RENTAL SCAMS INFO
ANOTHER THRIFTY CAR RENTAL SCAM
Jeff of Mount Vernon, WA, wrote on February 15, 2015
“Rented a car through rentals.com. $102 for 9 days, bought insurance $81, agent in cabo wouldn’t accept insurance. Had to pay $45 per day insurance, the total to have the car was $588. You can rent through National’s site for $30 per week and $20 per day insurance. They refuse to refund me. They stink. Don’t rent from NATIONAL OUT OF COUNTRY. U.S. WON’T HONOR RATES. I asked for 1/2 refund and they won’t respond. BEWARE. ALLIANZ was the insurance they wouldn’t accept. Allianz rep did warn us they would try and not accept there insurance. Allianz is good insurance in any country I’m told.”
Declining additional coverages over and above the mandatory Third Party Liability while thinking that your credit may give you this protection is foolhardy. If one chooses to decline, then the companies “extort” you with a demand for a credit card hold or deposit that may range from 10% to 100% of the rental vehicle value. Even if you use a credit card that covers 100% of Collision, Theft and Personal Injury Medical Expenses up to $100,000. The Mexico franchises refuse to recognize this plan and either demand the deposit or hold you hostage to take their plan ($37/day in one case).
Keep in mind that while one could decline certain coverages because of credit card provided insurance, buying it could provide “legal assistance” or bail bond coverage that keeps one out of jail under certain circumstances.
They also charge 3,000 to 5,000 USD as security note that you will get back when return the car. So make sure you have a credit card knows that you are in Mexico and that charge is expected.
Car Rental Insurance
Renting a car in Mexico is relatively inexpensive; however the insurance cover charges can ramp up the cost significantly. The insurance costs can (and often are) more than the rental charges, per se. However, we recommend full and comprehensive insurance when you rent a car in Mexico to cover your liabilities in case of a serious accident.
Third Party Insurance
Third party insurance is compulsory by law when you rent a car in Mexico. This insurance covers third parties for any damages in the event of a mishap, but it does not cover the renter’s liability for the vehicle itself. When you rent a car using Mexperience, this compulsory third party insurance is included in the quote (to the value of $350,000 MXP), along with unlimited mileage, taxes and fees.
Additional Insurance Products
When you rent a car in Mexico, insurance beyond third party cover is sold as an optional extra. This is because not everybody wants or needs to purchase the additional insurance–see the next heading below, “Using Your Own Insurance”, for details.
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Here is a list of the different types of optional insurance products you can buy at the counter. The prices noted alongside these are subject to change without notice and are provided here for general guidance and budget planning only.
CDW – Collision Damage Waiver. This is a product that covers the vehicle in the event of an accident or damage, with a 10 % deductible. The 10% fee is based on the full retail value of the vehicle, as new. For example, if your rental car has a retail value of $10,000, your deductible is $1,000.
LDW – Loss Damage Waiver. This is sometimes referred to as “full cover”, as it covers the vehicle for any accident or damage, as well as theft, and with a zero deductible. However much damage is caused, or whatever the value of the vehicle, this insurance prevents you from paying any out-of-pocket expenses in the event of a mishap.
PAI – Personal Accident Insurance. This is an insurance product that will cover medical expenses for occupants in the vehicle in the event of an accident. If you have a travel or other medical insurance policy, you will most likely be covered already and there will be no need to purchase this.
ALI –Additional Liability Insurance. This insurance product extends the cover for damages to third parties up to MX$5,000,000 Mexican pesos.
TP – Theft Protection. This insurance product protects you in the event that the vehicle is stolen; it’s automatically included with LDW (see above). Some credit card companies will also cover theft of the vehicle in the insurance policies they offer with use of the card–check the small print.