Thread: Read This Before Renting a Car in Panama!

Read This Before Renting a Car in Panama! | Eye On Panama

Here is the rule of thumb when renting a car while visiting Panama City—Don’t.

For one, you don’t need a rental car if you are staying in the city. Taxis are everywhere, cheap, efficient, and most importantly, hassle-free (read more about them here). No need to worry about parking (which can be a huge headache in certain parts of the city), and for someone who does not live here, finding your way around the city is incredibly difficult. There are maybe five street signs in the entire city, and ask anyone directions, and even street names are useless.

People here in Panama use landmarks to give directions, not street names. I don’t even think that most buildings have an address the way we think of them in North America. Panama was not a master-planned city, instead growing outwards (and eventually upwards) in a pattern more-or-less described as chaotic. I doubt that if I told a taxi driver that I lived on Calle Ricardo Arias, which is in the center of the city, and driven by most taxi drivers everyday, they would know what I was talking about. But when I tell them “near restaurante Costa Azul”, I get home safe and sound, every time.

As you can see, unless you have a previously existing knowledge of Panama City landmarks, having a car here is an effort in futility. But this is not the only reason to avoid renting a car while in Panama. As I learned the hard way a couple of weekends ago, the rental car companies are all crooks, especially if you rent a car at Tocumen International Airport. Go ahead, check the prices out online. Go to any one of the major car companies (they are all represented in Panama), or any one of the online travel websites. You will be surprised- car rentals start at $9 per day, with unlimited miles.

To good to be true, you are thinking. You see the little asterisk next to the prices, and scroll down to look at the terms, taxes and fees that will take the price of the $9 per day sedan to almost $50 per day. The only problem is that the way they are written, they do not say that these extra fees are mandatory, and the terms are all ambiguous. Forget the fact that somehow turning $9 into $50 is borderline fraud (in my opinion), most of the increase is “mandatory” insurance. Forget using your American Express card. And that new $9 per day flat rate that Orbitz and Expedia offer for full coverage, doesn’t do sh#t- you have to pay the full rates anyway.

So, if you are staying in the city, stay away from rental cars. But, if you have to rent one to drive out into the countryside (see article on rental car destinations here), or have to rent one while in the city, I definitely encourage you to do so from one of the many operating in the city, and staying away from the airport rates, which are much higher. There are several rental companies within a two-block radius in El Cangrejo near the Veneto casino, all of which charge less than their counterparts at the airport (it is the difference between paying approx. $50 per day with full insurance, and $50 per day with minimal insurance- difference? About $25).

Any questions? Contact us at EyeOnPanama@gmail.com.

I had read the same things about renting cars in Costa Rica. We are not great world travelers and we wanted easy, it was easy.

They do try to sell you complete insurance, but the only *required* part is $12/day 3rd-party liability.

I wouldn't totally write off renting a car. Panama City? Don't bother. The traffic is crazy. The driver's are crazier. But, if you are travelling outside of Panama City, a rental car is a good idea. Guests who visit us fly to David and rent a car there. Or I've had people rent a car and drive from Panama City. TIP: if you do this, rent the car in the Albrook area to avoid driving in Panama City altogether. If you rent in Albrook, you just hop on the Bridge of the Americas and keep heading west!!