Renting a Car in Puerto Escondido: What to Know so You Don’t Get Scammed

Want a rental car in Puerto escondido (but confused about the process)?

You’ve come to the right place! I’ve lived in Mexico since 2018 and rented cars throughout the country — and I’m going to walk you through the process of renting a car in Mexico so you feel confident about it.

First and foremost, most travelers want to know about the best place to rent a car in Mexico. When I rent a car in Mexico, I recommend and always use Discover Cars — for several reasons.

1. They search international corporations and local Mexican companies, so you get the best deal.
2. They have FREE cancellation up to 48 hours before your rental.
3. They have an inexpensive Full Coverage policy.

Ready to learn the ins and outs of renting a car in Puerto Escondido? Let’s get to it, starting with my personal experience renting a car in Mexico with Discover Cars.

Renting a Car in Puerto Escondido With Discover Cars

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 seven cities throughout Mexico.

🚙 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:

1. How to Reserve Your Car Online with Discover Cars

Head to the Discover Cars website, and input your travel dates and preferred pick-up location. For most travelers, this is the airport in the city you’re visiting.

In Puerto Escondido, that’s Puerto Escondido International Airport (code: PXM). It has a few international and local agencies on site to choose from.

⭐️ Only rent from well-rated places

I advise you to filter by ratings because while everyone wants to get those sweet Mexico car rental deals, the cheapest place is rarely the best.

These also tend to be the places with additional fees and extra costs.

What’s covered with Discover Cars? (And what’s not covered?)

🤔 Will car Rental companies accept this Policy?

Legally, they have to, and personally, any company I have used has accepted this third party policy through Discover Cars.

This is just one reason I encourage you to rent from a well-rated company known for good customer service.

😎 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.

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 $30 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 the 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 getting Tulum, Cancun, and Mexico City rental cars).

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 do 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.

If you need further clarification on Discover Cars, please contact the company directly.

You can also read Discover Cars reviews on TrustPilot, where they have a 4.6 out of 5 Star rating, and more than 162,000 reviews.

Renting a Car in Puerto Escondido: FAQ

That’s not to say bad things don’t happen in Puerto Escondido; they do.

However, if you’re prepared (you will be after reading this article), you’ll feel safe renting a car in Puerto Escondido Oaxaca Mexico.

The new Oaxaca highway, officially called the Autopista Barranca Larga-Ventanilla Highway, is the best road to take from Oaxaca City to Puerto Esc

This is a paid toll road which will cost you $395 MXN pesos (about $24 USD), but it’s worth the cost because the other roads will take you 6-8 hours.

▶︎ Head here for a complete guide on all your best Oaxaca City to Puerto Escondido transportation options.

🏝 Oaxaca City to the Oaxacan Coast

Headed to the beaches near Puerto Escondido, like Huatulco, Mazunte, San Agustinillo, Zipolite and Chacahua?

You can take the same road as you would for Puerto Escondido, then access the towns on the coast. This is the fastest and safest route.

With many Puerto Escondido tours, you only have a limited amount of time to explore, but with your own rental, you set the schedule.

However, if you are only planning to stay in Puerto Escondido itself, you probably won’t want a rental.

The public transportation in Puerto Escondido is pretty good (albeit rustic), but you can also use taxis, or DiDi Taxi via the DiDi Rider app.

📲 Puerto Escondido Travel Tips: If you want to use the DiDi Rider app, make sure you have a Mexico SIM card with data.

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

Puerto Escondido rental rates vary, but assume about $30 USD per day for your rental car.

As you read through this article, you’ll discover why you can’t believe the first price you see quoted online, which shows much lower than $30 USD.

You’ll also discover your options for Mexican car insurance, which affects the rental price.

For cheap car rentals in Puerto Escondido Mexico, opt for getting the car at the airport.

Puerto Escondido Airport car rentals usually cost less because the airport has the largest selection, and with so many rental agencies trying to get customers, they keep prices competitive.

Here are some suggestions:

• Hertz Puerto Escondido Airport Car Rental
• Alamo Car Rental Puerto Escondido Airport
• Thrifty Car Rental Puerto Escondido Airport: The best cheap car rental Puerto Escondido agency
• Europcar Puerto Escondido Airport Car Rental
• Only Rent A Car Puerto Escondido Airport

The majority of car rental company offices are located there, and there’s a large selection.

There are locations in other parts of Puerto Escondido, but the airport is the most convenient place in terms of pick up and drop off, as well as the vehicle section.

As there’s no official best car rental at Puerto Escondido Airport, make sure you read reviews before booking.

