Renting a car in Panama can be a challenging experience, particularly if you're unfamiliar with the local regulations and driving conditions. Whether you've had difficulties with rental issues in the past or you're hoping to avoid potential problems in the future, this guide provides helpful information. Renting a car in Panama can feel intimidating, and driving in a Central American country may appear risky to some. However, we’ve found it to be the best way to travel, as it grants you freedom and flexibility to explore at your leisure.
In this article, we’ll focus on the five most common rental issues and how to resolve them. It’s important that you’re aware of these things so that if you encounter them, you’ll know what approach to take. That way, your travels can be as stress-free as possible. For more detailed information on the entire rental process, be sure to read our full article, Renting a Car in Panama: A Step-by-Step Guide.
Car Rental Breakdowns or Accidents
When it comes to rental cars, breakdowns and accidents are some of the most stressful rental issues you might face. These events can disrupt your plans and turn a great trip into a hardship. However, by knowing what to do in these situations, you can handle them more effectively and get back to enjoying your travels. Here’s how to manage these rental issues and prevent them from ruining your rental experience.
Breakdown
In case of a car rental breakdown, the first step is to assess the situation. If the problem is something minor, like running out of fuel or a flat tire, you might be able to fix it yourself without involving the rental agency. However, if you have Road Hazard Protection (sometimes called Wheel and Glass Protection), you should report the problem to the rental company and provide evidence. They may refund the repair costs. You may need to visit a local tire or mechanic shop to get the vehicle back on the road.
Accident
In the unfortunate event of an accident, you need to contact the insurance provider right away, even if the accident doesn’t involve other parties. The rental agency should provide you with an insurance number to call in case of a collision or damage. It’s important to contact them at the scene immediately so they can document the incident. Afterward, contact the rental company for advice on what to do next. If the car needs to be towed, the rental company can usually assist with arranging transportation. While no one wants to think about being in an accident, it’s important to know the steps to take if a rental issue of this kind happens.
Car Rental Restrictions - Age and Mileage
Mileage Restrictions
Before renting a car, understand the mileage policy of the rental company. Some companies have no mileage restrictions, while others charge extra fees if you exceed a set limit. To avoid unexpected costs, research the mileage policy when booking and be mindful of how far you plan to drive.

