Since January of 2006 the Superintendencia de Seguros (legal entity which regulates insurance in Panama) regulated discounts given on car insurance policies to 40% on new – dealership cars and 35% on all used cars for drivers with good records.

Before 2006 some companies gave up to 60% discount which meant some companies offer cheaper premiums than others. After 2006 all companies have rates that vary by a couple of dollars.

What can make a difference on premium prices? The limits you obtain for your car insurance policy. Limits are the maximum amount that you are protected if you cause damage to foreign property or with medical assistance to persons in your car and others.

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The minimum limits I recommend are:

Personal Injuries (to thirds) is $10,000 per person and $20,000 per accident.

Property Damage $15,000 per accident

Medical Expense (you and others in your car) is $5,000 per person and $25,000 per accident.

At a person’s request you can lower or increment these limits, but you should be aware that if you cause an accident you are legally responsible to pay for the damages and courts in Panama can take years to solve cases and you could end up without a license and with a big lawyer’s expense if you are not properly protected.

Damage to thirds policies start from $130 a year – but offer low limits and do not protect for medical expenses for the people in your car. For $160-175+ you can get higher limits, medical protection for yourself and others in your car and roadside/legal assistance.

Companies differentiate themselves by offering a great number of benefits such as legal service, discounts, extraterritorial coverage, or towing services – which you should be aware and take advantage of.

To get more information on car insurance or to get a quote, contact our customer service department at forlacol@gmail.com or by phone (507) 6676 5151.

Cars made in the year 2000 or newer can be insured for Full Coverage - civil responsibility (personal injuries and damage to foreign property), medical assistance, and coverage for the insured vehicle (collision and comprehensive).

Cars from 1999 or older are insured for Civil Responsibility (damage to thirds) under Panamanian law. This coverage includes foreign property and personal injuries for third parties. Your policy can also include medical assistance for the driver/passengers in your car.

The older the car the higher the premium for full coverage - this has to do with the risk of a car accident and older parts are harder to get and more expensive.

Depreciation is done 20% first year (some companies do 15%) and then 15% the rest of the years.

If you bring your car to Panama include the entry taxes as part of the value of the car.

For you to be covered your license needs to be valid. You can use any license from any country or an international license; just make sure it’s not expired!

No-fault coverage does not exist in Panama.

If you are financing a car, banks will require you to have a full coverage policy. It is much better to use a broker who can assess your needs, compare different premiums, and assist you in a claim. The Law 59, of July 29, 1996 (which regulates insurance in Panama) in Article 36 states that a consumer has the right to chose who will sell him/her insurance. So don’t pay higher premiums at the bank!

AAA does not exist in Panama, but your insurance policy has roadside assistance included! This covers jump-starts, towing, a tire change, or gas delivery (gasoline costs are not included).