The dream of a road trip in Costa Rica often starts with renting a car. A low daily fee on travel sites seems enticing; however, upon arriving at the airport, many travellers are shocked to find prices soar. This discrepancy highlights the challenges of car rentals in the country, where the total amount is often poorly disclosed.
Costa Rica's rental market involves hidden costs related to government fees, mandatory insurance, and additional surcharges. Understanding these factors is crucial for budgeting accurately. By educating yourself on the local car rental landscape, you can enjoy the freedom of the open road without the stress of unexpected expenses.
One of the primary reasons the initial online price differs from the final bill is the inclusion of various local fees that aggregators conveniently leave out. These charges are government- mandated, so you cannot skip them.
The most common of these charges is the License Plate Fee (LPF). This is a daily fee that usually ranges between 1.5 and 3 dollars per day. While it seems like a small amount, when added over a two-week trip, it becomes a noticeable line item. Agencies often omit this from their primary marketing because it allows them to appear more competitive on global search engines.
The Value Added Tax (VAT) is a standard 13% charge applied to almost everything in Costa Rica, including car rentals. Crucially, this tax is applied to the entire bill, which includes the base rate, the insurance, and any extras like child seats or additional drivers. Make sure to check this amount in your total bill.
Insurance is often the largest source of confusion for car renters. It is also the one that rental agents usually try to upsell. You must carefully read the insurance coverage in your rental agreement and determine which policies are needed for your trip.
The Third-Party Liability (TPL) is the only insurance required by the Costa Rican government for every driver on the road. It covers damages to other people’s property or injuries to third parties in the event of an accident. Because this is a legal mandate, it is non-negotiable. You cannot waive this with your personal car insurance from home, nor can you use your credit card’s rental protection to cover it.
Beyond the mandatory liability insurance, you will be offered a Collision Damage Waiver (CDW). This covers the theft of or damage to the rental car itself. Unlike TPL, many credit cards provide coverage for CDW as a cardholder benefit. If you choose to use your bank’s rental protection, you can save between 15 and 30 dollars per day. However, this requires a formal Letter of Coverage from your bank, dated within 30 days of your trip, explicitly stating that Costa Rica is a covered territory. Without this physical or digital proof, the rental agency will insist you purchase their in-house CDW.
Choosing to use your credit card’s insurance instead of the agency’s policy comes with a significant trade-off in the form of a security deposit. When you use the agency's full coverage, your deposit might be a manageable 500 dollars. If you opt for your credit card’s waiver, the agency will often place a hold on your credit card ranging from 2,000 to 5,000 dollars. This is to ensure they can recover costs directly from you while you deal with your bank for reimbursement.
Once you have navigated the taxes and insurance, you must consider the logistical surcharges that can further inflate the final bill. Some of these are optional and can be avoided with simple strategies.
If you plan to pick up your vehicle directly at the airport, you will likely encounter an airport surcharge. This terminal tax is typically around 12% or 13% of the total rental cost. It is a fee paid to the airport authorities for the right to operate on the premises. Many travellers attempt to avoid this by taking a shuttle to an off-site rental office, but be aware that some agencies apply the fee regardless of the physical pickup location if the reservation originated at the airport. It is essential to check the fine print to see if this tax is included in your quote or if it will be a surprise addition at the counter.
Age is another factor that influences the final price. Drivers under the age of 25 are almost always hit with a Young Driver Surcharge, and some agencies also apply fees for senior drivers over the age of seventy. These fees are based on local actuarial risks and are strictly enforced by the insurance providers that back the rental agencies.
You can expect to pay between 5 and 15 dollars per day for each additional person allowed to get behind the wheel. If you are travelling in a group and plan to share the driving duties, this cost can quickly become one of the most expensive add-ons of the trip. In many countries, a spouse is automatically included as an additional driver for free, but this is rarely the case in Costa Rica.
Additionally, the cost of renting equipment can be surprisingly high. While a GPS unit might seem necessary, the daily rental fee is often enough to buy a cheap smartphone locally. Most seasoned travellers recommend using a local SIM card and mobile navigation apps instead. Similarly, child seats are required by law and can cost a significant daily amount, making it worth considering bringing your own if the airline allows it for free.
Costa Rica is a small country, but its geography makes vehicle logistics difficult for rental companies. If you plan to pick up your car in San Jose and drop it off in a coastal town like Tamarindo or Puerto Viejo, you will likely be charged a one-way drop-off fee. These fees vary depending on the distance but can range from 50 to over 200 dollars. While this provides great convenience for your itinerary, it is a hidden cost that must be accounted for when deciding whether a loop or a linear route is better for your wallet.
Some boutique or eco-conscious agencies have begun implementing small daily environmental or green fees. These are often around one dollar per day and are used to offset the carbon footprint of the vehicle. While these fees support a good cause, they contribute to the creeping total that makes the initial online price look like a distant memory.
The costs do not end once you drive off the lot. You need to allocate a budget for expenses on the road, such as fuel and parking costs. You should also avoid being charged for cleaning fees and damages to tyres and glass due to Costa Rica’s road conditions.
Fuel policies are a common area where travellers lose money. Most agencies offer a prepaid fuel option, allowing you to return the car empty. While this sounds convenient, it is almost always more expensive than the full-to-full policy. Agencies charge a premium for the fuel and the service of refilling it. It is much more cost-effective to find a petrol station near the airport before you return the vehicle. Take note that fuel prices are regulated by the government in Costa Rica, so the price per litre should be consistent across the country.
Make sure to prepare enough budget for parking fees. While they are mostly affordable, they can add up to a huge sum. In most towns and at popular beaches, you will encounter unofficial parking guards known as trapitos. These individuals offer to watch your car in exchange for a small tip, usually around one or two dollars. While not a formal fee, it is an expected part of the local economy and helps ensure your vehicle remains secure while you enjoy the surf or a meal.
Be mindful of the condition of the car’s interior and exterior. If you return a vehicle with excessive sand, mud, or stains from wet swimwear, the agency may levy a professional cleaning fee. These penalties can range from 50 to 100 dollars, so a quick shake of the floor mats before returning the car can save you a significant amount. You can also include a quick wash when you refuel the car before drop off.
Costa Rican roads are famous for their beauty but also for their hazards. Potholes, unpaved gravel tracks, and river crossings are common, especially if you are heading to remote areas like the Nicoya Peninsula or Drake Bay. Many standard insurance policies, even those with low deductibles, often exclude damage to tyres and glass. A flat tyre is almost a rite of passage for a Costa Rican road trip, and if you haven't purchased a specific tyre and glass protection plan, you will be responsible for the repair or replacement costs. It is wise to set aside a small contingency fund for these minor but frequent issues.
Renting a car in Costa Rica requires a shift in mindset—from seeking the lowest daily price to focusing on the all-in cost. To achieve transparency, book directly through the websites of reputable agencies that present mandatory insurance and taxes from the start. Always request a complete quote with all the required fees and surcharges.
While the various hidden costs may appear overwhelming, don’t let them deter you from getting behind the wheel. With proper budgeting and the right questions at the rental counter, you can enjoy the unparalleled experience of a Costa Rican road trip. This guide is already your ticket to success.
There is no better time than now to secure your independence. Rent your vehicle from Final Rentals today and prepare to unlock the wonders of Costa Rica on your own terms. You can easily and safely book via our website or through our mobile app, which is available for download on Google Play and the App Store.
