I checked all the major car rentals- inquired as to insurance and additional costs in Mexico- We rented through Avis, a week for $216.00. I made the reservations on line- through thier web site. I emailed Avis, and asked about the insurance and what they covered. I got a reply (that I copied and brought with me) that the rental fee covered the manditory Mexican insurance. Then looked on the internet at my credit card site- and got thier information that they said that they covered- and called the company- got date, time, name of who I talked to - to further document what they covered when you used thier card. When asked if we wanted the high insurance, we said no, and when they questioned again- I pulled out the information supplied by the company- and there was no further argument. It all went off without a hitch- except they did put a $1500 hold on my credit card. Which was released when we turned the car in.
We also call our credit card companies that we are using and advise that we will be in Mexico, and place a dollar limit on how much can be charged. That way if your card number is stolen they can pick up on it quickly.
One thing to be aware of- when you get there- you have to go off airport site to get the car. You wait for thier shuttle bus to take you to the lot. There are timeshare hockers at every turn- we had agreed that we would not go this time- one got up to offering $400- US dollars- to go - And at Avis- they offered the cost of the car- or they might offer you other incentives- booze cruise, tours, etc- If you want to re-coup some costs- you can spend 1/2 day looking at a timeshare (they say 90 minutes- but figure on 1/2 day at least)- or- if you keep say no thank you- eventually they will stop asking - but there will be more folks to take thier place asking- we find a no thank you and move along they will not follow you. It is just part of the whole experience.
Have a great trip- we especially like Cabo San Jose- it is more laid back.
I tell you, I'm now tempted to just pay for the hotel's shuttle and take taxis. Dealing with all this BS in Mexico may be too much for me on my honeymoon. My wife to be is not going to be happy to have to deal with all of it.
Take the road less traveled...but only if it means more miles.
Even though it is a hassle,- we were glad we rented a car - especially, if you are not staying right down town. If you are right in town-and can walk to eating and shopping- you do not need one. The taxi's and airport shuttles are very expensive- I think like $60.00 one way, from airport to anywhere. And the bus system is not all that good- We stay at the Club Reginia -Westin Hotel area- it is half-way to everything. The first time we went we did not rent a car at the begining- we paid for taxi's- and rented for a day here and there- and it was so much more expensive than just renting for a week. So don't let the little hassle at the begining put you off- you can see so much more of the area- and eat at so many more "interesting" places.
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DO get insurance - but DO also be aware...
Be aware - in Mexico, the laws are based on Napoleonic code. That basically means if there is an accident, everyone is condsidered at fault until such time it gets sorted out in the courts, and you are not entitled to legal representation. The insurance company becomes the guarantor of your presence and that any moneys payable will be paid (by the company.) Without insurance, you will likely be detained until it all gets worked out - that can take a long time. No consulate can do much about that, and they generally don't much care in any case.
You will note the insurance does not pay for some of the things you take for granted in the USA - "theft" ("robos") will only pay if the entire vehicle is stolen, not if parts of it are, nor if anything within is stolen. You can not get window breakage covered - for obvious reasons. I heartily recommend you read the terms and conditions carefully - and if you don't need an automobile, use local transport. I agree an automobile gives you lots of freedom - but you get more liabilities than you may be used to.
(I was born and raised in Mexico, have driven extensively on and off-road in most Mexican states in owned and rented vehicles.)
Taxis are VERY negotiable in Cabo, we did well when we were there last week, getting rates of $5 for a van to take 6 or 7 people into San Jose, and $10 to go from our hotel to La Playita.
We also got a $20 ride to the airport. However, usually for airport transport we use www.transcabo.com
Transcabo also has some deals where you can get a private vehicle w/driver for surprisingly inexpensive prices, which might be nice for honeymooners. Take a romantic moonlit drive up the coast to Todos Santos.
The time share hawkers at the airport are a real pain in the rear, and I felt they were more rude this year than usual. One followed me all the way out the door demanding to see my transport voucher. I almost used one of my newly acquired Spanish curse words!
Rent a car. I was just there in July staying at the Hilton Los Cabos and we were very glad we rented a car. It's not a big hassle, just do what the 2nd poster said and you'll be good. You won't want to hassle with taxis and bus service on your honeymoon.