Rent a car in Costa Rica is one of the best ways to explore this beautiful and diverse country. From tropical beaches and misty cloud forests to volcanoes, waterfalls, and remote wildlife reserves, having your own vehicle gives you freedom, flexibility, and access to places that tours and buses simply can’t reach.
That said, renting a car in Costa Rica is very different from renting a car in the United States or Canada. The process is easy—but only if you understand how it works. Many visitors arrive expecting one price and end up paying much more because they didn’t know about insurance requirements, deposits, or local driving conditions.
This guide explains everything you need to know to rent a car in Costa Rica with confidence and without surprises.
Is It Easy to Rent a Car in Costa Rica?
Yes—renting a car in Costa Rica is easy. However, it is not cheap, and the rules are stricter than in North America. If you understand the insurance requirements, deposits, and driving realities ahead of time, you can avoid stress and enjoy your vacation.
Why Renting a Car in Costa Rica Costs More
One of the biggest surprises for visitors is the cost. Renting a car in Costa Rica is more expensive than in the USA or Canada, mainly because of mandatory insurance.
When you request a quote online, you are usually shown only the basic daily rental rate. This rate does not include the required insurance, which is added when you pick up the vehicle.
Understanding Car Rental Insurance in Costa Rica
Insurance is the most confusing—and most important—part of renting a car in Costa Rica.
1. Mandatory Liability Insurance
- Liability insurance is required by Costa Rican law
- It is not optional
- It will be added to your rental at pickup
You should always choose 100% liability coverage, which typically costs around $10 per day.
This insurance covers damage or injury to third parties if you are involved in an accident.
2. Collision Damage Insurance (CDW)
Collision insurance covers damage to the rental vehicle itself.
You have two options:
Option A: Use Your Credit Card Coverage
Before leaving home, contact your major credit card company and confirm that:
- They provide collision coverage
- The coverage is valid in Costa Rica
- You have written proof of this coverage
Most major credit cards do offer this, but you must verify it in advance.
Option B: Purchase Collision Insurance from the Rental Company
You can also purchase collision insurance directly from the rental agency in Costa Rica, but this option is usually much more expensive.
The Required Security Deposit (Very Important)
Every car rental company in Costa Rica requires a security deposit, which is placed on your credit card.
- The deposit amount depends on the value of the vehicle
- Average deposit: $850 to $1,000
- You must sign a credit card voucher for this amount
- A hold is placed on your credit card
What Happens to the Deposit?
- If you return the car with no accident, the company will release the hold
- The rental agent should tear up the signed voucher in front of you
- Always make sure they do this
If You Have an Accident
- The rental company keeps the deposit
- This amount is your deductible
- You must later claim reimbursement from your collision insurance provider at home
What to Do If You Have an Accident
If you are involved in an accident in Costa Rica:
- Do not move the vehicle
- Call the police immediately by dialing 911
- The police will write an official report
- You MUST obtain a copy of the police report
- Call the rental car company
- They will arrange delivery of a replacement vehicle
⚠️ Without the police report, your insurance claim may be denied.
Insurance Will NOT Cover These Situations
Insurance becomes invalid if:
- You drive through a riverbed and damage the car
- You drive under the influence of alcohol or drugs
- You allow an unauthorized driver to operate the vehicle
Always drive responsibly.
What Kind of Car Should You Rent?
SUV vs. Regular Car
- Outside the city:
Rent an SUV, preferably with 4-wheel drive - In the city only:
A small or mid-size car is sufficient
Most tourist destinations involve mountain roads, gravel roads, or steep terrain—an SUV is the safest choice.
Transmission
- Specify automatic or manual (straight shift)
- Automatic vehicles are more expensive and book faster
GPS and Navigation in Costa Rica
You can rent a GPS unit, but there’s a better option:
Use WAZE
- Download the WAZE app before your trip
- It is the best navigation app in Costa Rica
- Locals rely on it for traffic updates and road conditions
Google Maps is improving but is still less reliable in rural areas.
Are the Roads in Costa Rica Bad?
The answer is: mostly no.
Good Roads
- Cities like San José and Alajuela
- Highways to Guanacaste beaches
- Roads to major tourist destinations
Challenging Roads
- Remote rural areas
- Dirt or gravel roads
- Occasional potholes
- One-lane bridges
Most roads are now paved, but distances take longer than expected due to curves, mountains, and traffic.
Important Driving Rules in Costa Rica
Always carry:
- Your passport
- Your valid driver’s license from your home country
Speed Limits
- Very strictly enforced
- Especially in small towns
- Speed bumps are large and frequent near:
- Schools
- Hospitals
⚠️ Traffic fines can be hundreds of dollars, much higher than in the USA or Canada.
Road Signs and Directions
- Road signage is improving
- Many roads are not named or clearly marked
- Expect directions like:
- “Turn left after the big mango tree”
- “Next to the red house”
This is normal in Costa Rica.
Safety Tips When Driving
- Lock the car at all times
- Never leave valuables visible
- Avoid driving at night
- Park only in designated parking areas
- Do not pick up hitchhikers
- Be cautious if someone stops to “help” with a flat tire
- Keep personal belongings with you
Car break-ins are usually crimes of opportunity.
Driving Habits of Costa Ricans
Local driving habits can be challenging:
- Passing on curves
- Tailgating
- Speeding
- Motorcycles weaving through traffic
- Motorcycles passing on the wrong side
Stay alert and drive defensively.
Fuel Costs in Costa Rica
- Gasoline costs $5.00–$5.50 per gallon
- Sold in liters
- Prices are regulated and consistent nationwide
Always check your credit card receipt before signing.
Online Rental Quotes: What to Watch Out For
Online quotes usually show:
- Base daily rate only
- No insurance
- No deposit explanation
This is why travelers feel misled.
Get Help from a Costa Rica Expert
To avoid confusion and get the best value, work with a local expert.
Nina, The Costa Rica Expert, is happy to assist you with:
- Finding the best rental rates
- Explaining insurance options
- Arranging vehicle delivery at:
- The airport
- Your hotel
- Picking up the vehicle at your hotel at the end of your trip
Nina is the owner of The Costa Rica Details Adventure Travel Agency and an experienced Costa Rica vacation planner who will guide you through every step.
Final Thoughts
Renting a car in Costa Rica gives you freedom, independence, and unforgettable travel experiences. While the process is different from North America, it is simple once you understand the rules.
With the right preparation, you can explore Costa Rica safely, comfortably, and confidently—on your own schedule.