Cancun make me feel like driving in Florida!

Just be sure to familiarize yourself with Mexican driving laws and to have your Mexican car insurance in order. By doing so, you will be prepared for any situation that might arise while driving in Cancun.

🏖️Renting a Car in Tulum (Riviera Maya, Mexico)

As you plan your vacation to Tulum and the surrounding area of Riviera Maya in Mexico, you will likely need a rental car to get around. The most convenient way for you to travel to Tulum is to fly to Cancun International Airport (CUN) – about 1.5 hour from Tulum or Playa del Carmen (PCM) – about 1 hour from Tulum.

There are several companies that offer car rentals at the airport that you can find on Discover Cars. Since there are more supplies at Cancun Airport, the car rental rates actually tend to be cheaper than if you want to rent a car in the small town of Tulum.

🏖️Renting a Car in Playa del Carmen (Riviera Maya, Mexico)

Right between the world-famous party town of Cancun and the eco-centric wonder that is Tulum, Playa del Carmen is a great option for anyone looking to enjoy the best of the Yucatan Peninsula and Riviera Maya. There are several car rental agencies in town, but again, you will likely find more rental car supplies and better rates in Cancun.

🌮Renting a Car in Merida (Yucatan, Mexico)

If you’re looking to explore all that Merida and the surrounding area have to offer, renting a car is the best way to go. There are plenty of rental options at the airport – Merida International Airport (MID), so it’s easy to get started on your adventures.

Within just two hours of the city, you can visit Chichen Itza and other ancient archaeological sites, or find some fantastic beaches with snorkeling and diving opportunities.

And when you need a break from the sun, don’t miss out on the magical town of Valladolid and the enchanting pink lakes of Las Coloradas. So if you’re looking for adventure, history, or simply some time to relax under the sun, there’s something just around the corner from Merida.

The roads on the highway are mostly fine, but local roads can be a little rocky. Other than that, it’s quite safe and easy to drive in Merida.

🌮Renting a Car vs Hiring a Driver in Mexico City

If you’re looking to rent a car in Mexico City, the Mexico City Airport (MEX) is your best bet. There are plenty of rental agencies at the airport, so it’s easy to find what you need.

However, traffic in Mexico City is notoriously bad and parking can be difficult to find. My heart jumped a few times when I saw drivers aggressively change lanes without signaling. If you’re a new driver, it may better for you to hire a driver in Mexico City.

When visiting Mexico City, don’t forget to check out Teotihuacán and the spectacular natural hot springs at Las Grutas Tolantongo!

Is it safe to drive in Mexico City?

While it is generally possible to drive safely in Mexico City with caution and preparedness, there are certainly some challenges and risks to consider. Drivers in Mexico City can be aggressive and may not always follow traffic laws, which can make the roads chaotic and unpredictable. If you are not experienced with driving in such conditions, or if you are not comfortable driving in busy cities, it may be safer to hire a driver or use other forms of transportation.

What to consider for driving in Mexico City?

• Traffic can be heavy and congested, especially during rush hour. Be prepared for slower travel times and allow extra time for your trip.
• The roads and infrastructure in Mexico City may not be up to the same standards as in some other cities. Watch out for potholes, uneven surfaces, and other hazards.
• It is not uncommon for drivers to ignore traffic laws and signals in Mexico City. Be extra vigilant and expect the unexpected.
• If you are involved in a car accident, it is important to remain at the scene and call the police. Do not try to resolve the matter on your own, as this can lead to further problems.

How to hire a driver in Mexico City?

You can hire a private driver to take you from Mexico City airport to Mexico City Center for as low as $52/per car. After that, you can negotiate with the driver to take you on day trips to explore Mexico City – which I find to be the cheapest and safest way to hire a driver in Mexico City.

I used the airport transfer through Viator so that I can read the reviews of the past customers and have peace of mind that this driver has been verified. On the other hand, you can also just pick up a taxi and start negotiating, but to be honest, this is much riskier.

A common scam with hiring a taxi driver in Mexico City is that the taxi driver may agree to a rate but turn on the meters, and then ask you to pay what’s on the meters instead.

What is the cost to hire a driver for a day in Mexico City?

Using the method I mentioned above, we managed to pay $80/day (8 hours) and extra for tolls. We didn’t go very far out of the city but did have a lot of stops throughout the day. Depending on the distance, you may expect to pay higher to hire a driver for a day in Mexico City.

