Renting a Car in Mexico: What You Need to Know

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Renting a car in Mexico can seem daunting at first. There is all at once quite a lot of information out there and yet seemingly no helpful information out there.

I’ve been living in Mexico for almost five years now and I have rented a car in tons of locations around the country including the Yucatan, Guadalajara, Puerto Vallarta, Chiapas, Oaxaca, Baja California, and Los Cabos .

I’ve discovered several of the pitfalls and problems that can occur when renting a car in Mexico and found myself in the odd situation which could have been avoided if I’d simply known about it.

Why Should I Even Rent a Car in Mexico?

Mexico is a huge country. If you don’t drive you usually have to rely on buses like ADO. Buses go to major places, but it’s much harder to get to smaller towns. The other way to get to these places is to hire a driver or take tours.

While this is certainly possible, it’s much more expensive and restrictive than simply renting a car yourself.

If you rent a car in Mexico, you have the ability to enjoy all of the fun things to do in the Yucatan, the amazing small towns around Baja California Sur, the cool road trips near Guadalajara, to visit the coast near Barra de Navidad, and so much more.

Having a car in Mexico gives you so much more freedom and you’ll also save a ton of time.

Driving in Mexico

Driving in Mexico can seem a little bit scary at first. Many people, including fellow expats that live in Mexico, have warned us of the “dangers” of driving in Mexico.

If you plan to drive inside Mexico City, well I pretty much advise you not to.

The city is incredibly congested and while it’s not really dangerous to drive in, it’s chaotic and the traffic is horrific. Unless you just want to sit bumper-to-bumper on one-way streets, then use Uber in Mexico City or even better, public transportation.

Driving in Mexico outside of the major cities is pretty much just like driving in the US.

They drive on the right side of the road. There are nice highways. Road signs are the same (except in Spanish of course). It really is very easy to drive in this country, so that shouldn’t dissuade you from renting a car in Mexico.

I recommend downloading the app Waze onto your phone so that you get the best directions, traffic updates, and information about any road closures or police ahead while you are driving. 

I’ve written a very comprehensive post about the do’s and don’ts of driving in Mexico which you can read here: Driving in Mexico: A Helpful Guide for First Time Visitors.

Best Companies for Renting a Car in Mexico

When it comes to renting a car in Mexico, I always prefer renting with small locally owned places.

This is for a few reasons, but the main one being that the price always includes everything. There are no surprises once you get there. The price quoted always included the required insurance and often it includes ALL insurance.

If you are confident about renting a car in Mexico with the bigger companies, Enterprise is consistently my favorite place to rent a car around the world.

They have, by far, the best customer service. It doesn’t matter whether I rent a car in London, Cancun, or New York, I get the same fantastic service.

The only thing is, well, you pay for that good service. It usually has the highest day rate of all of the rental cars.

The company that consistently has the lowest rates around the world, including in Mexico, is Sixt. 

But I really loathe their customer service.

If you can look past how poor their customer service is, well, then this is the best budget option. The cars are usually pretty banged up already, so you don’t have to worry about getting a scuff or scratch on the car (there are already plenty!).

Other car rental companies that are in Mexico that lie somewhere between Enterprise and Sixt are Europecar, Budget, Avis, and Hertz. All offer different prices depending on the time of year and your age.

I also recommend checking out the smaller individually owned companies in the locations where you’ll be starting your trip.

If you’re traveling around Guadalajara, Leon, Colima, or Cancun, check out Veico. They offer discounts for pre-paying online and guarantee that the price you see when you book is the price that you will pay, no hidden fees once you get there. 

If you’re traveling around Cabo San Lucas or anywhere in Baja California Sur and starting at the San Jose Airport, you’ll want Cactus Rent a Car. Their service is exceptional, it’s locally owned, and the cars are in fantastic condition.

In Merida, there’s Veloz, a company with great customer service and bilingual staff.

In Bacalar, Explora Car rental is also fantastic. They offer a flat rate on several of there different cars. It’s family-run so you deal with the same person throughout the entire experience and customer service is top-notch.

If you are traveling in Manzanillo or the Melaque/Barra de Navidad area, I highly recommend Vasa Car Rental. They have top-notch service and the cars are in decent condition. Best of all, the prices are great.

If you are traveling in Puerto Vallarta, Gecko Car Rental is the best option there.

Most local rental car companies include everything in the price so there are no added extras for insurance.

The only thing to be aware of with these companies is that most of their cars are manual, not automatic. Be 100% sure that what you are renting is the transmission that you want before you pay for anything.

Required Insurance When Renting a Car in Mexico

You may be tempted to book your rental car with companies like Expedia, Rentalcars.com or another of those discount travel websites.

I really do not recommend doing this. This is how most people who rent a car in Mexico find themselves paying far more than they need to. This is what many people think is a “scam” in Mexico when it comes to renting a car.

Do not rent a car in Mexico through a third-party website unless you are 100% certain that you are receiving third-party liability coverage. While the price seems amazing, you will be slapped with an insurance fee once you arrive at the car rental desk.

If you are unsure about what fees may be added on, you can always call the rental car company to find out exactly what you need to bring, what extra you will have to pay, and what the deductible will be on your coverage.

It is always best to do this with any rental car company in Mexico so that you are assured of what has been paid for and what will be owed at the time of rental.

I have had the joy of making this mistake and it can be an expensive one.

