Beware of Unexpected Costs When Traveling to Mexico

I have just returned from a recent trip to San Jose Del Cabo in Baja Mexico and thought it would be good to inform other people who may be planning a vacation to Mexico about the unexpected costs that can arise. These are things that need to be considered and budgeted for so you don't overspend, or get left short by not having enough money to enjoy your trip.

The first is regarding Car Renting and applies even if you drive your own vehicle across the border to Mexico, when renting a car you are given a price quote online that does not include the mandatory Mexican insurance that is required on all vehicles. Also even if you are insured by an American Car Company on your own vehicle, you must purchase separate temporary Mexican insurance to cover you while you are in Mexico.

This can range between $25 and $50 USD per day depending on the type of insurance purchased but if you are staying in Mexico for 6 days, this can easy add another $120 - $200 dollars to your cost just to visit and bring or rent a car. Most car rentals charge a minimum of $68 - $75 dollars per day total (renting the car + insurance) so be wary of any deal that makes you think you are getting a rental for less than $50 per day.

Other things that can affect cost is the Peso to Dollar conversion, if you plan on visiting Mexico it is highly recommended you convert some US currency to Mexican currency at a bank. This way you can pay with exact change, as some establishments will charge different Peso to USD conversion rates and you may be overpaying on every purchase you make if you only spend American dollars in Mexico. Cash is also required as the federal gas stations don't often accept credit cards, and you must make sure you bring enough cash to cover the places which don't accept credit transactions.

The bottom line is make sure when you set a spending budget for Mexico you take into account the addition costs and expenses that are involved, take the time to research the places you will be visiting and make sure there is a place to convert currency close by. Make sure if you are renting a car or driving your own that you have enough money to cover the additional Mexican Insurance that is required on vehicles.