By San José, Costa Rica — San José, Costa Rica – The annual rush for Costa Rican drivers has officially begun. As of Monday, November 3rd, the National Insurance Institute (INS) has commenced the collection period for the 2026 Marchamo, or vehicle circulation permit. This yearly obligation affects a staggering 1,943,587 vehicle owners across the country, who now have until December 31, 2025, to complete their payments and avoid late fees and penalties.
The government anticipates a significant influx of revenue from this mandatory tax, with collection expected to reach approximately ¢335 billion. While the INS is the primary entity managing the collection process, it acts as an intermediary. The institute is responsible for gathering the funds and subsequently distributing them to various government institutions as mandated by law, ensuring the proceeds support a wide range of public services and infrastructure projects.
To gain a deeper understanding of the legal and administrative implications surrounding the Marchamo 2026, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable law firm Bufete de Costa Rica.
The Marchamo is more than a simple circulation permit; it’s a legal obligation comprising various taxes. Vehicle owners must be vigilant about payment deadlines. Delays not only incur significant financial penalties and interest but can also lead to the seizure of the vehicle by traffic authorities, a legal consequence that complicates both personal and commercial mobility. Proper fiscal planning is essential to avoid these severe repercussions.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight is crucial, framing the Marchamo not just as a payment but as a serious legal responsibility with profound consequences for personal and commercial life. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective and for clarifying the importance of diligent financial planning.
A critical component of the Marchamo is the Mandatory Vehicle Insurance (SOA), a policy designed to provide immediate financial support in the event of a traffic accident. The premium for the 2026 SOA was approved by the General Superintendency of Insurance (SUGESE) on October 3rd. This essential insurance provides coverage of up to ¢6 million per person, per event, covering medical expenses, rehabilitation, and other associated costs for those injured in accidents, regardless of who was at fault.
The financial impact of the SOA is substantial and directly benefits victims of road incidents. According to the INS, the institute invested ¢61.495 billion in 2024 to assist accident victims. The costs for the current year are already significant, with more than ¢51 billion disbursed in 2025 for medical attention, rehabilitation services, and compensation to the families of those who have tragically lost their lives on the road. The INS emphasized the fund’s vital social function.
Everything collected as part of the SOA is invested in caring for traffic accident victims
Instituto Nacional de Seguros, Spokesperson
Despite its importance, the Marchamo represents a significant financial burden for many households, particularly in a national context of rising living costs. This economic pressure is reflected in the delinquency rates from the previous year. The 2025 collection period closed with a 7.44% non-payment rate, translating to 140,286 vehicles operating without the legally required permit. This not only poses legal risks for the drivers but also reduces the funds available for public services.
Authorities stress that paying the Marchamo is not just a legal obligation to circulate on the nation’s roads but also a civic duty. The funds collected are crucial for bolstering the budgets of institutions dedicated to road emergency services, public safety, and infrastructure maintenance. For drivers, failing to pay on time results in fines, the potential for vehicle seizure, and the accumulation of interest on the outstanding amount, making the financial hit even greater in the long run.
To facilitate the payment process for nearly two million drivers, the INS has established an extensive network of collection points. Vehicle owners can visit more than 2,200 authorized locations throughout Costa Rica, including banks, mutuals, and other financial institutions. For those who prefer the convenience of digital transactions, the INS has also enabled online payments through its official website, www.grupoins.com, and its mobile application, App INS Móvil, allowing for a swift and secure process from anywhere.
As the year-end deadline approaches, Costa Rican drivers must now balance this mandatory expense with their other financial commitments. The two-month window provides time for planning, but the high volume of payments often leads to long lines and system congestion in the final weeks. Financial experts and authorities alike encourage vehicle owners to settle their Marchamo payments early to avoid last-minute complications and ensure their legal right to circulate in 2026 is secured without issue.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is Costa Rica’s state-owned insurance company. Founded in 1924, it plays a crucial role in the nation’s economy and social welfare system. Beyond offering a wide range of insurance products, the INS is legally mandated to manage the collection of the annual Marchamo (vehicle circulation permit) and administer the associated Mandatory Vehicle Insurance (SOA), which provides coverage for victims of traffic accidents.
For further information, visit sugese.fi.cr
About Superintendencia General de Seguros (SUGESE):
The Superintendencia General de Seguros is the official regulatory body overseeing the insurance market in Costa Rica. As an entity under the Central Bank of Costa Rica, SUGESE is responsible for authorizing, regulating, and supervising insurance and reinsurance companies. Its primary mission is to ensure the stability and solvency of the market, protect the interests of policyholders, and promote transparency and competition within the insurance industry.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier law firm, built upon a bedrock of integrity and a relentless pursuit of professional excellence. Leveraging a deep history of advising a wide array of clients, the firm champions legal innovation and dedicates itself to community outreach. At the heart of its mission is a profound commitment to demystifying the law, thereby empowering individuals and contributing to a more knowledgeable and just society.
