Car Insurance in Panama

Effective in January 2007 all vehicles licensed in Panama must have liability insurance. Collision coverage is optional however this is limited to newer vehicles only. Older vehicles cannot be insured for collision damage.

Car Insurance in Panama is not unlike North American Car Insurance, but generally both the coverage and the premiums are lower. Like North America you will have liability coverage for other vehicles, coverage for personal injury and other property damage, and collision coverage for the insured vehicle.

Normal liability coverage is 10/20/10, with limits of $10,000 for personal injury to one person or $20,000 for personal injury of all other persons and a $10,000 property damage limit. Optional limits would be 25/50/25, but higher coverage is also available.

Collision coverage has a limit of the value of the vehicle and the deductible for collision and other damage, such as fire and theft, is equal to the portion of the annual premium for the collision coverage.

The actual premiums will also depend on the age and driving record of the driver, and type of use of the vehicle. To give a general idea of the costs, here are a couple of examples:

A $12,000 – $14,000 sedan (like a Toyota Corolla) with 10/20/10 liability coverage will be between $500 and $600 per year, with a deductible of about $250.

An $18,000 - $20,000 SUV (like a Pathfinder) with 25/50/25 liability coverage will be between $900 and $1,200 per year and the deductible about $450.

Javier Ríos is the official at the ASSA branch in David who provided this general information and he would be pleased to provide a more specific quote to anyone who requires one. Javier speaks fluent English and may be contacted by email at:

Contact: riosjavier@hotmail.com or by telephone: 507-775-3542 or 507-613-8029 (cell)
The ASSA web site is www.assanet.com.