Auto insurance in Panama is similar to coverage issued in the USA/Canada and Europe. Protection for Basic third party liability, Medical payments, Collision and Comprehensive/Fire/Theft are available at very reasonable rates.
While the Panamanian Government requires proof of basic liability coverage in order to obtain a license plate, there is a good chance that the person who smashes into your car will NOT have auto insurance.
I recommend “full coverage” for newer vehicles or those valued above $5,000. Most Panama insurance companies will not issue collision coverage for automobiles over 10 years of age.
In my opinion, the minimum liability limits for adequate protection in Panama are $25/$50/$25.
I carry $100/$300/$100:
$100,000 per person for bodily injury that my car causes to pedestrians or passengers in the other vehicle.
$300,000 per accident, if more than one person is injured.
$100,000 property damage that my vehicle may caused to the other automobile or property belonging to the third party.
Do not pinch pennies on automobile liability coverage in this country. If you are found guilty in traffic court, Panamanian lawyers are very adept at collecting. You do not want the headaches involved when a “secuestro” is filed against you. Let the insurance company step in, pay your responsible damages and walk away.
Banks and auto dealers are NOT authorized to sell car insurance. The policies they suggest may have inadequate coverage or may not be in your best interest. The policies are designed primarily to protect their financial interests. Consult a licensed, independent insurance broker when you buy a new car.
For the lowest rates in Panama, including special discounts for prompt payment, Ladies and Seniors call my associates Carmen or Rosita at 322-1605/1612. Let us have a look at your current auto policy and I suspect, we will save you $$$.