Car Rental in Panama for US Travelers

Planning a trip to Panama and considering renting a car? Travelers from the United States often have questions about the process and practicalities involved.
Common inquiries might include:

What international driving permissions are required for US residents in Panama?
How can travelers obtain cost-effective rental car insurance?
Are there challenges with one-way car rentals in Panama?
What differences in road rules should US drivers be aware of?
How much does it typically cost to rent a car in Panama?

This resource provides clear and concise answers to these questions, ensuring US travelers are well-prepared for their Panamanian road trip. Additionally, a summary table at the end serves as a quick-reference guide to all key details.

Can US Citizens Drive in Romania?

Yes, US travelers can legally drive in Romania with the proper documentation. Age restrictions and additional document requirements may apply.

Form of ID:
A valid passport
Driving licence:
Accepted driving licence include:
• Original Driver's License in Roman Alphabet
• EU/EEA Driving License
Accepted cards:
Physical credit cards in the full name of the main driver. Accepted cards include Visa, Master, DinersClub, and JCB.
Age requirements:
Drivers must be between 21 and 90 years old. Young drivers aged 21-24 will incur an additional fee of US$ 8.00 per day.

Ready to Rent?

Requirements may vary between rental companies. Always confirm details when booking.

Check Rates

Which Car Rental Companies Are Best?

Choose from trusted global chains or innovative local alternatives. Each offers different advantages for travelers from the US to Pennsylvania.

Global Chain Companies

Local Brands

Hertz
global
8.5
Locations:
67
Prices:
$$$
Key Advantages
- Largest fleet in USA
- Premium vehicle selection
- Gold Plus Rewards loyalty program
- Express rental counters
Best for
Business travelers and premium vehicle needs
Avis
global
8.5
Locations:
39
Prices:
$$
Key Advantages
- Competitive pricing
- Convenient online booking
- Excellent customer service
- Multiple rental locations worldwide
Best for
Leisure travelers and families
Budget
global
8.5
Locations:
59
Prices:
$$
Key Advantages
- Competitive pricing
- Wide range of vehicles
- Flexible rental options
- Easy online booking
Best for
Budget-conscious travelers and families
Europcar
global
8.5
Locations:
21
Prices:
$$
Key Advantages
- Wide range of vehicle options
- Competitive pricing
- Flexible rental terms
- Customer loyalty program
Best for
Travelers seeking diverse vehicle options and good value
Dollar
global
8.5
Locations:
57
Prices:
$$
Key Advantages
- Budget-friendly options
- Quick and easy booking process
- Rewards program for frequent renters
- Excellent customer service
Best for
Budget-conscious travelers and families
Firefly
global
8.5
Locations:
20
Prices:
$$
Key Advantages
- Budget-friendly pricing
- Wide selection of compact cars
- Easy online booking
- Flexible rental options
Best for
Budget-conscious travelers and families
Hertz
global
8.5
Locations:
3
Prices:
$$$
Key Advantages
- Largest fleet in USA
- Premium vehicle selection
- Gold Plus Rewards loyalty program
- Express rental counters
Best for
Business travelers and premium vehicle needs

ACE
local
8.5
Locations:
22
Prices:
$-$$
Key Advantages
- Personalized customer service
- Convenient locations
- Competitive pricing
- Easy online booking
Best for
Budget-conscious travelers and families

Recommendations for Travelers from the US

Choose Global Chains If:

Reliable nationwide coverage is important
24/7 customer support is needed
Traveling for business or critical matters
First-time rental experience

Choose Local Brands If:

Looking for cost-effective options
Staying primarily within major cities
Interested in unique vehicle options
Comfortable using app-based services

How to Choose the Right Car?

Choosing the right rental car can make your trip more comfortable, safe, and enjoyable. Think about your travel group, the destinations on your route, and the type of driving you'll be doing. With QEEQ, you can compare multiple car types and policies to find the one that best suits your journey.

