Insurance
Costa Rica car Rental
Rent your vehicle andenjoy your adventure
Renting a car in Costa Rica has never been easier or more straightforward.
Sun Valley Rent A Car, a family-owned and operated business, brings over 30 years of experience in the Costa Rican car rental industry. We pride ourselves on offering clear and transparent rates, pioneering the NO HIDDEN fees policy. What you see in our quotes is exactly what you’ll pay—no surprises.
Our primary goal is to ensure you have an unforgettable experience in this tropical paradise, without any unexpected issues upon arrival.
Our daily rates include the following:
- Additional Driver
- Unlimited Mileage
- 24 Hour Road service

Have you read horror storiesonline about renting a car in Costa Rica?
Renting a car in Costa Rica can sometimes be a challenging and confusing experience, especially when it comes to understanding insurance options. At Sun Valley Rent A Car, we recognize these challenges, as many travelers have expressed frustrations about the car rental process, particularly with hidden fees.
We are committed to addressing these concerns directly. Our comprehensive FAQs provide clear answers about insurance, ensuring you have all the information you need upfront. Most importantly, we uphold a strict NO HIDDEN FEES policy, so you can rent with confidence and peace of mind.
As one of Costa Rica’s top-rated car rental agencies, we take pride in our transparency and outstanding customer service. Our reputation reflects our dedication to providing a seamless and trustworthy rental experience.
Types of car rental insurance in Costa Rica
In Costa Rica, all vehicles are required to be covered by Third Party Liability (TPL) insurance. No vehicle can be rented without this protection.
Many Car rental agencies or travel sites such as Expedia and Booking, advertise attractive daily vehicle rates. However, these rates often do not include additional fees for insurance, extra drivers, mileage, road service, credit card fees, child seats, airport fees, and more. These hidden costs can quickly accumulate, transforming what initially seemed like a great deal into an expensive transaction and its already too late.
We at Sun Valley Rent A Car have ALL of those costs included and disclosed from the start. When we say NO HIDDEN FEES, we mean it. Our goal is to provide an outstanding car rental experience in Costa Rica from start to finish offering the high quality customer service and transparent pricing you deserve.
In Costa Rica, Third Party Liability (TPL) insurance is legally required for all rental vehicles. This mandatory coverage protects renters against liabilities for injuries or damage to third-party property, with an 80/20 split—TPL covers 80% of third-party damages, while the renter is responsible for the remaining 20%.
TPL Coverage Cost: $15.95 per day.
In addition to TPL, all car rental agencies must offer Collision Damage Waiver (CDW) as a requirement.
We provide two CDW options:
- BASIC CDW: $9 per day
- FULL CDW: $25 to $37 per day, depending on the vehicle category
We explain each coverage clearly to ensure transparency and help you make informed choices.
If you have Credit Card coverage for CDW, you may decline this option by providing written proof from your credit card provider.
Basic Collision Damage Waiver (CDW) limits your financial responsibility for accidents, damages, or theft of the rental vehicle, with a maximum deductible. This coverage is available for an additional $9 per day.
Key Details:
- Rental Deposit: A $750 hold will be placed on the renter’s credit card.
- Deductible:
- $1,000 to $1,500 deductible for damages or theft, depending on the vehicle category (except in cases of negligence).
- Third-Party Coverage: Zero deductible for third-party property damage, up to a maximum of $250,000.
- Drivers Aged 18-24: A $2,000 deductible applies, except in cases of negligence and the rental deposit is $1,500.
- Exclusions:
- Basic CDW does not cover damage to the stereo system, windshield, windows, roof racks, or loss of car keys.
- It also excludes damage to the vehicle’s underside or interior, except in cases of collision or theft.
- The renter is responsible for the repair or replacement of tires in the event of a puncture or blowout. Retread or second-hand tires are not allowed unless authorized by Sun Valley Rent A Car, and the replacement tire must match the one on the opposite side.
The renter and authorized drivers are fully responsible for any loss or damage to the rental vehicle, regardless of who is at fault, or if the cause is unknown
Full Collision Damage Waiver (CDW) is optional and available for $25-$35 per day.
This coverage relieves the renter of financial responsibility for damages due to accident, theft, or total loss, except in cases of negligence.
Key Details:
- Rental Deposit: A $400 hold will be placed on the renter’s credit card.
- Minimum Rental Period: Available for rentals of 7 days or more.
- Coverage:
- Zero deductible for accident, theft, or total loss (except negligence).
- Includes full coverage for windshield, windows, tires, and rims, which are not covered under BASIC CDW.
- Zero deductible for third-party property damage up to $250,000.
- Exclusions:
- Does not cover the loss of car keys.
- Not available for drivers aged 18 to 24.
- Neither CDW option covers tow truck service or vehicle recovery in the event of an accident or rollover.
We accept Credit Card coverage for Collision Damage Waiver (CDW) with proper written documentation. To obtain this, you can request a letter from your Credit Card provider. The letter must include the cardholder’s full name, the last four digits of the Credit Card being used for rental payment and deposit, and confirmation that the coverage applies in Costa Rica.
Please note that if you choose to use your credit card for Collision Damage Waiver (CDW) coverage, you will be responsible for any damages upfront. It is your responsibility to file a claim with your credit card provider for reimbursement. We will provide all necessary documentation to support your claim.
When using credit card coverage, the rental deposit is $2,000.
- Third Party Liability only: $2,000
- Third Party Liability & Basic Collision Damage Waiver: $750
- Full Collision Damage Waiver: $400
- Debit Card deposits accepted with previous authorization before rental
Voiding your car rentalinsurance in Costa Rica
The Collision Damage Waiver will be void and the renter will be held 100% responsible for all damages (mechanical, electrical, interior, exterior or underside) caused to the vehicle if:
- The driver is not authorized by Sun Valley Rent A Car.
- The driver operates the vehicle contrary to the laws of Costa Rica.
- The driver is under the influence of alcohol and/or illegal substances.
- Accidents or damages caused by reckless driving, driving on roads in poor condition, and/or driving in or, through rivers, estuaries, and/or beaches.
- Driving or operating the vehicle in 4×4 mode on regular roads or at speeds exceeding 40km/h (24mph).
- The driver does not provide an accident report from the local authorities
24-hour road service
- Tow truck service up to 40km is included, anything over 40 km is covered by the renter in case of an accident, vehicle recovery, overturning of the vehicle or negligence of driving.
- If you happen to lose power on your battery, our roadside assistance will dispatch someone to assist or replace your battery.
- Costa Rican roads can be challenging. If you get a flat tire and don’t feel safe or are unsure how to change it, our roadside assistance will send someone to help.
- Running out of fuel is prohibited in our vehicles as it can cause serious damage to the fuel injection system. However, if this happens, we’ll deliver up to 2 gallons of fuel to get you back on the road.
- Rest assured, you’ll never be stranded without help. Your safety and satisfaction are our top priorities!