Vehicle Rental Insurance Explained

1. Mandatory Third Party Liability (TPL)

The Third Party Liability [aka Supplemental Liability Insurance (SLI)] is required coverage in Costa Rica, just as it is in Italy, Ireland, Mexico or New Zealand.

This waiver protects renters against liabilities resulting from injuries to bystanders and damages to third party property.

This basic coverage includes:

• $2,000 deposit (hold) will be placed on the renter’s credit card.
• Approx. $271,000 (₡150 million; ₡554 Colones per $1.00 USD) maximum to cover personal injuries of individuals outside the rented vehicle.
• Approx. $271,000 maximum for damages to third party property with a twenty percent (20%) deductible.
• If TPL is the only choice taken; i.e. the renter opts to use their credit card’s CDW instead (see below), then the final payment must be made with the same credit card that was used for the deposit.

Current pricing for the mandatory Third Party Liability coverage:

• $15.95 per day for the following car categories: Sedan, Intermediate, Standard, Fullsize.
• $17.95 per day for the Premium category.

2. Additional Insurance Explained

The renter or authorized driver is responsible for any loss or damage to the rental vehicle, regardless of who is at fault. Vamos provides the renter and authorized drivers with two options to cap the financial responsibility for loss of or damage to the rental vehicle through the purchase of a Collision Damage Waiver (CDW).

CDW is not insurance, but rather a waiver of Vamos Rent-A-Car’s rights to collect for such occurrences. There are two CDW options: Basic and Full. Both waivers are optional.

In order to decline both CDW coverages; i.e. selecting only the Mandatory TPL, the renter must show official, written proof of credit card CDW coverage prior to the start of the rental. This is generally a letter (or printed email) from the credit card company, showing the full name of the card holder/renter as well as the last 4 digits of the credit card that will be used to rent the vehicle. We will make a copy and attach it to the rental agreement. In the absence of this proof, the vehicle cannot be rented without in-house CDW.

Customers with CDW coverage through their credit card provider should be aware of any restrictions in place; including car category limitations, rental duration coverage and other varying rental factors, such as one vehicle rental per cardholder.

Should a claim become necessary, the renter’s credit card (if applicable) is liable for 100% of damages to and/or theft of the vehicle. Furthermore, it is also the customer’s responsibility to submit and follow through on the claim. The credit card company will reimburse the customer, so expect to pay upfront for any and all expenses. This is primarily why many customers (who already have credit card coverage) still opt for in-house CDW.

Full CDW (with zero deductible) is unavailable if there are drivers on the rental agreement between 18 to 20 years and the Basic CDW deductible is doubled ($1,500). Failure to list any driver (including those who are between 18 to 20 year old) nullifies insurance coverage, thus making the renter fully financially responsible for any and all damages.

Even though we’ve rewritten this page several times over the years and have tried to make it as simple as possible, the bottom line is it’s still insurance…but perhaps a knowledgeable and frequent poster’s view from TripAdvisor.com may help you see the main (monetary/hassle) differences more succinctly.

3. Basic CDW — Optional

Basic Collision Damage Waiver (CDW for short) limits the liability due to vehicle damages and/or theft and includes the Mandatory TPL. Purchasing inhouse CDW coverage clears the renters from filing (and the follow-up of) a claim to recoup the upfront damages paid.

This extended coverage includes:

• $750 deposit (hold) will be placed on the renter’s credit card.
• $750 deductible for vehicle damages and/or theft, except in the case of negligence (see below).
• $1500 deductible if authorized drivers are between 18 to 20 years old, unless negligence (see below).
• Either the $15.95 or $17.95 per day Third Party Liability (TPL) fee, depending on the chosen car category.
• Zero percent (0%) deductible for third party property damage to a maximum of $271,000.
• Payment options (for either CDW) include: the same credit card used for the deposit, a different credit card, a debit card, or cash. Several payment options may be combined; i.e. pay with a debit card to its limit, then pay the remainder in cash.

Current pricing for Basic Collision Damage Waiver:

• $9.00 per day for all car categories.
• Add TPL and it will either be:
• $24.95 per day for the following car categories: Sedan, Intermediate, Standard, Fullsize.
• $26.95 per day for the Premium category.

4. Full CDW — Optional

Full Collision Damage Waiver (Full CDW for short) frees the renter from financial responsibility caused by accident, theft, or total loss, except in the case of negligence (see below).

This comprehensive coverage includes both of the above options (Basic CDW & TPL) and more.

