Costa Rica Car Rental Insurance

If you’re like most renters, navigating Costa Rica’s rental car coverage options can be confusing. At Adobe, we’ve simplified the insurance process and offer options to meet your needs and budgets. 

Just remember that you cannot rent a car without auto insurance in Costa Rica. However, there are many car rental insurance options to choose from. 

What You Should Know About Rental Insurance In Costa Rica

Car insurance is one of the biggest worries for people renting a car in Costa Rica. Undisclosed hidden fees, high mandatory insurance costs, and unwarranted damage claims are rampant.

While these rumors may be true for some companies, at Adobe, we promise straightforward communications and no hidden fees – ever!

There are several rental car companies in Costa Rica from which to choose. Some are large international chains, some are medium-sized local companies, and some are small mom-and-pop outfits. Then there is Adobe Rent a Car, a 100% Costa Rican-owned, full-scale operation.

As the largest and longest-operating of Costa Rica’s car rental companies, we have 14 full-service offices nationwide to serve you.

We are proud of our spotless reputation, excellent customer service, and high-quality cars. 

An Introduction to Costa Rica Rental Car Insurance

Auto insurance is mandatory under Costa Rican Law and includes different insurance types. In this article, we explain your options so you can choose the coverage that best fits your needs and travel plans. 

They include Costa Rica’s mandatory third-party Liability Protection Insurance (PLI), an LDW Car Protection Plan (CDW), and our unbeatable Extended Protection Coverage (SSP). 

What’s more, if authorized in Costa Rica, some credit card insurance programs (CDWs) also apply.

Important points to note

1. Personal accident insurance: your home country’s personal accident insurance is not valid in Costa Rica. This also applies to Costa Rican nationals or residents. Their auto insurance does not cover vehicle rentals.

2. Rental deposits: a $1,000 ($1130 with tax) vehicle damage deposit is required to rent a car with Adobe. It must be made with a valid credit card, such as Visa, Mastercard, Discovery, or American Express. 

Your credit card issuer retains this amount until the rental period is completed.

3. Deposit refund: When you return the vehicle free of traffic violations and undamaged, we will submit an electronic request to the credit card issuer to release this $1,000 deposit. The credit card issuer will release the total amount and credit your account. How long this takes depends on your bank’s processing time.

4. Collision Damage Waivers (CDW/LDW):  Although major credit cards, such as American Express, Visa, and Mastercard, provide CDW or LDW coverage, not all do so within Costa Rica. Ask your Adobe agent if your card’s coverage applies. 

In some cases, you will need to provide an official letter from the credit card company that confirms that it provides CDW coverage in Costa Rica. 

5. Pricing:  When you browse the internet, you’ll find conflicting prices between rental car companies. Remember, if you see a rental car listed at a price that appears too good to be true. It probably is! 

6. Common company omissions: Many competing companies don’t include third-party liability in their car rental quotes. Nor do they disclose that renters must also have what’s known as Collision Damage Waivers (CDW or LDW). 

At Adobe, we always disclose the third-party Liability Protection Insurance (PLI) coverage that Costa Rican law requires in the initial quote. 

We let you choose our Adobe Loss Damage Waiver (LDW) coverage or your credit cards. (Adobe recommends its LDW for reasons laid out below.)

NOTE: Read the terms and conditions beforehand to understand your limitations of coverage, including what’s covered and what isn’t.

Vehicle Rental Insurance in Costa Rica Explained

So, how does insurance coverage for a rental car in Costa Rica work, and what exactly is the rental car process?

Costa Rica’s largest insurance company is the National Insurance Institute (INS), which provides the required Liability Protection Insurance (PLI) car rental insurance.

Mandatory Insurance, Costa Rica

Liability Protection Insurance (PLI): Costa Rican law requires third-party (PLI) coverage for all rentals and rental car agencies. It provides limited liability coverage and financial responsibility for incidents involving third parties. 

Costa Rica, car rental liability insurance PLI is charged as a daily rate in your rental agreement.  

