Next time a traveler rents a car in Cancun, they may want to double-check the charges on the bill before starting on their fun-filled vacation getaway enjoying the sun, sand, and surf.
Recently, a number of tourists have uncovered rental car agencies in Cancun charging international travelers extra money for a product that was already covered and paid for by the car rental agency under the requirements of the National Mobility Law.
Over Charging Tourists
According to Article 129 of the National Mobility Law, rental dealers of vehicles have the obligation to insure the users’ life and physical integrity through policies contracted with insurance companies located in Mexico.
In other words, car rental agencies are required to carry enough insurance to cover possible damage to the vehicle being rented, as well as the drivers, with a policy approved and verified by the National Insurance and Bonding Commission.
Despite this requirement being in place, car rental agencies are still actively recommending, and in some instances forcing, international travelers to Cancun to buy the optional loss damage waiver (LDW) and personal injury policies when renting a car.
Additionally, several car rental employees have threatened visitors to Cancun that they will experience hassles, be cited by authorities or be on the hook for large repair bills if they decline the LDW insurance.
However, the fact is tourists are buying coverage for a vehicle that duplicates the coverage already in place by the car rental agencies under Article 129 of the National Mobility Law.
The extra payment assumably ends up in the pockets of the car rental agency along with a commission to the rental agent selling the policy to the unsuspecting tourist on vacation.
Tourists Unaware of The Law
When asked about if they declined the LDW when renting a car for their Cancun vacation getaway many tourists admit to paying for the optional coverage.
They also mention that they are unaware of the law in Cancun which requires the car rental agency to have the coverage in place prior to renting the car.
Some also mentioned that it was included in the cost of extras, however, the car rental agency did not force them to take the optional LDW insurance.
They instead used scare tactics to bully the tourist to accept the insurance or it was already accepted in a “package” of optional items to be accepted.
Credit Card Rental Car Coverage
Some travelers to Cancun already know they can decline the LDW coverage because of coverage provided by the credit card used to pay for the vehicle rental.
So, for several tourists it simply is a challenge trying to convince the car rental agent that sufficient coverage is in place by the credit card company.
Most of the time, car rental agencies in Mexico push back on this stating the hassle factor of having to deal with insurance claims and other inconveniences when visiting Cancun on a vacation getaway.
Using this reasoning for declining the LDW has been quite a challenge in the past, however it is much easier now with the requirement under Article 129 of the National Mobility Law.
Saving You Money
Because car rental agencies and car rental agents make money from selling the LDW coverage to unsuspecting Cancun tourists on vacation, the practice is expected to continue.
Now tourists have the knowledge to push back against the hard sell of the LDW coverage.
All a visitor to Cancun needs to do is simply mention to the car rental agent that they are declining the optional LDW coverage because it is already paid for by the car rental agency under Article 129 of the National Mobility Law.
A tourist may even want to go as far as to document that coverage as the reason for the optional LDW coverage in the actual contract.
On average, waiving LDW under Article 129 of the National Mobility Law could save a Cancun tourist about $15 per day on a vehicle rental during their vacation.
On a seven-day vacation, that works out to more than $100.
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