Insurance

The Instituto Nacional de Seguros, or INS as it is called, is a state-run insurance company that controls all insurance in Costa Rica. They will handle all of your insurance needs. They have a new English section on their website at www.ins-cr.com or www.ins.go.cr.

In Costa Rica all insurance is less expensive than in the United States. Auto, fire and theft insurance will cost less than half the U.S. premium. All vehicles in Costa Rica have Obligatory Insurance or Seguro Obligatorio, which comes automatically with your vehicle registration. It is renewed every December when you pay your car’s road tax (Marchamo). This insurance gives you a small amount of personal liability coverage, which is the type that protects you if you hurt, kill or maim another person when you are driving your car.

About 65 percent of the cars have only the obligatory Insurance which, as we have seen, is not really coverage. If you want real coverage you must buy a supplementary policy. For an additional cost, supplemental insurance policies provide broader coverage than the basic compulsory policy. Your car’s value determines the price of your premium. These supplemental policies are paid in full every six months. They cannot be paid in monthly premiums as in the U.S. Also, as in the States, premiums are increased when you have an accident but not by as much. It doesn’t matter if it was your fault or not.

When considering coverage, remember the general rule of thumb: Insure against everything you would find yourself hard-pressed to overcome financially. The essential coverages are A and C; if you don’t get those, INS won’t sell you any of the others. For coverage F or H, you must also have D. (By the way, coverages B and G have never existed). Rates are determined by the vehicle’s and applicants characteristics.

Here is a breakdown of the basic automobile coverages in Costa Rica:
(A) PERSONAL LIABILITY - Covers liability established by the courts as a result of death or injury caused by an accident for which the driver of your vehicle was guilty. The benefits are paid once the Obligatory Insurance is used up and does not cover injury or death of family members or employees of the policyholder or driver.
(C) PROPERTY DAMAGE - Covers damage to property (car, house, etc.) belonging to other people if the accident was the fault of the driver of your vehicle. Excludes items being transported by your vehicle.
(D) COLLISION - In case of collision with another vehicle, persons, or property belonging to someone else, pays for damage sustained by your vehicle: (a) if the accident was not the fault of your driver, or (b) if the accident was not the fault of your driver but the other vehicle has no insurance and the owner cannot pay.
(E) FIRE - Covers damage to your vehicle caused by fire due to either internal factors such as short circuit, or to external factors such as lightning, or in the place where the vehicle is parked burns.
(F) THEFT - Covers total theft of the vehicle or loss derived from the total theft. If it is not recovered, policy pays for damage and/or missing parts. If not recovered within a month, the insured amount is paid or the vehicle is replaced.
(H) ADDITIONAL RISKS - Covers damage resulting from overturning, running off the road, vandalism, floods, hurricanes, quakes, explosions, collisions with birds, falling objects, accidents within parking lots or private property, riots, etc.
OTHER CONSIDERATIONS Insured values - Cars should be insured at their market value in Costa Rica, and it is up to thepolicy applicant to determine it. To determine values of vehicles, it is sometimes best to use the newspaper classified ads. Only you can change the value on your policy — INS will not automatically reduce the insured values on vehicles as they depreciate.
Renewals - Auto insurance is normally for six months, after which you have a grace period of 10 working days to pay for renewal. After that, you would have to apply for new insurance or reinstatement, if you have an accident in the grace period, renew before claiming.
Coverage outside of Costa Rica - For cars with Costa Rica registration, coverage extends to all of Central America and Panama.
Deductibles - All coverages except “A” have standard deductibles. “A” has no deductible. Double deductible if the driver is under 22, in cases of vandalism, birds, or accidents on private property.
Alcohol - Policies will not pay for accidents to vehicles being driven by persons under the influence of alcohol or drugs, even if the condition did not cause the accident. An alcohol count of 50 mg or more in 100 cc of blood will invalidate insurance coverage, except for liability coverages A and C.
Roadside Assistance - This comes free for vehicles less than 15 years old that have coverage “D”. Call 800 800 7000(toll free) if you have a flat, dead battery and are out of gas, or need a tow truck. *Courtesy of Garrett & Associates.

Special Notes for Tourists:
When you bring a car into Costa Rica, you will be given a permit to drive the car into the country. The permit is usually for three months, renewable once. For issuance of the permit you have to state who is going to drive the car— they allow the owner and one other person, usually one’s spouse.

If you don’t have Costa Rica plates on your automobile you can’t cover it against collision or theft. All other coverages are available under these circumstances. However, in most cases after 180 days you can get Costa Rican plates when you pay the corresponding taxes on your vehicle.

We have already mentioned the affordability of medical insurance in Costa Rica in the section titled “Medical Care.”

Because not everyone’s insurance needs are the same and because laws and coverages work differently in Costa Rica, we suggest you consult your attorney or the English-speaking insurance agent, Dave Garrett, we have listed below. Costa Rica or those thinking of doing so.

Garrett y Asociados
SJO 450
P.O. Box 025216
Miami, FL 33102-5216
Tel: 233-2455 Fax: 222-0007
www.edenia.com/garrett