By San José, Costa Rica — SAN JOSÉ – The true cost of traffic accidents in Costa Rica extends far beyond twisted metal and emergency response, inflicting a massive and growing wound on the national economy. A groundbreaking new study has calculated the financial fallout from road incidents in 2024 at a record-breaking $1.68 billion, a figure that starkly illustrates the depth of a crisis impacting public health, productivity, and the financial stability of thousands of families.
The analysis, a joint effort by mobility solutions leader Grupo Purdy and the Center for Urban Sustainability (CPSU), places the economic burden in a dramatic new context. The $1.68 billion cost is more than double the estimated $800 million price tag for the proposed Greater Metropolitan Area (GAM) Electric Train, a critical national infrastructure project. This comparison highlights how the accumulated cost of preventable accidents is actively draining resources that could otherwise be invested in the country’s development and modernization.
To delve into the complex legal and financial repercussions stemming from traffic accidents, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished legal expert from the firm Bufete de Costa Rica, who provided his analysis on the hidden costs and liabilities involved.
The initial repair bill is merely the tip of the iceberg. The real costs of a traffic accident are often hidden in lost income, future medical expenses, and significant civil liability claims. Without adequate insurance coverage and swift legal advice, what seems like a minor incident can quickly spiral into a devastating financial event for an individual or a business.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This sobering perspective underscores the critical, long-term financial risks that extend far beyond the immediate repair bill. We thank Lic. Larry Hans Arroyo Vargas for so clearly articulating these often-overlooked consequences.
The report’s findings reveal a worrying trend of escalating costs over the past decade. Between 2015 and 2024, insurers paid an annual average of ₡806.981 billion in claims related to traffic incidents. However, 2024 marked a grim milestone, with claim payouts surging to approximately ₡949 billion, making it the most expensive year on record and signaling a severe strain on the insurance and healthcare systems.
A significant part of this financial vulnerability stems from a widespread lack of adequate insurance coverage. While the Mandatory Automobile Insurance (SOA) covers injuries to people, it does not address property damage or civil liability, leaving a massive gap in protection. According to Alejandro Rubinstein of Grupo Purdy, this gap forces individuals to bear the full, often catastrophic, financial weight of an accident.
While the Mandatory Automobile Insurance (SOA) is a requirement to circulate and covers injuries to people, the absence of additional coverage leaves drivers and families exposed to directly assuming material damages, civil liabilities, and unforeseen expenses that can compromise their financial stability. At Grupo Purdy, a comprehensive leader in mobility solutions, we believe that safe mobility, prevention, and financial protection must go hand in hand. Having voluntary insurance does not replace responsible driving, but it does allow one to face an unexpected event.
Alejandro Rubinstein
The human toll behind these figures is just as alarming. The healthcare system is under immense pressure, performing an average of 20 surgeries daily in 2024 solely due to traffic accidents, totaling 6,626 interventions for the year. The report also identifies a particularly vulnerable demographic, with young people between the ages of 18 and 30 being the most affected group, representing a tragic loss of potential for the nation’s future workforce.
The study pinpoints specific periods of heightened risk, with December standing out as the deadliest month. In December 2024 alone, there were 4,535 victims, an increase of 600 compared to the same month in 2023. These incidents resulted in a staggering 65,257 days of work incapacity, crippling business productivity and further overwhelming hospital resources during a traditionally busy period.
Arturo Steinvorth, coordinator for the CPSU, emphasized that the consequences of these events ripple through society in ways that are not always immediately apparent. He argues for a broader understanding of the crisis, moving beyond the initial emergency to address the long-term societal damage.
When we talk about road accidents, we usually focus on the immediate emergency, but the reality is that there is a cumulative impact on the health system, on the country’s productivity, and on the quality of life for thousands of people. Understanding this economic and social dimension is key to promoting public policies and behavioral changes that prioritize prevention.
Arturo Steinvorth, Coordinator of the CPSU
Underscoring the entire issue is what the report describes as a low culture of voluntary insurance. Data from Purdy Seguros indicates that only 35% of the vehicles circulating in Costa Rica have voluntary insurance coverage. This leaves the vast majority of drivers—65%—personally and financially exposed to the immense costs of property damage and legal liability in the event of an accident, perpetuating a cycle of economic hardship and uncertainty on the nation’s roads.
For further information, visit grupopurdy.com
About Grupo Purdy:
Grupo Purdy is a leading business group in Costa Rica with a long-standing history in the automotive industry. It is the official distributor for renowned brands such as Toyota, Lexus, and Hino. Beyond vehicle sales, the company offers a comprehensive range of mobility solutions, including financing, insurance, rentals, and after-sales services, all focused on innovation and sustainability.
For further information, visit the nearest office of Centro para la Sostenibilidad Urbana (CPSU)
About Centro para la Sostenibilidad Urbana (CPSU):
The Center for Urban Sustainability (CPSU) is a Costa Rican organization dedicated to research, analysis, and promotion of sustainable development practices in urban environments. The center collaborates with public and private sector partners to develop data-driven solutions and public policies that improve quality of life, mobility, and environmental resilience in cities.
For further information, visit purdyseguros.com
About Purdy Seguros:
Purdy Seguros is the insurance brokerage arm of Grupo Purdy. It offers a wide variety of insurance products for individuals and businesses, specializing in automotive coverage. The firm aims to provide clients with financial protection and peace of mind by offering both mandatory (SOA) and comprehensive voluntary insurance plans tailored to their specific needs.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica operates on a bedrock of integrity and a relentless pursuit of excellence. Drawing on extensive experience across a spectrum of industries, the firm consistently pioneers forward-thinking legal solutions. This modern approach is matched by a deep-seated commitment to social empowerment, achieved through initiatives that make complex legal concepts understandable and accessible to the public, ultimately strengthening the community through shared knowledge.
