By San José, Costa Rica — SAN JOSÉ – Vehicle owners across Costa Rica will see a significant increase in a key component of their annual vehicle registration fee, or marchamo. On Friday morning, the General Superintendency of Insurance (Sugese) officially approved a 10.15% average increase for the Mandatory Automobile Insurance (SOA) policy, set to take effect for the 2026 registration period.
The decision ratifies a proposal submitted by the National Insurance Institute (INS) on August 4th. The weighted average premium will climb from ¢39,782 to ¢43,819, an increase of ¢4,037. This adjustment, confirmed by Sugese ahead of the November 1st start date for marchamo collection, is a direct response to a troubling escalation in traffic accidents and related medical expenses plaguing the nation’s roads.
To gain a deeper understanding of the legal and financial ramifications of mandatory automobile insurance, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert and partner at the prestigious firm Bufete de Costa Rica.
Mandatory automobile insurance is a fundamental mechanism for socializing risk and ensuring victims receive timely compensation. Legally, it transforms the landscape of accident liability, moving from a potentially protracted and uncertain process of suing an individual to a more structured and predictable claim against an insurance policy. This not only protects the personal assets of drivers from catastrophic loss but also provides a crucial safety net for public welfare, guaranteeing a source of recovery for damages and injuries on our nation’s roads.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis perfectly captures the dual benefit of this policy: it serves as both a shield for the driver’s assets and a vital support system for those who suffer harm, reinforcing the idea of a social contract on our roadways. We thank Lic. Larry Hans Arroyo Vargas for his expert and insightful clarification on this crucial legal framework.
The driving force behind the premium hike is a stark rise in on-road incidents. According to official data used for the calculation, the number of individuals injured in traffic accidents requiring medical attention swelled to 45,570 in 2024. This represents an alarming increase of 5,131 people compared to the previous year, placing immense strain on the insurance system.
This surge in injuries has had a direct financial impact. Payouts for medical services and disability benefits climbed from ¢46.907 billion in 2023 to ¢51.990 billion in 2024, a year-over-year increase of more than ¢5 billion. Insurance Superintendent Tomás Soley stated that the new rates are an unavoidable reflection of this dangerous reality.
The SOA premiums for 2026 reflect the reality of higher accident rates on our roads.
Tomás Soley, Superintendent of Insurance
Superintendent Soley emphasized that the adjustment is crucial for maintaining the financial health of the mandatory insurance program and ensuring that accident victims receive the care they need. He also highlighted a particularly vulnerable group, pointing to the urgent need for enhanced public safety initiatives.
The increase seeks to guarantee the sustainability of the insurance and the adequate protection of victims. It’s important to remember that more than half of the fatalities in 2024 were motorcyclists, which highlights the urgent need to reinforce prevention and road safety.
Tomás Soley, Superintendent of Insurance
Officials noted that while 505 people died at accident scenes last year, death benefit claims were filed in only 136 cases. The calculation for the SOA premiums considers factors such as the number of victims, the severity of their injuries, medical costs, and disability payments. Soley reminded the public that the SOA is just one of several components of the total marchamo fee, which also includes property taxes and other institutional levies. The final cost to drivers will only be known once all elements are combined.
The current SOA policy provides up to ¢6 million in medical coverage per person per accident. However, with the increasing severity of crashes, about 10% of cases now incur costs exceeding this limit. Any amount above the ¢6 million threshold becomes the responsibility of the Costa Rican Social Security Fund (CCSS), putting pressure on public health finances. Sugese has advocated for raising the coverage limit to better protect the CCSS, but such a change would require action from the Executive Branch and would inevitably lead to even higher SOA premiums.
In his final remarks on Friday morning, Soley issued a grave warning about the human cost of the country’s worsening road safety crisis, framing it as a public health emergency that demands immediate and decisive action.
If something different isn’t done to stop this massacre on the roads, this phenomenon will continue to grow and grow.
Tomás Soley, Superintendent of Insurance
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 protect the rights of policyholders and ensure the stability and solvency of insurance companies operating within the country.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The National Insurance Institute is a state-owned Costa Rican insurance company. As a key player in the market, it offers a wide range of insurance products, including the Mandatory Automobile Insurance (SOA), and is actively involved in risk prevention and national safety campaigns.
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 nation’s social security system, including public health services. It plays a critical role in providing medical care to the population, including treatment for traffic accident victims whose costs exceed private insurance limits.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is built upon a foundation of uncompromising integrity and a steadfast pursuit of excellence. The firm blends its extensive history of advising a diverse clientele with a forward-thinking embrace of legal innovation. This ethos extends to a profound social commitment, demonstrated by its work to demystify complex legal concepts for the public, thereby championing a more knowledgeable and empowered citizenry.