Different people can have a totally different experience with the same company, but if you do have a preference, you’ll find many top international car rental companies and corporations in Puerto Escondido Airport.

There are other places in Downtown Puerto Escondido you can rent from, but Puerto Escondido International Airport has the biggest and best selection available in town.

With this, you’re fully covered for up to $58,500 MXN pesos (about $3,250 USD) — including damage to the car, towing, lost keys, and much more.

For just $7-10 USD per day, it’s amazing how much they offer for so little. 🚨 Note: You legally need insurance for Mexico to drive.

There’s a whole section on Mexico car insurance below, but know your United States or Canadian insurance does not work in Mexico, and neither will your credit card insurance.

1. A valid Driver’s License

If you have a valid driver’s license from the United States, or any country that uses the Roman alphabet (this alphabet), you can rent a car in Puerto Escondido with it.

Drivers from countries like China and Japan that use the character alphabet will need an International Driving Permit, or IDP. 🚗💨 Need an IDP? Apply here.

2. Mexican Car Insurance is mandatory

You do need car insurance to drive in Mexico.

There’s a whole section of this article that covers everything you need to know about getting the best Mexican auto insurance, as it’s a big topic.

There’s a whole section of this article explaining everything you need to know about getting the best Mexican auto insurance, as it’s a big topic.

🚙💨 Car Rental Puerto Escondido Tips: When leaving a card on file for any Puerto Escondido car rental, opt for your credit card over debit card.

When you use debit cards, the company removes the money from your account — but with a credit card, the money is just on hold.

If the money is debited, you might be (temporarily) out thousands on your Puerto Escondido vacation!

Note: If you opt for full coverage insurance through the car rental company, they often don’t hold any money. This insurance is usually about $30 USD per day.

4. You must be 25 to rent a car in Puerto Escondido 

As with the U.S., anyone aged 25 and older can rent a car in Puerto Escondido Oaxaca from any car company without restrictions.

Some companies rent to drivers aged 21-24, though they often have a $10-30 USD per day surcharge for underage drivers.

There is a very small minority of Mexico car rental companies that rent to drivers ages 18-20. Most of the big name companies won’t.

For 18- to 24-year-olds renting a car in Puerto Escondido Mexico, check each company’s policy before booking to see which one offers the best options for underage renters, as well as any associated fees.

If you prefer to use a Mexican company to support the local economy, opt for NuCar, which I have personally used.

There’s also Mex Rent A Car Puerto Escondido, Los Tres Reyes Car Rental Puerto Escondido, America Car Rental Puerto Escondido, and others.

These offer some of the best cheap car rentals Puerto Escondido Airport has — and whenever possible, I try to use these local Mexican companies.

Where do I book a Puerto Escondido car rental?

I always use Discover Cars, which searches all the companies listed above.

Using an aggregate search service means you find great deals because Discover Cars checks all the best Puerto Escondido car rental companies, both national and local at once, so you get the lowest prices.

Besides those, some common companies in Mexico that aren’t common in the U.S. include Peugeot and Renault, both French car companies.

When you book with Discover Cars, all cars are labeled as automatic or manual (stick shift), so you know what you’re getting.

Note: If you have any questions like this, don’t hesitate to ask when you pick up your reservation at the car rental agency; they are there to help.

However, there are plenty of taxis or you can book this Puerto Escondido Airport Shuttle that will be at the airport to pick you up right when your flight lands.

However, there are plenty of taxis in Puerto Escondido Mexico and DiDi Taxi through the DiDi Rider app, which lets you call a Oaxaca taxi via the app.

It’s basically like using Uber or Lyft, but you will get a regular cab. However, you still can’t use DiDi at Puerto Escondido Airport.

• Download DiDi Rider for iPhone
• Download DiDi Rider for Android

If you’re coming from the airport, I recommend booking this Private Puerto Escondido Airport Shuttle for the convenience of having a ride as soon as you’re ready to leave the PXM Puerto Escondido Airport.

You must have Mexican Personal Liability Insurance to legally drive in Mexico, and some car rental companies won’t let you take their cars unless you purchase it from them.

While Puerto Escondido 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. (More on insurance through a credit card in a minute.)

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.

Legally, third party insurance is completely valid.

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

Some companies actually encourage employees to do so — which is why you want to read reviews before booking.

For full coverage insurance, plan to pay about $30-40 USD per day.

When I’m renting a car in Puerto Escondido, I always use Discover Cars. Their Full Coverage Policies 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).

If you’re wondering, What’s the best Mexican car insurance? The answer would be full coverage with no deductible.

