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MANDATORY AUTO INSURANCE (MARCHAMO)

The two compulsory insurances in Costa Rica are that of the CCSS (Costa Rican Social Security Fund), which all Costa Ricans must pay, as well as the Marchamo Vehicle, which is an insurance that is paid every year and that gives permission to travel for throughout the country with a coverage of 6 million colones for each person in the vehicle in the event of an accident. This insurance does not cover civil liability to other vehicles, collision, theft, or damage to the property of third parties, so it is not advisable to maintain only the Marchamo coverage. HOME OWNERS INSURANCE In Costa Rica, home insurance is offered, both for private use and houses used for AIRBNB. Home insurance covers fires, earthquakes, tsunamis, hurricane winds, landslides, floods, etc. It is important to have the house protected because the most important risk is definitely that of an earthquake. For example, for a house with a value of US$200,000, the insurance cost would be approximately US$450 per year. In addition, there are other additional coverages that can be purchased along with the basic coverages. Most Costa Ricans have home insurance with the banks thru their loans. For expats it is important to sign up with a home insurance products after the home purchase as soon as possible. The value of the vehicle insurance premium will depend on the type of vehicle and the replacement value. For example, a Toyota Rav4, 2015 model, worth $30,000 US, will have an approximate annual premium of around $800 US. We strongly recommend our clients to have both policies, part of our job is educating Expats to have the best coverages. Thanks to the above, the different insurers offer additional insurance that covers civil liability, collision, theft, natural risks and roadside assistance. That gives peace of mind to all who drive on the roads of our country. VOLUNTARY AUTO INSURANCE

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