Panama Car Rental Warning — Read This Before!!!
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, 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).
We recommend taking taxis in Panama City and taking buses around Panama’s countryside. It’ll save you time, money, and massive headaches.
Any questions? Contact us at EyeOnPanama@gmail.com.
Read the author’s bio: Jesse Choquette
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ray roscoe on Wed, 8th Jul 2009 7:57 am
what a great website! Everything i need in one place. If you need an Englishman’s help in I.T., photography, etc., let me know
jon on Wed, 26th May 2010 12:44 pm
I think the minimum mandatory insurance is $12/day. I get out of Panama city as fast as possible and wouldn’t think of driving there without a GPS.
Tony Santos on Tue, 16th Nov 2010 12:24 pm
Hi Evan, good advice about rental cars. But I gotta disagree with your assertion that taxis are cheap and efficient for tourists. First of all, taxis will only pick up people who are going where THEY want to go, if you happen to be going the same way, great. If not, screw you. This trend is getting worse and worse as the traffic gets worse.
Second of all, taxis will go out of their way to rip off tourists. I get so many people on my boat who tell me that they paid $5-6 for what should have been a $2 trip. Then, when you try to pay the CORRECT amount, the taxi drivers go apeshit and think that they can intimidate you into paying what they want from you. I’ve had drivers get in my face because they wanted a dollar more than what I knew was the right fare. The situation is getting beyond insane, and I suspect that it will hurt Panama City’s reputation as a tourist destination. It’s getting worse by the day, no doubt about it.
karla on Mon, 22nd Nov 2010 9:26 pm
Tony…I semi-agree w/ you. The cabs are good for the most part. This is what I tell people, if you are going to do business here Get your transportation (ie…being a realtor who needs to transport clients back and forth)…yes cabbies get iffy if you want to go to a not too safe or perhaps far area. they make their money in short carreras or trips. Gas is getting expensive again. We take cabs everywhere, does it take a little longer to get one sometimes? yes, but we enjoy the no car trouble, car maintenance and tags and registration….at this moment, mayb it will change in the future. We carry the taxi chart fare w/ us when we hopp on the cab and they know we are no tourists when we show them that.
Frequently Asked Questions | Locusta on Thu, 25th Nov 2010 6:00 am
[...] do I get there? We agree with this article. Cabs are easily available and economical. If you are considering heading out of the city, we [...]
Panama In 2 Weeks on Thu, 16th Dec 2010 3:50 pm
[...] 2) Wait until Day 8 to rent a car because Panama City is a nightmare to drive and car rentals often scam tourists with lower rates and later hit you with hidden fees. 3) Take public buses. While intimating [...]
Jim Casper on Thu, 23rd Jun 2011 9:04 am
Hi I have been to Panama City many times and the taxis have been fine. This last trip was different in June of 2011. Where can I find a “taxi chart fare”? I hate to argue when I do not know what I am talking about and make a taxi driver mad. But I need a chart fare…can you print one here that people can print before they go to Panama City…or where can I “easily” get one in Panama City.
Thanks, Jim
cheri freeland on Mon, 2nd Jan 2012 3:14 pm
What is the “mandatory” insurance? Is it the third party liability? So many of the car rental agencies say two or three different insurances are mandatory. We had problems last year with Thrifty in Coronado, they quoted one price on pick up and charged a different price at the end of the week at drop off. Has anyone had good luck with any specific agency…any recommendations?