Seating and Luggage
Consider your travel group size and luggage needs
- Economy cars (2-4 people, 1-2 suitcases)
  Perfect for city driving and short trips
- Compact cars (4-5 people, 2-3 suitcases)
  Good balance of space and fuel efficiency
- Mid-size cars (5 people, 3-4 suitcases)
  Comfortable for longer distances
- Full-size/SUV (5-7 people, 4+ suitcases)
  Ideal for families and group travel
Transmission Type
Choose between automatic and manual transmission
- Automatic transmission
  Easier for city driving and traffic, more common in USA
- Manual transmission
  Often cheaper, better fuel economy, more control
- Most US drivers prefer automatic for road trips
- Consider your comfort level with driving in PA
Insurance Included
Check what insurance coverage comes with your rental
- Basic liability
  Covers damage to other vehicles and property, usually included
- Collision Damage Waiver (CDW)
  Covers damage to your rental car, often optional
- Theft protection
  Protects against car theft, may be included or additional
- Personal insurance
  Check if your current insurance or travel insurance covers rentals
Cancellation Policy
Understand booking flexibility and fees
- Free cancellation
  Usually available up to 24-48 hours before pickup
- Prepaid vs. Pay-at-counter
  Prepaid often cheaper but less flexible
- Change fees
  Cost to modify dates, locations, or car type
- Travel insurance
  Consider coverage for trip cancellations or delays
Mileage Policy
Check distance restrictions and additional charges
- Unlimited mileage
  Best for long road trips and cross-state travel
- Limited mileage
  Cheaper daily rate but extra charges for excess miles
- Consider your planned route distance and potential detours
- Factor in mileage costs when comparing total rental prices
Fuel Policy
Understand fuel requirements and costs
- Full-to-Full
  Return with same fuel level, most economical option
- Full-to-Empty
  Pay upfront for full tank, convenient but often more expensive
- Same-to-Same
  Return with same level as pickup, fair pricing
- Pre-purchase fuel options
  Compare costs with local gas station prices

Quick Decision Guide

City Travel
Compact/Economy car with automatic transmission, full-to-full fuel policy
Philadelphia, Pittsburgh
Road Trip
Mid-size/Full-size car with unlimited mileage, flexible cancellation
cross-state and countryside travel
Vacation
Convertible/SUV with comprehensive insurance, prepaid fuel option
Lake Erie, Poconos

Compare with Confidence on QEEQ

Don't settle for the first option you find. QEEQ makes it easy to compare car types, policies, and total costs from multiple providers. See all fees upfront, read real customer reviews, and choose the perfect car for your adventure.

Compare all car rental deals
No hidden fees
Real customer reviews

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What Are the Popular Destinations in Panama?

Panama, with its stunning canal, vibrant cities, and beautiful beaches, offers diverse attractions for travelers. From the bustling streets of Panama City to the serene islands of Bocas del Toro, there's always something to explore and enjoy.

What Insurance Do I Need?

Understanding the necessary insurance options when renting a car in Panama (PA) is essential to ensure peace of mind and compliance with local laws. While basic insurance is often included, additional coverage can protect you from unforeseen expenses.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car caused by accidents or collisions.
$10-20/day
Essential
Theft Protection (TP)
Safeguards you against financial liability in case of car theft.
$5-12/day
Essential
Third-Party Liability Insurance (TPL)
Provides coverage for damages or injuries to third parties caused during your rental period.
Usually included
Included
Personal Accident Insurance (PAI)
Covers medical expenses for you and your passengers in case of an accident.
$3-7/day
Optional

QEEQ's Complete Protection Solutions

Perfect for travelers who want comprehensive protection without the complexity. One price covers everything, and AXA's trusted network ensures reliable claims processing throughout Panama. Get comprehensive coverage online for about 50% less than counter rates.

