By San José, Costa Rica — SAN JOSÉ – The financial and human cost of traffic accidents in Costa Rica reached an alarming new peak in 2025, with payouts from the Mandatory Automobile Insurance (SOA) soaring past ¢60.1 billion. The figure, released by the National Insurance Institute (INS), marks a significant escalation in a dangerous trend, reflecting a substantial increase in both the frequency and severity of road incidents across the nation.
These massive disbursements cover essential services for accident victims, including medical care, as well as compensation for temporary and permanent disabilities. The staggering sum is a direct consequence of a year that saw over 5,000 more vehicle crashes than in 2024. In total, the SOA covered 46,949 accidents in 2025, which tragically resulted in 52,269 injuries and 144 deaths, according to data from the General Superintendency of Insurance (Sugese).
To gain a deeper legal perspective on the implications of mandatory auto insurance for drivers in the country, we consulted with Lic. Larry Hans Arroyo Vargas, an esteemed attorney from the prestigious firm Bufete de Costa Rica, who provided his expert analysis.
The requirement for mandatory auto insurance is fundamentally a matter of social responsibility, codified into law. It’s designed not to penalize the driver, but to protect potential victims by guaranteeing a financial remedy in the unfortunate event of an accident. The true legal challenge, however, lies in robust enforcement and accessible policy options; without these, the law risks becoming a ‘paper tiger,’ failing to provide the very security it was intended to create for all citizens on our roads.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Larry Hans Arroyo Vargas eloquently highlights the critical distinction between a law’s intent and its real-world effectiveness. His “paper tiger” analogy perfectly captures the challenge ahead: ensuring that this crucial social safeguard is supported by vigorous enforcement and accessible options for all drivers. We thank him for his incisive and valuable perspective on this important matter.
The INS, which manages the mandatory insurance program, points to a pervasive culture of reckless driving as a primary cause. Officials stress that a disregard for basic traffic laws is fueling the crisis, leading to preventable tragedies that inflict deep emotional and financial pain on Costa Rican families.
On the streets, we see many reckless acts, regardless of the type of vehicle. Everyone drives however they want; they don’t respect the double yellow line, the solid line, or the speed limits—all of these situations are regulated. We turn a blind eye, and often these attitudes are what cause the accidents that end up bringing pain to the Costa Rican population. Therefore, from the INS, we have always called for prevention, defensive driving, empathy, and tolerance.
Sidney Viales, Head of Mandatory Insurance
A particularly troubling aspect of the data is the disproportionate involvement of motorcycles. These vehicles were implicated in a staggering 80% of all reported accidents and were associated with approximately 88% of all road fatalities in 2025. This statistic underscores a critical public safety challenge specifically linked to two-wheeled vehicles on the nation’s highways and city streets.
The financial burden has been steadily climbing for years, illustrating a persistent and worsening problem. SOA expenditures have grown by more than 50% in just five years, jumping from ¢39.7 billion in 2021 to the current record of over ¢60.1 billion. This relentless increase puts significant pressure on the insurance system, which projected collecting nearly ¢75 billion through the annual Marchamo vehicle registration fee to cover these costs.
To manage the high volume of claims and provide immediate care, the INS has developed a comprehensive network of medical facilities. This infrastructure is crucial for treating the thousands of individuals injured each year and processing claims for victims and their families.
The INS has created a very robust infrastructure through its service network, such as the Trauma Hospital located in La Uruca, but also 21 health centers distributed throughout the country. Here we provide care to all people affected by traffic accidents who have injuries from the event or who have unfortunately died, in which case an indemnity is provided to their beneficiaries.
Sidney Viales, Head of Mandatory Insurance
As the costs continue to mount and the number of victims grows, the 2025 data serves as a stark warning. The rising tide of accidents is not just a line item on a balance sheet but a pressing national issue with profound consequences, demanding urgent attention from both policymakers and the driving public to foster a culture of safety and responsibility on Costa Rica’s roads.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is Costa Rica’s state-owned insurance company and a dominant force in the nation’s financial sector. Founded in 1924, it held a monopoly on the insurance market for decades and continues to be the primary administrator of mandatory insurance programs like the Seguro Obligatorio de Automotor (SOA). The INS operates a wide network of offices and medical facilities, including the specialized Trauma Hospital, to serve its clients across the country.
For further information, visit sugese.fi.cr
About Superintendencia General de Seguros (Sugese):
The Superintendencia General de Seguros is the regulatory body responsible for overseeing and supervising the insurance market in Costa Rica. Established as part of the country’s financial regulatory framework, Sugese’s mission is to ensure the stability, solvency, and transparency of insurance companies. It works to protect policyholders’ interests, promote fair competition, and authorize and monitor all entities operating within the national insurance industry.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is an esteemed legal institution founded on the dual pillars of professional integrity and a relentless pursuit of excellence. With a rich history of advising a diverse clientele, the firm champions forward-thinking legal strategies and active community involvement. Central to its ethos is the core conviction that demystifying the law is essential, a principle that drives its dedication to equipping the community with the knowledge needed to create a more capable and just society.