Note that the PLI does not cover any damages to the rental car itself. Neither is personal injury protection nor theft protection included.

What does PLI cover? 

• Third party damages: Our Adobe PLI liability insurance covers up to $20,000. It has a 20 percent deductible or a minimum fee of US $1000 ($1130 with tax). 

• Third party injury or death of a person not traveling in the rental car: Your Adobe PLI will cover up to US $100,000 per accident with no deductible.

Adobe’s car insurance Costa Rica rental car 

In addition to PLI, renters must have one or more of the following coverages to drive in Costa Rica. Choose from the following plans:

1.  Adobe Loss and Damage Coverage (LDW) 
2. The LDW provided by the renter’s major credit card coverage
3. Extended Protection Coverage (SPP) – recommended

1. Adobe Loss and Damage Coverage (LDW) 

LDW Loss and Damage Waiver: This coverage provides basic rental car coverage during your rental period. It is also known as CDW, or collision damage waiver (CDW coverage).

• LDW covers the damage to the rental car in the event of a collision, rollover, or theft.

LDW waives any financial responsibility over the LDW’s $1,000 ($1130 with tax)  deductible.   

Please note that the LDW insurance and damage waivers do not cover third-party damage, tire damage, nor vandalism. 

However, Adobe’s optional full coverage Extended Protection Coverage (SPP) does! See details below. 

2. Your Credit Card’s LDW

Declining Adobe’s LDW Coverage

Primary coverage options:  Some clients prefer to decline Adobe’s LDW coverage and, instead, choose their credit card’s LDW coverage. We accept Mastercard, Discover, VISA, and Amex credit card companies. 

American Express rental car insurance coverage.  If you wish to use your Amex travel insurance for your car rental coverage, you must enroll for the service ahead of time and pay the indicated flat rate. The rate varies per country, per rental period, and the coverage you choose. 

If you decline our Adobe LDW and opt for your credit card coverage, you should know that there are several important drawbacks.

Even though your credit card may cover damage to your vehicle in Costa Rica, several conditions apply:

These include:

1. In the case of an accident, collision, or rollover, you will be 100% financially responsible for all damages upfront.

2. You must pay the total cost of the rental service with the same credit card used to decline the LDW insurance. We only accept debit cards under certain circumstances.

3. You will personally pay all repairs and related fees while still in Costa Rica. 

4. In order to file a claim with your card issuer, you must present all the associated paperwork and fees.

Adobe agents will gladly provide you with the necessary paperwork. However, you, as the renter, are responsible for both requesting and processing the reimbursement claim.

For the above reasons, many renters are uncomfortable with processing a collision claim on their own. Or they are unable to assume the costs and delays. Our Adobe LDW option is often the safest and easiest solution.

With Adobe’s LDW, an Adobe agent will handle the logistics, including paying the repair bill and filing all incident reports and claims. Incident processing includes vehicle appraisal, damage and downtime reports, and repair reports, among others.

Other important facts to consider if you decline the Adobe LDW

To decline Adobe’s LDW car rental insurance, you must:

• Ensure that your major credit card is current and that it provides LDW coverage in Costa Rica for the vehicle type you are renting.
• Be aware of the terms and conditions of your credit card’s LDW.
• Present a document proving that your credit card insurance covers Adobe’s rental conditions.

Note: i) The cardholder must also be the driver of the rental vehicle unless both the cardholder and the driver are present when picking up the car and signing the contract.

 ii) You CANNOT waive the Adobe LDW if you pay with a debit card. 

Third party waiver (TPW)

Our TPW coverage is available to customers who decline LDW and use their credit card protection instead. 

TPW increases third-party property damage cover to $2 million and reduces the deductible to $0. Clients must present all the required documentation to decline the LDW. 

3. Optional Adobe’s Extended Protection Coverage (SSP)

At Adobe, your safety and peace of mind are paramount!

