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us entrance gate at international border of us and mexico

Can I take a rental car from the U.S. into Mexico?

You can drive a U.S. rental car into Mexico if you pay for Mexican Automobile Liability Insurance at the U.S. rental location. But note that this insurance is not available in Mexico. It can be purchased only in specific states in the U.S., such as Arizona, Texas and California. Furthermore, not all rental agencies authorize renters to take their cars into Mexico.  Avis, for instance, restricts this process. Policies are subject to change without notice. Information may be changed or updated so always make it a habit to ask and call your car rental agency before going on a road trip. 

Thinking of driving a car rental from the United States to Canada? Read our Driving Across the U.S. - Canadian Border: What You Need to Know for some helpful information.