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Understanding Rental Car Insurance in Costa Rica – A Traveler’s Guide

Updated: Sep 24

Renting a car in Costa Rica allows you to explore the country’s beautiful landscapes at your own pace, but understanding the rental car insurance options is crucial to a stress-free journey. In Costa Rica, there are three primary types of insurance that you will encounter when renting a vehicle: Liability Protection, Car Protection, and Extended Coverage. Here’s a breakdown of what each covers and some key advice to ensure you’re fully prepared and understand Rental Car Insurance in Costa Rica perfectly.


Understanding Rental Car Insurance in Costa Rica – A Traveler’s Guide

1. Liability Protection – Mandatory Insurance


Liability Protection is mandatory in Costa Rica and must be included with every car rental. While this coverage is essential, knowing that it comes with limitations is important.


  • Coverage: This policy covers damages to third parties’ property, such as their vehicle or home, with a 20% deductible (also known as “excess”). It also covers injury or death to third persons up to US$100,000 per accident, with no deductible.

  • Why You Need It: Without Liability Protection, you’ll be personally responsible for any damages or injuries you cause to others in an accident, which can be financially devastating.


Remember that this insurance does not cover damages to the rental car itself or offer extensive coverage for third-party claims.


2. Car Protection – Damage Waiver


The second insurance type is Car Protection, commonly known as a Collision Damage Waiver (CDW). This protection helps cover damages to the rental car.


  • Coverage: Car Protection waives the renter’s financial responsibility for damages caused to the vehicle in the case of an accident, collision, or even a rollover. It also covers theft, whether total or partial. However, it comes with a **deductible of US$1,000**.

  • What’s Not Covered: Unfortunately, Car Protection does not cover vandalism damages, the cost of a tow truck, or roadside assistance.

  • Declining Coverage: If your credit card offers rental car insurance, you may be able to decline this coverage. However, you must provide written proof from your credit card issuer that clearly states your coverage for rental cars in Costa Rica. To check your credit card benefits, you can visit https://www.eclaimsline.com/.


Many travelers opt to use their credit card insurance for Car Protection, but it’s essential to ensure you have the necessary documentation on hand when picking up the vehicle.


3. Extended Coverage – Full Protection


Extended Coverage is the most comprehensive insurance option for those seeking peace of mind. It enhances the Liability and Car Protection options and provides extra benefits.


  • Coverage: This coverage waives the deductible from Liability Protection and Car Protection, ensuring you won’t pay the 20% excess on third-party claims or the **US$1,000 deductible** for damage to the rental car. It also increases coverage limits to US$4,000,000 per event.

  • Additional Benefits: Extended Coverage protects against vandalism, covers windows and tires, and includes 24/7 roadside assistance and the cost of a tow truck.

This option is ideal for travelers who want maximum coverage with no out-of-pocket costs in case of an accident or unexpected events during their trip.


Credit Card Insurance: What You Need to Know


Many Visa and MasterCard credit cards provide some form of rental car protection, especially for Car Protection coverage. However, Costa Rican rental car companies will require written proof from your credit card’s benefits department to accept this coverage. You can verify if your credit card offers this protection by contacting your issuer or visiting https://www.eclaimsline.com.


Make sure the documentation explicitly states that the credit card covers rental vehicles in Costa Rica, as different countries and circumstances may affect your coverage.


Rental Car Insurance in Costa Rica : final thoughts


Being well-informed about your insurance options is crucial when renting a car in Costa Rica. Whether you choose basic Liability Protection or full Extended Coverage, having the right protection in place can save you from financial headaches and allow you to enjoy your trip with peace of mind. Don’t forget to check with your credit card company for any additional benefits they may offer, and always carry proof of coverage with you.


Important: When comparing rental companies, ensure that the mandatory liability insurance is included in the quoted price. Since this insurance is required by law and cannot be declined, it will be added to your total upon arrival if not already accounted for, potentially increasing your reservation cost by hundreds of dollars. Many rental companies and booking platforms like Expedia, Orbitz, and Travelocity may appear cheaper initially, but often this is because they do not include the mandatory insurance in their upfront pricing.


With this guide, you'll be well-prepared to rent a car in Costa Rica and enjoy everything this beautiful country offers without any surprises.

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