July 7, 2023 - Meagan Palmer
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Looking to take a trip to Costa Rica, but trying to nail down what to look for when it comes to insurance? Below the Yonder team will shed some light on these areas so you can make an informed decision on what type of coverage to buy!
Is travel insurance for costa rica required?As of April 1, 2022, the requirement to get travel insurance to enter Costa Rica is no longer in place. Previously, the requirement caused travelers to purchase insurance that covered extra medical, medical evacuation, and quarantine lodging expenses if they contracted COVID-19 during their trip to Costa Rica. Now, you’ll be free to enter with hardly any restrictions! Regardless, travel insurance is still important in case you suddenly have to cancel your trip or if your flight gets delayed. More on that below.
Why You Might Still Want to Purchase InsuranceIf you’re looking for travel insurance to Costa Rica specifically if you were to contract the coronavirus while on your trip, you’ll be happy to know your travel insurance will likely cover it. Most travel insurance providers are treating COVID-19 as any other illness, meaning hospital, treatment expenses, medical evacuations, and quarantine lodging costs are still likely to be covered. Most travel insurance policies include Emergency Medical Expense coverage, which would provide coverage for the following:
Most travel insurance policies include Emergency Medical Expense coverage, which would provide coverage for the following:
Usually, comprehensive travel insurance policies will also include Emergency Medical Evacuation Expense coverage. This means the provider will cover expenses in the event you have to be transported to a medical facility or hospital where you can get the treatment you need. Note that you’ll need to call the provider’s emergency assistance team to make arrangements –otherwise, you run the risk of the expenses not being covered.
Also, if you were to fall ill before your trip, the Trip Cancellation benefit could apply and reimburse you for your non-refundable trip expenses. If you have concerns about border closures, travel advisories, or fear of travel, purchasing a policy with Cancel for Any Reason (CFAR) insurance would allow greater flexibility to cancel your trip than the standard Trip Cancellation benefit. Most policies also include coverage in case you have to cut your trip short due to an unforeseen event under trip interruption benefits.
Pro Tip: Always double-check with your provider to verify your coverage and double-check the Costa Rica entry requirements before your departure.
How much does travel insurance for Costa Rica cost?Variables such as duration of stay, your current age, and trip cost will affect the price of the travel insurance premium. It’s best to run a free quote to get a better idea of what you’d be paying to insure your trip to Costa Rica.
Is car rental insurance required in Costa Rica? When it comes to car liability coverage, the answer is yes –insurance is necessary. Mandatory liability car insurance in Costa Rica provides benefits for the following:
Note that this required insurance doesn’t cover any damage to the rental vehicle itself. Here is some supplemental car insurance you could purchase in Costa Rica that covers the missing gaps:
Collision Damage Waivers (CDW): If you were in an accident, this coverage would reduce your accountability to the deductible –anywhere from $1,500-$3,000. This supplemental insurance from a rental agency could cost an additional $15-$40 per day, but doesn’t include benefits in the events of negligence, vandalism, road damage, or theft.
Full Coverage/Zero Liability: This is the third level of protection most agencies offer that erases your liability for damage due to theft, vandalism, road damage. If looking to add these benefits, you could be looking at, tacking on another $5-$20 per day of rent.
Collision Damage Waivers (CDW): If you were in an accident, this coverage would reduce your liability to the deductible –anywhere from $1,500-$3,000. This supplemental insurance from a rental agency could cost an additional $15-$40 per day, but doesn’t include benefits in the events of negligence, vandalism, road damage, or theft.
Full Coverage/Zero Liability: This is the third level of protection most rental agencies offer that erases your liability for damage due to theft, vandalism, road damage. If looking to add these benefits, you could be looking at, tacking on another $5-$20 per day of rent.
If you can’t catch the hint, insuring a rental vehicle in Costa Rica can cost a pretty penny if you want similar benefits to what you have on your own vehicle back in the States.
Well, you could look into what your credit card offers for rental car protection. Tread lightly here though because there’s a lot of fine print to double-check when it comes to card coverage. For instance, if you purchase any kind of coverage (excluding the required liability benefit) from the car company, your credit card company is likely to refuse to cover damage of any kind.
Another example that could restrict your insurance is that some credit cards exclude coverage of Latin American car rentals –be sure to read the fine print! We’ve found more helpful information from Costa Rica Guide regarding using credit card protection for rental vehicles you should check out.
Your other option is purchasing a travel insurance policy with a rider called Rental Car Collision coverage. Despite common myths about travel insurance being expensive, it’s actually quite affordable and could even be cheaper than buying insurance from a company in Costa Rica.
For example, say you’re going on a seven-day trip for two to Costa Rica that costs $4,000. You can find a policy on Yonder starting at around $184 for your entire seven-day trip that has $35,000 of Rental Car Collision coverage. Plus, this policy includes Trip Cancellation/Interruption, Medical, and Travel Loss and Delay coverage!
We think that’s a steal considering the high cost of buying Costa Rican insurance upon arrival. If you’re looking for higher Rental Car Collision benefits, there are even policies that bump it up to $50,000 of benefits for a minimal increase in the policy premium.
We’re glad you asked! Most policies with this additional insurance would cover the costs to repair the damage to the vehicle if you were to get in an accident, theft, vandalism, a windstorm, fire, hail, flood, or any cause not in your control. This optional insurance won’t, however, provide coverage for damage to any other vehicles.
The Yonder team always recommends you read the full policy description so you understand what coverage is available to you. Here’s another article we wrote if you’re still not sure if you should buy a policy with this additional benefit.
Pro Tip: Make note that you must be a licensed driver and listed on the rental agreement for benefits to apply. If you do get into an accident, you’ll want to report the loss to the car company and the authorities in Costa Rica, otherwise, you may not be reimbursed.
Adventure Sports Insurance CoverageCosta Rica is full of adventure and you might find yourself doing activities you can’t do in the United States. For instance, your family might sign-up to go spelunking or you and your travel buddies plan on doing some mountain climbing or cliff jumping.
In case something goes awry, it’s best to manage the risk by opting for a travel insurance policy that includes what’s called a “Hazardous Sports Rider“. Usually, adventurous activities are excluded from insurance policies, but by buying this travel insurance add-on, you’ll still be covered for any urgent medical care you need if you were to get hurt. Make sure you buy this sooner, rather than later –this type of upgrade must be purchased soon after your first deposit or payment towards your trip.
Now that you have a better handle on what kind of travel insurance to consider for your trip to Costa Rica, why not get a quote on Yonder’s website? It’s free and only takes a few minutes from quote to purchase! Plus, you can compare insurance plans side-by-side from various travel insurance companies to make sure you’re getting the right coverage.
