CDW insurance

[mediumone]

If it is MX insurance, you should have a guy you can call. It isn't just the cops that want cash.



Yea, I have heard stories of people sitting in tourist jail waiting for someone to wire money.



Are you sure that the rental car company will accept it being billed on a credit card? When you could leave and dispute it? I would love to hear from someone who wrecked a car and made out fine with CC CDW.

Good question. I don't have any personal experience, nor do I know of anyone. My source is the Thrifty Car Rental rep in Cancun. I posed the hypothetical of my involvement in an accident to him, and he said that that would be his first act: charge the card, then send help.

 

[mmmbelows]

Seems like this is evolving into a discussion of extremes IE "wrecking the car" to the point it's totaled.

Sure there is a minuscule chance of an accident where the rental car is totally destroyed and we are talking about paying for the entire amount, but if you get in an accident that would destroy the car you're probably in a mexican hospital rather than mexican jail.

The more likely scenario out of all of these is a much less severe claim such as a fender bender rather than total destruction of the vehicle, rear ending somebody, somebody rear ending you, crunching the bumper or the fender...a big scratch on the car, some thief smashing a side window to break in...

When that happens if no other person is involved such as you find a big scratch or a dent on the car, or a broken window - you're basically not going to jail, you're making a phone call to the rental agency and they are going to start a process of recovering damages

If you get in a fender bender, a cop comes, you're calling the rental agency, is the cop taking you to jail or is the rental agency going to be charging your credit card? How are the damages to the other car handled?

 

[cvchief]

If you get in a fender bender, a cop comes, you're calling the rental agency, is the cop taking you to jail or is the rental agency going to be charging your credit card? How are the damages to the other car handled?

Friend of mine had a minor fender bender with an Isis rental car and a local. They went to the police station. Margarita showed up. There was lots of arguing. Contrary to how it was described, it was decided they were at fault and not the local. Isis insurance paid the other guy and Isis settled for the deductible on her CDW insurance, which was only several thousand pesos. (I think around 300US something) I believe they paid her in cash. I think Isis includes the CDW all the time, so that is the limit with them. Then they left the police station.

Here is a quote from someone about CC CDW: "Actually, our Chase credit card insurance DID pay for damages after a street light fell on and dented the hood of our rental, and after someone rear-ended our car in the Punta Langosta lot, on the same day. We had to pay Thrifty what they estimated to fix the damage the full amount out of pocket. When we got home, I had to request the bill for the damage from Thrifty, which I then submitted to Chase. We got reimbursed the full amount, almost. Thrifty erred on the side of not losing money, but came pretty close."
So that one doesn't sound horrible.

I know another guy who lives there who had to sit in the station like more than a day I think getting his crash straightened out.

 

[oldschoolto]

I have done a 180 on this... Never ever took the CDW and always thought it a big ripoff... Always traveling inside the USA and having the Credit Card covering any problem... Now that we are traveling overseas to dive and finding out the the CC "DOES NOT COVER ME" I've been paying the CDW and think over all it's not worth the risk over a few bucks... One less thing to worry about...

I must be getting OLD...... And I'm off to Bonaire on monday for two weeks of diving, And will be paying the CDW...

jim...

 

[mmmbelows]

I have done a 180 on this... Never ever took the CDW and always thought it a big ripoff... Always traveling inside the USA and having the Credit Card covering any problem... Now that we are traveling overseas to dive and finding out the the CC "DOES NOT COVER ME" I've been paying the CDW and think over all it's not worth the risk over a few bucks... One less thing to worry about...

I must be getting OLD...... And I'm off to Bonaire on monday for two weeks of diving, And will be paying the CDW...

jim...

I'm pretty sure Mexico is one of the few places where a great CC isn't the answer for the CDW. Everywhere else in the world I've been its not as controversial as it is in Mexico. Look into Bonaire I don't think Bonaire calls for you changing how you've been doing rental cars all these years. Mexico is one of the special cases. I've been all over and they don't throw you in jail elsewhere, there is a crap load of corruption in Mexico, the cartels, the entire municipal police system is an animal unto itself.

 

[cvchief]

I'm pretty sure Mexico is one of the few places where a great CC isn't the answer for the CDW. Everywhere else in the world I've been its not as controversial as it is in Mexico. Look into Bonaire I don't think Bonaire calls for you changing how you've been doing rental cars all these years. Mexico is one of the special cases. I've been all over and they don't throw you in jail elsewhere, there is a crap load of corruption in Mexico, the cartels, the entire municipal police system is an animal unto itself.

All that corruption stuff aside, remember their Napoleonic code is a bit different. Right now, in MX you are guilty until proven innocent. I believe they may have a constitution amendment coming to make you innocent until proven guilty late this year or early next.

And you can beat the settling of auto claims. In the US an auto claim goes on for years and years. I know one that just settled like 6 years after the crash and it wasn't a really big crash. In MX, all resolved before anyone goes home. Done and done!

