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We recently rented in Cabo and third party insurance was required.
It basically cost the same as our rental.
It was either that or give them close to a $20,000 deposit.
They didn’t care about our Chase coverage.
Take a video of the entire car upon pickup and return and if you do any off paved road driving, which is pretty common in some parts of Mexico, consider getting it detailed before returning it.
We spent $8 to get the car detailed and were relieved we did because they scrutinized every inch when we returned.