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 Seven Car Rental have ALL of those costs included and disclosed 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.

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Third-Party Liability (TPL)

Costa Rica requires all rental vehicles to have Third-Party Liability (TPL) insurance, which covers 80% of damages to rental property, with the renter responsible for the remaining 20%. The cost of TPL is $15.95 per day.

Additionally, all rental agencies must offer Collision Damage Waiver (CDW) insurance, available in two options:
✅ Basic CDW – $9 per day
✅ Full CDW – $25–$37 per day

Each coverage option is clearly explained to ensure transparency and informed decision-making.

Collision Damage Waiver (CDW)

The Collision Damage Waiver (CDW) limits the renter’s financial liability for accidents, damage, or theft of the rental vehicle, with a deductible ranging from $1,000 to $1,500. This coverage is available for an additional $9 per day.

Key details include:
✅ Renter's liability
✅ Deductible amount
✅ Third-party coverage
✅ Higher deductible for drivers aged 18 to 24

The CDW excludes damage to the air system, doors, windows, and wheels, except in cases of collision or theft. The renter is responsible for tire repair or replacement in emergency or reversible situations. Both the renter and insured drivers are liable for any loss or damage to the rental vehicle, regardless of the cause.

Full Collision Damage Waiver (CDW)

The Full CDW is an optional insurance policy available for $25–$35 per day, covering damages due to accidents, theft, or total loss, except in cases of negligence.

Key Coverage Details:

✅ $0 deductible for accidents, theft, or total loss
✅ Third-party property damage coverage up to $250,000
✅ Requires a $400 deposit and a minimum rental period of 7 days

Exclusions:

-Lost car keys
- Drivers aged 18 to 24
-Towing service