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).