Costa Rica Rental Car Insurance: What Is Mandatory and What Is Optional

By Lapa Trips. Last verified: October 6, 2026.

The quoted price for a rental car in Costa Rica often leaves out the one coverage you cannot decline. Here is what is mandatory, what is optional, and what to ask before you book.

Short answer

• Third-party liability (TPL) is mandatory with rental companies. You cannot decline it, and a credit card cannot replace it.
• Collision damage waiver (CDW) is optional. Some US credit cards can cover it if you bring a letter from your card issuer.
• Everything else (loss damage waiver, personal accident) is optional.
• Always ask for the final price, with all required insurance, in writing.

The four coverages

Coverage	What it covers	Can your credit card replace it?
Third-party liability (TPL), sometimes sold as SLI	Injury and damage to other people and property	No. It cannot be declined. Expect roughly USD 13 to 18 per day.
Collision damage waiver (CDW)	Damage to the rental car, with a deductible	Yes, with a letter from your card issuer
Loss damage waiver (LDW)	Loss or damage to the rental car, usually including theft, with no deductible	Optional
Personal accident (PAI)	Medical costs for the driver and passengers	Optional

Why the online price looks so low

Some companies include TPL in the quoted rate and others add it at the counter. Two quotes that look USD 20 apart can be the same price once TPL is added. Before you book, ask whether the quote includes the required third-party liability, and get the final total in writing.

Can my credit card cover the rental?

Only the optional collision waiver, and only if the card allows it for Costa Rica. If you plan to use your card:

• Ask your card issuer for a written letter or printed email. It should show your full name, the last four digits of the card, the car class, the rental period, and coverage that names Costa Rica.
• Use the same card for the deposit and the final bill. Some companies allow only one rental per cardholder.
• You are responsible for 100% of any damage or theft, and for filing and following through on the claim with your card issuer.
• Check your card’s exclusions for vehicle classes (some cards exclude SUVs and 4x4s) and rental length.

Deposits: what to expect at the counter

A deposit is held on your physical credit card at pickup and released after you return the car, usually within 2 to 5 business days. Debit, prepaid, virtual cards and mobile wallets are not accepted for the deposit.

Examples from local companies:

Your choice	Typical deposit
Company’s full coverage	About USD 100
Company’s basic CDW	About USD 750
Decline the company’s CDW and use your card’s	USD 1,000 to 3,000

Amounts vary by company and car class. Confirm yours before you book.

Questions to ask before you book

1. Does this price include the mandatory third-party liability?
2. What is the deductible with the company’s CDW?
3. What deposit will you hold if I use my card’s coverage, and when is it released?
4. Do you accept my card issuer’s letter? What must it say?
5. What does the contract exclude? (Rivers, flooded roads and driving under the influence can void coverage.)
6. What is the final total, with taxes and fees, in writing?

If something goes wrong

1. Do not move the vehicles. Their positions are evidence.
2. Call 911 if anyone is hurt or in danger.
3. Call INS (the national insurer) at 800-800-8000 for the claim process.
4. Put out the reflective triangles.
5. Call your rental company’s 24-hour line.
6. Photograph the vehicles, plates, damage, the scene, witnesses and the other driver’s documents.

Frequently asked questions

Is rental car insurance mandatory in Costa Rica? Third-party liability is mandatory with rental companies, and you cannot decline it. Collision, loss and personal accident coverage are optional.

Can I decline all insurance with a credit card? You can decline the optional collision waiver if your card covers it and you bring the letter. You cannot decline third-party liability.

How much does rental car insurance cost per day? Expect roughly USD 13 to 18 per day for third-party liability. Optional coverage costs more.

What if I get into an accident? Follow the steps above and call the rental company and INS before you agree to anything.

Related

• Driving in Costa Rica: what first-timers need to know
• Plan the whole route with our 10-day Costa Rica itinerary for first-timers.
• Get the free Costa Rica Rental Car and Driving Cheat Sheet at the top of the home page.

Rules, prices and company terms change. Check official sources and your rental contract before you travel. This is general travel information, not legal or insurance advice.