Insurance Coverage Comparison

Coverage Feature

QEEQ Full Coverage

Basic Rental Company

Collision Damage Waiver

Fully Covered

$0.00 - $11,738.64

Theft Protection

Fully Covered

$0.00 - $11,738.64

Personal Accident Insurance

Fully Covered

Not Covered

Tire, Window, Mirror Damage

Fully Covered

Not Covered

Roadside Assistance

Fully Covered

Not Covered

Know more About QEEQ Full Coverage

How to Save Money on Car Rentals When Traveling from the US to Panama?

Renting a car for your Panama trip can be economical if you plan ahead. By considering timing, rental policies, and fuel options, you can significantly reduce your overall expenses.

Booking Tips for lower Prices

Book in Advance
Rental prices in Panama can increase significantly closer to your travel date. Booking at least 3-4 weeks ahead ensures you get the best rates and a wider selection of vehicles.
Save $50-100
Utilize Price Comparison Tools
Websites like Rentalcars.com and Kayak allow you to compare offers from various rental companies. This helps in finding the most cost-effective option.
Save up to 25%
Opt for Full-to-Full Fuel Policy
Choosing a rental with a full-to-full fuel policy ensures you only pay for the fuel you use. Refill the tank at a local gas station before returning the car to avoid high fuel charges.
Save $15-30
Avoid Renting at Airports
Airport rentals often have additional surcharges. Consider renting from locations within the city for lower costs.
Save $20-40

QEEQ's Money-Saving Features

Diamond Membership
Save up to 20% on every booking - free trial available below.
View Details
Price Drop Protector
If your booked car price drops, QEEQ automatically rebooks it at the lower rate and refunds the difference to you.
View Details
One-Dollar Freeze
Lock in today's price with just $1 upfront and pay the rest later.
View Details
Flexible Payments
Pay with credit/debit cards or even cryptocurrency via BitPay.
View Details

What Should You Pay Attention To?

Important considerations and potential issues to watch for when renting a car in Panama.

Hidden Fees
Be aware of potential extra charges in addition to the rental fee.
- Airport surcharges
- Insurance fees
- Additional driver costs
- GPS or child seat rental fees
- Toll payment devices
Insurance Requirements
Understand insurance policies and ensure adequate coverage.
- Verify your credit card's rental insurance eligibility
- Check mandatory local insurance requirements
- Consider additional coverage for peace of mind
Driving Regulations
Familiarize yourself with Panama's traffic rules and road conditions.
- Speed limits vary across regions
- Watch for road signage in Spanish
- Be cautious of rural unpaved roads
Fuel Policies
Understand the rental company's fuel return policy.
- Full-to-full policy is common
- Prepaid fuel options may be available
- Ensure to refill before returning the car
Vehicle Inspection
Inspect the vehicle thoroughly before and after rental.
- Document any pre-existing damage
- Check for functional lights and tires
- Ensure the interior is clean
Pickup and Return Timings
Plan your rental pickup and return times carefully.
- Late returns may incur additional charges
- Confirm the rental office hours

Remember

Being prepared and knowing what to expect can save you hundreds of dollars and prevent stressful situations. Take time to understand all terms and inspect your rental thoroughly.

What Are The Difference Between US and Polish Traffic Rules

US and Polish traffic rules differ mainly in speed limits, signage units (miles vs. kilometers), alcohol tolerance (higher in the US), and right-on-red turns (more common in the US).

Right Turn on Red
PA
Allowed after full stop (unless prohibited by sign)
US
Not allowed at red lights
School Buses
PA
Must stop when school bus has flashing red lights
US
No special school bus rules
Highway Passing
PA
Pass on the left, slower traffic keeps right
US
Similar, but passing on right sometimes allowed
Blood Alcohol Limit
PA
0.08% BAC (varies by state)
US
0.02% BAC (much stricter)
Mobile Phone Use
PA
Hands-free only in most states
US
Hands-free only
Seatbelt Laws
PA
Mandatory for all occupants in most states
US
Mandatory for all occupants
Parking Rules
PA
Park in direction of traffic, colored curbs have meanings
US
Can park against traffic on one-way streets
Remember
- • Traffic rules vary by state - check local laws
- • Police stops are more common - stay calm and polite
- • Keep hands visible during police interactions
- • Always carry your license and rental agreement

Voices of our customers

Frequently Asked Questions

Common questions for travelers from United States renting a car in Panama

Do I need an International Driving Permit (IDP) to rent a car in Panama, or is my U.S. driver's license enough?

