In this article, we’ll guide you through the step-by-step car rental process in Panama. Whether you choose to explore the vibrant cloud forests, sandy beaches, or busy cities, the same process applies to your car rental. Our goal is to assist all travelers who have questions about the car rental process in Panama, so if you’re among them, welcome. Join us as we break down the car rental process step by step, and let us know if you have any more questions. We’ll go over all the important details, yet try to keep it concise.
Research and Choose a Rental Company
The first step in the car rental process is to research and find the car rental provider that meets your needs and budget. In Panama, there are several well-known car rental companies, such as Hertz, Avis, and Budget. However, while these may seem trustworthy and reliable, they may tack on hidden fees and sometimes add extra charges after you return the car, making the car rental process very frustrating.
Local companies, like Chiriqui Car Rentals, provide personalized service and transparent pricing. Picking a company like this can offer a more hassle-free car rental process. However, before you book, we recommend checking on several things:
- Compare prices: Look at various companies to find the best deal. Make sure you understand what's included in the price, as insurance may be a separate fee.
- Check reviews: Read customer reviews to get a sense of the company’s reputation. These reviews can be found on Google or car rental websites.
Book Your Rental Car
Once you’ve chosen a rental agency, the next step in the car rental process is to book your vehicle. We recommend booking your car in advance, especially if you will be visiting Panama during the high tourist season, to secure availability and possibly obtain a better rate.
- Choose the right vehicle: Consider the size of your travel group, the amount of luggage you will be bringing or picking up, and the terrain you will be traveling in. For example, a 4x4 is unnecessary if you only travel in urban areas and highways. If you are not comfortable driving a manual, be sure to get an automatic transmission.
- Select additional options: During the booking process, some companies may provide options like GPS, child seats, or additional drivers. Be sure to consider this extra cost in the booking process.
Review Rental Requirements
Before you finalize your booking, it is important that you understand the rental terms. These can vary depending on the rental company. Below are some common requirements you may encounter.
- Age requirements: In Panama, most rental companies require you to be at least 21 years old, though some may require a minimum age of 25. Young drivers typically face additional fees.
- Driver’s license: Panamanian law requires a valid driver's license from your home country. If your license is not in English or Spanish, consider getting an International Driving Permit to avoid any language barriers.

