How to Avoid Hidden Car Rental Insurance Fees Before Your Costa Rica Golf vacation? An Expert Weighs In

Golfpedia Costa Rica — Sun, 30 Jun 2024 15:44:11 +0000

Peter arrived at the airport in Costa Rica for what he thought would be a seamless four-week family vacation in paradise. All arrangements were set: resort nights secured, car rental reservation confirmed and paid for. However, things would swiftly take a turn mere minutes after the plane landed.

Following the unexpected turn of events, he hurriedly typed a post a Costa Rica travel assistance forum, eager to find a solution:

“We just arrived in Costa Rica for four weeks. We had a rental car booked and paid with full insurance. However, upon arrival, the rental company agent insisted on an additional daily fee of $70 USD —for what they referred to as “another full insurance”, or else wouldn’t give us the car. This seemed excessively opportunistic, even with prior knowledge about how it’s not uncommon for some people to make money off tourists. We decided not to proceed with the rental, and we are currently without a rental car.

I’m wondering if you could recommend a reputable company that offers affordable prices. We’re in search of a long-term solution for four weeks, specifically for a 4-wheel drive vehicle. Are there any options for long-term car rentals or something similar? local guides or smaller rental companies? Any insights or advice would be greatly appreciated. Thank you”.

Fellow travelers quickly chimed in with their recommendations, sharing insights from their own previous experiences, and offering valuable information —as he scanned, called and texted before eventually finding a car rental solution for a four-week vacation in Costa Rica.

So what can you do to avoid an experience like this?

We understand that being greeted at the car rental counter in Costa Rica —only to be confronted with a stack of hidden fees, previously undisclosed charges, and what you might sometimes consider “questionable” extra costs— is hardly the ideal way to kick off your Costa Rica dream vacation. Particularly when you’re carrying a set of golf clubs in addition to your luggage.

For those same reasons, in this GOLFPEDIA Costa Rica guide we will:

Explore the ins-and-outs of Costa Rica car rental insurance.
Uncover what some car rental companies avoid disclosing before arrival.
Dissect the fine print of car rental insurance with expert help, revealing the best tips on what you should know before booking a rental car for your upcoming trip to Costa Rica.
If golfing is on your Costa Rica itinerary, we’ll suggest suitable car options that can easily accommodate your golf clubs and your luggage with ease.

Do I need to pay for car rental insurance in Costa Rica?

If you’re planning to rent a car during your Costa Rica visit —hopefully with golf as part of the plan— car rental insurance is not an option: it’s a requirement. By Costa Rican law, all drivers must carry Liability Insurance, also known as Third Party Insurance (TPI), Liability Protection (LP), or Supplemental Liability Insurance (SLI). Now, let’s delve into the insurance alternatives offered by most car rental companies in Costa Rica:

Liability Insurance | Third Party Insurance (TPI)

Liability Insurance, mandated by Costa Rican law, covers damage you cause to third parties and their property. Coverage is limited with often a deductible, so ensure you check the specifics with your selected rental company. This insurance does not cover your rental car at all, only damages to other people, their cars, or property.

Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)

On top of Liability Insurance, most rental companies offer Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). This is not actual insurance but is a waiver of financial responsibility for damage to or theft of the rental car. It has certain coverage restrictions and usually has a deductible.

Full or Premium Coverage

For an extra fee, many rental companies offer a full or premium coverage option. This insurance typically eliminates the deductibles for third-party liability and CDW/LDW and may also increase coverage limits.

Decoding the Costa Rica Car Rental Insurance Confusion

Costa Rica’s car rental insurance scene can be complex and confusing, primarily due to the inconsistencies in how many rental companies present their insurance options.

Understanding the Fine Print

When getting a quote for a rental car in Costa Rica, you will likely see significant differences in price from one website to the next. The biggest reason for this confusion is insurance. A certain level of insurance coverage is required by Costa Rican law, and not all companies or websites include this cost in their quote.

Beware of Low Car Rental Quotes

Many rental car companies, including third-party websites, often exclude mandatory insurance from their quotes to make their pricing seem more competitive. This omission can lead to a nasty surprise upon arrival when the cost of mandatory insurance is added to your bill, potentially increasing your rental car cost by hundreds —or thousands— of dollars. Let’s consider the perspective of an expert:

“If you booked via Expedia, Booking or similar sites most definitely you will have additional fees when you arrive. Make your reservation DIRECTLY on the rental agencies Costa Rican website.

Additional fees not disclosed on the sites mentioned:

Mandatory third party liability
Collision damage waiver (some agencies DO NOT accept Credit Card coverage)
Airport Tax
Environmental Fee
License plate Fee
VAT (Value Added Tax)

All these will be tagged at the counter and it adds up quickly”.