• $100 deposit (hold) will be placed on the renter’s credit card.
• Zero ($0) deductible for accident, theft, or total loss, except in the case of negligence (see below).
• Glass & Tire Protection (G&T): Full coverage for windshield, windows, tires, and rims, which incidentally are not covered under any other waiver option.
• Includes either the $24.95 or $26.95 per day Basic Collision Damage Waiver and Third Party Liability (TPL) fees, depending on the chosen car category.
• Zero percent (0%) deductible for third party property damage to a maximum of $271,000.
• Not available if authorized drivers are between 18 to 20 years old.
• Payment options (for either CDW) include: the same credit card used for the deposit, a different credit card, a debit card, or cash. Several payment options may be combined; i.e. pay with a debit card to its limit, then pay the remainder in cash.

Current pricing for Full Collision Damage Waiver:

• $18.00 per day for the following car categories: Sedan, Intermediate, Standard, Fullsize.
• $21.00 per day for the Premium category.
• Add together the CDW and TPL to arrive at:
• $42.95 ($15.95 TPL + $9.00 CDW + $18.00 Full CDW) per day for the following car categories: Sedan, Intermediate, Standard, Fullsize.
• $47.95 ($17.95 TPL + $9.00 CDW + $21.00 Full CDW) per day for the Premium category.

5. Rental Deposits

Depending on the insurance option chosen, the deposit amounts placed on the renter’s credit card will vary.

• Third Party Liability (TPL): $2,000
• Basic Collision Damage Waiver: $750
• Full Collision Damage Waiver: $100

In all cases, the credit card will not be charged until the renter picks up the vehicle. The charge will be refunded upon the vehicle’s safe return.

6. Credit Card Insurance Programs

We accept most credit card rent-a-car protection plans. Many of these plans insure the rented vehicle against Damage and Theft (CDW), but may not protect against Third Party Liability (TPL).

Please ensure that your credit card CDW covers:

1. your selected car class category (7 pax van, SUV, etc.)
2. additional drivers
3. rental period (some underwriters limit the number of rental days)
4. restrictions on where the vehicle may be driven (off-road, etc.)

Since each underwriter features proprietary terms, we strongly suggest asking your credit card company for details about CDW in regards to their insurance protection plan for car rentals in Costa Rica. If you decide to use your credit card as the provider of CDW coverage, the deposit for the rented vehicle is $2,000.

Using an insurance program provided by some types of gold or platinum credit cards is an advantage since these credit cards often cover small scratches/dents as well as the entire rented vehicle in case of collision or theft.

Click the links for more info on VISA, MasterCard and American Express Rental Auto Protection Plans. However, we suggest calling the phone number on the back of your card and inquiring about the availability and respective terms and conditions that may apply.

Please note that credit cards companies only cover up to a seven (7) passenger Sport Utility Vehicle (SUV) — which is the same capacity as the Premium cars — in their protection plans. Sidenote: To insure a Premium SUV with AmEx, one will need to purchase their "Premium Car Rental Protection".

Check out NerdWallet’s Credit Card Comparison for some great informational charts covering the car rental insurance programs from VISA, MasterCard, American Express and Discover.

7. Internet Insurance Programs

Due to more European flights landing in Costa Rica, we’re answering this question more and more.

"Do you accept [a third party]’s insurance in lieu of Third Party Liability (TPL) and/or your in-house Collision Damage Waiver (CDW)?"

The short answer is "No, we’re sorry," but it’s not because we want to push our insurance instead. We’re actually relived when clients want to use their own credit card program because if we cover them in-house, it’ll make our policy increase with each accident. No thank you.

But to answer the why more definitively, allow me to summarize the document on the Costa Rican Car Rental Association’s (ACAR) website.

Basically, third-party websites do not have a formal agreement with Costa Rican agencies.

1. The CDW offered by OTAs is unsuitable for Costa Rican car rental as its exclusions make its coverage inapplicable.
2. The OTA coverage is a transaction between the OTA and the client — not with the agency.

Furthermore:

1. Basic CDW does not cover damage to tires/rims, sound system, glass, roof rack, underside or interior of vehicle except in cases of collisions or theft of vehicle (as outlined above).
2. Full CDW does not cover damage to sound system, roof rack, underside or interior of vehicle except in cases of collisions or theft of vehicle (as outlined above).
3. Neither CDW covers tow truck service or vehicle recovery in the case of an accident or overturning of the vehicle.

This information is only a summary of the coverage offered. A sample rental agreement is available online for further review. Upon request, our staff will gladly send you a digital copy.