🤔 What is a deductible with car insurance?

If you aren’t familiar with what a deductible is, here’s a quick explanation.

If you have a $5,000 USD deductible, and you cause $5,250 in damages to the car, you will be responsible for paying the $5,000 deductible.

The insurance will cover the remaining $250, after you cover the deductible amount.

As what you select will depend on your budget, do know that cheap Mexican car insurance is one of those “you get what you pay for” type of situations.

If you’re wondering what’s the best Mexican car insurance, that would be full coverage with no deductible.

Now, some car companies will let you take a rental car with just CDW insurance; some won’t.

This is just one more reason I always opt for Full Coverage when I rent with Discover Cars.

Their policy means I am fully covered in Mexico for any damages to the car up to $58,500 pesos, and I won’t pay out of pocket.

The last time I rented a car, which was in Mexico City (notoriously more expensive than most Puerto Escondido rental agencies), I paid just $7-10 USD per day for a Discover Cars Full Coverage Policy.

Purchase Third Party Mexico Car insurance

You can also buy a separate Mexican auto insurance policy from a Mexican insurance company or a U.S. company that works with Mexican insurers, like Baja Bound, Allstate and Geico.

🚙💨 Driving to Mexico with your own car? Get your FREE quote on Mexican Insurance from Baja Bound so you can cross the U.S.-Mexico border without any issues or delays.

This is called Third Party Liability Insurance (sometimes called TPL insurance, or PLI insurance), it is 100% legal.

It is also enough to satisfy the Mexico Personal Liability Insurance requirement.

Depending on where you’re renting, this can be the cheapest Mexico car insurance for drivers who need extra coverage.

What’s known as a scam that’s specific to renting a car in Mexico, is a common practice at U.S. car rental companies as well.

In fact, I have been a victim of it myself in the United States (where I’m from).

About a year before writing this article I booked my Miami rental car online for $400 USD.

When I showed up, there was an additional $200 USD in fees, taxes and additional insurance costs I had to pay in order to take the car.

If this scenario has also happened to you, then you’re already familiar with the so-called “Mexico car rental scam,” which is actually not unique to Mexico at all.

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, you end up paying about 25-40% more than what was quoted online when you booked, which is frustrating, though not a scam per se.

How to avoid this common Mexico travel scam

When renting a car in Mexico, you may see rates as low as $5-10 USD per day — and if this seems too good to be true, it is.

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, double the price you see online for the car if you’re taking the minimum insurance, and triple it for full coverage.

This new amount is closer to what you end up paying anyway — and now you’ll feel less scammed.

✅ USE THIS FORMULA TO ESTIMATE YOUR TOTAL PRICE

For a car listed online as $10 USD per day, assume you’ll actually pay $30 per day for this car with Mexico Personal Liability Insurance (minimum coverage), and $40 per day with full coverage Mexican insurance.

Annoying? Sure is — But this is how car rental companies seem to work, in Mexico and many other places 🤷‍♀️

3 Other Mexico travel scams to look out for

1. EXTRA INSURANCE SCAM

Unless you purchase Mexico car insurance from the rental agency directly, they will try to upsell you extra services and coverage.

There is no need to pay this extra insurance cost if you already have coverage — which I purchase when renting with Discover Cars, as it’s the cheapest Full Coverage Policy I’ve seen.

2. NON-RESET PUMP SCAM

In Mexico, you don’t pump your own gas. When you get to the pump, an attendant will do it and take your payment.

When you pull up, make sure the pump is zeroed out — meaning the pump is set to $0.00.

Nowadays, many attendants will even ask you to verify before they start pumping.

10 Puerto Escondido Mexico Driving Tips

1. Don’t drive in Mexico at night

When you live in Mexico long enough, you start to realize many people simply avoid driving at night, if they can.

If you do drive at night, stick to only main roads and paid highways, called couta roads.

2. Always use the cuota roads (Mexico toll roads)

In Mexico, there are libre, or free roads, and couta, or paid toll roads.

For longer drives, and when traveling between cities, always opt for paid roads. Yes, they cost money, but they are much better maintained and generally considered safer.

🚙💨 Car Rental Puerto Escondido Tips: When driving in Puerto Escondido Mexico, make sure to have small bills and coins to pay for the tolls. Some take U.S. dollars, but it’s still better to have pesos.

3. Puerto Escondido speed limit signs are in kilometers per hour

Mexico street signs are in kilometers per hour, not miles per hour — and for those curious, 1 mile is 1.6 kilometers.

