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 airline tickets southwest 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 airline tickets southwest 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 airline tickets southwest insurance coverage only allows travel up to 250 miles into Mexico .
According to PaylessCar.com , (opens in a new window) geographic 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, you must check the "Location Policies" (during the reservation airline tickets southwest process - bottom of the page on step 3 of the reservation process, before booking) to determine what geographic restrictions may apply for rentals from that specific location.