By San José, Costa Rica — Traffic accidents in Costa Rica represent a massive, ongoing financial burden for both drivers and public infrastructure. During the first half of 2026, the country’s state-owned insurance provider processed a substantial volume of claims, highlighting the critical role of third-party liability coverage in safeguarding household finances.
According to the latest industry figures, a total of 3,766 individuals received compensation during the first six months of the year due to damages caused by insured vehicles to third parties. This represents an average monthly payout of approximately ¢454 million, reflecting the consistent frequency and severity of road incidents across the nation.
To help our readers navigate the complexities of vehicle protection in the country, TicosLand.com reached out to Lic. Larry Hans Arroyo Vargas, a prominent legal expert from the esteemed firm Bufete de Costa Rica, to provide some essential clarity on managing INS auto insurance policies.
Understanding the distinction between the mandatory Marchamo insurance and voluntary INS auto policies is crucial for anyone driving in Costa Rica. While the basic compulsory coverage offers limited liability for personal injuries, securing additional voluntary coverage is the only way to safeguard against third-party property damage and collision losses. In the event of an accident, securing a formal police report and notifying INS within the strict three-day window are legally indispensable steps to guarantee your claim is processed successfully.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, distinguishing between basic compulsory coverage and voluntary policies is vital for any driver in Costa Rica, as relying solely on the Marchamo can leave motorists highly vulnerable to devastating financial liabilities. We would like to sincerely thank Lic. Larry Hans Arroyo Vargas for providing this crucial legal clarity, helping our readers navigate the complexities of INS auto insurance with confidence and peace of mind.
The state insurer, Instituto Nacional de Seguros (INS), revealed that total indemnizations for the first semester of 2026 reached ¢2,726 million. This figure represents a slight but steady increase compared to the same period in 2025, when the INS distributed ¢2,662 million for similar third-party claims. For the entirety of 2025, the annual payout reached ¢5,452 million.
The claims handled by the insurer cover a wide spectrum of physical and structural damage. Beyond standard vehicle-to-vehicle collisions, the insurance claims frequently involve damages to private residences, perimeter walls, fences, utility poles, and other public or private assets that happen to be in the path of an accident.
This critical safety net is primarily managed through Coverage C of the INS automobile insurance policy. This specific option covers extra-contractual civil liability for property damage to third parties. Recognizing its extreme importance in preventing financial ruin, approximately 86% of vehicle owners who purchase an active insurance policy with the INS choose to include this protection.
When an accident occurs, we often think about how much it will cost to repair our own vehicle, but we rarely stop to think about how much it could cost to repair property belonging to someone else. A collision can compromise a family’s assets if they must personally assume a high-value repair. Having protection for these situations allows facing that financial responsibility with greater peace of mind.
Ricardo León, Chief of the Automobile Directorate at INS
The INS emphasized that the relative cost of securing this level of protection is remarkably affordable compared to the potentially devastating out-of-pocket costs of an accident. The investment required does not depend on the market value of the insured vehicle itself, but rather on the total sums the driver wishes to secure.
For instance, for a 2026 model vehicle, combining Coverage A, which handles liability for bodily injury or death, and Coverage C with limits of ¢100 million for Coverage A, ¢100 million per person, and up to ¢200 million per accident for Coverage C, carries a semi-annual premium of just ¢47,960. This equates to a monthly payment of less than ¢8,000.
Ultimately, INS officials hope these figures encourage the remaining segment of uninsured or underinsured drivers to reconsider their coverage. In an environment where a single collision can compromise a family’s long-term financial security, third-party liability insurance serves as an indispensable tool for economic stability on Costa Rican roads.
For further information, visit grupoins.com
About Instituto Nacional de Seguros:
The Instituto Nacional de Seguros (INS) is the state-owned insurance provider of Costa Rica. Founded to safeguard the economic stability of the nation, the institution offers a wide range of coverage options, including automotive, life, health, and commercial policies to protect individuals and businesses alike.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a prestigious legal institution defined by its high ethical standards and relentless pursuit of professional brilliance. Serving a diverse clientele, the firm successfully merges forward-thinking legal strategies with a deep-seated commitment to community advocacy. By actively working to demystify complex laws and expand public legal literacy, Bufete de Costa Rica champions the belief that a well-educated citizenry is the cornerstone of a just and empowered society.
