Renting a car in Cabo San Lucas: A Complete Guide

Although highly recommended, it is not necessary to rent a car in Cabo San Lucas, but if you do, you are in the right place.

Hello! I am Isabella. I live in Mexico, and I have traveled to Baja California multiple times, of course, I have rented a car in Cabo San Lucas all the time because it’s the best way to explore baja in my opinion.

Whether you’re here to explore the stunning beaches, indulge in the local cuisine, or embark on outdoor adventures, having your own set of wheels offers unparalleled freedom and convenience. 

In this comprehensive guide, I’ll guide you through the process, from selecting the right vehicle to understanding the local driving laws, ensuring your journey is as smooth as the breezy Cabo waves. 

Road to cabo at sunset with pink sky
On my way to Cabo

Renting a car in Cabo San Lucas: FAQ

Do you need a car in Cabo San Lucas?

If you intend to stay in one of the beautiful hotels in Cabo and enjoy the beach, restaurants, and nightlife, or take one of the great tours available in Cabo San Lucas, you might not need a car rental, as you can walk or take taxis, buses, or Uber to get around.

However, renting a car is highly recommended if you want to fully explore the region’s beauty and attractions at their own pace.  

For the way I love to travel, the freedom and flexibility of having your own vehicle is priceless.

Having a car allows you to visit beautiful beaches, such as the spectacular Santa Maria or Palmilla Beach, or the secluded Lover’s beach. While accessible only by boat or a hike, it becomes much easier to reach when you can drive to the marina on your own schedule.

The cost benefits are clear for groups traveling together. Renting a car can be more economical than paying for multiple taxis or shuttle services, especially when planning trips to places like Todos Santos, a charming town known for its vibrant arts scene and historic architecture.

The allure of Cabo San Lucas extends well beyond its immediate surroundings. The Baja California Sur region offers a wealth of hidden gems best explored by car. 

San Jose del Cabo, with its traditional Mexican atmosphere, artisan shops, and local markets, is just a short drive away. Its bustling streets provide a stark contrast to Cabo San Lucas. 

For adventure seekers, the drive to Cerritos Beach offers an unparalleled opportunity to try your surfing skills or learn how to surf for the first time, thanks to its renowned surf breaks. 

If you are planning to drive around baja, my baja road trip itinerary will help you craft your own road trip.

Medano beach and marina overview in Cabo San Lucas
Medano beach and marina overview in Cabo San Lucas

How much does it cost to rent a car in Cabo San Lucas?

The cost to rent a car in Cabo San Lucas varies depending on the type of vehicle and the rental company you choose.

On average, you can expect to pay around $20 to $50 per day for an economy car, which usually includes insurance and taxes. Higher-end vehicles will cost around $70 or more, depending on which vehicle you choose.

But remember that the rental cost can vary significantly based on the time of year, the type of vehicle, and the rental duration. For example, due to high demand, renting a car in February can see prices averaging around $60 to $80 per day.

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Is driving in Cabo San Lucas difficult?

Driving in Cabo San Lucas can be a fun (and very manageable) part of your adventure, with a few caveats to remember. 

First, travelers and locals alike agree that navigating Cabo is generally straightforward, particularly with the use of GPS, which works well in most areas. 

Downloading maps for offline use is a recommended tip to ensure you’re never truly lost, even in spots where Wi-Fi might be scarce.

However, driving within the town can be challenging due to its growth and the consequent traffic, making some travelers recommend walking or using other forms of transport for short distances within Cabo itself. 

Yet, for those wanting to explore beyond the immediate area, having a car provides unparalleled freedom to visit nearby towns and beaches, making it worthwhile despite the potential for traffic complications.

Safety-wise, driving in Cabo and the broader Los Cabos area is generally considered as safe as driving anywhere else, with typical precautions recommended for any unfamiliar area. 

The presence of speed bumps (topes) and the occasional encounter with less cautious drivers mean staying alert is crucial. Still, my best advice is to take your time, enjoy the scenery, and let any road stress dissipate in the sea breeze​.

Cabo Marina Drone View
Cabo Marina Drone view

Where to rent a car in Cabo San Lucas

Discover Cars

Since there are many car rentals in Cabo San Lucas, checking each and every website to find the best deal can be time-consuming. Enter Discover Car, my favorite platform for comparing prices among car rentals.

In fact, in most places worldwide, Discover Cars offers a straightforward and efficient online reservation system that allows you to choose and book your vehicle ahead of time. Cabo San Lucas is no different!

You can check my Discover Car Review in this post, or go straight to the site to get a quote. It’s very easy. Just enter location and dates and see the results that come up. Then you can filter the results based on your needs.

Make sure you check the reviews for each car rental company that comes up and you are interested in, and most of all, check the terms and conditions and the cancellation policy before making any bookings.

Car rental
The top rated car rental site

Discover Cars Mexico Review

Discover Cars is one of the most popular car rental for many reasons, among which:

When making your booking online, opting for full coverage insurance is highly recommended, as it can significantly lower your liability in the event of an accident or theft, offering peace of mind during your travels. While the specifics of what’s included in full coverage can vary, it typically encompasses collision damage waiver, theft protection, and third-party liability, ensuring that most major risks associated with car rental are covered.

You should also review the insurance coverage details to understand the extent of protection provided and any applicable deductibles. 

By securing your rental online and opting for comprehensive insurance, you can confidently embark on your Cabo San Lucas adventure, knowing you’re well-prepared for the road ahead.

IMPORTANT – Discover Cars offers a full coverage option, which will cover any excess that you have to pay for the car rental in case of an accident. However, in case of an accident, you will have to pay upfront for the damage and then ask for a refund to Discover Car. So it works for insurance provided by credit cards for which you will need to check with your credit card provider and ask if they cover car rentals in Mexico

Chileno Beach in Cabo
Chileno Beach in Cabo

Cabo rental companies

Both in Cabo and La Paz you will find a lot of car rental options that cater to a wide range of needs and preferences. 

Some of the most popular rental companies include America Car Rental, National Car Rental, Sixt, and, of course, the usual Avis, Hertz, and Europcar, among others. All offer excellent customer service, a wide selection of vehicles, and competitive pricing.

However, on DiscoverCars.com, you will find all of them in one place, and you can easily compare them.

Cabo airport

Suppose you’d rather book in person when you land at Los Cabos International Airport (SJD). You can do that too, but I wouldn’t, especially in high season, from Christmas through Easter week.

First, you won’t have the time to compare prices and read reviews of different car rentals. Second, I imagine that after a long flight, you are tired and just want to get your car and drive to the beach without having to worry about finding the best car rental deal.

You’re not short of options regarding where you want to rent a car from in Cabo. However, if you’re not opting for Discover Cars, I’d highly advise browsing reviews before you commit to a company. Some companies in Cabo are known for scamming tourists and making the rental experience quite difficult to say the least.

Cabo Marina with sea lion swimming by the boats

Things to know before renting a car in Cabo San Lucas

Car rental insurance (VERY IMPORTANT-READ CAREFULLY)

Mexico requires specific car rental insurance, so it’s essential to understand your coverage options before you arrive. Most rental companies offer a Collision Damage Waiver (CDW) and Theft Protection (TP), but these can significantly increase the rental cost. 

While CDW is optional, it’s strongly recommended for peace of mind as it covers much more than basic insurance. 

Basic insurance, also known as Third-Party Insurance, is mandatory for renting a car in Mexico and will come included with any car rental. You might think that this insurance is sufficient for you if you cause damage to other vehicles or property, but the caveat is that the deductible can be quite high.

Consequently, the deposit you pay can sometimes get up to $3500.

CDW, on the other hand, can significantly reduce your deductible. While it may cost around $10-30 extra per day, it’s worth it.

The best way to be fully covered in Mexico without paying a high deductible or leaving a high deposit is to get full coverage insurance directly with the car rental.

Just make sure you ask what it’s not included in the full coverage because it can be confusing. Sometimes, car rental calls for full coverage, but there are a few things that are left out, such as tires and windscreens.

So I always Like to ask the same question in different ways, such as “What’s covered in the full insurance?” What’s not covered? You will see what I mean when you get the answers. 😉

Remember, your car or credit card insurance might not cover you in Mexico, so double-check your policy beforehand.

Sunset by San Jose del Cabo

Driving license

All you need to rent a car in Cabo San Lucas is a valid driver’s license from your home country. 

If your license is not written in Roman characters (like Chinese or Arabic, or Cyrillic, for example), you must get an International Driving Permit (IDP) to accompany your national license.

Drivers usually need to be over 21, and those under 25 might face additional fees. Some rental companies might not rent to drivers who are younger than 25.

“Scams”/Hidden fees

As with any tourist destination, you have to watch out for scams and hidden fees when renting a car in Cabo San Lucas.

The biggest tip I can give you to avoid most scams is to always read the fine print. Some rental quotes might seem incredibly low, but they have hidden charges, like necessary insurance, leading to a much higher total cost upon arrival. 

Cabo is an expensive destination, so if you find a car rental that offers extremely low prices that seem too good to be true, they probably aren’t.

To avoid these hidden fees, scrutinize the rental agreement for any additional charges that could be applied, such as for additional drivers, GPS systems, or child seats.

Booking through reputable platforms can help avoid these pitfalls. Discover Cars, for example, is known for its transparent pricing. When you book through them, you’re more likely to see the full, inclusive rate upfront, which can save you from unexpected costs later on. But still, you need to read the terms and conditions of the company you choose, which are available inside the platform.

