Compulsory Auto Insurance exists in Costa
Rica, which on a no-fault basis covers physical injury to third
parties up to limits sufficient to cover the simplest of accidents;
i.e., broken arms or legs, and a small award in the event of death.
Compulsory Auto insurance comes automatically with vehicle registration,
and is renewed every December when the vehicle’s Road Tax is
paid (premium cost is about $200 p.a.). Because the coverage is
indeed very small (roughly the equivalent of $2,000 maximum per
event) it is advisable to have a supplementary Auto Insurance policy.
Supplementary Auto Insurance.
Sold by INS directly or through Agents, it includes supplementary
personal liability as well as liability for third-party property
damage. Optionally it is possible to insure the vehicle itself for
collision, theft, fire and other perils.For Direct Damage, vehicles
should be insured at their Actual Cash Value (ACV) in Costa Rica,
as determined by the applicant – there is no "Blue Book."
Premiums.
For Liability, premiums range between US$120 and $250 per year,
payable semiannually. For Direct Damage, premiums for each coverage
are a percentage of the value of the vehicle: budget for 9 –
10% per year of the vehicle’s value. Payable semiannually.
This includes the Sales Tax which is levied on premiums.
Licenses.
In Costa Rica, auto insurance covers the vehicle irrespectively
of whom is driving, provided the driver has a license that is valid
in this country.
Fleet insurance is
available for fleets of 10 or more vehicles which are all registered
to the same ownership. There is no break in the price for fleet
policies.
How To Apply.
Vehicles being insured must be inspected and photographed by the Agent,
an application form must be completed and signed and the appropriate
premium must be paid in advance. Cover comes into effect immediately. If the new vehicle is insured with full coverage, a 30% discount on the premium applies for the first 6 months.
Restrictions.
All motor vehicles are imported. Until the import duty has been
paid, INS regulations stipulate that only Liability coverages can
be sold.
Disclaimer: This document is intended
as a summary of most relevant points of the insurance policy; as
such, it does not contain every provision stated therein. |