Even if you rent through somewhere like Expedia and you add the additional insurance, this will NOT be the insurance that you need to have in order to rent a car

In Mexico, you MUST have third-party insurance or what is sometimes referred to as personal liability insurance.

Mexico does not recognize any other insurance you buy through a third party like Expedia. It also does not recognize your US car insurance. This should cost no more than $10 a day from most companies.

The only website that I have used in the past that compares all of the companies and that specifically states whether the rental includes third-party liability is Discover Cars. 

Not all rentals on Discover Cars have third-party liability, but when they do, they clearly state it in the section about what is covered. I use them to search for all of my rentals cars around the world, not just Mexico, but they are one of the few that are clear about what you get.

Optional Insurance on a Rental Car in Mexico

There is also another type of insurance that you can opt for once you get to the rental car desk.

This is full coverage which brings your deductible down to a much lower price. It also protects you in case of emergency and theft. I usually opt out of this simply because I’m a cheapskate.

If you opt-out of this insurance, the hold on your credit card will be 40,000 Mexican Pesos (about $2,000 USD). If you choose to have the insurance, the hold on your credit card will only be 8,000 Mexican Pesos (about $400 USD).

Again, this depends on the rental car company that you use. If you go with one of the smaller, locally-owned companies listed above, you will likely not have such a large hold on your card.

But if you go with bigger companies like Enterprise or Sixt, this is the hold that they put on your card.

How to Rent a Car in Mexico

In my opinion, the only way to rent a car in Mexico is to book directly with a small local rental car company or through a transparent third-party company like Discover Cars.

Renting directly through the rental car company ensures that you only pay exactly what you need to pay and nothing more.

You will be able to get the exact daily rate. This includes the required third-party insurance so there won’t be any surprises when you pick up the car.

If you are traveling during busy times like Easter, spring break, summer school holidays, or around the winter holiday time, then I really recommend booking in advance.

In my opinion, this is how to ensure that you get the best price. If you wait until you get to the airport to book your car, then you are likely to pay a higher day rate for the insurance.

If you are traveling during low seasons, then you may be able to get a better rate by simply showing up to the airport or to the rental car office if you are renting in a downtown area.

If You Don’t Speak Spanish?

If you do not speak Spanish, then I really recommend only renting a car in Mexico from airports. Airports around the country always have at least one or two people who speak English.

When I first moved to Mexico and my Spanish wasn’t very good, I rented a car in downtown Tijuana. No one spoke English there.

I was just about able to fumble my way through the Spanish to get everything sorted with the rental. Luckily, between myself and my boyfriend, we understood everything that we needed to get the car without incurring any additional fees.

However, if you don’t speak Spanish, this may be a big hassle and end up costing you money. It’s usually not any cheaper to pick the car up in a location outside of the airport.

If you are renting from tourist hubs like Cancun, Cabo, or Mexico City, you won’t have any problem finding someone who speaks English there.

Always Carry Cash for Toll Roads

Something that most car rental companies in Mexico neglect to tell you about driving in Mexico is that most highways around the country are toll roads. The tolls usually aren’t very expensive.

In Baja, to get from Tijuana to Ensenada, you go through three tolls all of which cost about 35 Pesos ($1.50 USD).

In the Yucatan, to get from Cancun to Merida, you pay several tolls which amount to over 100 Pesos.

I recommend always carrying enough cash because often these tolls are in the middle of nowhere.

Alternatively, some car rental companies in Mexico offer you eTags. 

These are electronic toll tags that allow you to use the fast-pass lane. I’ve only experienced this in the Yucatan. In other parts of Mexico, I have not been able to rent a car with a tag. However, I believe you can ask for this option in Mexico City as well.

Usually, you prepay for the tag and then any other fees that are owed are charged to your credit card later.

Read: Everything You Need to Know About Money in Mexico

Other Things to Note About Renting a Car in Mexico

Most car rental companies in Mexico default to a manual transmission.

If you want to have an automatic car you have to make sure you choose that option.

Also, note that renting an automatic car is usually more expensive than renting a manual car since there are fewer of them around. They also know that most American tourists prefer these.

You absolutely MUST have a credit card to rent a car in Mexico. I’ve rented in other countries around the world where you can sometimes use a debit card as long as the debit card has enough money for the hold, but in Mexico, it must be a credit card.

Not all car companies include the second driver free. Some companies, like Sixt, charge extra for a second driver.

You do not need an international driver’s license for renting a car in Mexico. As long as you hold a valid license that is printed in the Roman alphabet, then you’re ok. So Chinese, Korean, Japanese, etc must have an international driver’s license.

Most cars come with a full tank, and just like renting a car in another country, you have to bring the car back with the same amount of fuel. It’s ALWAYS more expensive to pay for them to refill it for you. There are plenty of places around airports to fill up the gas tank.

Like in any country, pay attention when they inspect the car before your rental. Make sure they mark all of the dents, scratches, and cracks so that you don’t get blamed for any of the problems that already exist. 

Almost all car rental companies offer unlimited kilometers on your rental. That being said, it’s always worth double-checking so that you don’t end up with a surprise upon returning the car.

Speaking of kilometers, don’t forget that the speedometer will be in kilometers per hour, not miles per hour! Be careful with your speed. This is another good reason to use the Waze app as it always tells you what the speed limit is on the road you are driving.

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