Car rental insurance in Panama, explained
It's the most confusing part of renting a car here, and the place visitors most often get caught out. If you've spent an hour on forums trying to work out whether your credit card covers you, this page is for you.
Panamanian insurance is required
Panama requires rental cars to carry coverage from a national insurance company. Unlike Canada and the US, there is no reciprocity, so a policy from home doesn't count and our insurance can't be declined.
This isn't an upsell. Every legitimate rental company in Panama applies it.
What about my credit card?
Your card's rental cover can't replace the local policy, but it may cover your deductible. If there's a claim, the deductible is charged to your card and we give you the documents to claim it back from your card company.
If a company tells you to skip their insurance because your card covers you, ask to see their policy before you pay anything.
What every rental includes
All-risk commercial rental insurance from a Panamanian insurer, in our company's name, covering at-fault accidents and third-party liability. You choose one of four options when you book.
Your deductible
The lowest daily price. You pay up to $1,200 toward covered damage, and we hold $800 on your card until the car is checked at return.
A lower deductible costs more per day. On every option, tires, rims and the windshield need our Road Hazard add-on.
What insurance doesn't cover
- Minor damage to paint, glass or tires. Our optional Road Hazard add-on covers tire, rim and windshield repair or replacement.
- Damage below your deductible, which is your cost.
- A tow truck, if one is needed.
- Lost rental time. If an accident keeps the car off the road beyond your reservation, the daily rate (without insurance) applies for that time, with a one-day minimum.
The words you know, translated
| What you call it at home | What it means with us |
|---|---|
| CDW or LDW (collision damage waiver) | Included. All-risk commercial insurance, with the deductible you choose. |
| Supplemental liability | Included in the same policy as third-party liability. |
| Zero deductible or excess waiver | Our $0 deductible option, which also has no security deposit. |
| Tire and glass cover | Our Road Hazard add-on, for tires, rims and the windshield. |
| Roadside assistance | Available 24/7 by phone or WhatsApp. Depending on the cause, a charge may apply. |
If you have an accident
- Call or WhatsApp us right away, so we can send the insurance assessor.
- Don't move the car, and call the police.
- Never settle anything in cash at the scene.
Our number is +507 6330-3334. Save it in your phone before you drive.
How to check any company's insurance
Ask to see these before you pay a deposit. A legitimate company can show them in minutes.
- The policy is issued in the rental company's name, not the owner's personal name.
- It's a commercial rental policy, not private car insurance.
- You get a policy, not a "permission letter" from an owner.
- The company is registered, with a tax ID (RUC), and gives you an invoice.
Ours: commercial rental insurance from a Panamanian insurer, in the name of MGF Dominion Investments, S. de R.L., RUC 155676192-2-2019 DV 46.
Ready to book?
Check dates and prices online, or ask us anything on WhatsApp first.