Avoiding Rental Car Scams in Costa Rica
Like most of the losses we suffer when traveling are due to not having all the information. The best way to avoid rental car scams in Costa Rica is having sufficient information. Recently, I read a very good article written by Nikki Solano outlying the ins and outs of renting a car here. There are several things that you as a tourist need to be aware of when renting a car here. My time here went from tourist, to resident to citizen. I have firsthand knowledge of the pitfalls of renting a car in Costa Rica. Probably the largest issue is the one of insurance. Do not get economical when selecting collision coverage for your rental. If you do you may have the shock of your life at the bill you could receive.
Collision Damage Waiver
The law of Costa Rica requires that all cars have liability insurance. It is mandatory. What is not mandatory is collision damage and uninsured motorist coverage. Although the mandatory liability rates are somewhat reasonable, the collision damage is not. I am not saying that the insurance is a scam. However, I am saying if you don’t know the rules it can wound up costing you thousands of dollars.
When you reserve a rental car here bear in mind that there may be hidden cost and fees that are not disclosed until you are at the counter. I know of some car rental rules that require a $2500 hold on you credit card just to rent the car. What is not disclosed to you if you decline the collision damage, is, the additional expense of repairing the car. If you have an accident the rental company has the right to the whole $2500 plus charging the estimated damage cost to your card, regardless of fault.
What’s the solution?
You can buy the collision coverage and select the deductible you want to be responsible for which is based on a sliding scale. (The higher the deductible the lower the premium) But remember you deductible will be charged to your credit card. Another option, Is your credit cards. if you have VISA or an American Express card, is that prior to coming to Costa Rica, you contact the credit card company and activate your rental auto insurance.This eliminates the need to take the rental car company’s coverage and leave it to your credit card coverage to work it out. The caveat is that the rental car company will charge your credit car for the full amount of the damage. Once the credit card insurance pays the invoice the amount will be credited back to your account.
Why does this occur
Costa Rica culturally is competitive by nature. All one has to do is drive here just to see first hand how dangerous and how easily an auto accident can occur. The rental car companies are not deliberately be deceptive, but the bottom line is profit. If that means you have to pay more, then, so be it. Additionally, one would have to be terribly naive not to conclude that the car rental car profits for selling you their insurance. Any marketing device that one car rental company can use to promote and position its company over another they will do it. If you want me to look at the car reservation before you book it and point out things you need to know, contact me at codygear@gmail.com.
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