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).

A license will be suspended if a person acquires more than thirty five (35) points in a period of 12 months. Also if:

• If there are severe injuries or death caused by a traffic accident, and the police can establish negligence from part of the driver.
• For driving under the influence of alcohol and/or drugs, which is to be determined by the proper authorities.
• For conducting race or speed competitions (”regattas”) on public roads.
• For a hit and run when a person is involved in a traffic accident.

If you commit any of these infractions a second time, your license will be canceled.

One wonders how much certain tickets cost. Well here is a list of the most common infractions. This also includes how many points you are given on your license.

~ Vehicle without title ~ 1 point ~ $25

~ Vehicle with expired tag ~ 3 points ~ $50

~ Vehicle without a tag ~ 3 points ~ $50

~ Not carrying a driver’s license ~ 2 points ~ $50

~ Allowing an unauthorized person to drive ~ 5 points ~ $150

~ Refusing to pull over the vehicle when required (fuga) ~ 6 points ~$200

~ Talking on the phone when driving ~ 3 points ~ $75

~ Not wearing a seatbelt ~ 3 points ~ $75

~ Spilling or throwing garbage on the road ~ 2 points ~ $75

~ This one if for TAXIS: Refusal to take a passenger ~ 1 point ~ $75

~ DUI first time depending on alcohol level ~ 5 points ~ $150

~ DUI second time or for the first time if the alcohol level is very high ~ Suspension of license, removal of vehicle, and fine.

~ Reckless driving ~ 3 points ~ $75

~ Driving on the wrong side of the road or giving a U turn where is prohibited ~ 3 points ~ $75

~ Driving on the wrong side of the lane of the road or highway ~ 2 points ~ $50

~ Driving on the shoulder of the road ~ 2 points ~ $50

~ Refusal to stop ~ 5 points ~ $100

~ Passing a red light ~ 6 points ~ $100

~ Vehicle parked where it’s not allowed ~ 1 point ~ $10

~ Parking in a handicapped spot (Law 42 of 27/August /99) ~ 3 points ~ $50 ~ Double if the person does it again.

~ Speeding ~ 5 points ~$50 ~ If the person does it again, attendance to a lecture is required.

~ Hit and run or property damage ~ Cancellation of license.

You have 30 days to pay for the ticket or you will receive a an additional fee (10% of the ticket value)

To see a complete list of all traffic infractions please access the A.T.T.T. Webpage (which is in Spanish)

Article 138. The state of drunkenness or intoxication due to stupefying substances is defined as the transitory loss or apparent reduction of the normal mental and physical abilities, caused by the consumption of alcoholic beverages or drugs, which are necessary to drive any type of vehicle.

Article 139. The state of intoxication due to stupefying substances will be determined by any of the following exams or tests:

1. Breathalyzer

2. Field Tests of Physical State

~ Balance

~ Point at your nose with your finger, right and left

~ Conversation

~ Reading

~ Facial expression

~ Emotional attitude

~ Eye aspect

~ Shaking or other symptoms

Source: No 25701 Gaceta Oficial Digital, Friday 29 of Decemeber of 2006 53

3. Medical Exams

~ Urine

~ Blood

~ Any other that might be added in the future

Government employees in medical attention centers and other State Health establishments should, cooperatively practice the medical tests which are solicited by the proper authority. The inspectors of the A.T.T.T. and the National Police will have the right to practice breathalyzer and field tests in the actual site the person was pulled over.

Article 140. All drivers are under the obligation to submit to the indicated tests in the previous article, which are designated to determine how affected is a person by alcohol consumption or intoxication by stupefying substances. In the case of pedestrians being hit by a driver, the pedestrian will have the same obligation to submit to a sobriety test.

If a driver or pedestrian refuses to submit to any of the tests stated in the previous article, this will constitute a serious fault against him/her.

Article 141. The degree of impairment caused by the consumption of alcoholic beverages is established according to the following levels of blood or breath using a breathalyzer:

Calification

~ Milligrams per deciliter (blood)

~ Micrograms per deciliter (air)

Level of Concentration and Tickets

Warning

~ Tolerance level 10 - 50 (blood) y 5 - 24 (breath)

Ticket

~ Alcoholic breath 51 - 85 (blood) y 25 - 40 (breath)

Ticket and Retention of the Vehicle

~ Proven intoxication +86 (blood) y +41 (breath)

Drivers that maintain alcohol levels over ten (10) milligrams per deciliter of blood or five (5) micrograms per deciliter of air will be sanctioned according to the procedure indicated in each case.

Note: The limits established are applicable to all drivers, also for pedestrians involved in accidents or traffic infractions.

Source: No 25701 Gaceta Oficial Digital, Friday 29 of December 2006

Article 142. It is prohibited for pedestrians and vehicle drivers:

~ Walk or drive under the effects of stupefying substances.

~ Walk or drive with alcoholic breath or proven state of intoxication.

Article 143. When the driver is caught in an intoxicated state, he/she will be sanction according to the amount of times previously registered in the person’s driving record. Therefore, the competent authority will withhold the person’s driver’s license to be submitted to the A.T.T.T. and the vehicle will be removed from the road. (Your insurance policy includes towing service).

Note: without dismissing any rights a citizen might be entitled to, the competent authority is entitled to suspend a person from driving who is in an obvious state of intoxication, even though they have no breathalyzer at hand.

Tickets

Article 251. The driver which is caught in a state of intoxication, according to what is stated in the Article 143, will be sanction depending on the number of times he/she has violated the law:

Others: Assisting to seminars and lectures according to the type of intoxication.

Article 252. The driver which is caught in the state of proven intoxication, which causes a traffic accident, damage to foreign property, or bodily injuries to thirds, will be sanction according to the amount of times he/she has broken the law:

Others: Assisting to seminars and lectures according to the type of intoxication.

Source: No 25701 Gaceta Oficial Digital, Friday 29 of December 2006