If you plan to drive or own a car in Costa Rica, one of the first things to consider is car insurance. Whether you are a local resident, an expat, or a tourist renting a car, you may wonder how much does car insurance cost in Costa Rica? The answer depends on the type of vehicle, your driving history, and the kind of insurance you choose.
Car insurance in Costa Rica is not as expensive as in some countries, but it is mandatory. Every car must carry minimum legal coverage known as SOA, or Third-Party Liability Insurance. Most drivers also choose to buy optional private insurance for added protection against theft, accidents, or natural disasters.
In this guide, we will explain the types of car insurance available in Costa Rica, what they cover, average costs, and how to choose the right plan. Whether you are buying a car or renting one, this article will help you understand the insurance system and what to expect when driving in Costa Rica.
Is Car Insurance Mandatory in Costa Rica?
Yes. Car insurance is required by law in Costa Rica. Every vehicle must carry third-party liability insurance provided by the National Insurance Institute, known as INS. This insurance is included in the annual vehicle registration fee, also called Marchamo.
While SOA covers damage or injury to third parties, it does not cover damage to your own car. That is why many drivers choose to buy optional private insurance to protect their vehicle in case of an accident, theft, or weather damage.
Types of Car Insurance in Costa Rica
There are two main types of car insurance:
1. Mandatory Third-Party Insurance (SOA)
- Required by law
- Provided only by the National Insurance Institute (INS)
- Covers injuries or death of third parties in an accident
- No coverage for vehicle repairs or damage to your own car
This insurance is included in your annual registration and must be renewed every year.
2. Optional Private Insurance
- Offered by INS and other private companies
- Covers damage to your own car
- Includes collision, theft, natural disasters, and vandalism
- May include legal assistance, roadside help, and medical expenses
- Customizable with different levels of coverage and deductibles
Private insurance is not required, but highly recommended especially for tourists, expats, and those with new or valuable vehicles.
Average Cost of Car Insurance in Costa Rica
Car insurance costs in Costa Rica can vary based on several factors, including:
- Type and value of the vehicle
- Year and model
- Whether it is used for personal or commercial purposes
- Driver’s age and experience
- Coverage type and deductible
- Location and frequency of use
1. Mandatory SOA Cost
This basic coverage is included in the Marchamo payment and usually costs between:
- 150 to 300 US dollars per year for small cars
- 300 to 600 US dollars per year for SUVs or trucks
Prices depend on vehicle size, engine power, and risk category. This fee also includes road taxes and other charges.
2. Private Full Coverage Cost
The cost for full private insurance usually ranges from:
| Vehicle Type | Yearly Cost in USD |
| Economy car | 400 to 800 dollars |
| SUV or pickup truck | 700 to 1,200 dollars |
| Luxury or new car | 1,200 to 2,000 dollars |
You can reduce the premium by choosing a higher deductible or selecting limited coverage.
Insurance Costs for Rental Cars
If you are visiting Costa Rica and renting a car, insurance is an important part of your rental contract. In fact, most rental companies require tourists to buy local coverage even if they already have travel or credit card insurance.
Here is what to expect:
Basic Rental Insurance Costs
- Mandatory liability insurance: 10 to 20 dollars per day
- Collision damage waiver (CDW): 15 to 25 dollars per day
- Full coverage with zero deductible: 25 to 40 dollars per day
These fees can double the cost of your rental, so always check what is included in the price. Ask for full details and read the fine print before signing.
Factors That Affect Your Insurance Cost
Here are the main factors that influence how much you will pay for car insurance in Costa Rica:
- Vehicle value: Expensive or new vehicles cost more to insure
- Coverage level: More coverage equals a higher premium
- Deductible amount: Higher deductibles lower the premium
- Driver age: Younger drivers may pay more
- Driving history: A clean record gets better rates
- Location: Urban areas with more traffic may increase costs
- Insurance company: INS and private companies offer different prices
Always compare quotes from different providers and ask about available discounts.
How to Buy Car Insurance in Costa Rica
You can purchase car insurance through the following:
- INS offices: Government-owned and trusted by most locals
- Private insurers: Offer custom plans and added benefits
- Local agents or brokers: Help compare policies and handle paperwork
- Car dealerships: May offer insurance when buying a new car
Documents you will need:
- Vehicle registration
- Personal identification (passport or residency card)
- Local driving license (or valid foreign license)
- Proof of payment
Insurance plans can be paid monthly, quarterly, or yearly. Ask for payment options that match your budget.
What Is Covered Under Full Car Insurance?
Full private car insurance may include the following:
- Collision coverage: Pays for repairs if you hit another car or object
- Comprehensive coverage: Protects against theft, fire, flood, or natural disasters
- Glass and windshield protection
- Roadside assistance
- Towing service
- Legal support
- Medical expenses for passengers
- Rental car coverage while your vehicle is in repair
Check your policy to understand what is included and what exclusions apply.
Tips to Save on Car Insurance in Costa Rica
If you want to lower your insurance cost, here are some helpful tips:
- Choose a higher deductible
- Drive carefully and maintain a clean driving record
- Pay your premium annually to receive discounts
- Bundle with home or life insurance for multi-policy savings
- Install an alarm or tracking system for theft protection
- Park your car in a secure garage to reduce risk
- Shop around and compare quotes before buying
Spending time to research now can help you save hundreds of dollars later.
Claims Process in Costa Rica
If you get into an accident, follow these steps:
- Call 911 to report the accident
- Do not move the vehicle unless it is blocking traffic
- Wait for traffic police (Transito) and the insurance inspector
- File an accident report on site
- Contact your insurer or agent to start the claim
If you have full coverage, your insurer will guide you through the repair process and rental car options. Be sure to keep copies of all documents.
Frequently Asked Questions
Yes. Tourists can drive with a valid foreign license along with a passport. Residents must get a local Costa Rican license after a set period.
Yes. Even if you have travel insurance or credit card coverage, local law requires purchasing liability coverage from a Costa Rican provider.
Driving in Costa Rica is generally safe, but road conditions can vary. Watch out for narrow roads, sharp curves, and heavy rain in the wet season.
Yes. Full coverage offers peace of mind against theft, weather, and major accidents. It is especially useful in high-risk areas or for valuable vehicles.
Final Thoughts
Car insurance in Costa Rica is both a legal requirement and a smart way to protect your investment. While the mandatory SOA coverage is built into your annual registration, most drivers choose to add private insurance for better protection. The cost of car insurance depends on your car, your coverage, and your driving habits but with the right plan, you can drive with confidence and security.
If you want to compare trusted car insurance options whether you are in Costa Rica or traveling internationally, visit Alias Insurance. We help you find affordable plans with real protection no matter where the road takes you.