🏖️Renting a Car in Puerto Vallarta (Jalisco, Mexico)

Puerto Vallarta is a resort town that has something for everyone, from beautiful beaches and snorkeling to world-class sailing and vibrant nightlife. The most convenient way to rent a car in Puerto Vallarta is from the airport (PVR). It is generally safe to drive in Puerto Vallarta, and if you’re up for adventures, you can take the car to explor Sayulita.

🏖️Renting a Car in Cabo San Lucas (Baja California Sur, Mexico)

Cabo San Lucas is a beautiful resort town in Baja California Sur, Mexico. Renting a car from the airport is easy, and from there it’s only 45 minutes to the town center. There are plenty of things to see and do in the surrounding areas of Cabo, so you may want to consider having a car for at least part of your trip.

🏖️Renting a Car in La Paz (Baja California Sur, Mexico)

When it comes to sun-soaked beach vacations on the beautiful coast of Baja California, Cabo San Lucas is a popular choice. But if you’re looking for something a little less crowded and more off the beaten path, then La Paz just might be the place for you.

Unlike Cabo San Lucas, La Paz offers smaller beaches, more natural beauty, and a slower pace of life. In fact, with its many scenic beaches and colorful colonial architecture, La Paz feels like a tiny slice of old Mexico. Plus, with plenty of sunshine and warm weather year-round, La Paz is undoubtedly one of the best places to go beach hopping on the Baja Peninsula.

It’s definitely worth renting a car if you want to visit all of the different beaches in La Paz as they are quite spread out. Playa Balandra is one of the most popular beaches and is about a 45-minute drive from the center of town.

Is there Uber in La Paz, Mexico?

There is Uber in La Paz, Mexico but it can be very stressful to connect with the Uber drivers at the airport when there are so many taxi drivers around who follow you and try to make you take a their ride. Some taxi drivers can get very aggressive when they realize you’re taking an Uber. So, at the airport, it’s better for you to book a private transfer in advance or rent a car. If you insist on taking Uber, try to walk out further away from the taxi stands.

🌮Renting a Car vs Hiring a Driver in Guadalajara, Mexico

Guadalajara is a city in western Mexico, known for tequila and mariachi music. Driving in Guadalajara is somewhat like driving in Mexico City, which requires you to not only know the laws, but also the rules (many reckless drivers around!).

In addition to people who do not signal when they turn, you will find many traffic circles and not well-marked streets. For that reason, I also recommend you to hire a driver in Guadalajara.

What is the cost of hiring a driver in Guadalajara?

You can hire a private driver to take you from Guadalajara Airport to the hotel for for as low as $26 for up to 3 people. After that, you can negotiate with the driver to take you on day trips. This way, you can avoid the scams related to hiring a driver in Guadalajara because your private driver is already verified by Viator. In addition, because you can always leave a review of the driver, they tend to serve you better in exchange for good reviews.

10 Tips for Renting a Car and Driving in Mexico – What You need to Know

If you plan on renting a car in Mexico, take some precautions to protect yourself and your vehicle. Here are some tips to help you have a smooth experience!

1. Don’t fall for the extra insurance scam

By now, you have already known that Mexican car insurance is required. However, don’t let the rental car companies upsell you for extra insurance cost – it’s important to buy insurance with your online rental car reservation so that they can’t upsell when you get there. If you purchase full coverage insurance with Discover Cars (only from $7/day), you should be all set – no need to purchase any extra insurance.

2. Take photos of the rental car before leaving

Take photos of the rental car before leaving. Make sure to capture any scratches, dents, or stains on the exterior, as well as any damage on the interior.

3. Watch out for gas station scam

Gas station scams are becoming more and more common, so be on the lookout! Make sure you see that the meter is reset before the attendant starts filling your tank.

In addition, the attendant may swap your $200 peso bill for a $20 peso bill while you’re not looking, then ask you to give more money and pocket the extra $200. In order to avoid this scam, be sure to count your bills one by one in front of the attendant!

4. Avoid driving at night in Mexico

When driving in Mexico at night, it’s best to stick to the main roads and highways. The paid highways or toll roads, also called couta roads, are the safest option. Driving at night in Mexico can be dangerous, so it’s best to take precautions.

5. Download an offline map for the area you travel to in Mexico

You should download an offline map for the surrounding areas to your destinations from Google Maps before going on long road trips or driving through rural Mexico as your cell signal may not be stable.

6. Know that the speed limit sign does not show miles per hour

Mexico’s speed limit sign is in kilometers per hour instead of miles per hour. The sign, in Spanish of course, reads “La velocidad máxima en km/h” (Max Speed in km/h). Since 1 mile is equal to 1.6 kilometers, if you see a speed limit sign of 80 km/h, it’s actually only 50 mph. So, make sure to keep your speedometer number (in km/h) below the speed limit sign.

7. Know driving laws in Mexico

As in the United States, people in Mexico drive on the right side of the road. Seat belts are required and it’s illegal to use a cellphone while driving.

8. Don’t freak out when someone approaches to clean your car windshield

When traveling in Mexico, one thing you can expect to encounter are people approaching to clean your car’s windshield at stoplights. This practice may seem unusual, but it is actually quite common and shouldn’t be cause for concern.

If you aren’t interested in this service, simply shake your head and wave your hands once the vendor approaches your window. However, if you would like for them to clean your windshield, simply hand over some cash – typically between 5 and 20 Mexican pesos (less than $1 USD).

9. Be aware of the traffic light pattern

If you’re ever in Mexico, you’ll soon realize that the stoplights work a little differently than in other countries. Most of the time, the light will go from green to yellow, and then to a flashing yellow before finally turning red.

This can be a little confusing if you’re not used to it, so it’s important to be aware of the flashing yellow light. It usually means that you have some time to make your decision – whether to stop or keep going. If you’re not sure what to do, it’s always better to err on the side of caution and stop at the light.

10. Bribing the police may get you away from a ticket

It is a common practice to bribe a police officer in Mexico to avoid getting a ticket. I’m not saying you should or should not do it, but if you ever get pulled over by the police in Mexico, just know that it is one of your options!

The Wrap Up: Renting a Car & Driving in Mexico

When you travel to Mexico, there are many different options for getting around. For those who prefer a bit of independence, renting a car is a great option. With thousands of miles of scenic roads and endless opportunities for exploration, Mexico is the perfect place to enjoy the open road.

Renting a car in Mexico is generally safe and convenient, and it gives you the freedom to go wherever you want in your own time. However, there are some cities where it might be better to hire a driver instead. For example, if you’re planning to travel through Mexico City or Guadalajara, it may be best to have a professional at the wheel instead to help navigate the chaotic traffic and heavy congestion.

Overall, renting a car in Mexico offers an excellent opportunity for exploration and adventure, but it’s important to plan ahead and purchase Mexican car insurance with your car rental reservation to avoid an upcharge scam at check-in.

Make sure you reserve your car with a reputable company through Discover Cars and include car rental insurance, even if you have Auto Collision Damage Waiver from U.S credit card companies. ✔️BOOK NOW

With these precautions in place, renting a car in Mexico will be an easy process for you!

Mexico Travel Resources

1. Travel Insurance:
   • No one wants to think about what could go wrong on a vacation, but the truth is that accidents can happen anywhere, at any time. That’s why it’s always a good idea to have travel insurance, so you can relax and enjoy your trip knowing that you’re covered if something does go wrong. Don’t take the risk when you can be covered for cheap.
   • Safety Wing is a great option for budget-conscious travelers, as policies start at just $40 USD for an entire month! Basic policies cover travel emergencies, medical costs, and medical expenses while you’re in Mexico as well as transportation back to your home country under circumstances.
2. Car Rental Scam
   • Don’t fall for car rental scams in Mexico! Make sure you have full coverage when you make the reservation so car rental agencies can’t upsell their insurance.
   • Discover Cars offers the cheapest car rental rates in Mexico and full coverage insurance for as low as $7 per day. 
3. Popular Travel Guides in Mexico
   • Cancun vs Playa del Carmen vs Cozumel: Which Vacation Spot is Best for You?
   • The Ultimate Guide for Las Grutas Tolantongo – Hidalgo Mexico Hot Springs
   • Is Cancun Safe? 21 Dumb Mistakes to Avoid in Cancun
   • 37 Top Things to Do & Best Places to Visit in Cancun
   • What to See & Do in Cozumel on A Day Trip!
   • The Maldives of Mexico: Is Bacalar Lagoon worth visiting?
   • The Ultimate Guide for A Magical Xcaret Wedding in Mexico!
   • 10 Magical Cenotes/Underwater Caves in Mexico
   • Isla Mujeres vs Cozumel: Which Island to Choose for Vacation?