|
||||
|
Insurance in Costa Rica is simple in one respect and more complicated in other respects. Laws passed in 1924 provided for insurance, the telecommunications system, and the medical system, to be operated as a state monopoly. As with state monopolies in any country there is plenty of room for bureaucrats to waste public money and public time and it often results in long lines to get telephone numbers and insurance policies. Some aspects of Costa Rican Insurance are very different to those in other countries. For instance some policies allow for fluctuations in the monetary value due to inflation. In other words, if you insure your home for a replacement value of say - $100,000.00 and you have a fire eleven months later the original coverage may not give you enough to rebuild. You therefore have the option of including an inflation clause. Another curious difference in policies here is that you have a thirty-day “grace period” after the policy runs out. So, if you have a car accident after the policy has lapsed you run to your agent as fast as possible and pay the premium. But you only get thirty days. After that your policy is lapsed and getting another one is quite complicated. So don’t press your luck on this. Costa Rican Insurance law also allows for a policy to be transferred to another person when you sell your home or car.
TYPES OF INSURANCEAUTO INSURANCE – Every car must be covered. The policy covers any driver as long as they have a valid license and are not drunk, or engaged in a crime. Basic insurance is included in the registration fees for every vehicle. However it offers so little to the owner that most people buy additional policies. Premiums are paid every six months. Please see my separate advice on Rental Car Insurance below. HOME INSURANCE Fire and theft this policy can cover the house only, the contents only, or both. These policies can offer protection for such things as fire, lightening, hurricanes, floods, landslides and earthquakes. WORKMAN’S COMP. You have to have this if you employ a maid or gardener or if you have people building your house. I had to pay the builder in advance on this before he could be allowed to start work on my house. MEDICAL INSURANCE The state medical insurance is offered to all citizens and is very cheap. It covers 80% of everything. DEDUCTIBLES All policies have deductibles and they are set by the State with the average being 20% per claim. AMOUNT OF COVERAGE. Each individual sets his own coverage. So, if you only want $70,000 for that $100,000 house, that’s what you buy. PLEASE NOTE CAREFULLY. I am in no way an Insurance Agent and cannot be held responsible for any of the information provided above. I offer it only as a guideline. I strongly suggest that you contact a duly authorized and accredited Insurance Agent and go over every detail of your needs based on where you will live and what he, or she, might recommend. In my opinion and experience rental car insurance is the biggest rip-off scheme in the world. The big two agencies in Ireland were recently caught cheating people out of huge sums and the same thing goes on just about everywhere. I always do a lot of research before deciding on any car rental agency in any country I visit. It’s so easy to bamboozle a first time visitor who probably doesn’t speak the language and even if he does he can’t make head or tail of all the regulations. When I asked National/Alamo for a clear explanation of what Insurance is required for a car rental in Costa Rica I received the following advisory. QUOTE
In Costa Rica, PLI-(Personal Liability Insurance) is mandatory if CDW/TP (Collision Damage Waiver / Theft Protection) is declined. Thank you for your email. You will have to purchase Collision Damage Waiver END QUOTE If you read it carefully you can see that what they are telling you is true. But it's not complete and they will never explain it in detail because you’re tired from the long flight and all you want to do is sign some papers and get to the hotel. And that makes money for the rental agency. If you charge your rental to a Visa card it probably covers you for CDW (damage due to collision or theft). PLEASE CHECK WITH THE BANK THAT ISSUED YOUR CARD TO BE SURE but this is what most Visa cards provide. QUOTE
Visa Signature Auto Rental Collision Damage Waiver END QUOTENOTE American Express has a similar program but you do have to pay an administration fee with them. So Meena at National wants you to pay $15 a day extra and still you’ll be liable for the first $2000 worth of damage or loss through theft. She does not offer any advice on using a VISA Card. By the way I’m not knocking National. They are the biggest Muslim owned car rental agency in the world. I just happen to have that notice from Meena in my files. Please check with your Visa issuing bank no matter which agency you deal with.
|
||||
