Compulsory Car Insurance in Panama
Recently Panama made it mandatory for all car insurance policies to be a minimum of three months duration.
Regulation 763 urges drivers to comply with their responsibilities of a valid insurance policy that will guarantee the cost of medical expenses and damages to themselves and third parties.
The new law states that if there is a traffic accident and the driver does not have the current policy, the driver’s license will be withheld and the vehicle will be held until documentation can be provided.
Car insurance in Panama
There are two different types of car insurance in Panama full coverage and third-party liability.
The older the vehicle gets, the higher the policy costs. Car insurance companies will calculate their own rates of depreciation for a car. It is usually 20% in the first year and then 15% each following year.
In order to obtain car insurance, you must have a valid driver’s license. Know that your coverage is only good if you are driving with a valid driver’s license. If you do not have a Panamanian license your foreign driver’s license may not be considered valid after 90 days.
The cost of car insurance in Panama
The cost for car insurance in Panama will vary depending on a few things
- the year of the vehicle
- the type of vehicle
and the type of coverage
While third-party coverage (the legal minimum in Panama) you might pay about $500/ year to ensure a 2015 sedan. Whereas if you opt for full coverage you will likely be looking at close to $900 for the year. Note that if the car is older, the cost to insure it will increase.
To learn more about Car Insurance options in Panama contact Julio Luque of J2L Insurance at (507) 6206-4523