BajaNomad

Baja car rentals, best insurance

tobianogreg - 11-21-2014 at 06:04 PM

We've planned a trip to SJD in January (flying in), renting a condo in San Jose for 10 weeks and have rented a car for the entire time. This is our fourth year doing this.

The price of the car is fine but my problem always occurs at the car rental desk when insurance comes up. They always want some exorbitance price for full coverage. They do offer to reduce the price if we attend the time share hard sell but we're not willing to waste our time as we have no intention of purchasing time share.

I can see that full coverage insurance is actually quite cheap in MX (Vagabundos) and don't like the rip off. Is there any way around this?

Thanks for any replies.

David K - 11-21-2014 at 06:12 PM

Vagabundos is not in Mexico, but in Northern California. They sell Mexican insurance... as does Discover Baja Travel Club and Baja Bound (both in San Diego). Only Baja Bound does not require joining a club. Not that there's anything wrong with a club (I am a life long member of Discover Baja).

tobianogreg - 11-21-2014 at 06:17 PM

Yeah, I was using Vagabundos for a price comparison (we are members tho). They were less than $300 US for five months whereas the insurance through Alamo SJD was $1200 US for one month. This seems excessive to me.

motoged - 11-21-2014 at 09:26 PM

TG,
I think you can't personally insure a rental car...because it is not your vehicle.

Some will disagree, but my experience is that some credit cards have a benefit of covering collision/damage for rental cars so you can deny that coverage with the rental firm.

tobianogreg - 11-21-2014 at 09:33 PM

Thanks, I'll look into the credit card tip.

laventana - 11-27-2014 at 11:14 PM

from what I have been told no credit card (insurance) covers you in Mexico. Had called mine many years ago and they did not.

Also from what I have been told not one insurance company of the typical ones we buy from will cover a car rental, read the fine print.

and be careful even with a company like Vagabondos, I had insurance with them and the companies policy they were selling went bankrupt. Thus I was lucky i was involved in a $30.00 accident in LaPaz that I was only told a month or so after I bought the policy that I had no insurance when I called for a claims person to show up at the accident. This was a cheap lesson for me. If it had been serious well as you know I would still be in jail. The part that vagabondos did not like is my office at that time was right across the street from them. I agree they are only an agent, but the owner would never meet with me to discuss why they did not know that the company they were representing was in financial trouble when I had purchased the policy just a month or two before. Surely there were warning signs. They never even offered to return their part of the profit for that worthless insurance I bought from them and my office was right across the street. That was about 15 years ago or so. Now with the internet I would have heard about the problems faster with people reporting it. But again to me I was not to happy to think even though I bought insurance from a US broker that I could have eded up in jail for a while if it had been a serious accident. Also I did end up having to pay significantly more because the insurance person for the company had told us we could meet at a body shop. He did not initially tell me that the insurance company was bankrupt. and as you all know moving a vehicle at all after an accident can mean jail time in Mexico. So it cost me much more once the agent told us I was not insured. amazing how the price goes up when they got ya.

the new law has a liability of I think about USD$300k payment for a death, old was about USD$30k, huge difference. So make sure you know the risks when getting a rental car.

From what I understand the new law has mandatory for all, but if you get pulled over you have many days to get it and ticket is removed, is whaat i have read. I think it was 30 or 60 days. So in essence no local will be changing what they were doing, ie no insurance. This new law IMHO is a direct aim at foreigners for car rental companies.

mjs - 11-28-2014 at 09:09 AM

We just returned from two weeks in Cancun where we rented a car for $7 USD per day from Thrifty. That's the teaser rate that they then try and tack on $45/ day insurance to.

We declined all the insurance. By law the rental car company has to provide $20,00 in third party liability and nothing else. That's enough to meet the minimum required but not enough to cover the new maximum liability limits. We carry a Mexican driver's license policy that provides $300,000 third party liability on any vehicle we are driving. The rental agency will want a copy of this in spanish. You also need to carry a copy with you. That takes care of liability.

Our personal medical insurance and medjet cover medical. Along with a separate travel assistance policy that provides some additional medical and evac coverage.

For the car we waive any CDL coverage and let the credit card cover this. You should check with your CC company to verify coverage limits if you are going to use this option. I have an American Express card and make and pay for the car reservation using their website. The one drawback to this is the rental company will likely want to pre-authorize a large amount on your CC to cover any damage. I think it was $4000 USD this last time.

Our trip was fun and we had no issues with the car. Total rental was 1500 pesos for 16 days. I'd do it again (rental that is). However this method may not be for everyone as there is always the risk of having to deal with the rental agency and CC company should the car get damaged.

