Mexico car rental insurance: what's mandatory

Yes, to drive on federal highways. Article 63 Bis of the Ley de Caminos, Puentes y Autotransporte Federal, added by the reform published in Mexico's official gazette (DOF) on May 21, 2013, says every vehicle using federal roads, highways and bridges must carry insurance that covers damage to third parties' property and persons. Buying it is the vehicle owner's responsibility, and in a rental the owner is the rental company. No one can force the owner to buy it from a specific insurer.

The amounts were set by the Finance Ministry (SHCP) in Agreement 07/2014, signed on March 19, 2014: MXN 100,000 for injury and death of third parties and MXN 50,000 for damage to their property. It was phased in by model year and vehicle value, and since 2019 it applies to all vehicles. In practice, a rental car rarely avoids federal roads: from Puerto Escondido to Mazunte you take Federal Highway 200, from Cancún to Tulum Federal Highway 307. On city streets, each state's laws apply on top of that.

If a vehicle is driven on a federal road without that insurance, Article 74 Bis, Section II, sets a fine of 20 to 40 days of minimum wage, which since Mexico's 2016 de-indexation reform are counted in UMA: at the 2026 UMA of MXN 117.31, that's MXN 2,346 to 4,692. The owner has 45 calendar days to buy the policy, and showing it cancels the ticket. Under Article 63 Ter, a car with broader insurance can't be stopped or fined on these grounds.

These acronyms are commercial and every rental company uses them its own way; the law only talks about civil liability. Here's the most common mapping, so you know what you're being offered. What binds you is your contract, so always ask for each coverage's name, limit and deductible in pesos.

If you hit another car, liability coverage is what pays for it. Mexico's Insurance Contract Law (Article 145) obliges the insurer to pay, up to the sum insured, what the policyholder owes a third party, and Article 147 gives that third party the right to claim directly from the insurer. That's why the limit matters: anything above the sum insured may end up on you, depending on your contract.

It covers the rental car, not third parties. Visa describes its auto rental insurance benefit for Latin America and the Caribbean as coverage for accidental damage to the rental car, for rentals of up to 31 days, as long as you book and pay with the card and decline the agency's CDW. American Express's benefits guide for its Latin American Gold cards states that damage to any other driver's car and injury to anyone are not covered. In other words: your card can replace the CDW, never the liability coverage.

Terms vary by bank, the country where the card was issued and the card tier, and some guides exclude countries or vehicle types. With Mastercard and other networks the practical rule is the same: before you travel, ask your bank for the current benefits guide and a letter of coverage in case the agency asks for proof. And ask the agency what deposit it will hold if you decline its CDW.

Almost always because the price you saw online didn't include the liability coverage or the CDW the agency requires. Here the law is on your side: Article 7 Bis of Mexico's Federal Consumer Protection Law requires businesses to show the total amount clearly and visibly, including taxes, fees, interest, insurance and any other charge. In a press release dated July 26, 2026, PROFECO, Mexico's consumer protection agency, also tells renters to check the contract and the insurance coverage, confirm the company's standard contract is registered with PROFECO, and carry a valid license, because without one the insurance may not pay out.

It's a hold on your card, not a charge, backing damage, the deductible and outstanding charges. At KORU, if the vehicle carries a deposit, you see the amount before paying and authorize the hold from your account on handover day, with 3D Secure; it can be a different card. If the rental ends with no damage or outstanding charges, it's released after the return is reviewed, and your bank may take a few more days to show it. Our deposit guide walks through it step by step.

We only state what our current Customer Terms and Conditions, dated November 1, 2026, say. KORU is not an insurer: every rental is covered by KORU's commercial insurance with ANA Seguros, the «Seguro básico» (basic insurance), included in the price. What it covers, with which limits and which deductible, is set by that rental's policy and contract, so ask for them and read them before paying. This is what's in writing:

Heading to the Oaxaca coast? Go to korurent.com, search for Puerto Escondido and enter your dates: each available vehicle shows its daily price and, before you pay, the breakdown with the deposit. If you have a question about a specific vehicle's coverage, ask us on WhatsApp before booking.