Costa Rican Rental Car Insurance Explained (sort of)

Auto insurance in Costa Rica is a government monopoly of the INS (Instituto Nacional de Seguros). Liability
insurance from the INS is mandated by law, but provides only minimal coverage. Rental agencies offer supplemental
programs that cover deductibles and contingencies other than a simple traffic accident.

The cost of insurance can approach or exceed the cost of renting. There are three types
Required by Law—TPL, SLI, SLC or API—Liability Insurance from the INS is required regardless of your policies
at home or the claims of your titanium credit card. The cost ranges from $US 7-20 per day depending on the vehicle.
This insurace does not cover your rental car at all, only damages to other people, their cars, or property. Unless you
purchase supplements, or have documented coverage from your credit card you are still responsible for all damages to
the rental vehicle.
Optional—CDW or LDW—Collision Damage Waivers are a supplement underwritten by the rental company to
reduce your liability for your rental car to the deductible amount ($US 1,000-3,000 depending on the company and
vehicle) only in the case of an accident. The cost ranges from $US 12-20 per day depending on the company and
vehicle. You are still responsible for all losses or damages in the case of negligence, vandalism, road damage, or theft.
This insurance may be replaced by your home auto insurance policy or credit card coverage. Check before you rent,
and get it in writing. Some credit card companies have exclusions specifically against Latin American rentals. Some
rental companies do not allow you to waive this insurance regardless of other coverage. They are noted in the rate
table.
Optional—Zero Liability—Under the names of Full Coverage, Vandalism Supplement, Damage Supplement, and
Theft Insurance these extra policies are intended to reduce your liability to zero when combined with SLI and CDW.
For example, if the trunk is damaged by thieves while they steal your luggage you will be held responsible for the
damage unless you have purchased a third level of insurance. The cost ranges from $US 5-20 per day depending on
the fine print and vehicle.
These insurances may be replaced by your home auto insurance policy or credit card coverage. Check before you
leave home, and get it in writing. Some credit card companies have exclusions specifically against Latin American
rentals.
More Confusion—The confusion and frustration involved in getting a fair price on a car rental gets worse before it
gets better. Some rental car agencies lump the cost of one or more types of insurance into the rental cost, others
combine the government insurance in their CDW or LDW coverage, and others seem to intentionally confuse the
three types in order to make their rates appear better. We do not rent cars or have marketing agreements with any
agencies and therefore have the same objective as you. We want to find the lowest rate from the most reliable
company. The prices in the rental agency comparison represent the cost of the rental plus the minimum insurance
required by law or the rental company. This would be the rate you would actually pay if your credit card covers the
supplemental insurance, or you choose to assume the responsibility yourself. The rates in the table do not include the
additional costs listed below.

Other costs of renting a car in Costa Rica.

Gas—Cars returned with less than a full tank of gas will be refueled at your expense. The price of gas from the rental
companies can be up to twice the cost at a service station.
Government License Plate Fee— $US 1 per day, rarely included in quoted rates.
Airport Concourse Fee—There is a 12% airport concourse tax added to the cost of any car picked up at Juan
Santamaría. The Car companies all know this and will make arrangements to help you avoid it. If you arrive late and
plan to stay in the area (do not drive at night), take a taxi to your hotel and have the car delivered the next morning
(often free of charge and saves you a day of rental). If you arrive early and want to get on the road, the car companies
have off airport pickup locations a few minutes away.
Additional Drivers—$US 2.50-10 per day
Secure Parking—Recommended. Never leave anything in the car!
Ferry—Taking your car on ferry boats costs between $US 10-15.
Damages—Unless you purchase all of the above insurance or your credit card covers it, you are responsible for
damage done by potholes, vandals, thieves, falling trees, high tide, army ants, spilled food, and any other imaginable
occurrence other than a traffic accident involving another party.
Tax—Finally you get a break. Car rentals are not taxed in Costa Rica. Companies that advertise prices with "All taxes
included" are not lying, just misleading.