Renting a Car in Costa Rica: What You Need to Know (Especially About Insurance & Coverage)

Rental car driving down mountain road in Costa Rica

Costa Rica’s winding jungle roads, remote beaches, and volcanic landscapes make renting a car one of the best ways to explore the country. But, unfortunately it can also be confusing, especially when it comes to insurance and coverage. In this post, we’ll break down everything you need to know: the types of cars to rent, insurance rules (including what’s not covered), and tips for safe and stress-free driving.

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Should You Rent a Car in Costa Rica?

When Renting a Car Makes Sense:

You plan to visit multiple destinations.
You want to explore off-the-beaten-path beaches, waterfalls, or parks.
You're traveling as a family or group.

When You Might Not Need One:

You’re only staying in San José or using group tours.
You’re visiting during the wet season and sticking to paved routes.
You prefer hassle-free transportation via shuttles.

Pros: Flexibility, hidden gems, self-paced adventure
Cons: Road conditions, unclear signage, rental fine print

*Our Land Cruiser crossing a river in Costa Rica*

What Type of Car Should You Rent?

🚙 SUV or 4x4:

Best for rough terrain, rural routes, and green season travel.
Required for certain areas like Monteverde, Osa Peninsula, Nicoya Peninsula, or river crossings (if allowed but generally isn’t).

My thoughts: An SUV certainly makes traveling in Costa Rica much more comfortable and manageable with higher clearance and generally better shock absorption. However, I’m not sure a 4x4 is necessary since most rental car companies will not cover you to venture where a 4x4 would be needed.

🚗 Sedan or Economy Car:

Fine for cities and well-maintained highways.
Lower cost and better fuel economy.

Tip: Always check road conditions before booking as some routes require 4WD no matter the season. Generally speaking though, most tourists hotspots won’t need 4WD.

The #1 Confusing Part — Insurance in Costa Rica

🔒 Mandatory Liability Insurance (SLI/TPL)

Legally required in Costa Rica—you cannot decline it.
Covers third-party property damage or injury.
Typically adds $10–$25/day to your rental rate.

🛡 Optional CDW/LDW (Collision Damage Waiver)

Covers damage to the rental car itself.
Comes with a deductible (unless waived with premium packages).
Rental companies may require it unless you prove alternate coverage.

💳 Using Credit Card Insurance

Most U.S. cards (like Chase Sapphire or AmEx) offer CDW as a benefit, but rental car companies in Costa Rica will generally not allow coverage through your credit card.
However, if you find a rental car company willing to take your credit card’s coverage policy, you’ll need to decline the rental company's CDW at booking.
Be sure to provide a letter of coverage from your card issuer to pick up your rental.
Companies may still place a large deposit hold on your card(~$1,000–$3,000).

What’s Not Covered by Most Rental Policies

Keep in mind this is generally speaking so always check with your rental car company of choice!

❌ River crossings (strictly prohibited)
❌ Driving on unauthorized or unpaved roads
❌ Towing or off-road rescue fees
❌ Flat tires, lost keys, dead batteries (varies by provider)
❌ Damage from natural disasters (floods, earthquakes)

Important: Always ask for a full list of exclusions before driving off.

Recommended Rental Companies in Costa Rica

Adobe Rent a Car for their transparent pricing, local company.
Alamo & Enterprise for being reliable international brands with good coverage options.
Vamos Rent-A-Car for their good service and comprehensive packages.

Be cautious of aggregator sites (like Kayak or Expedia). Many prices do not include mandatory insurance. In my experience, insurance was almost as much as the actual car rental!

How Much You Can Expect to Pay for a Rental Car in Costa Rica

In Costa Rica, expect to pay around $50-85 per day for a small SUV and $100-125 per day for a larger model, not including insurance. Mandatory insurance is typically an additional $15-50 per day, and you'll need to purchase it directly from the rental company.

I rented a small, 2WD SUV in Costa Rica for 8 days and paid ~$850 (that’s including the required insurance). Keep in mind that this is ridiculously expensive considering I rented a slightly larger (and nicer) SUV in Panama a couple of weeks later for ~$180 for 9 days!

Prices will vary greatly depending on season and dates. I’d highly recommend booking your rental car well in advance!

Driving in Costa Rica: What to Expect

Roads vary: highways are decent, but rural roads can be rough.
Watch for potholes, narrow bridges, and sudden rainstorms.
Many prefer Waze over Google Maps for real-time local navigation, but personally I prefer Google Maps so I can download map maps in offline mode on wifi so I can keep navigating even without cell service.
Gas stations are full-service meaning you tell the attendant how much to fill up your vehicle.

How to Avoid Extra Fees

Take thorough photos/videos at pickup and drop-off.
Check the spare tire, tools, and tire condition before leaving.
Always return the car with a full tank (unless pre-paid).
Ask about electronic toll charges (most include an automated pass).

Our Experience Renting in Costa Rica

We’ve rented cars in Costa Rica and found it to be far more confusing than any other country we’ve ever rented a car in. We planned to use our Amex Platinum Premium Car Rental policy for coverage, which generally saves money. However, we couldn’t find a single rental car company in Costa Rica with availability and that would take credit card rental car coverage.

Final Tips

Don’t skip insurance—read the fine print and confirm what’s included.
Never attempt river crossings, even if locals do it.
Use Waze, keep cash for tolls, and drive cautiously in the rain.