Never Buy Travel Insurance or Damage Waivers on Rental Cars
Many rental-car companies at the Cabo airport will pressure you to accept their insurance when you pick up one of their cars… Don’t fall for the hard sell.
The premium adds approximately $25 to the daily rental cost. When you pay with a credit card (which is required in most cases anyway)… many cards offer collision-damage coverage on domestic (and Mexico) car rentals. Visa, for example, will cover theft and damage, towing charges, and loss-of-use charges imposed by the rental company. American Express covers damage to your rental car up to $50.
You just need to do a few things to make sure you’re covered. Most credit-card companies will require you to use the card that offers the coverage to pay the rental in full. You also have to decline any coverage the rental company provides.
Visa, MasterCard, American Express, and Discover all have slightly different policies. And not every card offered by the company has this coverage. Just call the company’s customer service department to determine if you have coverage, learn the terms, and save almost two hundred dollars in fees.
Just call your insurance company to find out their coverage policy before you rent your next car.
You must buy liability insurance in Mexico as that is not covered elsewhere. The trick is finding a rental company that will not insist on charging you $45 a day for insurance. Cactus Car will allow liability only. They are a very reputable company with an extremely high service rating. They also have 300 cars-some only have 50 and are unable to make a change for a better car. Because of this, they are in Baja Concierge . They will also give our members special rates and a much better insurance package.
Over the years that we've been going to Baja, we have rented from many companies. At one time we paid $50 a day because we didn't know any better. We have driven every kind of vehicle, even surviving an attempted bull attack on our red Volkswagen. We have experienced flat tires and even had a transmission pan repaired by going to the home of the mechanic-that cost $25.
The bottom line is, rent directly from a reputable company with many quality cars. If you rent from an online service, you have no ability to move to another rental car company if you disagree with their policies. I urge you to rent carefully.