The most relaxing way to explore Panama and its towering mountains, tropical cloud forests, stunning beaches, and busy cities is to rent a car. Renting a car in Panama allows you the freedom of your own schedule. Without the hassle of sticking to bus or plane schedules, you have the flexibility to travel at your leisure. To ensure a seamless car rental experience in Panama, it’s important to be familiar with key requirements and guidelines.
Driver’s License
A valid driver’s license is necessary to legally drive a rental car in Panama. Driver’s licenses from most countries are accepted. You must have been stamped into Panama within the last 90 days for your foreign driver's license to be valid in Panama. All Panama driver’s licenses are accepted for renting a car. If you have a question about your driver’s license, please contact us at info@chiriquicarrentals.com.
Age Requirements
Many car rental companies require drivers to be 25 years old to rent a car in Panama. However, some companies will rent to drivers as young as 21 with an additional surcharge. It’s important to review and understand the rental companies’ policies to avoid incurring extra charges.
Paying for Your Rental Car
Most car rental companies in Panama accept credit card payments and deposits. There are some smaller private companies that only accept cash or a local bank transfer. Chiriqui Car Rentals accepts cash, local bank transfers, and credit card payments. Depending on which insurance package you choose, there may be a deposit. This deposit is returned to you when the car is returned in the same condition that it left the rental agency.
Insurance
Insurance is one of the most important parts of a rental car contract in Panama. Panama insurance companies do not accept North American credit card insurance, which many people are used to using. Panama law requires that all rental vehicles have liability insurance. Often, the cost of insurance will equal the cost of the car rental. Ensure your insurance package covers comprehensive damage to the car because, as a renter, you will be responsible for any damage incurred that is not the other party's fault. Review the insurance options carefully and choose one that fits your budget and risk tolerance.
Inspecting the Vehicle
Before driving off, perform a thorough inspection of the rental vehicle. Check for any existing damage on the rental vehicle's exterior and interior. Don’t be shy about taking photos or videos of any scrapes, scratches, or dents that you see. Mark any damage on the damage inspection sheet that will be provided to you when you are signing all the paperwork. This will ensure that you won’t be responsible for any damage that you did not do. Make sure that you know if the vehicle uses diesel or gasoline and, if gasoline, what grade it requires.
Reviewing the Rental Agreement
Carefully review the rental agreement before signing. This document includes not only the price you are paying for the rental car in Panama but also details such as fuel policies, mileage limits, insurance, and additional fees. Some companies offer unlimited mileage, while others have restrictions. Ask if you need to return the vehicle with a full tank of fuel. Make sure you know the rental agency's hours for when you will be returning your Panama rental car.
Traffic Regulations
To safely drive in Panama, it is necessary to understand the local traffic laws and regulations. Sometimes they may be different from what you are used to. Pay attention to speed limits, traffic signs, and rules about using mobile phones while driving. In Panama, all occupants are required to wear seat belts, and using a phone without a hands-free device is prohibited. Be careful with these laws to avoid being stopped and ticketed by the police in Panama.
Emergency Information
The rental company will provide you with a list of phone numbers to call in case of an emergency. This should include their customer service number and vehicle insurance contact information. Having this information readily available will help you handle breakdowns or accidents efficiently. It’s also a good idea to have local emergency numbers handy when traveling.
Local Driving and Road Conditions
Road conditions in Panama can vary widely. While major highways and urban roads are usually well-maintained, rural and mountainous areas may present challenges. Some roads in Panama are best to be avoided, especially in the rainy season. Non-pavement roads can be very rocky and have large ruts. Always stop and ask locals if the road is driveable before turning off of a paved road. Beware of unexpected potholes and “sleeping policemen,” which are large raised bumps in the road designed to slow down speeding traffic. Always check your route to see if it includes toll roads. If your route includes toll roads, make sure you have the proper electronic pass in your car to pass through the toll booths. Driving cautiously and staying informed about road conditions will help you avoid accidents. Use a GPS map app such as Waze or Google Maps to avoid getting lost and to monitor traffic conditions. Think about your daily fuel requirements and plan the towns or areas where you will purchase fuel. Diesel and gasoline are readily available in Panama, and most fuel stations accept cash or credit cards. If your plans require you to drive at night, proceed with much caution. There are many pedestrians on the roadways at night in Panama, and many are in dark clothing. Drive slowly and carefully after dark.
Cultural Driving Practices
Driving in a new country will require adapting and accepting how the local population drives. Local drivers in Panama may exhibit more aggressive behaviors than you are used to. Staying alert and fitting into local driving customs is important. Horns are often used in Panama, often they are friends acknowledging each other or other drivers alerting you of where they are. Rarely are they used as a sign of aggression or anger. Local drivers may not use turn signals often or maybe in the wrong passing lane. Being patient and courteous on the road can help you navigate traffic safely and avoid conflicts with other drivers.
Planning Your Trip
Before setting out for the day, plan your route and familiarize yourself with the area you'll be traveling to. Research local landmarks, any potential road closures or construction, and where you may want to purchase fuel and stop for meals and breaks. This preparation will help you arrive at your destination in good time and enjoy a more relaxing trip.
Conclusion
Renting a car in Panama is an awesome way to explore this diverse and beautiful country at your own pace. If you understand the requirements listed here and are well-prepared, you will have a fantastic experience. Knowing you have the proper insurance, a well-maintained vehicle, and someone to call in an emergency will help you relax and enjoy your stay in Panama.
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