Your valid U.S. driver's license is sufficient for driving in Panama for up to 90 days. An IDP is not mandatory, but it can be helpful as a backup or for translation purposes. For the rental process, only your U.S. license is required.

What is the minimum age to rent a car in Panama?

The minimum age is usually 25. Some agencies may allow drivers aged 21–24, but a young driver surcharge of $10–$25 USD per day is common. Always confirm the age policy when booking.

What’s the best way to find a good deal on a rental car in Panama?

Book well in advance, especially during peak season. Use an online platform like QEEQ to compare prices and vehicle types across multiple suppliers for the best value and transparency.

What type of car should I rent for driving in Panama?

For city driving and the Pan-American Highway, a standard sedan is sufficient. If you plan to visit rural areas, remote beaches, or the highlands, a 4x4 or SUV with higher clearance is strongly recommended, especially in the rainy season.

Should I book my rental car online in advance or wait until I arrive in Panama?

Always book in advance. Waiting until arrival, especially at the airport, often means higher prices and limited choices. Booking ahead on QEEQ lets you secure better rates and ensures availability.

What documents will I need to present at the rental counter?

You need your valid U.S. driver's license, your passport (with entry stamp), and a major credit card in the primary driver’s name. Debit cards are rarely accepted for deposits.

Can I add an additional driver? What are the requirements?

Yes, usually for a daily fee of $5–$10 USD. The additional driver must be present at the counter, show a valid license and passport, and meet the minimum age requirement.

Is it better to rent from Tocumen International Airport or a city location?

Airport rentals are more convenient—you can drive off immediately after landing and save on taxi fares. City locations may sometimes have lower base rates, but the convenience of airport pickup usually outweighs minor savings.

What are some booking red flags I should watch out for online?

Beware of very low daily rates (like $5/day); these usually don’t include mandatory insurance. QEEQ tends to be more transparent about inclusions and required fees. Always read the terms about insurance before booking.

Does it matter which credit card I use for the booking and deposit?

Yes. Use a major credit card (Visa, MasterCard, sometimes Amex) with a sufficient limit for the deposit, which can be $500–$2,500 USD. Cards with primary rental insurance are helpful, but won’t replace Panama’s mandatory liability insurance.

Can I decline all insurance if my U.S. credit card has rental coverage?

No. By Panamanian law, you must purchase mandatory Third-Party Liability (TPL) insurance at the counter, which your U.S. credit card does not cover.

What insurance is mandatory and what is optional in Panama?

Mandatory: Third-Party Liability (TPL), about $15–$25 USD/day. Optional (but recommended): Collision Damage Waiver (CDW)/Loss Damage Waiver (LDW), which covers damage/theft of the rental car. You may waive CDW only with strong proof of external coverage, and even then, it can be difficult.

How much should I budget for mandatory insurance?

Plan for around $20 USD per day for TPL insurance, on top of the base rental rate. For a week, expect the real cost to be significantly higher than the advertised daily rate.

Can I use my credit card’s CDW benefit to avoid buying the rental company’s CDW?

Possibly, but it’s challenging. Bring a printed letter from your credit card company (in English and Spanish) confirming primary CDW coverage in Panama. Even then, you may face a larger deposit ($2,000–$5,000 USD), and some agents may resist.

What is the typical security deposit amount, and when do I get it back?

Deposits range from $500 to $2,500 USD, depending on insurance purchased. The hold is released after returning the undamaged car, but it can take 7–14 business days to appear back on your card.

Are there other hidden fees I should be aware of?

Yes. Common fees include airport surcharges (about 12%), a daily toll transponder fee, environmental/tire fees, and fuel charges if you return the car with less than a full tank.

