Car rental Panama City, FL

Top tips for renting a car in Panama City

Renting a car in Panama City gives you the freedom to explore on your own terms, whether you’re navigating downtown or taking a road trip to nearby beaches. Before you hit the road, here’s what you need to know about driving, parking, tolls, and fueling up in the city.

What are the road rules and driving conditions in Panama City?

Panama City follows right-hand side driving, and seat belts are required for all passengers. While main roads are generally well-maintained, some side streets can have potholes and limited signage. Traffic in Panama City can be heavy, especially during weekday peak hours (typically 7:00–9:00 AM and 4:30–6:30 PM). The most congested areas include US-98 (Panama City Beach Parkway), Hathaway Bridge, and W 23rd Street, where stop-and-go traffic is common.

Local driving habits can be unpredictable, so defensive driving is recommended—expect motorcycles weaving between lanes and occasional sudden stops. Hurricane season (June to November) can bring heavy rain and flooding, making it important to check road conditions before traveling. If driving through Panama City locations during this time, be cautious of sudden storms and potential road closures due to high water levels.

Speed limits vary depending on the area: residential zones typically have a limit of 25–30 mph, while major highways like US-98 and Florida State Road 77 range from 45–65 mph, depending on the stretch.

What is parking like in Panama City?

Parking availability depends on the area. Parking in downtown Panama City, Florida, can be limited, but there are a few reliable options. Harrison Avenue offers street parking, though availability can vary depending on the time of day and local events. Near McKenzie Park, there are additional street parking spots, but it's important to check for any restrictions or time limits.

While the city has been considering implementing more structured paid parking, there are currently no large public parking garages, so visitors should plan ahead and check for updates on parking regulations before heading downtown. Some shopping centers and hotels offer parking, though rates vary. Residential areas may have free street parking, but spaces can be scarce. Always check local parking signs to avoid fines or towing.

Are there toll roads in Panama City?

While there are no toll roads in Panama City itself, you may encounter toll roads and turnpikes if you venture further afield in Florida. If you're road-tripping to Pensacola, you may drive along toll roads such as Spence Parkway, Mid-Bay Bridge, Bob Sikes Bridge and Garcon Point Bridge.

Are there gas stations and EV chargers in Panama City?

Gas stations are easy to find in Panama City, FL, with RaceTrac on E. 15th St. and plenty of Shell stations scattered throughout the area. If you're driving an EV, charging options are growing but still somewhat limited. You’ll find chargers at Busy Bee on Panama City Beach Parkway and SpringHill Suites on Front Beach Road, among others. To keep your trip smooth, it’s best to plan ahead and map out charging stops along your route.

Do I need to rent a car in Panama City?

If you're sticking to downtown Panama City, rideshares and public transit can get you around. But if you want to explore beyond the city—like the white-sand shores of St. Andrews State Park, the laid-back coastal town of Port St. Joe, or the scenic trails of Grayton Beach State Park—having your own car makes all the difference. A rental vehicle gives you the freedom to chase sunsets, take detours, and experience the Gulf Coast on your own terms.