Because navigating Costa Rica’s roads can be tricky, accidents sometimes happen. Heavy rains, fog, and rough terrain are common occurrences. 

With your safety in mind,  we developed a comprehensive optional coverage supplement called Adobe’s Extended Protection Coverage (SSP).

Our SPP supplement provides you with several additional coverage benefits. 

• Nationwide 24/7 roadside assistance, including tow truck service.
• Zero deductible: SPP waives the PLI and LDW ‘s 20% deductibles for third-party damage. Applies to both vehicles and people.
• Extended insurance coverage: up to $2 million per event
• Vandalism damage to the rental vehicle is also covered, including the tires and windows.

What happens if you have an accident?

In the event you have an accident in Costa Rica, make sure you follow these important steps: 

• Do not move the vehicle until authorized by the traffic police, even if you interrupt traffic flow. This is for insurance purposes under Costa Rican law. Most rent a car insurance Costa Rica, agents will photograph the scene to determine who is responsible.

• Position the red emergency triangle on the road about 15 feet before the accident scene to alert other drivers.

• Call our ADOBE hotline IMMEDIATELY: Report the incident to the attending agent. Call +(506) 2542-4800 during office hours between 8 a.m. to  5 p.m.  After office hours call +(506) 2542-4888.

• Call 911 and report the incident. 911 is the contact number for police, ambulance, fire, or any other emergency.

Explain to the dispatcher that you’ve had an accident. And whether you require medical assistance. The dispatcher will send a traffic police officer or “trafico”  to your location. 

What happens if I have an accident and need to leave the country?

To leave the country while an accident claim is being processed, you must provide Adobe with:

• A current accident report in the pre-set format
• Complete Adobe’s required procedures and those required by Costa Rican law.
• Grant Adobe Rent a Car power of attorney so we can continue the claim after you leave. 

What happens if I have an accident and use my credit card’s LDW coverage?

Providing you have complied with the required conditions:  

• Work with your Adobe agent during the claim process. We will provide you with the necessary documents for your insurance carrier. 

Read the terms and conditions beforehand to understand what’s covered and what isn’t.

• Make sure to sign the claim so that we at Adobe can assist with the credit card provider’s processing requirements.

• Adhere to Adobe’s rules and regulations regarding your rental car coverage, or possibly lose the coverage benefits.

Be aware that the PLI, LDW (from Adobe or another provider), or the SPP do not apply under the following circumstances:

• When the driver fails to report an incident (collision or damage) immediately to Adobe Rent a Car 

• When the driver is under the influence of drugs or alcohol at the time of any incident.

• When an unauthorized driver (one not registered as an additional driver in the Adobe rental agreement) causes any incident or other damage.

• When the driver incurs any damage while driving on unauthorized terrain or not officially recognized roads. This includes flooded roads or “off-road” conditions such as driving through rivers, lakes, and mangroves or on beaches.

• When the driver fails to comply with the corresponding insurance company’s legal claim process. This includes, but is not limited to:
  1. Failing to report the incident to the Transit Police.
  2. Failing to report the incident or claim to the insurance company.
  3. Failing to comply with all the legal process requirements.

What else should you know about renting a car in Costa Rica?

Every car rental company in Costa Rica has different rental requirements. 

“Must Have” Car Rental Requirements with Adobe

• You must be at least 23 years old. So must any additional drivers. 
• You must present a valid driver’s license from your home country –  issued at least two or more years previously.
• You will need an international driver’s permit if your home country’s license is written in a non-Roman alphabet. Examples include Mandarin, Hebrew, and Arabic.

• You must present an original passport. We don’t accept a photocopy.
• Costa Rican nationals and residents may use a valid Cedula ID card.
• You can only pay the rental with a valid major credit card as we do not accept cash.
• You must pay the vehicle damage deposit with a credit card. In some cases, we accept debit cards – even for the vehicle rental payment. 

Remember, in Costa Rica, third-party liability insurance and some form of vehicle coverage (LDW or CDW) are mandatory. 

FAQs