So what the heck is the Pan-American Highway? In reality it is a road that starts at the US/Mexico border with the terminus of I-25 and heads south all the way to Yaviza Panama. It ends there with the Darien Gap, where the road goes no further. To the southeast, in Columbia, the road starts again and continues on its north-south axis, running along the western shores of South America until the terminus at Terra Del Fuego, Argentina. End of the road. As if those two stretches of road are not long enough, one can connect some highways in the US and Canada to derive what adventurerers call the "Pan-American Highway"- the one that actually connected the Americas in their entirety. This, barring the Darien Gap, is the longest road in the world stretching some 15,000 miles and crossing 13 countries. Prudhoe Bay, Alaska, is the northernmost point and Terra Del Fuego in its ending.
Not many people drive this route, but doing it is not as complicated as one might think. It has been done in buses, trucks, motorcycles, even on a bike. Most people opt out for the Columbia stretch and head straight for Equator from Panama, due to safety concerns. Citizens of North America do not need a Carnet de Passage for this journey, though friends tell me things get a little ugly when you unload from the cargo ship in Ecuador. Just make sure you are getting you and your vehicle stamped when you enter a country and you should no problems leaving. Mexico and Central America require insurance and that is recognized in their country. It is very easy to buy at the US border. Valid insurance is also required for the US and Canada. The Canadian border can be very nasty if you have any kind of criminal record. This includes all minor infracations such as DUIs. You might not get in and the Canadian Mounties are not as will to accept "la mordad" as the Federalies to the South.
Four wheel drive and high clearance would be nice for this trip, there are a lot of gravel roads to contend with and the weather and road conditions can really fall apart down south. I, however, do not get the feeling that you need a monster truck to do this drive, most is highway cruising. Reliability, brakes, and A/C far exceed huge tires and big lifts for this drive. Keeping all paperwork and all your maps handy is a good idea. Plan on getting stopped a good bit.