This platform often includes necessary insurance in their quoted rates, providing a more straightforward and honest booking experience. 

Remember, a deal that seems too good to be true probably is, especially if it significantly undercuts the market rate. By choosing a trustworthy booking platform, you can ensure a smoother rental experience without the worry of hidden fees sneaking up on you.

Whale breaching in Cabo San Lucas

Practical driving tips in Cabo San Lucas

Ready to take to the road in Cabo San Lucas? Here are some friendly tips to ensure a smooth driving experience.

  • Get CDW Insurance: Always opt for the full insurance package. Not only does CDW cover a lot more, but it also significantly reduces your deductible in case of any unpleasant incidents.
  • Know the Rules: Familiarize yourself with local driving laws and traffic signs. Speed limits and traffic signs may differ from what you’re used to.
  • Avoid Night Driving: Roads can be poorly lit at night, and animals on the road are common after dark.
  • Keep an Eye on the Gas Gauge: Gas stations are less frequent outside urban areas, so fill up when you can.
  • Watch for Speed Bumps: Known locally as “topes,” these are not always well-marked but are prevalent throughout Mexico.
  • Carry Cash: Not all gas stations accept credit cards, and you’ll also need cash for toll roads.
  • Stay Hydrated: Keep water in the car, especially if you’re venturing into more remote areas.
  • Be Prepared for Checkpoints: Military checkpoints are standard outside tourist areas. Keep your documents handy and be polite.
  • Park Smart: Always park your car in well-lit, designated areas. Avoid leaving valuables in the car.
  • Beware of Pedestrians and Cyclists: Especially in urban areas, be vigilant as pedestrians and cyclists might not always follow traffic rules.
  • Learn Basic Spanish Phrases: Knowing simple phrases for directions, assistance, or emergencies can be incredibly helpful, as not everyone speaks English.
  • Be Prepared: Make sure to save local emergency numbers as well as your car rental company’s contact information in your phone. You can also keep a power bank with you to make sure that your phone doesn’t run out of juice.
  • Save Maps Offline: Cell service can get spotty when you’re outside the city, make sure to save your maps offline so you can navigate without internet.
Baja Road

Renting a car in Cabo San Lucas: FAQs

How do tourists get around in Cabo?

Tourists in Cabo have multiple transportation options, including car rentals, taxis, shuttles, Uber, and public buses. 

Renting a car offers flexibility, especially for those staying in the Tourist Corridor, but taxis and Ubers are commonly used for shorter trips within Cabo San Lucas and San Jose del Cabo. 

Public buses provide an affordable option for traveling between these towns​, but in my opinion, you should rely on them as they are often late and can be crowded during rush hours.

Is it easy to drive around in Cabo?

Yes, driving around Cabo is manageable for most tourists, but it can be chaotic at certain hours. One main highway, Highway 1, connects Cabo San Lucas with San Jose del Cabo and everything in between, including major beaches. But be aware that it’s a highly busy road.

Familiarize yourself with road signs in Spanish and adhere to local traffic laws, including the use of seat belts and respecting speed limits​.

Is renting a car in Cabo San Lucas safe?

The general answer is yes, but it also depends on where you rent the car, especially if you follow the tips I shared in this post :).

It’s also essential to stay informed about local driving conditions and practices. Observing speed limits and avoiding night driving will also enhance your safety​.

You can check out my post about driving in Baja California for more tips.

Palmilla Beach in Cabo
Palmilla Beach – one of the few swimmable beaches in Cabo

Is there Uber in Cabo?

Uber does operate in Cabo, offering a convenient and often more economical alternative to taxis for getting around. 

However, it’s worth noting that you cannot get an Uber directly from the airport, so you’ll need to arrange alternative transportation upon arrival.

Is Cabo a walkable city?

Yes. The downtown areas and the marinas of both San Jose del Cabo and Cabo San Lucas are quite walkable, with many attractions, restaurants, and beaches within easy reach on foot. However, if you’re planning to explore beyond these central areas, you may need to consider other transportation options​​.

Final Thoughts: Renting a car in Cabo San Lucas

Renting a car in a new location can be a daunting prospect. In this article, I’ve done my best to make sure that it does not need to be that way for you. 

Renting a car in Cabo San Lucas can significantly enhance your travel experience, allowing you the freedom to explore the stunning landscapes, vibrant nightlife, and serene beaches at your own pace. 

In this comprehensive guide, I have covered everything from choosing the right rental company and understanding Mexican driving laws to navigating local transportation options and avoiding scams. Now you’re fully equipped to go forth and rent your own car in Cabo! Make sure you check my general Mexico Travel Guide if you are visiting Mexico for the first time.