Costa Rica Car Rental Insurance

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 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 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 in our daily rates 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.

Third Party Liability (TPL)

In Costa Rica, it is a legal requirement for 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.

In addition to Third Party Liability, all car rental agencies are required to offer Collision Damage Waiver (CDW), which incurs an additional daily fee. There are two types of CDW:

  • BASIC CDW: Typically costs between $15 and $25 per day.
  • FULL CDW: Generally ranges from $25 to $35 per day.

We provide clear explanations of these coverages to ensure transparency and help you make informed decisions.

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.
  • $2,000 deductible if authorized drivers are between 21 – 24 years old, except in the case of negligence and the rental security 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 -$35 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 and rims 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.

Neither type of CDW includes tow truck service or vehicle recovery in the event of an accident or vehicle overturn.

Credit Card Coverage for CDW

Credit Card coverage for CDW is accepted with written proof. Please note that when using your credit card for CDW coverage, you are still responsible first hand for all damages, it will be up to you, the customer, to file a claim with your credit card provider for a refund. We will provide the necessary documentation on our part to assist you. To decline CDW, please let us know and we will update your rental quote with only Third-party Liability.

The rental deposit when using CC coverages is $2,000.

Rental deposits

  • 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 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…