– Aaron Hersey, owner and representative for Sun Valley Rent a Car in Costa Rica.

Transparency is Key

To avoid an unwelcome surprise, it is essential to choose a rental car company that is transparent about their quote. This means they include all charges, including mandatory insurance, from the outset.

Renting a Car in Costa Rica: What to Look For in a Car Rental Company?

When comparing Costa Rica car rental companies, there are several things to watch out for:

Deposit Requirements

Most rental car agencies will require a deposit, ranging from $1,000-$2,500. This deposit is a hold placed on your credit card, which is released when you return the car. Make sure your credit card has a high enough limit to cover both the deposit and the rental payment.

Extra Charges and Hidden Fees

Extra charges can significantly increase the total cost of your rental car. Common extra charges include airport fees, environmental fees, license plate fees, mileage restrictions, and pick-up/drop-off fees.

Optional Add-Ons

Rental companies offer various add-ons, such as extra drivers, GPS devices, WiFi, cell phones, and car seats for kids. While these add-ons can enhance your driving experience, they also add to the overall cost.

Rental Car Options for Your Golf Trip to Costa Rica

Depending on your golf trip itinerary, the size of your group, and the additional activities you’re planning to do, your car rental needs may vary. Given the sometimes challenging conditions of Costa Rica’s roads, particularly if you plan to play golf at Hacienda Pinilla Golf Course or the Westin Reserva Conchal Golf Course, opting for a 4WD or 4×4 vehicle is generally the best choice for safety and convenience.

Mid-Sized SUVs

Mid-sized SUVs like the Toyota Rav4 or Hyundai Tucson typically offer ample cargo space and versatility to stow golf clubs and luggage comfortably while providing a comfortable ride for two or three passengers. However, it’s advisable to check with rental companies in Costa Rica for specific vehicle availability and features based on your preferences and needs.

Toyota RAV4

Hyundai Tucson

Full-Sized SUVs

Full-sized SUVs like the Mitsubishi Montero Sport or Ford Explorer typically offer spacious interiors and ample cargo capacity, making them suitable for transporting passengers as well as a child safety seat, and golf equipment. However, availability may vary depending on the rental company and location, so it’s recommended to check with rental companies in Costa Rica to ensure you get the right vehicle for your needs.

What are the Best Golf Courses in Costa Rica?

Costa Rica offers an array of golfing options, each with unique features and challenges. Some of the best golf courses in Costa Rica include the four listed below.

Four Seasons Resort Costa Rica

Location: Peninsula Papagayo

18 holes

Par 72

Learn more about the
Four Seasons Costa Rica Golf Course

Westin Golf Resort & Spa Playa Conchal

Location: Reserva Conchal

18 holes

Par 71

Learn more about the
Westin Costa Rica Golf Course

Hacienda Pinilla Golf Course

Location: Hacienda Pinilla

18 holes

Par 72

Learn more about the
Hacienda Pinilla Golf Course

La Iguana at Marriott Los Sueños

Location: Herradura Beach

18 holes

Par 72

Learn more about
La Iguana at Marriott Los Sueños Golf Course

Making the Most of Your Costa Rica Golf Vacation & Car Rental Experience

Renting a car in Costa Rica may offer you the freedom and flexibility to explore the country’s stunning landscapes, vibrant scenic beauty, and world-class golf courses. By understanding the rental process, insurance requirements, and potential hidden fees, you can ensure a smooth and enjoyable golf vacation in Costa Rica.

At GOLFPEDIA Costa Rica, we hope this guide has shed light on your decision-making process.

Remember to book your rental car in advance, choose the right insurance coverage, and verify all costs before confirming your booking. With these tips in mind, you’re well on your way to an unforgettable Costa Rica golf adventure.

Contributed in this article:

Aaron Hersey

Owner and representative for Sun Valley Rent a Car in Costa Rica.

costa rica car rental liability insurance Archives | Golfpedia Costa Rica

How to Avoid Hidden Car Rental Insurance Fees Before Your Costa Rica Golf vacation? An Expert Weighs In

Do I need to pay for car rental insurance in Costa Rica?

Liability Insurance | Third Party Insurance (TPI)

Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)

Full or Premium Coverage

Decoding the Costa Rica Car Rental Insurance Confusion

Understanding the Fine Print

Beware of Low Car Rental Quotes

Transparency is Key

Renting a Car in Costa Rica: What to Look For in a Car Rental Company?

Deposit Requirements

Extra Charges and Hidden Fees

Optional Add-Ons

Rental Car Options for Your Golf Trip to Costa Rica

Mid-Sized SUVs

Toyota RAV4

Hyundai Tucson

Full-Sized SUVs

What are the Best Golf Courses in Costa Rica?

Making the Most of Your Costa Rica Golf Vacation & Car Rental Experience