Tips on Renting a Car in Costa Rica – Insurance and Extra Costs

Renting a SUV and/or 4-wheel drive is a must if you plan on driving in mountain areas.

Costa Rica is a very popular tourist destination, drawing millions of visitors each year to its breathtaking landscapes, and  world-renowned points of interest. With a wide-spreading picturesque coastline and a massive forested wild terrain, cruising around with your own vehicle can be very handy and convenient.

The good news is that there are numerous Costa Rica car rental agencies available these days, most of them offering both luxury cars and low-budget vehicles.

The bad news is, there have been many complaints of travelers on overcharging, extra insurance, cars they reserved, but suddenly not available, so one has to rent a higher price vehicle, and being charged for damages or thief (like a GPS device) that a traveler knew nothing about until they get their credit card bill a month later.

Nowadays, you can rent your vehicle in advance when making bookings for your flights and accommodation, or when looking for good all-inclusive Costa Rica vacation deals on the Internet. Making timely car rental reservations online is highly recommended if you want to simplify things and eliminate the need to look for a rental car immediately upon arrival.

One of the first things you must understand, the roads in Costa Rica can be littered with potholes and traffic backed up for miles. If you are into adventure, we recommend renting a four-wheel-drive SUV. This allows you to take on challenging terrains such as secluded beach accesses and the mountain climbs in forested regions, which would otherwise be inaccessible by regular automobiles and being able to control the vehicle more during heavy rains, which Costa Rica has a lot of.

The second thing you must understand, Costa Rica traffic laws have changed, passing a car on a double yellow lane can cost you $500USD and some Costa Rican's are fanatics on the road, so defensive driving is a must.

Another important aspect is the "VERY" confusing characters of road signs, address names, and street numbering system especially in San Jose.  So spend some time planning suitable and safe routes for reaching your desired destinations. You can either buy a map or ask for detailed route instructions. DO NOT relied on GPS. Roads change all the time due to the sever weather conditions. Closed roads are common so there are a lot of detours and that GPS will mislead you on.

There are all types of rental agency, everything from the big names like Budget, to mom and pop places like, Jose's 4-Wheel Drive Rentals. We strongly advise going online and do your research. One of the things to consider, when arriving in San Jose, Costa Rica [which 95% of travelers do], many rental agency will offer free delivery, which seems like a great deal. However, driving in San Jose is a nightmare, so taking a taxi to an agency outside of San Jose, for the few dollars, is well worth it.

Always make sure the vehicle you rent has a spare tire (that is full) and the equipment to change it. A spare tire is "somewhat" worthless if there are no tools to change it.

The most confusing and frustrating part of renting a car is the insurance part because of all the acronyms. Auto insurance in Costa Rica is a government monopoly of the INS (Instituto Nacional de Seguros). Liability insurance (TPL, SLI, SLC or API) from the INS is mandated by law, but provides only minimal coverage. This insurance does not cover your rental car at all, only damages to other people, their cars, or property at a cost between $US 5-20 per day depending on the fine print and vehicle.

Rental agencies offer supplemental programs that cover deductibles and contingencies other than a simple traffic accident. One of things you have to watch out for is the cost of insurance can approach or exceed the cost of renting. Unless you purchase supplements, or have documented coverage from your credit card you are still responsible for all damages. Sometimes you may be covered by your home auto insurance policy or credit card coverage. Check before you leave home, and get it in writing.

These supplements include,  Full Coverage, Vandalism Supplement, Damage Supplement, and Theft Insurance; extra policies which are intended to reduce your liability to zero when combined with other acronyms like,  SLI and CDW (Collision/Liable Damage Waivers). 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.

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.

Some of the extra costs that may not be included in your rental contract.

• Government License Plate Fee— $US 1 per day, rarely included in quoted rates.
• Airport Concourse Fee—There is a 12% airport concourse tax added to the cost of any car picked up at, San Jose's,  Juan Santamaría International Airport. The car companies all know this and will make arrangements to help you avoid it. If you arrive late and plan to stay in the area (do not drive at night), take a taxi to your hotel and have the car delivered the next morning (often free of charge and saves you a day of rental). If you arrive early and want to get on the road, the car companies have off airport pickup locations a few minutes away.
• Additional Drivers—$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 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.

Also, do not be fooled with the hype of "All taxes included," or if you see some sort of tax added to your bill, you just got taken!  Car rentals are not taxed in Costa Rica. Companies that advertise prices with "All taxes included" are not lying, just misleading.

When renting, make SURE you do a vehicle damage check before leaving. The agency will give you a form to mark all existing damages. Take your time and do it right! Otherwise you could be paying for damage you did not do. When returning the car, walk the car with the attendant AND make sure he or she signs it off. Keep a copy of this report, and whatever you do, do not go with the BS that they will send it to you. You want a copy of that report now that has been signed and dated.

Also in that report, it should also state the extras that have also been returned like spare tire and GPS. I can not tell you how many horrid stories there are about travelers getting charged  for a spare tire that is missing and/or GPS and even $20 for maps that were supposedly in the glove compartment when you first rented it.

All in all – compare the services that each company offers. Also check the types of cars each company has available. The last thing you want is to get stranded in a car that was doomed from the beginning, so test drive the vehicle first. Most car companies perform a regular check of their vehicles, so this may not be an issue.

Know the terms of each company, and be sure they are clearly understood. This will help you through the process from beginning to end and make your car rental enjoyable and not a horrible experience.

Calypso Cruises