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 much the opposite, 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.
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. Check it out here.
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.
Roadside Assistance Fees
Sometimes, there is a Roadside Assistance option for an extra charge. This offers 24/7 assistance if the vehicle has a breakdown and/or needs to be towed. If this is important to you, look around. You may find a company that includes it or has it for a cheaper price. (Chiriqui Car Rentals offers it as part of our package.)
Additional Driver Fees
Another important hidden charge for Panama car rental is additional driver fees. This one’s important because any additional driver must be listed on the contract for insurance purposes. So, if you have another driver along the way, make sure they are included. . There may be an extra cost, or they could be added to the contract for free.
Wheel and Glass Protection
This one may sound completely unnecessary at first, but it’s good to consider what it’s actually for. To put it simply, it’s for damage caused by road hazards such as potholes, rocks, or nails. The insurance company behind the agency won’t cover things like flat tires or window chips from rocks. In these cases, this coverage shifts the responsibility for repairs—like fixing a flat tire—from you to the rental company. It may be worth adding this extra, or you may choose to go without it and risk paying for these smaller repairs yourself.
Personal Accident Protection
Another hidden charge when renting a car in Panama is the personal accident protection. We include this because you may have questions about what it covers and if it is necessary. This covers personal injury in case of an accident with the rental when you are at fault. If you are traveling without health insurance abroad, it may be a good idea.
However, you may be better off buying a travel health insurance policy as it will cover you in a variety of events, including those involving the rental car. Often, you can find a reasonably priced plan for the duration of your stay, and this ensures peace of mind and financial assistance should you experience a health issue during your travels. We understand that this is a Panama car rental hidden charge you likely hadn’t thought about, but it's good to consider beforehand.
If you have any more questions regarding Personal Accident Protection and what our policy at Chiriqui Car Rentals covers, contact us here.
Final Thoughts
Understanding these 6 Panama car rental hidden charges will help you make educated decisions next time you rent a car in Panama. After all, nobody likes paying for unnecessary add-ons or wishing for a higher tier of insurance halfway through the trip!
That’s it. Now that you’re aware of all the major hidden charges, you can continue planning your upcoming adventure. We hope you’ve enjoyed this blog post. Let us know if there’s another hidden charge you don’t understand; we’re glad to help!
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