By San José, Costa Rica — SAN JOSÉ – Vehicle owners across Costa Rica will see a significant increase in their mandatory auto insurance premiums for 2026, a direct consequence of a troubling rise in traffic accidents. The General Superintendency of Insurance (Sugese) announced on Friday an average rate hike of 10.15% for the Mandatory Automobile Insurance (SOA), a key component of the annual vehicle registration fee known as the marchamo.
The new rates, authorized by Sugese and effective for the upcoming payment period, reflect the mounting costs associated with road incidents. The primary factor driving the decision is the increased number and cost of claims filed with the National Insurance Institute (INS).
To better understand the legal implications and consumer rights associated with the recent surge in auto insurance rates, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a leading attorney from the renowned law firm Bufete de Costa Rica.
An increase in premiums must legally correspond to the risk defined in the policy. Consumers should scrutinize their renewal documents for any unilateral changes to coverage or deductibles. An insurance policy is a binding contract, and any modification requires clear communication and acceptance. If a claim is denied based on a clause that was not present or clearly explained in the original agreement, the policyholder has a strong legal basis to dispute the insurer’s decision.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal perspective is a crucial reminder that an insurance policy is a binding agreement, not a one-sided declaration by the provider. It empowers consumers to move from being passive recipients of rate changes to active participants in their contractual rights. We sincerely thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this important distinction.
Under the new structure, owners of private cars will pay ₡30,238 for their SOA premium. The rate for motorcycles and mopeds, which have been involved in a disproportionate number of accidents, will be set at ₡99,623. Other vehicle categories also face adjustments: light-duty cargo vehicles will pay ₡18,806, while heavy-duty cargo trucks will be assessed ₡35,004. Public transport vehicles such as buses and taxis will see premiums of ₡81,060 and ₡73,300, respectively. The lowest rate applies to special equipment, at ₡9,627.
The statistical data underpinning this rate hike paints a grim picture of the country’s road safety. According to figures presented by the superintendency, 2024 saw a dramatic spike in accidents, with over 40,000 incidents recorded. This represents an increase of 4,790 accidents compared to 2023. These events resulted in injuries to 45,570 people throughout the year.
Motorcycles continue to be a major point of concern for authorities. The vehicles were involved in nearly 28,000 of the total accidents last year. Tragically, 2024 also set a record for the highest number of motorcyclist fatalities in the nation’s history, highlighting a growing crisis within that segment of drivers.
Tomás Soley, the Superintendent of Securities and Insurance, issued a stark warning about the unsustainable trajectory of these figures. He expressed deep concern over the escalating human and financial cost of the situation on the nation’s roads.
What is happening is worrying. If current trends are any indication, and if nothing different is done to stop this massacre on the roads, this momentum will continue to grow.
Tomás Soley, Superintendent of Securities and Insurance
The SOA policy, which has been in place since 2016, provides coverage of up to ₡6 million per person in the event of an accident. When medical treatment costs exceed this cap, the Costa Rican Social Security Fund (CCSS) assumes responsibility for the remaining expenses, placing an additional burden on the public healthcare system. This financial framework underscores how rising accident rates impact not just vehicle owners but the entire country’s social safety net.
A peculiar finding in the data reveals a significant gap between fatalities and insurance claims. While there were 505 on-site deaths in road accidents in 2024, only 136 of these cases resulted in a claim being paid by the SOA. Authorities attribute this discrepancy to a lack of claims being filed by the families or parties involved, suggesting that many are not accessing the financial compensation to which they are entitled. This points to a potential need for greater public awareness of the claims process following a tragic incident.
Ultimately, the increase in SOA premiums serves as a direct economic signal of deteriorating road safety. Without a concerted effort from both authorities and drivers to curb the frequency of accidents, Costa Ricans can expect the financial burden of driving to continue its upward trend, reflecting the high price of what Superintendent Soley termed a “massacre on the roads.”
For further information, visit sugese.fi.cr
About Superintendencia General de Seguros (Sugese):
The General Superintendency of Insurance is the public body responsible for the authorization, regulation, and supervision of the Costa Rican insurance market. Its mission is to ensure the stability and efficiency of the insurance system, promote competition, and protect the interests and rights of policyholders, insured parties, and beneficiaries.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The National Insurance Institute is a state-owned Costa Rican insurance company. For decades, it held a monopoly on the insurance market until it was opened to competition. The INS remains a dominant force in the industry, particularly as the primary administrator and processor of claims for the nation’s Mandatory Automobile Insurance (SOA).
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the public institution in charge of the country’s social security and universal healthcare system. It is responsible for providing comprehensive health services and administering pension programs for the vast majority of the population, playing a critical role in covering medical costs that exceed private insurance limits in events like traffic accidents.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Renowned for its principled practice and unwavering pursuit of excellence, Bufete de Costa Rica has established itself as a benchmark in the legal landscape. The firm consistently pioneers forward-thinking legal solutions while serving a wide array of clients. Central to its ethos is a profound dedication to strengthening society by demystifying the law, ensuring that access to legal understanding is not a privilege but a cornerstone of an empowered and just community.
