Everything You Need to Know About the Mexican Car Rental Scam (So You Don’t Fall Victim To It)

Looking into a Mexico Car Rental — but Don’t Want to Get Scammed?

You’ve come to the right place as I’ve lived in Mexico since 2018, and rented cars throughout the country, including Cancun, Tulum, Mexico City, Mérida, and more.

In this article, I’m going to walk you through the process of how to rent a car in Mexico so you feel confident about it — and don’t fall victim to the dreaded Mexican car rental scam.

Before we get to the article, know that the #1 way to not get scammed is by renting with a well-rated company.

When I rent a car in Mexico, I recommend and always use Discover Cars which has a 4.6 out of 5 Star rating, and more than 190,000 reviews on TrustPilot.

Ready to learn the ins and outs of the Mexico car rental scam? Let’s get to it, so you know what’s what, and you don’t fall victim to it.

About six months before writing this article, I booked a rental car in Miami online, and had to pay an extra $200 USD in fees, taxes and additional insurance costs when I picked up the car.

If this has also happened to you, you’re already familiar with the “Mexico car rental scam,” which isn’t unique to Mexico.

If you’re lucky enough to have never fallen victim, the “scam” in question is that most renters don’t read the fine print (who does?!) and aren’t aware of the fees, taxes, etc., that get tacked on.

For many, the price you end up paying is often double what you saw online when you booked the car — which is why it can feel like one of the worst travel scams in Mexico.

How to Avoid the Mexico Car Rental Scam

When renting a car in Mexico, you may see rates as low as $5-10 USD per day. If those rental car rates seem too good to be true — they are!

This base cost doesn’t factor in a whole slew of fees, taxes and the legally-required Mexico car rental insurance, all of which you do have to pay for.

To avoid this most notorious of Mexico travel scams, simply double the price you see online listed as the base price for the car if you’re taking the minimum insurance.

If you’re opting for full coverage, you may even want to triple it.

This new amount is closer to what you end up paying anyway — and now you won’t feel “scammed.”

✅ Use this formula to calculate your Mexico car rental cost

For a car listed online as $10 USD per day, assume you’ll actually pay $25-35 per day for this car with Mexico Personal Liability Insurance (the minimum coverage you need), and $35-45 per day with full Mexican insurance coverage.

Annoying? Yes, it sure is!

But this is just the way car rental companies seem to work, no matter where you rent a car anywhere in the world.

While Mexico car rental companies aren’t legally allowed to make you buy insurance from them — the most you can do is argue with them, and at worst, they just won’t let you rent the car.

This has become especially true of people who try to use U.S. credit card insurance. (You can read more about insurance through a credit card with that link.)

I rent cars in Mexico a few times each year, and have never had any issues using the Full Coverage Policy I have purchased through Discover Cars.

That’s because, legally, third-party insurance is completely valid to use for your Mexican driving insurcance.

Now, that’s not to say an agent won’t try to up-sell you their company’s insurance. They will!

In fact, some companies actually encourage employees to do so — which is why you want to read reviews before booking, and only rent from well-rated companies.

While Mexico car rental companies aren’t technically allowed to make you buy insurance from them, the most you can do is argue with them.

As a worst case scenario, they just won’t let you rent the car.

For the least amount of headaches on your Mexico trip, buy insurance from the company you’re renting from (though this will cost more).

If you get full coverage, you could essentially return it in any condition, and should not have to pay them a single cent (though Terms and Conditions vary).

For full insurance, plan to pay about $35+ USD per day.

When I’m renting a car in Mexico, I always use Discover Cars. Their full coverage policies only cost about $7-10 USD per day. → Book now with Discover Cars

With just Personal Liability Insurance, you’ll usually have about a $2,000+ USD deductible.

The full coverage deductible is often $0, because you’re already fully covered (though Terms and Conditions can vary by company).

Renting a Car in Mexico With Discover Cars (My Recommendation)

I have been living in Mexico since 2018, and travel frequently within the country.

What I am going to explain is my personal experience renting a car about 10 times, in cities throughout Mexico including Guadalajara, Oaxaca, Mexico City, Cancun, Tulum, San Luis Potosí, Merida, and more.

🚙 When I book a Mexico car rental online, I recommend and use Discover Cars because they always seem to have the best rates.

I use them because they have always had the best deals when I’ve searched, and they offer FREE cancellations up to 48 hours before your reservation.

Here is the exact process I have followed to get my rental car:

Personally, I don’t rent from local agencies with less than a 7 out of 10 Stars rating so that I have a great experience like those other reviewers did.

It’s like the saying goes: You get what you pay for. For me, it’s worth sacrificing some money so I don’t get terrible customer service on my vacation in a foreign country.

😎 Here’s the Process

What has happened almost every time I’ve rented is that they will try to up-sell me to their insurance, which I decline.

As mentioned, the Discover Cars policy does legally satisfy any Mexico car rental insurance requirements.

When you decline the car rental company’s insurance, they will hold about $50,000 pesos ($2,700 USD) on your credit card.

When you bring the rental car back with no damage, they return your deposit in full. If you bring the rental car back with damage, they will take it out of your deposit.

From there, you’ll have to make a claim with Discover Cars, which is usually processed in 48 hours or less, according to their site.

As long as the damage is under $58,500 MXN pesos (about $3,300 USD) — which does cover a lot — Discover Cars will reimburse you under their Full Coverage Policy.

How do I make a claim with Discover Cars?

If you need to file a claim with Discover Cars, the process is easy.

You’ll find your login credentials in your booking confirmation email, which you can use to login via your laptop or the Discover Cars app (📲 Android; 🍎 Apple).

At just $7-10 USD per day, the Discover Cars Full Coverage Policy is far cheaper than any I’ve been offered through the car rental companies themselves.

With direct policies, they usually charge about $25-45 USD per day.

If you choose to go that route, you must pay for car insurance when you get the car; it will not show up in then rental price upon booking.

If you would rather get full coverage Mexican insurance from the company directly, you can also do that and still rent with Discover Cars to take advantage of their great rates and NO FEE cancellation policy.

🚨 Disclaimer: Please Read This Before You Book

This information above is my first-hand experience of renting cars about 10 times in seven Mexican cities including Tulum, Guadalajara, Cancun, Merida, and Mexico City.

I have always used Discover Cars, and always had a good experience.

Unfortunately, I have no way of knowing how your rental process will play out, but I hope this info was helpful for your Mexico trip.

If you do decide to rent with Discover Cars, the one tip I can’t stress enough is to only rent with a well-rated company.

I have had good experiences — and I directly attribute that to only using top-rated companies.

7 Quick Tips for Safely Renting a Car in Mexico

1. Take photos and video of all scratches, dings and dents to the car’s exterior. You’ll want to do the same for the car’s interior, noting stains, rips in the fabric, etc. 

2. Repeat the same process as above when you drop the car off.

3. Rent with a reputable company like Discover Cars, which I have used myself about 10 times in various cities throughout Mexico.

4. Have all your emails accessible with any rental agreement booking information. If you want, you can print them out, though it’s not necessary.

5. Most companies won’t let you take the car if you don’t have Mexico rental car insurance, so be prepared with a backup plan when you book your rental car.

6. The Mexico driving age is 18. However, though the driving age in Mexico is 18, most companies won’t rent to drivers under 25.

7. If you need a car seat or car seats, select that option on the rental website. They usually cost about $10-20 USD per day, depending on the company.

With what you learned in this article, you’re SO MUCH more informed than the average traveler — and a lot less likely to fall victim to the Mexico rental car scam.

If you need more advice on safe travel to Mexico, check out this article on the 50 Mexico Travel Tips You Need to Know Before You Go.