Costa Rica Car Rental Insurance

Renting a car in Costa Rica as never been this easy and hassle free.

Sun Valley Rent A Car is a family owned and operated car rental agency with over 30 years of experience in Costa Rica car rental industry. Our rates are clearly explained and presented upfront. We are pionners of the NO HIDDEN fees policy, our quotes are guaranteed, what you are quoted is what you’ll pay.
Our main goal is for you to have an unforgettable time in this tropical paradise, there will be no unpleasant surprises when you arrive.

Our daily rates include all of the following:

  • Third Party Liability
  • Basic Collision Damage Waiver
  • Additional Driver
  • Unlimited Mileage
  • 24 Hour Road service

Book your car rental in Costa Rica today!

Have you read horror stories online about renting a car in Costa Rica?

Renting a car in Costa Rica can be very frustrating and confusing, specially in terms of insurance, we know from personal experience. Unfortunately, one of the main complaints of travelers when visiting Costa Rica is the car rental process and the bad taste for hidden fees. Here we detail some of the most frequently asked questions regarding insurance and go into detail in our NO hidden fees policy.

We are one of Costa Rica’s top rated car rental agencies and our reputation for transparency and customer service backs it up.

Types of car rental insurance in Costa Rica

Costa Rica requires for all vehicles to be covered with Third Party Liability (TPL). No vehicle can be rented without this protection.

Most Car rental agencies or travel sites like Expedia, Booking or similar have an awesome daily vehicle rate posted and the insurance and other fees such as additional driver, mileage, road service, credit card fees, child seats, airport fees and more are not included or added later down the line. It adds up quickly.

When you think you are getting a great deal the cost goes way higher at the end and its already too late.

We at Sun Valley Rent A Car have ALL of those costs included in our daily rates from the top. 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.

Third Party Liability (TPL)

By law, Costa Rica requires every rental vehicle to be insured with Third Party Liability (TPL). This is a mandatory policy.  It protects the renters against liabilities resulting from injuries or damage to third party property with a 20% deductible. No vehicle can be rented without this protection. This means that 80% of third party damages are covered by TPL and 20% of damages are covered by the customer.
The average daily rate for this coverage in rental agencies is $10-$15 per day. This coverage is included in our daily rental rates.

Additional to Third Party Liability, there is another coverage required by all car rental agencies, which has and additional daily fee, this is called Collision Damage Waiver (CDW). There’re two types, BASIC CDW averages $15 – $25 per day and FULL CDW between $25-$35 per day, lets break these down, shall we?

Basic CDW

Basic Collision Damage Waiver covers the rental vehicle to a maximum deductible.
This coverage is already included in our daily rates (NO additional fee).

Rental deposit: $750 (hold) will be placed on the renter’s credit card.

Limits the liability due to damages and/or theft of the vehicle. Renters are only liable up to the deductible ($1,000-$1500).

  • $1,000 – $1500 deductible for vehicle damages and/or theft, except in the case of negligence.
  • Basic CDW does not cover damage to stereo system, windshield and windows, roof racks, loss of car keys, damages to underside or interior of vehicle except in cases of collisions or theft. The renter is liable for the repair or replacement of the tires in the event of a puncture or a blowout. Retread or second-hand tires must not be put on our rental cars unless authorized by Sun Valley Rent A Car, and you must make sure it is a matching tire as the tire on the opposite side.
  • Zero deductible (0%) for third party property damage to a maximum of $270,000.
    This is one perk no agency offers FREE.
  • $2,000 deductible if authorized drivers are between 21 – 24 years old, except in the case of negligence and the rental secutiy deposit is $1,000.

The renter and authorized drivers are fully responsible for any loss or damage to the rental vehicle, regardless of who is at fault, or in the event the cause is unknown.
We provide you with a FULL Collision Damage Waiver (CDW) option at a very affordable price.  

Full CDW

Full Collision Damage Waiver is Optional at $25 per day

This frees the renter from financial responsibility caused by accident, theft, or total loss, except in the case of negligence
This coverage includes Third Party Liability (TPL).

Rental deposit: $400 (hold) will be placed on the renter’s credit card.

This insurance is only available for a minimum rental period of 7 days.

  • Zero deductible ($0) for accident, theft, or total loss, except in the case of negligence.
  • Full coverage for windshield, windows, tires, rims and car keys, which are not covered under any BASIC CDW.
  • Zero deductible (0%) for third party property damage to a maximum of $270,000.
  • Not available if authorized drivers are between 21 to 24 years old.

Our vehicles are insured year-round, currently we do not accept Third Party coverages for Collision Damage Waiver. Please note that when using your credit card for coverage at any agency, you are still responsible first hand of all damages, it will be up to you, the customer, to file a claim with your credit card provider for a refund. Also, rental deposits when using CC coverages run between $2,000 – $5,000 depending on the company. Who wants that much money blocked on their credit card while on vacation?

Rental deposits

  • Third Party Liability & Basic Collision Damage Waiver: $750
  • Full Collision Damage Waiver: $400
  • Debit Card or Cash deposits accepted with previous authorization before rental.

Voiding your car rental insurance 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.
  • 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.
  • Roads in Costa Rica can be rough. If you have a flat tire and do not feel safe to change it yourself, or maybe you don’t know how, don’t worry! Our roadside assistance will dispatch someone to do this for you.
  • Running out of gas is prohibited in our vehicles, this can cause lots of damage to the injection system of the car. However, if you were to run out of gas, we will dispatch up to 2 gallons of gas for you.
    You will never be stranded on the side of the road without help being on its way, your safety and satisfaction is our # 1 priority!

Have a question? Feel free to ask…