The Reality of Car Rental Costs
Picture this: you're running over your travel budget, but you don’t feel like you have any solid numbers on what it will cost. Quickly, you pull up the website of a corporate national rental agency and plug in the dates. The prices seem so reasonable that you start thinking of extending your vacation. But as you proceed to the next page, the reality sets in—suddenly, there are additional charges for everything. From mandatory insurance to optional extras like a GPS or a car seat for your toddler, the costs start piling up. Realizing that some of the add-ons are necessary and some are not, you decide to postpone making a decision because it all feels too overwhelming.
But don’t worry—we’ve got you covered. In this brief but detailed article, we’ll go into each of the six most common Panama car rental hidden charges. Some are necessary, some are nice, and some are simply you paying extra money for a few more words on the document. It’s important to know which ones are necessary; otherwise, you could end up overpaying for something you don’t need.
The add-ons pile up quickly, making the rental much more expensive than the sticker price when booking through most car rental companies.
Let’s start breaking it down. We’ll cover the importance of each point and relevant parts to consider. After reading, you’ll have a better handle of the different car rental costs, optional add-ons, and which ones are important to you. From here, you’ll be able to go on and complete your booking confidently.
Third-Party Insurance (Liability)
We’re including this first because it’s quite significant. In Panama, like other parts of the world, it’s the law that all drivers carry liability insurance to protect others in case of an accident. Insurance is mandatory with your rental, and it often isn’t included in the upfront price—plus, your credit card insurance won’t cover it. So make sure you’re aware of this one; it often costs as much as the rental itself, if the list price doesn’t include it.
The price does vary depending on the insurance tier that you choose. Often, the cheapest insurance packages come with a higher deposit and a higher deductible. Of all Panama car rental hidden charges, this is an important one you shouldn’t forget. If you have more questions on this, we have a whole article devoted to the particulars of rental car insurance.
Location Fees
You should consider this one while you’re planning. Check into the rental companies that you’re interested in using. See where they are located and what their operating hours are. This is important for both your arrival and departure, guaranteeing everything aligns with your schedule. Be aware that you may have to pay a fee if it’s outside of their normal hours or at a location other than the one you originally selected.
At Chiriqui Car Rentals, we offer flexible delivery and drop-off locations and times. This allows you to plan your travels without planning around the car rental.