Rental Car Insurance

[MIKE KAPLAN]

We’re going to be spending around 6 weeks in CR April/MAy and I’m trying to book a car rental – am totally confused by SLI (supplementary liability insurance), LDW (loss damage waiver) and cover for theft. What is legally required and what to fellow travellers advise from experience?
Does the same apply to Panama?
Many thanks,
Mike

[MICHEAL LEVINE]

The mandatory insurance is PLI (personal liability). I always rent using a credit card that covers the rest. This saves lots of $$, but the coverage is limited to a 30 day rental. If you use this option you may have to rent twice…

The down side to this arrangement, according to Alamo, is that in the event of damage or loss, you pay for it with your credit card, and the credit card company reimburses you. This is a giant PITA but it saves a lot of money.

Sorry, no information about Panama.

You do realize that rental vehicles are not allowed to cross the CR-Panama border? Some companies will arrange to swap your CR-registered vehicle for a Panama-registered one at the border, but I don’t know which companies offer this service.

[JASON HOLLAND]

Rental car insurance is very confusing in Costa Rica. If use your credit card coverage, they will often put a very large hold on your card ($5,000) as a security deposit. And keep in mind some credit cards void their coverage if you go off of paved roads, which tends to happen in Costa Rica at some point.

The only strictly required insurance is the liability, which covers damage to other vehicles, etc. The others are optional and cover damage to your vehicle, with a deductible paid by you. I personally usually get full coverage for the peace of mind. But it can boost the price significantly, sometimes the insurance costs almost as much as the rental.

When reserving a rental car online, they will often not include insurance in the price. So after making your online reservation, be sure to call and speak with someone about insurance options and the price.

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