Do you want to explore Costa Rica at your own pace, stop when you want, and reach places that tours and shuttles don’t always go? Renting a car is one of the best ways to experience the country—but it can also be confusing, frustrating, and expensive if you are not prepared.This Guide to Renting a Car in Costa Rica is designed to be one-stop information and a must-read before you rent a car. It summarizes everything you really need to know so you can avoid surprises, save money, save time, and enjoy a more relaxed and pleasant vacation.
Many of my readers tell me the same thing: “Renting a car in Costa Rica was confusing. The price was much higher than what I saw online.” The good news is that once you understand how car rentals work here, everything makes sense—and you can plan accordingly.
Why Rent a Car in Costa Rica?
Costa Rica is a small country, but driving distances often take longer than they appear on a map. Roads can be mountainous, winding, and sometimes slow. Having your own vehicle gives you flexibility to:
- Stop at viewpoints
- Visit small towns
- Explore beaches and national parks
- Travel on your own schedule
Public transportation exists, but it can be time-consuming and limiting. Renting a car is ideal for travelers who want independence and adventure.
Why Does Renting a Car in Costa Rica Seem So Expensive?
This is the number one complaint—and it’s understandable. The total cost of renting a car in Costa Rica is made up of three main parts, not just the base price you see online.
1. Cost of the Vehicle
This is the advertised daily rental rate. It depends on:
- Size of the vehicle
- Make and model
- Age of the vehicle
- Season (high season is December through March)
2. Mandatory Liability Insurance
This is required by Costa Rican law and cannot be declined. It usually costs around $10–$15 per day and covers damage or injury to third parties.
3. Collision Damage Insurance (CDW)
This is optional—but extremely important. You have two choices:
- Buy it directly from the rental agency in Costa Rica (expensive)
- Or use your major credit card’s collision insurance, which is usually free if arranged properly before your trip
This is the best way to save money.
The Big Oddity: The Credit Card Deposit
Here’s something that surprises almost everyone:
When you rent a car in Costa Rica, you will be asked to sign a credit card voucher for approximately $850–$950.
Why?
- This amount acts as a deductible
- If you do NOT have collision insurance through your credit card and you have an accident, the rental company keeps this money to repair the car
- If you DO have collision insurance through your credit card, this deductible is waived
👉 Important tip:
When you return the car, make sure the rental agent tears up this voucher in your presence and confirms that the hold is released.
How to Save Money on Collision Insurance
Before you leave your home country:
- Call your major credit card company (Visa, Mastercard, etc.)
- Ask if they cover international car rental collision insurance
- Request written proof or confirmation
This one step can save you hundreds of dollars.
Reserve Your Car Before You Travel
Always make your rental reservation before you depart. This will:
- Save time at the airport
- Lock in better rates
- Ensure availability (especially in high season)
Use the internet to compare prices and check for seasonal promotions, especially during the low or green season (May–October).
Where Are the Car Rental Agencies Located?
Costa Rica has two international airports with the most rental options:
- Juan Santamaría International Airport (SJO) – near San José
- Liberia International Airport (LIR) – in Guanacaste
Many agencies also have branch offices in popular tourist areas such as:
- Arenal / La Fortuna
- Tamarindo
- Manuel Antonio
- Jaco
👉 Always ask: Does the company have an office where I am staying?
Requirements to Rent a Car
To rent a vehicle in Costa Rica, you must:
- Be at least 21 years old
- Hold a valid driver’s license from your home country
- Have a current passport (carry it while driving)
- Provide a major credit card
Other things to specify:
- Automatic or manual transmission
- Rental of a local cell phone (around $10/day)
- Ask for a Costa Rica road map
Do I Need a 4×4 Vehicle?
This depends entirely on where you plan to go.
You do NOT need a 4×4 if you stay in:
- San José
- Alajuela
- Escazú
- Santa Ana
- Grecia
- Atenas
You DO need a 4×4 if you plan to:
- Visit rural areas
- Drive off the main highways
- Travel during the rainy season
- Explore beaches and remote destinations
Potholes, dirt roads, and steep terrain are common outside major cities.
Inspect the Vehicle Carefully
Before leaving the rental agency:
- Inspect the car for scratches and dents
- Make sure everything is written on the form
- Check that the spare tire has air and is locked
- Test lights, brakes, and windshield wipers
Take photos if possible.
Important Driving Laws and Tips
- Seat belts are mandatory – fines exceed $100
- Speeding fines exceed $300
- Speed limit on highways: 55 mph (90 km/h)
- School zones: very low speed limits
- Do not drink and drive – jail time is possible
- Liability insurance does NOT cover driving under the influence or negligent acts
Even if locals appear to speed, tourists are frequently ticketed.
Driving Conditions in Costa Rica
- Roads are often mountainous and winding
- Fog is common in high elevations
- Try not to drive at night
- Fill your gas tank in towns
- Gas costs around $3.50 per gallon (sold by liter)
During the rainy season, potholes fill with water and are hard to see—drive slowly.
Safety and Theft Prevention
- Always lock the car
- Do not leave valuables visible
- Use guarded parking lots
- Never leave bags, cameras, or phones inside
- Do not pick up hitchhikers
True story warning
Some criminals puncture tires near airports or restaurants and follow you until the tire goes flat—then “help” while stealing belongings. Stay alert.
In Case of an Accident
- Do NOT move the vehicle
- Call 911
- Call your rental company
- Wait for traffic police
- Obtain a written police report
This is mandatory for insurance claims.
Can I Take a Rental Car Across Borders?
Generally, NO. Most rental companies do not allow cars to cross into:
- Nicaragua
- Panama
Some agencies offer border transfer solutions—always ask in advance.
Final Thoughts
Renting a car in Costa Rica can be a fantastic experience if you understand the system. The key is preparation:
- Know the insurance rules
- Use your credit card wisely
- Choose the right vehicle
- Drive defensively and cautiously
With the right planning, renting a car will give you freedom, flexibility, and unforgettable memories—without stress or unnecessary expense.
This guide was written so your Costa Rica vacation can start smoothly and stay that way. Safe travels and happy driving! 🚗🌴