Yes some rental companies will allow it. Yes they will charge outrageous fees.

If you rent the car in Mexico it will cost a lot less. Avis & Dollar both have places in the Zona Rio.

Look at my previous posts on the Rosarito Beach forum and you will find a list of companies in San Diego that will allow cars to go into Mexico and I've posted their phone numbers. Someone else posted that it is possible to rent from Avis and use your credit card insurance for all the insurance on the vehicle (just as you probably do in the U.S.) and purchase only the manditory 3rd party liability insurance to cover damage you might do to others or their property. However, you have to ask them about that option; they don't advertise it and they don't tell you about it.

I had fun reading all the Rosarito Beach stuff, never did see the list of rental car places but haven't looked through everything yet.

I think I got the matter settled though and wanted to share for anyone that's interested. I made reservations through Advantage and called to double-check that we could take car to Ensenada and they said yes. My rate for four days is about $180, plus Mexico surcharge. This might sound steep, but the convenience will be worth it for us. We usually go to Southern Mexico, first time to Baja, so we really want to check out the area on our own.

Our hotel offered to set up transport from San Diego airport to hotel and back for $320. This isn't really bad, considering all that entails, but we wanted to have the car to roam and stop along the way.

I enjoyed reading about Puerto Nuevo in the Rosarita posts and really want to stop there, as well as Rosarita, on our way to Ensenada.

Thanks again for the comments and help.

I was wrong about where I posted it: look at the California forum and search for "Bus Tour to Ensenada." I posted a complete list of what the San Diego phone book lists for rental companies that will allow you to take the car over the border. As I said, if Avis will allow you to use your credit card insurance for the vehicle insurance (credit card insurance becomes primary once you are in Mexico), you'll save a great deal of money--about $20.00 a day.

Update:

Found a better deal on a rental car than the $180 from Advantage I quoted earlier. Dollar gave me one for $101. Mexico surcharge is $25 a day, same advantage. Great deal!

a great place to rent a car is at the international rental place on the ca side of the border ... its at san ysidirdo and it was $40 with mexican insurance and 300 miles for a day to get a geo metro. We went to ensenada and back.

more information

international car rental

710 e san ysidro blvd suite d

san ysidro, ca 92173

619-428-6500

i am not at all affilated with this company, we were originally gonna ride a bus to ensenada, but it was getting late and i saw these guys so i went and talked to em.