Taking a rental car into Mexico is permitted by United States residents only if you purchase Mexican

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Make sure to always check with the rental car company directly about policies, as many companies only allow travel into Mexico with a rental car for specified vehicle types and from select locations only.
Taking a rental car into Mexico is permitted by United States residents only if you purchase Mexican Automobile Liability Insurance at the U.S. rental location. You cannot purchase this insurance in Mexico. This insurance is available only at specific locations in Texas, Arizona and California .
Rental car into Mexico -- Renters at the Los Angeles, San Diego and Phoenix locations only , may take a Fox rental car into Mexico (close to the California and Arizona border), as long as they inform the counter and they must purchase Mexico Insurance. Mexico insurance rates start at $26.00 per 24 hour day.
The customer must check at the renting location at the time of pickup for authorization and to purchase a mandatory Mexican Insurance Policy. This basic Mexican insurance coverage only allows travel up to 250 miles into Mexico .
According to PaylessCar.com , (opens in a new window) geographic chianti guides tour restrictions may apply and are location specific. In order to determine if a vehicle is permitted to leave the state in which it's rented, chianti guides tour you must check the "Location Policies" (during the reservation process - bottom of the page on step 3 of the reservation process, chianti guides tour before booking) to determine what geographic restrictions may apply for rentals from that specific location.