How do tolls work in Panama? Do I need cash?

Toll roads around Panama City use the Panapass electronic system. Rentals usually have a transponder; you’re charged later for tolls used. Cash isn’t accepted at these tolls. Other roads, including the Pan-American Highway, typically have no tolls.

What is the average price of gas in Panama compared to the U.S.?

Gas prices are similar to or sometimes slightly lower than in the U.S., about $3.50–$4.50 USD per gallon for regular unleaded (91 octane). Prices are posted per liter (1 gal ≈ 3.785 liters).

Is it better to prepay for a full tank of gas?

Generally not. Prepaid fuel is convenient but usually more expensive than refueling yourself. The best value is to follow the 'full-to-full' policy.

Can I pay for everything—including mandatory insurance—upfront on QEEQ?

You typically pay the base rate and included items online. Mandatory TPL insurance is almost always paid separately at the counter in Panama. Always check the booking details for clarity.

What should I do first when I get to the rental car?

Do a thorough inspection before driving. Take photos and videos of all sides, focusing on any pre-existing scratches, dents, or damage. This protects you from being blamed for old damage.

What should I check inside the car?

Test the A/C (crucial in Panama’s climate), radio, and check for upholstery damage. Make sure there’s a spare tire, jack, and lug wrench, and verify the spare tire is inflated.

How do I ensure the agent acknowledges existing damage?

Point out every imperfection to the rental agent before leaving. Make sure it’s marked on the rental agreement’s condition diagram. If they refuse, keep your photo/video evidence as backup.

What questions should I ask before driving away?

Ask: What type of fuel does the car use? What’s the emergency contact for breakdowns/accidents? What is the final all-inclusive daily rate? How does the Panapass system work for tolls?

What is the car return process like? Is it as strict as pickup?

Yes, it’s just as strict. Allow extra time for inspection. The agent will compare the car’s condition to the initial report and check the fuel. Stay with the agent for the whole process.

What kind of receipt should I get when returning the car?

Get a final, closed-out receipt showing a zero balance (or the final toll/fuel charges). If they say it’ll be emailed, insist on a printed copy or a photo of the closed contract.

Can I return the car after hours?

Some airport locations allow after-hours returns, but confirm this in advance. Be clear on where to park and leave the keys. You’re responsible for the car until it’s checked in by staff.

If I’m renting a 4x4, what should I check for?

Ask the agent how to engage the four-wheel-drive system and inspect the tires closely for wear. Off-road vehicles see more wear and tear.

What happens if I’m late returning the car?

Most companies have a short grace period (e.g., 29 minutes). Beyond that, you’ll likely be charged for an extra day. If running late, call the office as soon as possible.

Should I accept an upsell to a larger car or more insurance at the counter?

If you booked a specific car and insurance level on QEEQ, you’re not obligated to accept upsells. Stay firm unless a free upgrade is offered due to unavailability of your booked class.

What are the biggest differences between driving in Panama and the U.S.?

Driving in Panama, especially in Panama City, is more aggressive and less orderly. Expect sudden lane changes, stops, and frequent disregard for traffic rules. Defensive driving is essential.

Are road signs in English or Spanish?

Most signs are in Spanish with international symbols. Directional and informational signs are almost exclusively in Spanish. GPS apps like Google Maps or Waze are helpful.

What are typical speed limits in Panama?

Speed limits are in km/h: 40–60 km/h (25–37 mph) in cities, 80 km/h (50 mph) on rural roads/highways, and up to 110 km/h (68 mph) on major toll highways. Police use radar, so obey posted limits.

How does parking work in Panama City?

Parking is often chaotic. Use designated lots when possible. Street parking is risky—cars can be towed or broken into. In some areas, informal attendants offer to watch your car for a small tip.

Is it safe to drive at night in Panama?

Avoid driving at night, especially in rural areas. Roads are poorly lit, potholes are hard to spot, and there’s a higher risk of animals or people on the road. Plan to arrive before dark.

