If you're planning to go to only one or two major areas, taking a shuttle van or a domestic flight is usually a better and cheaper option than driving. Renting is a good choice if you're destination hopping, staying at a hotel that's a trek to town, or going well off the beaten path. Car trips to northern Guanacaste from San José can take an entire day, so flying is probably better if you don't have long to spend in the country. Flying is definitely better than driving for visiting the South Pacific.

Many travelers shy away from renting a car in Costa Rica, if only for fear of the road conditions, acknowledged as a crisis by the government in 2005. Indeed, this is not an ideal place to drive: in San José traffic is bad and car theft is rampant (look for guarded parking lots or hotels with lots); in rural areas roads are often unpaved or potholed—and tires aren't usually covered by the basic insurance. And Ticos are reckless drivers—with one of the highest accident rates in the world. But while driving can be a challenge, it's a great way to explore certain regions, especially Guanacaste, the Northern Plains, and the Caribbean coast (apart from Tortuguero and Barra del Colorado). Keep in mind that mountains and poor road conditions make most trips longer than you'd normally expect.

A standard vehicle is fine for most destinations, but a doble-tracción (4WD) is often essential to reach the remoter parts of the country, especially during the rainy season. Even in the dry season, you must have a 4WD vehicle to reach Monteverde and some destinations in Guanacaste. The big 4WD vehicles can cost roughly twice as much as an economy car, but compact 4WDs, such as the Daihatsu Terios, are more reasonable, and should be booked well in advance. Agencies may try to bump you up a category—stay firm. Most cars in Costa Rica have manual transmissions. Specify when making the reservation if you want an automatic transmission; it usually costs about $5 more per day, but some companies such as Avis and Hertz don't charge extra. Larger, more expensive automatic Montero and Sorrento models are also available. If you plan to rent any kind of vehicle between December 15 and January 3, or during Holy Week (the week leading up to Easter)—when most Costa Ricans are on vacation—reserve several months ahead of time.

Costa Rica has around 30 car-rental firms. Most local firms are affiliated with international car-rental chains and offer the same guarantees and services as their branches abroad. At least a dozen rental offices line San José's Paseo Colón; most large hotels and Juan Santamaría Airport have representatives. Renting in or near San José is by far the easiest way to go. It's feasible to rent in Liberia, Manuel Antonio, and Tamarindo. In most other places across the country it's either impossible or very difficult and expensive to rent a car.

Hiring a Driver

Hiring a car with a driver makes the most sense for sightseeing in and or around San José. You can also usually hire a taxi driver to ferry you around for about $10 an hour. At $50-$75 per day plus the driver's food, hiring a driver for areas outside the San José area costs almost the same as renting a 4WD, but is more expensive for multiday trips, when you'll also have to pay for the driver's room. Some drivers are also knowledgeable guides; others just drive. Unless they're driving large passenger vans for established companies, it's doubtful that drivers have any special training or licensing. Hotels can usually direct you to trusted drivers; but The Tico Times, available at supermarkets, souvenir shops, bookstores, and hotels, also has ads for drivers. Counter staff at Economy can recommend experienced drivers. Alternatively, Alamo provides professional car-and-driver services for minimum three-day rentals (available May-November only). You pay $60 on top of the rental fee, plus the driver's food and lodging, or a flat $100 that includes the driver's expenses.

Insurance

If you have a major credit card or auto insurance at home, you may not have to pay the mandatory collision insurance ($12-$25 per day, depending on the agency or the kind of car). Before you rent, see what coverage you already have. Deductibles are usually $1,000-$2,000. Third-party injury insurance is generally not covered by credit cards; it costs about $10 per day in addition to the collision insurance, with a 20% deductible; some agencies provide additional insurance to eliminate the deductible.

International Driving Permits

International driving permits (IDPs) are not necessary in Costa Rica. Your own driver's license is good for the length of your initial tourist visa. You must carry your passport, or a copy of it with the entry stamp, to prove when you entered the country.

Rates

High-season rates in San José begin at $45 a day and $300 a week for an economy car with air-conditioning, manual transmission, unlimited mileage, and obligatory insurance; but rates fluctuate considerably according to demand, season, and company. Rates for a 4WD vehicle during high season are $70-$90 a day and $450-$550 per week. Often companies will also require a $1,000 deposit, payable by credit card. It's getting easier to rent a vehicle with automatic transmission, but some companies still charge about $5 more per day; reserve well in advance and know that options are more limited.

Cars picked up at or returned to Juan Santamaría Airport incur a 12% surcharge. Arrangements can be made to pick up cars directly at the Liberia airport, but a range of firms have offices nearby and transport you from the airport free of charge—and with no surcharge to rent. Check cars thoroughly for damage before you sign the rental contract. Even tough-looking 4WD vehicles should be coddled. The charges levied by rental companies for damage—no matter how minor—are outrageous even by U.S. or European standards.

One-way service surcharges are $50-$150, depending on the drop-off point. To avoid a hefty refueling fee, fill the tank just before you turn in the car, but be aware that gas stations near the rental outlet may overcharge. It's almost never a deal to buy the tank of gas that's in the car when you rent it; the understanding is that you'll return it empty, but some fuel usually remains. Car seats cost about $5 per day. Additional drivers are about $5-$10 per day if there is any charge at all. Almost all agencies have cell-phone rental; prices range between $2 and $6 per day, with national per-minute costs between 50¢ and $2.

Road Conditions

San José is terribly congested during weekday morning and afternoon rush hours (7-9 AM and 4-6 PM). Avoid returning to the city on Sunday evening, when traffic to San José from the Pacific coast beaches backs up for hours. Look out for potholes, even in the smoothest sections of the best roads, whether you're in San José or in the countryside. Also watch for unmarked speed bumps where you'd least expect them, particularly on rural main thoroughfares. During the rainy season, roads are in much worse shape. Check with your destination before setting out; roads, especially in Limón Province, are prone to wash-outs and landslides.

San José has many one-way streets and traffic circles. Streets in the capital are narrow. Pedestrians are supposed to have the right of way but do not in reality, so be alert when walking. The local driving style is erratic and aggressive but not fast, because road conditions don't permit too much speed. Frequent fender benders tie up traffic. Keep your windows rolled up in the center of the city, because thieves may reach into your car at stoplights and snatch your purse, jewelry, and so on.

Outside of San José you'll run into long stretches of unpaved road. Frequent hazards in the countryside are potholes, landslides during the rainy season, and cattle on the roads. Drunk drivers are a hazard throughout the country on weekend nights. Driving at night is not recommended anyway, since roads are poorly lighted and many don't have painted center lines or shoulder lines.

Rules of the Road

Driving is on the right side of the road in Costa Rica. The highway speed limit is usually 90 kph (54 mph), which drops to 60 kph (36 mph) in residential areas. In towns limits range from 30 to 50 kph (18 to 31 mph). Speed limits are rigorously enforced in all regions of the country. Seat belts are required, and an awareness campaign has increased enforcement. Alto means "stop" and ceda means "yield." Right turns on red are permitted except where signs indicate otherwise, but in San José this is usually not possible because of one-way streets and pedestrian crossings.

Signage is notoriously bad, but improving. Watch carefully for No Hay Paso (Do Not Enter) signs; one-way streets are common, both in small towns as well as in San José, and it's not unusual for a street to transform from a two-way to a one-way, forcing a not-so-obvious turn. Streetlights are often out of service and key signs missing or knocked down because of accidents.

Local drunk driving laws are strict. You'll get nailed with a 10,000-colón fine if you're caught driving in a "predrunk" state (blood alcohol levels of 0.049%-0.099%). If your level is higher than that, you'll pay 20,000 colones, the car will be confiscated, and your license taken away. Policemen who stop drivers for speeding and drunk driving are often looking for payment on the spot—essentially a bribe. Whether you're guilty or not, you'll get a ticket if you don't give in. Asking for a ticket instead of paying the bribe discourages corruption and does not compromise your safety. You can generally pay the ticket at your car-rental company; it will remit it on your behalf.

Car seats are required for children ages four and under, but car-seat laws are not rigorously enforced. Many Tico babies and children ride on their parents' laps. Children over 10 are allowed in the front seat. Drivers are prohibited from using hand-held cell phones, but this is almost never enforced, and distracted chatters are the rule.

There are plenty of questionable drivers on Costa Rican highways; be prepared for harebrained passing on blind corners, tailgating, and failing to signal. Watch, too, for two-lane roads that feed into one-lane bridges with specified rights-of-way.

There's not always a method to the driving madness, but locals use two tactics that are surprisingly effective. Stick your left hand out the window and wave slightly if you want to merge left (get your passenger to do it to maneuver to the right), and flick your lights if you want oncoming traffic to slow down so you can turn left. Hone your reflexes: drivers behind you will honk at you a millisecond before the light turns green. Green traffic lights flash just before turning to yellow; always look carefully, as drivers regularly speed through lights that have long since turned red.

Major Agencies

Alamo (800/522-9696 in the U.S.; 800/462-5266; 506/233-7733 in Costa Rica. www.alamocostarica.com). Avis (800/331-1084; 800/272-5871 in Canada; 0870/606-0100 in the U.K.; 02/9353-9000 in Australia; 09/526-2847 in New Zealand; 506/232-9922 in Costa Rica. www.avis.co.cr). Budget (800/527-0700 in U.S. and Canada; 0870/156-5656 in the U.K.; 300/794-344 in Australia; 0800/283-438 in New Zealand; 506/436-2000 in Costa Rica. www.budget.co.cr). Dollar (866/746-7765 in U.S. and Canada; 0800/085-4578 in U.K.; 506/443-2950 in Costa Rica. www.dollarcostarica.com). Economy (877/326-7368 in U.S. and Canada; 506/231-5410 in Costa Rica. www.economyrentacar.com). Hertz (800/654-3001; 800/263-0600 in Canada; 0870/844-8844 in the U.K.; 02/9669-2444 in Australia; 09/256-8690 in New Zealand; 506/221-1818 in Costa Rica. www.costaricarentacar.net). National Car Rental (800/227-7368; 506/290-8787 in Costa Rica. www.natcar.com).