 

[BRT]

I have to think that the authorities would treat tourists a little different but I have 2 different Mexican friends that just ended up in jail for long periods of time until a settlement could be arranged. In both cases it amounted to gathering enough money to pay off the judges and lawyers. One was in jail 6 months and the other a year. No trial, no hearing. When the money changed hands they were freed. In one case there was a complaint against them but in the other the cops just said somebody had to go to jail and the my friends decided among themselves who would go. No decision was ever made on guilt or innocence. They had to pay to talk to judges. It appeared to me that their own lawyers were in on the payoff. This is not the world we are used to.

 

[mmmbelows]

So after some digging and some calls to my CCs I wanted to post what I believe are the facts now. I'm going to quote CVchief because his statements address the issues the most succiently and for no other reason

Liability would cover you hitting someone else and their bills. Collision covers YOUR responsibility for the rental car if you damage it. So you hit someone and go to the police station. The insurance guy and the rental people show up and take care of the other guy. Then the rental guy looks at you and asks "How you paying for my car?"



I think it does. The problem is you SIT in tourist jail at the Police Department until it is PAID. No "oh, my card will cover it." Cash on the barrel head so to speak. So do you want to sit in the PD for however long it takes to get it paid? How long is that? A day, 2 days? More? And who is negotiating what that rental car damage is worth? It is you VS the rental guy. In Mexico. Guess who takes the beating on that one?

Stating things as I've been told now - Basic Personal Liability is included in any rental car rented in Mexico with coverage to anyone you get into an accident with (does not cover the renter, the rental car or passengers of the renter - this coverage is for someone you get in an accident with) coverage is up to 750,000 pesos, covers bodily injury and property damage. (This seems like a really good policy to me, I like that this is mandatory, how they have this included in a $3.00 a day rental rate in Cabo, I have no idea)

So addressing this - I've read stories about warnings renting cars in Mexico specifically that if you hit a Mexican you are going to jail and must pay cash to him for his injuries and his car. According to this information PLI is supposed to cover this, it's mandantory you can't rent a car in mexico without it, so I'm not sure how these stories of being jailed in Mexico for hurting a Mexican and his car in an accident can be true?

Anyone shed any facts on this?

Mandatory PLI does not cover the rentor, the rental car or his passengers this is what CDW or LDW are for (both the same thing, different names) This is where another set of scares comes around saying that if you damage your rental car you're going to jail until you pay cash for it. Facts I'm being told from the CC companies is that on my cards AE and VISA paying for additional CDW coverage is not necessary. It is included by using my CC. The rental agency will make a 2nd impression of my CC and hold this slip for damages during the rental period, when you return the car if there is no damage the slip is ripped up. If you get in an accident the rental agency will charge the card for the damages, which could include repairing dents and dings, the whole car and even loss of income, all covered by the CC. When you get home you call them, give them the required info they want and they reimburse within 15 days or basically it's just a paper transaction that never requires paying anything for.

So this is what I'm being told from the horses mouth so it is looking like according to this my $3.00 rate is really all I need, my CC will cover me for my rental car damages and will pay them on the spot, and the mandatory PLI will cover any mexican and his car if I hit it.

Of course I could void all of this if I do something outside the terms, such as going off road, but I think you can void the CDW you pay extra for also.

What was made very clear to me by everyone I spoke with is that NO insurance you have in the states on your automobile policy is transfering to Mexico on your rental car, with no exceptions of any kind at all.

I'd be very interested in any information that can be verified that contradicts this, especially all the talk of going to jail.

I think it boils down to 2 things

1) If you hit a mexican and/or injure them you go to jail and pay them cash, this seems not to be true according to the definitions of the mandatory PLI included with all rental car rentals in Mexico

2) If you damage or destroy you own rental car in a accident you go to jail until you can pay cash for the damages or the entire value of the car which might include loss of use to the rental agency, this seems not to be true according to AE and VISA.

Thanks in advance, just trying to sort this all out once and for all.

 

[mediumone]

coverage is up to 750,000 pesos,

Facts I'm being told from the CC companies
the horses mouth

Coverage is up to 750,000 pesos. That amount is not the standard amount offered. You must request additional coverage. Find out how much, and you can decide whether you're comfortable with the coverage or not.

I looked at what was included with Hertz in Cancun. I was not comfortable with the basic included coverage, deeming it woefully insufficient.

You're in Mexico. I think you've made a common error. The rules that may apply in the US, and in other parts of the world, may not apply in Mexico. In Mexico, the "horses mouth" is not the CC companies; that would be the police, or rental agency.

 

[BRT]

Did you get a letter from the CC companies saying they would cover you in Mexico? Years ago we needed to take a rental from Mexico into Belize. There was no insurance available through the rental companies to cover the rental in Belize. AE said they would, and sent a letter to that effect, but the others said they would not provide insurance in Mexico. Things could have changed by now. That was 5 to 7 years ago. Please tell us when you get back how it went. Dollar quotes some low rates in Cancun too. Not that low but low. I have ignored them because I was sure they would charge more on arrival. Anyone else have experience with Dollar in Cancun?

You should probably Google reviews for Dollar Rental Car in Mexico. The add on insurance scam is alive and well. It is easy to say just don't buy the insurance but they may say that means you can't rent the car.