What should I expect at police checkpoints?

Checkpoints are common and usually routine. Stay calm, be polite, and have your documents ready (passport, license, rental agreement). You’ll typically be waved through after a quick inspection.

What if a police officer asks for a bribe?

This is less common now but can happen. If asked for cash, politely insist on receiving a formal ticket (boleta) to pay at the transit office. Never be confrontational.

Can I use my U.S. cell phone for GPS navigation?

Yes. Google Maps and Waze work well. Check your U.S. carrier’s international roaming, or buy a local SIM card for affordable data. Download offline maps as a backup.

What are road conditions like outside main cities?

The Pan-American Highway is well-maintained. Secondary roads can be rough, with potholes and unpaved sections. For rural adventures, a 4x4 is recommended. Drive cautiously.

Are there any specific driving rules in Panama I should know?

Yes: Right turns on red are usually illegal unless posted. Seatbelts are required for all. Using a phone without hands-free is illegal. U-turns are often prohibited—watch for signs.

What should I do if I get into a car accident?

Do not move the vehicles. Call 911 and your rental company’s emergency line. Take photos, wait for police and insurance adjuster, and don’t negotiate or admit fault.

What if I get a flat tire or the car breaks down?

Call the rental company’s 24/7 roadside assistance. They’ll advise on changing the tire or sending help. Always confirm you have this number and a working spare before leaving.

What should I do if pulled over by the police?

Pull over safely, keep your hands visible, and be respectful. Provide your documents when asked. If you don’t speak Spanish, simply say “No hablo español.” Most stops are brief.

Can I drive my Panamanian rental car into Costa Rica?

No. Almost all rental companies prohibit cross-border travel. Doing so violates your contract, voids insurance, and can result in significant penalties. Rent another car after crossing the border.

What happens if the car is stolen?

File a police report immediately, then contact your rental company. Your liability depends on your insurance. With full LDW, you’re liable only for the deductible; without it, you could owe the car’s full value.

How do I pay a parking ticket?

Don’t ignore tickets. Bring them to the rental company at return—they can process payment and deduct from your deposit, possibly with a small admin fee.

Is it safe to leave belongings in the car?

No. Never leave valuables visible, even briefly. Store items in the trunk before arriving at your destination or, better, take them with you.

Can I drive to the San Blas Islands?

You can drive to Cartí port only, using a 4x4 on a steep, winding road. From Cartí, take a boat to the islands. Many visitors book tours with 4x4 transport included.

How do gas stations work in Panama? Are they self-service?

Most are full-service. An attendant pumps gas—say “lleno, por favor” (full, please) and specify fuel type. Credit cards are usually accepted, but cash is useful in rural areas. Tipping is appreciated but optional.

What’s a final checklist before booking my rental car?

Double-check: vehicle type (4x4 vs. sedan), pickup/drop-off times, rental location, inclusions/exclusions (especially mandatory TPL insurance at the counter), and that you meet the age requirements. Booking on QEEQ is recommended.

Still have questions？

Contact QEEQ via online chat or hotline for specific advice. Contact Support

Car Rental in Panama for US Travelers

Planning a trip to Panama and considering renting a car? Travelers from the United States often have questions about the process and practicalities involved. Common inquiries might include:

Can US Citizens Drive in Romania?

Ready to Rent?

Which Car Rental Companies Are Best?

Recommendations for Travelers from the US

How to Choose the Right Car?

Quick Decision Guide

Compare with Confidence on QEEQ

What Are the Popular Destinations in Panama?

What Insurance Do I Need?

Types of Insurance Coverage

QEEQ's Complete Protection Solutions

How to Save Money on Car Rentals When Traveling from the US to Panama?

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

What Are The Difference Between US and Polish Traffic Rules

Remember

Frequently Asked Questions

Other Popular Destinations

Planning a trip to Panama and considering renting a car? Travelers from the United States often have questions about the process and practicalities involved.
Common inquiries might include: