What insurance I must have?

Hi landerfish,

I have created a new thread with your post on the Panama forum in order to give much more light to your question.

Thank you,

Priscilla
Expat.com team

landerfish wrote:

My wife  and I are planning are  first trip to Panama in March of 2015. I am looking at renting a car, I have read many  posts on insurance and I am still confused? Can someone  tell me what  insurance I must have, what is optional and break it down by  name .

Should I rent at the airport or  get a bus  say to Coronado and rent from there?

Thanks  for all or any  help  I can receive.
Lee

You're right about the confusion - and I doubt I clear it up much!  The reason is that Panama has no consistency in anything (other than it is inconsistent).  You may be told different things from the same person.  Agents will tell you it is required when legally and technically it is not required that you buy their insurance.  When they say "required" they may mean it is required by their agency (independent typically even if using the Hertz, Avis, etc. name) or their manager or whomever.  Certainly, you can argue with them all day long if you wish and they'll tell you to talk to their manager or someone else who is never there.  Often times the concern is uninsured damage to the vehicle; often times it is nothing more than a desire to make more money.  So, check with the agency as best you can in advance on what they require.

Some people report that as a practical matter greater likelihood exists that if you do have an accident and cannot show proof of local insurance on your rental agreement you might have more issues and aggravation than simply showing your U.S. insurance card.  This is understandable as neither the agency nor the other driver (nor the policia) care to rely on the possibility that some foreign insurer will cover the damages.  Others have been in the position of having to personally pay the damage or other claim out-of-pocket and told they should seek reimbursement from their insurer.  You see where I'm going with this:  I've always purchased the insurance because I don't want the worry about having to deal with all the mess that can come out of an accident.

Regardless, you will want to review your own policy and perhaps seek verification from your own insurer on whether and to what extent your U.S./Canada policy covers your use and operation of a rental car in Panama and what specific coverages do or do not apply.  Assuming the answer is that you're covered for both liability and property damage operating a rental car in Panama, plan on bringing proof with you.

I recommend reserving the car online and bringing the quote with you (locations are throughout the city, including at a number of hotels).  Again, in true Panama fashion agencies tend to lose information, not have your car available and certainly try and charge a higher rate than quoted.

Inspect your car closely before leaving the agency, especially the tires.  Blown tires due to pot holes is not uncommon and many are thread-bare.

I agree, check your car very carefully from one end to the other. We were charged hundreds for minor scratches that I know we didn't do, and the paperwork took so long we missed our plane. But, they weren't documented on the paperwork so they held us responsible. (we eventually got a lot of it back through my credit card but it was a major hassle. This was Avis at Tocumen).
Also, if you have the option to get a bus out of the city I would do that. Driving in the city is a total pain, lots of traffic, roads not well marked, etc. I think you'll enjoy yourself much more if you leave that part of the driving to someone else.

I just reserved a SUV for 4 days with Alamo when I arrive at Tocumen Airport in December. The rate was cheap (US comparison) so I took the mandatory $12 a day insurance because I am also driving up to Coronado and will use it to check out the surrounding areas.  The private house I am staying at wanted $100 each way for pick-up/drop off (steep fee for Latin America) and then I would still have to get a rental in Coronado.  I'm turning it in when I stay in Panama City later in my trip. The only thing I don't know is how much or how easy/difficult is it to pay the tolls on the route up and back.

J.J. O'Malley

I just got back from Panama (12-26 Nov) and have rented from Dollar Rent A Car. The insurance is based upon how much risk you are willing to take. There are credit card companies that provide you with car insurance but i don't know if it applies to overseas. I suggest you call your credit card companies to determine which card you'll use and see if they provide coverage. If they do, get the coverage statement from them so you can give it to the rental place (they will ask you for it). Traffic is atrocious and I didn't take the risk..I usually go full coverage. Good luck!