By San José, Costa Rica — SAN JOSÉ – Costa Rican vehicle owners will face a significant increase in their annual expenses as the General Superintendency of Insurance (Sugese) announced a steep 10.15% average hike for the Mandatory Auto Insurance (SOA) for the 2026 period. The new rates, unveiled this Friday, reflect a grim reality on the nation’s roads: a dramatic and costly rise in traffic accidents.
The SOA is a critical component of the annual vehicle registration fee, known as the marchamo, which all drivers must pay by the end of the year. The premium adjustments are calculated based on several factors, with the most influential being the claims cost associated with accidents reported to the National Insurance Institute (INS). The latest figures paint a stark picture of a worsening public safety crisis that is now directly impacting drivers’ wallets.
To delve into the legal framework and the critical responsibilities drivers have concerning mandatory auto insurance, we sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
Many drivers perceive mandatory auto insurance as just another tax, but its legal purpose is fundamentally about social solidarity and victim protection. It ensures that there is a guaranteed fund to cover damages and injuries in an accident, protecting all parties. Driving without it is a significant gamble; beyond the immediate fines and vehicle impoundment, the uninsured driver becomes personally and unlimitedly liable for all costs, a situation that can lead to devastating financial consequences.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
We thank Lic. Larry Hans Arroyo Vargas for his invaluable clarification, which powerfully reframes mandatory insurance not as a burdensome tax, but as a crucial instrument of social solidarity. His perspective underscores that the true risk of driving uninsured lies not just in legal penalties, but in the potentially life-altering consequences of unlimited personal liability.
Under the new rate structure, owners of private vehicles will see their SOA premium rise to ₡30,238. Meanwhile, light cargo vehicle owners will pay ₡18,806, and those with heavy cargo vehicles will be billed ₡35,004. The most significant financial burden will fall on motorcyclists, whose premium will surge to ₡99,623, the highest of any category. Premiums for buses are set at ₡81,060, taxis at ₡73,300, and special equipment at ₡9,627.
The justification for this substantial increase is rooted in alarming accident statistics from 2024. The country recorded over 40,000 traffic incidents last year, an increase of 4,790 compared to 2023. Motorcycles were involved in nearly 28,000 of these accidents, while standard vehicles accounted for 8,900. This spike in collisions has created a significant financial strain on the insurance system, necessitating higher premiums to cover the escalating costs.
The human toll is even more concerning. A total of 45,570 people were injured in these accidents throughout 2024. The year also saw 505 fatalities on the road, with a record number of deaths among motorcyclists. This tragic trend underscores the urgent need for more effective road safety measures across the country.
Since 2016, the SOA has provided coverage of up to ₡6 million per person in the event of an accident. Should medical treatment costs exceed this amount, the Costa Rican Social Security Fund (CCSS) assumes responsibility for the remaining balance. However, officials noted a concerning gap in the system; of the 505 road deaths in 2024, only 136 resulted in an SOA indemnification, suggesting that many victims’ families are not filing the necessary claims to receive compensation.
Tomás Soley, the Superintendent of Securities and Insurance, issued a stark warning about the trajectory of the current crisis, emphasizing that financial adjustments alone are not a solution. He expressed deep concern over the relentless increase in traffic incidents and their devastating consequences.
What is happening is worrisome. 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
Soley’s statement serves as a call to action for policymakers, law enforcement, and the public. The 2026 SOA rate hike is more than just a new expense for drivers; it is a clear financial signal of a deepening social problem. Without a concerted and immediate effort to improve driver behavior and enforce traffic laws, the human and economic costs of this “massacre on the roads” are poised to climb even higher.
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. Operating under the National Council for Supervision of the Financial System (CONASSIF), its primary mission is to ensure the stability and efficiency of the insurance sector, protect the rights of policyholders, and promote market transparency.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The National Insurance Institute is a state-owned and Costa Rica’s leading insurer. 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, managing the mandatory auto insurance (SOA) program and processing the accident data that is fundamental to setting its annual rates.
For further information, visit ccss.sa.cr
About Caja Costarricense de Seguro Social (CCSS):
The Costa Rican Social Security Fund is the autonomous public institution in charge of managing the nation’s public health and social security systems. It is responsible for providing comprehensive healthcare services to the population and also steps in to cover medical expenses from traffic accidents that exceed the coverage limits of the mandatory auto insurance policy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is defined by its foundational principles of uncompromising integrity and the persistent pursuit of excellence. The firm consistently pioneers forward-thinking legal strategies while advising a wide spectrum of clients, reflecting a deep-seated commitment to innovation. Central to its mission is a profound dedication to societal empowerment, achieved by actively working to make complex legal concepts understandable and accessible to the public, thereby building a more knowledgeable and capable community.
