Advice on Car Rentals

We are planning our first trip to Panama in February 2014.
We have purchased our round trip air from Tampa to Panama City from Feb 11 - 23.
I have read all horror stories about car rental.
We plan on exploring areas from Panama City to David and in between so a car rental is essential.
I am requesting advice on car rental companies, Insurance, gas costs, and anything else.
Please be real in your answers.

Thanks,
Rocco & Valerie

Hola Rocco & Valerie
We did exactly this in January of this year and then moved here in August.
We rented a car from Hertz, using our Hertz Gold club membership. You can sign up for a gold club membership online. The reason for using the gold club membership is that it gets you some extra perks. Also, Hertz was the only rental company that we found in Panama that gives you an emergency phone number to use, so that if anything happens to your car, you call them and they come get you.
We bought a Garmin GPS unit and a Panama map system for it. We got the largest screen possible so that it would be easy to use. I will look up the info on where we got the map system as it is not available from Garmin. However an alternative is to hire a taxi and follow it out of Panama City, trying to get away from the airport and on the Pan-American Highway with out either of these will have you going in circles and getting lost. Traffic in Panama City is worse than New York and with all the construction going on streets are blocked and there are lots of detours.
You will also want to get a letter from the credit card that you will use to rent the car detailing their providing the extra insurance for your rental. Otherwise your cost to rent a car in Panama can double or even triple from what your reservation will say with all the extra insurance. Even at that you may have to give them a LARGE deposit on a credit card (DO NOT use a debit card, use a credit card). We got our letter from USAA, our insurance and bank credit and debit card provider. They provided the letter in both English and Spanish. Be prepared to argue with the person at the rental desk about the rental cost and the insurances required. Most likely you will have to ask to speak to the supervisor. You will have to take the personal liability insurance, do not go without this, because if you get in an accident and there is someone injured and you do not have this insurance, you will immediately be taken to jail!
When you go outside to pick up your car, go over it with a fine tooth comb. Use your camera or Smartphone to photograph every ding, dent, scratch, etc and make sure they are all noted on the pick up inspection report. When you return the car, make sure you go over the car and get a sign off on the return that there are no "new" ding, dent, scratch, etc. Show them your photos and the inspection will go much faster. Under NO circumstances leave the car without getting the turn in inspection report signed off. If you do, you may find that your credit card will be charged for a big number of dollars for some dent or scratch. They will charge you not only for the repair, but also for every day the vehicle is out of service.
Do not get a really small car, a compact is best and do not take it off the main paved roads. If you take it off the main roads and it get stuck or in an accident, it is expensive to resolve.
Follow the speed limits. Use WAZE, if you are not familiar with WAZE, download it now to your Smartphone and get use to it. It will save you from getting tickets as it will tell you when the next policeman is coming up, so that you can be sure to at or slightly under the speed limit. By the way, check with your cell phone provider as to what your charges will be if you use your phone in Panama. My wife used hers to read emails and Facebook and it cost over $200 for only 2 days use. She called the provider, AT&T, and they gave her a credit because she thought that she had turned off the data usage and was using WIFI, but was not.
Once you get out of Panama City the driving is easy and the bigger gas station do accept credit cards for gas. Gas here is by the liter so it may seem cheap, but is regulated by the government, so most stations are within a few cents of each other.
Do not want to make it seem like you should not rent a car, but it is very different than in the USA. If you are spending anytime in Panama City, do not try to drive in Panama City. take taxis or hire a driver. We have been using Luis Arce as our driver and tour guide for quite some time. He is Excellent and has a van. When we first arrived in Panama we had 4 large suitcases, 2 carry on bags, 1 very large backpack, 1 normal backpack. After a week in Panama, we then had Luis take us to the Decameron to pickup  the car we bought and we had all that we arrived with plus 4 additional large boxes and everything fit in his van. Luis lived in New York for many year, speaks good English and knows all of Panama. He also has access to many other vehicles and arranged for a box van when we need to pick up our 4'x4'x6' crate at Delvi and have it taken to Pedasi. We highly recommend Luis. Luis is very busy, be assured he will email or call you back as soon as he can, please give him at least 24 hours to do so.
Luis Arce
+507 6536-1179
luistaxi777 @ yahoo.com

Thanks for quick and lengthy reply. Excellent advice.

Hi! We moved here from Sarasota FL, and now live in David. Unfortunately we are going back to the US in February and may not be back before you leave. Otherwise we'd be happy to give you the $.05 tour of the area. If you have any questions we can answer though, let me know. 

I absolutely agree with everything Mikkel said, very good advice.

Kris

Rox262 wrote:

Thanks for quick and lengthy reply. Excellent advice.

[Moderated: pls send details in private]

Why send details in private if all can learn from this guidance??????

Hi Hidalgo49,

Please note that members are invited to send their personal details in a private message due to security reasons.

It is therefore best to avoid leaving phone numbers on a public forum.

Thank you for your understanding.

Hasnaa
Expat.com Team

If you look at the Sunnymikkel post it becomes very obvious that the reasons given for discriminating against my message are not what is said formally. The Sunnymikkel post gives sufficient information to jeopardize Luis' security. I am sure that I did not give a phone number, although Mr Sure has been imprisoned or past away quite a while ago. There must be other reasons, but maybe it is only a onesided position about mercantilism vs solidarity.

Rox262 wrote:

We are planning our first trip to Panama in February 2014.
We have purchased our round trip air from Tampa to Panama City from Feb 11 - 23.
I have read all horror stories about car rental.
We plan on exploring areas from Panama City to David and in between so a car rental is essential.
I am requesting advice on car rental companies, Insurance, gas costs, and anything else.
Please be real in your answers.

Thanks,
Rocco & Valerie


Some travel tips:

- Have a good map with you. If you have a Garmin GPS, there is a way to load some maps of Panama (they're open-source and free) on your GPS - http://www.cenrut.org/adw/over.htm . I did that and it worked pretty well until our GPS got rained on in Boquete and stopped working. Otherwise, it got us to our destination without much issue and was easier than a map.

- I rented a car thru Budget. I think everywhere (they told me it's law) requires you to buy insurance thru the rental car company even if you're covered by your credit card or buy other supplemental insurance. I think it was like $18 day for collision. It's a little confusing on getting away from the airport and into the country and I would try to avoid it around rush hour (this is where the GPS came in handy). You could get the comprehensive but it was pretty expensive and I decided to do without. I had no issues with Budget and I was treated fairly.

- Panamanians drive a little "crazy" (relative to the US) so you have to be a little more aware, at least when in the larger cities. It wasn't horrible (to me) but just be more cautious and watch out for cars that pull out in front of you, or cars that randomly stop in front of you, etc.

- Gas is per liter and more expensive than the US. I don't remember the exact price, though...I think it worked out to $4+/gallon.

- Watch the speed limit. I saw lots of cops although I don't know how often they really pull people over. There is a (random) checkpoint when heading toward David/Boquete when traveling from Panama City; we just had to show our passports and they asked where we going. It took about 30 seconds and we were off again.

- It takes a bit longer to get from place-to-place than I anticipated/read. If it was supposed to take 5 hours to get to place X, it usually took me closer to 6 (due to road work, slow speed limits, etc).

- Most places we went had well-paved roads so we were able to get by in a compact car without issue. It also helped save $$ on gas as it was more fuel efficient.

Hope that helps and good luck.