Car Rental in Panama

Why rent a car in Panama?

Panama, conecting Central and Sotuh America between Costa Rica and Colombia, is a great destination, particlarly if you have a car to get around. The country has coastline on both the Carribean Sea and the Pacific Ocean that offers fun and relaxation and mountains and jubgles in its interior. For more information on traveling in Panama and beyond, check out As We Saw It.

Before you set off on a trip around the gorgouse country, here are some important things you need to know about driving in Panama:

• The speed limit in residential areas is 30 km/h (18 mph) and on highways, it can range from 80 km/h (50 mph) to 120 km/h (75 mph). Pay attention on the highways, because the speed limit can change quickly.

• Panama has four main expressways, and all of them are toll roads. To use these toll roads, you will need to have a prepaid Panapass, so make sure to have a toll pass with you if you plan on driving on these roads. Cash is not accepted.

• Traffic can be congested in some areas, especially during rush hour. It is best to avoid driving during these times if possible.

• Panama has a zero-tolerance policy for drunk driving. If you are caught driving under the influence, you will face serious consequences.

• Parking can be a challenge in some areas, especially in Panama City. Look for designated parking spots or parking garages to avoid getting towed or fined.

• Some streets in Panama City are designated as "no parking" zones during certain times of the day. Make sure to check the signs before parking your vehicle.

• In some areas, it is common for people to double park, but this is not recommended as it can block traffic and you may receive a fine.

• Find more details about what you need to know about driving in Panama here.

Top cities and places to visit

Panama is a beautiful country with many different things to see and do, such as tropical rainforests, beautiful beaches, historic landmarks, and busy cities. Here are some of the top places to visit in Panama:

• Panama City. The vibrant capital city offers both modern skyscrapers and historic landmarks like Panama Viejo. Watch ships pass through the nearby Panama Canal, stroll through Casco Viejo, or drive to the Amador Causeway for fantastic views of the city skyline.
• Panama Canal. The Panama Canal is a feat of engineering that connects the Atlantic and Pacific Oceans. It is one of the most famous places in Panama.
• Soberania National Park. A vast tropical rainforest located just outside of Panama City, Soberania National Park is a great place to go birdwatching, hiking, and wildlife spotting.
• Fort San Lorenzo. Overlooking the Caribbean, this historic fortress was a key defense post during colonial times. Explore the ruins, learn about the history of the fort, and take in the beautiful views. There’s also a nearby beach.
• El Valle de Anton. El Valle de Anton is a lovely mountain town that is two hours west of Panama City and encircled by lush forests and waterfalls. Take a dip in the natural hot springs or hike to the top of the nearby Cerro Gaital for panoramic views.
• Boquete. Located in Panama’s western highlands, Boquete is a popular expat community and a favorite destination for outdoor enthusiasts. Go hiking in the lush cloud forests, visit the coffee plantations, or soak in the hot springs.
• Bocas del Toro. This group of islands off Panama’s Caribbean coast offers pristine beaches, crystal-clear waters, and a laid-back vibe. Keep in mind that you can only drive as far as Almirante, and then you'll need to take a boat to the islands. Go snorkeling, surfing, or simply relax on the beach.

Crossing borders

It is impossible to drive to Colombia from Panama, as there are no roads through the Darien Gap’s dense jungle. Though you could drive to Costa Rica, no rental company allows their vehicles to be taken there from Panama. 

Toll roads

Panama has four main expressways, and all of them are toll roads. To use these toll roads, you will need to have a prepaid Panapass, so make sure to have a toll pass with you if you plan on driving on these roads. Cash is not accepted.

Rental companies may offer you this toll pass, though expect to be charged an additional fee on top of the costs of the tolls.

Car rental prices in Panama

• Medium cars - from $10 per day
• Small cars - from $9 per day
• Large cars - from $10 per day
• SUVs - from $14 per day
• Vans - from $25 per day
• Premium cars - from $13 per day