Rather than doing conversion math while driving, just make sure the speed limit sign number on the road matches your car’s speedometer number.

As you might imagine, the street signs and highway signs in Puerto Escondido are also in Spanish. Here are a few you’ll want to know:

• 🛑 Alto: Stop
• Retorno: Turn-around, which is where you make legal U-turns
• Entrada: Entrance
• Salida: Exit
• Restringido: Restricted area
• Prohibido: Entry prohibited

4. Download an offline map for Puerto Escondido driving

Your cell signal may go in and out as you’re driving in Puerto Escondido, especially when venturing to more rural places in Oaxaca state — so you’ll want to download an offline map from Google Maps or Maps.Me.

📲 Car Rental Puerto Escondido Tips: For the best possible cell signal, get a Mexico SIM Card.

5. Window cleaners may approach you at stop lights

When you’re at a stop light in Mexico, someone wanting to clean your car windshield may approach the car.

If you want them to, there’s no set amount to pay, but $10 pesos (about $0.50 USD) is a standard amount.

You can also just say “No, gracias,” and they won’t clean your windshield.

6. Beware of topes (Mexico speed bumps)

Mexico roads are notorious for an abundance of topes (pronounced toe-pays) — which are speed bumps. They can be everywhere from regular roads to on highways.

While some roads have bright yellow road signs that do alert you to the topes, keep your eyes on the road at all times, as some topes don’t have a sign.

If you go over one too fast, it can cause serious damage to your Puerto Escondido rental car, so make sure to slow all the way down at a tope.

7. Mexico gas stations aren’t self-serve

When you stop for gas, an attendant will pump it for you and take your payment.

When they finish, it’s customary to tip them at least $10-20 pesos ($0.50-1 USD), as Mexico gas station attendants rely on tips.

⛽️ Puerto Escondido Travel Tips: Check out the info above regarding the gas station scam in Mexico.

8. Mexico traffic lights have an extra step

In Mexico, stop lights go from green to yellow, to flashing yellow for a few seconds, to finally, a red light.

Some lights go from green, to flashing green for a few seconds, to yellow, to red.

🚦 Puerto Escondido Travel Tips: This doesn’t mean you should speed up to get through a yellow light; you’re legally required to stop at yellow lights in Mexico.

9. It’s illegal to use your cell phone while driving in Puerto Escondido

Not only is it unsafe to use your phone while driving, it’s also illegal in Mexico. (🇲🇽 Mexico Fun Facts: It’s also illegal to put on make-up or shave while driving.)

In fact, even just holding your phone is an easy way for you to get pulled over, as it’s a ticketable offense.

When packing for Mexico, don’t forget to don’t forget to bring this hands-free phone holder for the rental car.

10. Yes, Mexico cops do take bribes

If the cops in Mexico pull you over — and they usually only will if you give them a reason to — they may expect a cash “payment” in exchange for not ticketing you.

The best ways to insure this doesn’t happen to you is to 1) not speed, 2) not be on your phone, and 3) not break any other Mexico driving laws.

🚔 Note: ARTICLE 152 & TARJETON TURISTICO

About 10 years ago, the Mexican government implemented Article 152, though efforts fell flat.

The Tarjetón Turístico tourist card was intended to end police bribes on tourists, so it’s sad the program failed, but if you see anything about Mexico Article 152, it’s no longer operational.

Driving in Mexico is generally considered safe, and renting a car in Puerto Escondido is generally a simple, hassle-free process.

Looking to rent a car in other parts of Mexico?

Renting a car in Mexico is a great way to see a lot of places in a short amount of time.

Often it’s the only way to visit the best off the beaten path hidden gems, far away from the tourists.

Check out these linked guides so you understand the process at car rental agencies throughout the country, and you avoid getting scammed when renting a car in Mexico.

🚙 Renting a car in central Mexico

• Renting a Car in Oaxaca Mexico
• Renting a Car in Huatulco Mexico
• Renting a Car in Mexico City
• Renting a Car in Puerto Vallarta
• Renting a Car in Mexico City Airport
• Renting a Car in Guadalajara
• Renting a Car in Zihuatanejo Ixtapa

🚙 Renting a car in Yucatan Peninsula

• Renting a Car in Cancun Mexico
• Renting a Car in Tulum Mexico
• Renting a Car in Merida Mexico
• Renting a Car in Playa del Carmen

🚙 Renting a car in Baja Mexico

• Renting a Car in Cabo San Lucas
• Renting a Car in San Jose del Cabo
• Renting a Car in La Paz Mexico
• Renting a Car in Loreto Mexico