11/30/14 I just went back and read the policy on our DL coverage. It does not cover for cars with a foreign plate, so we did not have the extra liability coverage on our rental. Just something to be aware of. It all worked out for us though.
[Edited on 11-28-2014 by mjs]

[Edited on 11-28-2014 by mjs]

[Edited on 11-30-2014 by mjs]

wilderone - 11-28-2014 at 09:42 AM

Maybe book online with your insurance options already chosen. That way, the deal is done with no time share negotiations involved. I would imagine a rental car for 10 weeks could get expensive. Do you really need it? Once in Jamaica, we befriended a taxi driver who we called directly; he took us wherever we wanted at an agreed flat price. One day, for $50 for 3 of us in the taxi - all day - we went to a couple tourist destinations, then he took us to a palapa type outdoor place for a rum drink. Some days we didn't need to drive anywhere. We took the train, local bus, walked. Maybe review your plans, crunch the numbers??

rhintransit - 11-28-2014 at 09:48 AM

Bajarentcars.com is a small company doing business in La Paz and Loreto, owned by two good guys I've met. While they don't have an airport location, they will pick up and deliver. Their rates include insurance, so while the quote seems higher than the big on line companies, there is no insurance shock on pickup and the total rate is lower. Give them a try if the location fits. Ps they are now in town on the male on in Loreto, not Loreto Bay as the website says.

motoged - 11-28-2014 at 10:47 AM

Quote: Originally posted by mjs  
.....
For the car we waive any CDL coverage and let the credit card cover this. ..... The one drawback to this is the rental company will likely want to pre-authorize a large amount on your CC to cover any damage. I think it was $4000 USD this last time.

[Edited on 11-28-2014 by mjs]

[Edited on 11-28-2014 by mjs]


That has been my experience with Visa Infinite credit card over the past 10 years. Visa provided me with a letter confirming that policy (in English)....and the $4000.00 or so deposit , if "cashed" would be returned by the insurance policy with Visa.

Those who say their credit cards do not have that coverage might consider a better credit card.

tobianogreg - 11-28-2014 at 10:55 AM

I followed up on motoged's credit card tip and found, and applied for, a "no fee" card that does offer collision and damage coverage in Mexico for rentals to a maximum of 48 days. (CIBC Visa Platinum.) The card requires 24 hours to break the 48-day cycle. Thanks again to Motoged.

FYI, there is an "airport fee" of $200 US to pick up a rental car there. Instead, we'll take a shuttle into San Jose and pick up a prebooked rental in town. Liability coverage is prebooked too... so no $ surprises hopefully (and no time share hard press).

We don't "need" a car but love to spend our time on various beaches throughout Los Cabos, so the rental is very convenient.

Originally we were planning on driving down in our 4Runner mid-Oct but Odile forced us to change the plan. I really wanted to spend the winter fishing and exploring the East Cape beyond Zakateos but maybe next year.

Really appreciate the collective knowledge on this site! :biggrin:


motoged - 11-28-2014 at 12:55 PM

TG,
That is the same card I have....w/ the Aeroplan points feature....glad it worked out for you....I thought I paid an annual fee....which is okay with me, as it saves me $$$$ in the long run and flies me places sometimes :saint:

Cm1401 - 11-28-2014 at 03:46 PM

Try Cactus at the SJD airport, I have used them a lot, they let you use your Credit card coverage for the damages to the vehicle, but you still must buy the liability policy from them,

Their pricing appears to be very competitive each time I rent, I have inquired many times about Mexicans traveling and having to buy the liability coverage, the best I can figure out, is yes you can buy a separate policy, but none of the car rentals companies accept it, since insurance is a profit center for them

laventana - 11-29-2014 at 04:46 AM

here is visa page on rentals, one thing I did not realize is rentals in the USA are limited to 15 days international is 31 days.

Note the following it was bolded...,


http://usa.visa.com/personal/card-benefits/credit-card/colli...
Quote:

Because regulations vary outside the United States, we recommend you check with your auto rental company and the Benefit Administrator before you travel to make sure Visa Auto Rental CDW will apply.



as I mentioned I believe this new law for mandatory insurance was directed at rentals. If by chance you are pulled over now you do have to show insurance coverage or be ticketed. There is conflicting too that since it is a federal law it only applies so that only the federal police can enforce, not sure on that one either. And not sure how the state lws for various sttes apply but know there were differences in the cap state by state.

Before this new law they could not ticket you because it was not mandatory. But now if ticketed from what I remember if you buy the insurance within the 30 or 60 days the ticket is removed and no fine. So in essence no change in buying insurance by the locals because they just buy it if they ever get pulled over and go to court to show they have it. As a tourist like you are going to be there to show to a judge...

here is an example that you can buy specific car rental insurance from a company, which is different than the standard policies.

http://www.sanbornsinsurance.com/Sanborns_Mexican%20Rental_I...


here is an insurance comapnies take on the new law as of set 2014.
http://www.sanbornsinsurance.com/mandatory_mexican_insurance...
note if you read their additional benefits on a general policy it does not state coverage for car rentals. and as noted they sell a separate specific policy for only car rentals.


here is a another major mexican carrier policy in its entirety..., does not mention anything about rentals, so if it is not on the policy specifically you are not covered, this is not the USA.... Do not take someones word as that is not going to get you anywhere, ask for it in writing. Same with cc, if you can not get it in writing bet it does not work in Mexico. If your platinum does show it in Canada then you are fine. this was just normal visa website.

Way back when i checked they could not point me to where it does and would not put it in writing and the above link to visa warns you it is country by country.

http://www.mexinsurance.com/assets/global/pdf/Qualitas-Engli...



[Edited on 11-29-2014 by laventana]