Driving and Renting a Car in Costa Rica – 7 Frequently Asked Questions

June 2, 2022 0 Comments

Driving in Costa Rica is not for everyone. So make sure you know what you’re getting into before you get behind the wheel of a car in Costa Rica. The following are the 7 most frequently asked questions about driving in Costa Rica. These questions come from my popular podcast about Costa Rica from people from the US, Canada and Europe.

1. What types of cars are available for rent?

Renting a car in Costa Rica is more expensive than in the US, so most people rent smaller, more compact cars that are a bit cheaper.

Prices vary and during high season you will pay more. About $20 or more per day. Renting over Christmas/New Years will add another $50 or more per week. I looked at five cars from car rental companies in Costa Rica and the average to rent a small car like a Toyota Yaris will cost around $205 per week. Please note this does not include insurance required by law which will add at least $10-20 per day. So you are looking at $250-300 to rent a small car per week.

You will find the main car rental agencies in Costa Rica, such as Hertz, Avis, Dollar, Budget and others.

2. meIs it a good idea to drive?

It depends. Driving in Costa Rica compared to other countries can be a very scary proposition for most. Costa Rica has one of the highest vehicle accident rates in the world. Traffic laws and speed limits are often ignored. Crazy and illegal turns in traffic lanes are common. Turn signals are rarely used and dangerous passing is common. So you may be driving in your lane when suddenly an oncoming car appears in your lane because you are passing in a blind spot. The roads are in poor condition and large potholes are common which could cause serious damage to your car.

Although the road conditions in the beach areas are worse, actual driving is not so scary as there is less traffic and the roads are not the best, people tend to drive a bit slower.

I like to have my own transportation, so renting a car is something I like to do, but it all depends on your comfort level. I have had friends and family who had never driven outside of the US and found driving scary but a fun adventure. So take it easy and slow and you’ll be fine. Don’t worry about the other drivers, just do your thing.

3. Do I need car rental insurance?

By law, you will need civil liability insurance from the INS (National Insurance Institute), regardless of your own auto insurance coverage or credit card coverage. The insurance required by law is known as TPL, SLI, SLC or API. The cost ranges from $10 to $20 USD per day, depending on the vehicle. This insurance only covers damage to other people, cars or property. You will need to purchase additional coverage to cover damage to the rental car or yourself. However, your own auto insurance policy or credit card may cover that, so call your insurance agent at home before you leave for Costa Rica and ask if your insurance policy covers you for damage in Costa Rica. You may also want to call your credit card issuer and ask them the same question. If your own policy covers you in Costa Rica, you are good to go and do not need the supplemental coverage. If they don’t cover you, I suggest you take out a supplemental policy offered by car rental agencies.

CDW or LDW optional – collision damage waiver that covers the cost of the car deductible amount that varies depending on the type of car and the agency. The cost will range from $10-20 USD per day.

Zero Liability Optional – This will reduce your liability against theft and vandalism to zero, for example, the cost of this insurance is between $5-20 USD per day, depending on the agency and the car.

As you can see, the cost of supplemental insurance can add up quickly, so it’s important to check with your insurance agent and credit card company, as you may not even need the optional/supplemental coverage.

If your insurance agent gives you the go-ahead, do me a favor and get it in writing! You don’t want surprises.

4. What are the requirements to rent a car in Costa Rica?

Requirements may vary depending on the car dealership you use, so check with them. Most require a valid driver’s license (one from your state or country of origin is fine), a valid passport with your entry stamp, mandatory Costa Rica liability insurance, and you must be at least 21 years of age.

5. Is it safe to drive at night?

The problem with driving at night isn’t the crime, it’s just unsafe driving and poor road conditions that are further aggravated when you have poor visibility. The roads are not well lit and it gets pitch dark after 6:00 pm, making it unsafe for an inexperienced driver to drive.

6. What are the road conditions like?

Road conditions are very poor compared to the superhighways in the United States or the Autobahn in Germany. Drivers have to deal with unsafe driving habits of motorists, huge potholes and even the road is a two lane road. The roads get worse during the rainy season as road collapses from landslides from the mountains are common.

7. On which side of the road do they drive in Costa Rica?

On the right side, like in the US and Canada.

One final tip

Make a copy of your passport profile page and your entry stamp and take it with you along with your car rental documents. You may be stopped by the police and you will have to show them. Do not carry your passport with you, just make copies. The Costa Rican government now allows you to carry copies instead of your actual passport.

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