Costa Rica Auto Insurance

Some people find car insurance in Costa Rica to be a bit of a mystery. However it’s really not all that complex. This is most likely due to the laws in Costa Rica. Which do not require companies to be completely upfront about their insurance policies on their websites.

Not all rental companies in Costa Rica will include the price of their policies in their price quotes online. What makes this worse is that some insurance policies for rental cars are required by Costa Rican law. So make sure to double check with the agencies you are thinking about using. Just to confirm the costs of their insurance plans.

Generally the basic plans for most rental car companies will only cover about 80% of the damage to the vehicles. Also the insurance plans for covering your rental car and other driver’s vehicles can be separate.

Deposits on vehicles in Costa Rica are also very steep. You can expect to pay $1,500 or more for the deposit on your rental car. The value depends on what type of vehicle you choose to rent.

Whether to choose basic or full coverage insurance.

Things can be very unexpected in Costa Rica. You will experience unfavorable weather conditions, poor roads, and other drivers with no insurance. Therefore it is most likely to your advantage to opt for the full coverage. Usually it is not much more expensive than the basic coverage, and covers a great deal more than the basic packages. The basic packages usually will only cover around 80% of accidents, and will only cover either the rental or other driver’s vehicles. This could leave you with a very large bill, it’s better to be safe than sorry.

Another factor to consider when choosing a basic or higher tier of coverage is whether you are familiar with the area. Tourists have a higher chance of being in an accident because they are unfamiliar with the area and types of roads that they will be driving on.

It is also worth it to check with your credit card company to see if they offer any additional options for your vehicle coverage. Many credit card companies offer complementary insurance for the vehicle you are renting, or they may offer a cheaper plan.

CDW and TPL; CDW is Collision and Damage Waiver, TPL is Third Party Liability. TPL is the insurance that is required by Costa Rican Law, while is CDW is the optional package. Although it is only recommended to opt out of CDW if you are 100% certain that your credit card company will insure the car you are renting. Also be sure to check with your agency to see if any of your deposits will be different if choosing to opt out of their insurance plans.