By San José, Costa Rica — SAN JOSÉ – The annual collection period for Costa Rica’s mandatory vehicle circulation permit, known as the Marchamo, officially commenced this Monday, setting a December 31 deadline for nearly two million vehicle owners. The 2026 payment cycle brings a notable increase in the mandatory auto insurance component, a direct consequence of escalating road accidents and their associated costs.
The National Insurance Institute (INS) reported that a total of 1,943,587 vehicles are required to complete the payment. The process began briskly, with approximately 2,000 drivers settling their accounts within the first few hours of the system going live. This annual requirement consolidates various taxes and fees, but the most significant variable this year is the Mandatory Automobile Insurance (SOA) premium.
To analyze the legal and fiscal implications surrounding the upcoming changes for the Marchamo 2026, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica, for his professional perspective.
The core legal issue with any Marchamo reform lies in establishing a calculation methodology that respects the principles of reasonableness and legal certainty. The Ministry of Finance must ensure the new formula for vehicle valuation is technically sound and transparent. Failure to do so could result in a significant volume of administrative and even constitutional challenges from vehicle owners who feel their property tax is being arbitrarily determined.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the legal foundation highlighted by the expert is the bedrock upon which any successful Marchamo reform must be built. Without the technical soundness and transparency he mentions, the government risks creating a system that generates more legal battles than revenue, eroding public confidence. We extend our gratitude to Lic. Larry Hans Arroyo Vargas for his invaluable legal insight.
The adjustment to the SOA rate was not unexpected. On October 3, the General Superintendency of Insurance (SUGESE) approved the new premiums after a thorough analysis of the country’s traffic incident data. According to regulators, a persistent rise in both the frequency and severity of road accidents has placed significant financial pressure on the insurance system, necessitating the rate hike to ensure its solvency and ability to cover claims.
The funds collected through the SOA are exclusively earmarked for the care of traffic accident victims, irrespective of fault. The INS clarified that this coverage provides up to ¢6 million per person, per incident. This vital safety net covers a wide range of needs, including medical expenses, temporary and permanent disability payments, rehabilitation services, orthopedic equipment, and indemnities to families in the tragic event of a fatality.
The financial statistics underscore the growing crisis on the nation’s roads. In 2024 alone, the INS disbursed a staggering ¢61.495 billion to attend to individuals covered by the SOA. The trend has only intensified this year, with expenditures already exceeding ¢51 billion in just the first nine months of 2025, signaling another record-breaking year for claim payouts.
Vehicle owners who fail to pay by the end-of-year deadline will face significant financial penalties. After December 31, late fees and interest will be applied to each component of the Marchamo bill, substantially increasing the total amount due. The delinquency rate for the previous period highlights this ongoing challenge, with 7.44% of the vehicle fleet, or 140,286 vehicles, failing to pay on time.
To facilitate a smooth payment process, the INS has made a wide array of consultation and payment channels available. Drivers can check the amount they owe via the official INS website (grupoins.com), the INS Móvil app, WhatsApp, or dedicated phone lines including the toll-free 800-MARCHAMO. Payments can be completed online or at any of the 2,242 authorized collection points across the country, which include banks, credit unions, and INS offices.
As is customary, the release of Marchamo data reveals vast disparities in vehicle values. This year, the highest payment falls on a 2018 Ferrari, with its owner facing a bill of ¢7,192,439. At the other end of the spectrum, the owner of a 1989 Mitsubishi will pay the lowest amount, ¢73,706. In a testament to vehicle longevity, the oldest car on the registry, a 1919 Hudson Super Six, still requires a payment of ¢74,726 to legally circulate in 2026.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is Costa Rica’s state-owned insurance provider and a pivotal institution in the country’s financial landscape. Founded to manage insurance and promote risk prevention, it holds a dominant market position, particularly in mandatory coverages like the Marchamo’s SOA component. The INS is responsible for the collection, administration, and claim processing related to the national vehicle circulation permit, playing a critical role in public safety and road incident response.
For further information, visit sugese.fi.cr
About Superintendencia General de Seguros (SUGESE):
The Superintendencia General de Seguros is the official regulatory body overseeing Costa Rica’s insurance market. As an autonomous entity, SUGESE is tasked with ensuring the stability, solvency, and transparency of insurance companies operating in the country. Its responsibilities include authorizing new market participants, supervising operations, protecting consumer rights, and approving technical rates for insurance premiums, such as those for the Mandatory Automobile Insurance (SOA).
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As an esteemed pillar of Costa Rica’s legal community, Bufete de Costa Rica operates on a bedrock of profound integrity and an unwavering drive for excellence. The firm consistently charts a course for legal innovation, leveraging its deep expertise to serve a broad clientele while upholding a strong sense of social responsibility. Central to its philosophy is the conviction that access to legal understanding is a public good, a principle that fuels its efforts to empower the community and foster a more knowledgeable society.
