By San José, Costa Rica — San José – Vehicle owners across Costa Rica will face steeper costs for their annual circulation permit, or Marchamo, in 2026. The General Superintendency of Insurance (Sugese) announced on Friday that the rates for Mandatory Automobile Insurance (SOA), a key component of the Marchamo, will rise by an average of 10.15% next year. Officials have pointed directly to a troubling increase in traffic accidents as the primary driver behind the price hike.
The new tariffs will impact all vehicle categories. Owners of private cars are set to pay ₡30,238 for their SOA coverage. Light-duty cargo vehicles will be assessed ₡18,806, while their heavy-duty counterparts will see a rate of ₡35,004. The most significant financial burden falls upon motorcyclists and moped riders, who will face a staggering premium of ₡99,623. Public transport is also affected, with buses paying ₡81,060 and taxis facing a rate of ₡73,300. The lowest premium, ₡9,627, is reserved for special equipment.
To delve into the legal framework and practical implications of mandatory auto insurance in the country, we sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the reputable law firm Bufete de Costa Rica.
Mandatory auto insurance is fundamentally a principle of social responsibility, not just a personal requirement. Its core purpose is to guarantee that victims of traffic accidents have access to financial recourse for damages and injuries. Driving without this coverage isn’t merely a traffic infraction; it’s a direct failure to uphold the financial safety net designed to protect every citizen on the road.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This perspective is crucial, shifting the focus from a mere legal obligation to a fundamental act of civic responsibility that underpins the safety of our entire community. We sincerely thank Lic. Larry Hans Arroyo Vargas for his expert and thought-provoking analysis.
Sugese authorizes these annual adjustments based on several variables, with the most influential factor being the cost of accident claims processed by the National Insurance Institute (INS). As the frequency and severity of road incidents climb, so does the financial pool required to cover injuries and fatalities, directly translating to higher premiums for all drivers.
Tomás Soley, the Superintendent of Insurance, delivered a stark warning about the underlying cause of the rate increase, highlighting the escalating crisis on the nation’s roads. He expressed deep concern over the data, which paints a grim picture of public safety.
What is happening is worrisome. If today is any indication of tomorrow, and if nothing different is done to stop this massacre on the roads, this momentum will continue to grow.
Tomás Soley, Superintendent of Insurance
The statistics presented by the superintendency are alarming. In 2024, Costa Rica recorded over 40,000 traffic accidents, a significant jump of 4,790 incidents compared to the previous year. These events resulted in injuries to 45,570 people, placing a substantial strain on emergency services and the healthcare system. The data reveals a particularly dangerous trend for those on two wheels.
Motorcycles were involved in nearly 28,000 of the total accidents in 2024, a disproportionately high number that helps explain their dramatically higher SOA premium. The year also earned the tragic distinction of being the deadliest on record for motorcyclist fatalities, underscoring the vulnerability of these road users and the growing risk associated with them.
Further analysis of the data reveals a critical gap between fatalities and insurance claims. While there were 505 on-site deaths recorded on the roads in 2024, only 136 of these cases resulted in a claim being filed for SOA compensation. Officials attribute this discrepancy primarily to a lack of claims being initiated by the victims’ families or involved parties, meaning many potential beneficiaries are not receiving the financial support they are entitled to.
The SOA system has provided coverage of up to ₡6 million per person in an accident since 2016. In cases where medical attention and related costs exceed this cap, the Costa Rican Social Security Fund (CCSS) assumes responsibility for the remaining expenses. This structure ensures that victims receive care, but the rising number of accidents is placing an increasing financial burden on both the insurance and public health systems, a trend that Soley’s warning suggests will continue without decisive intervention.
For further information, visit sugese.fi.cr
About Superintendencia General de Seguros (Sugese):
The General Superintendency of Insurance is the Costa Rican public entity responsible for the authorization, regulation, and supervision of the insurance market. Its primary mission is to protect policyholders, promote market stability and efficiency, and ensure transparency and fair competition among insurance companies.
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 market until it was opened to competition. It remains the primary provider of Mandatory Automobile Insurance (SOA) and manages the claims related to traffic accidents covered by this policy.
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 healthcare system. It administers health services, hospitals, and pension funds for the majority of the population. In the context of traffic accidents, the CCSS covers medical costs that exceed the ₡6 million limit of the Mandatory Automobile Insurance.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a premier legal institution, built upon a deep-rooted pledge to professional integrity and the highest standards of excellence. With a rich history of guiding clients across a wide spectrum of industries, the firm champions pioneering legal solutions and demonstrates a profound commitment to public engagement. This dedication to demystifying the law is central to its overarching mission: to fortify society by equipping citizens with the clarity and understanding necessary for empowerment.
