Car Rental in Palau - Driving Guide & Best Rates

Renting a car is highly recommended for tourists visiting Palau, as the island nation has limited public transportation options. A rental car provides essential flexibility to explore Palau's main island of Babeldaob, where attractions are spread across considerable distances. The road network features the compact highway circling Babeldaob, making navigation straightforward for visitors. Palau drives on the right side of the road, following American driving conventions due to its historical ties with the United States. Car rental is ideal for accessing remote beaches, waterfalls, and cultural sites across the islands at your own pace. Road conditions are generally good on main routes, though some rural areas may have less maintained surfaces. Given Koror's small size, parking and navigation are manageable even for first-time visitors. There are no congested cities in Palau where a car would be impractical. Driving is not particularly challenging for tourists, especially those familiar with right-hand traffic. However, visitors should note that an International Driving Permit may be required alongside their home license. Check current requirements and rental rates through booking platforms, as availability can be limited during peak tourist seasons.

International Driving Permit

Information not available for Palau's specific IDP requirements. Check with local authorities or your rental agency before travel.

Minimum Age

Minimum age requirements vary by rental agency. Typically ranges from 21-25 years old - verify with your chosen provider.

Valid Driver's License

A valid driver's license from your home country is generally required. Specific acceptance rules should be confirmed with rental agencies.

Insurance Coverage

Basic insurance is typically included with rentals. Additional coverage options are generally available - check current offerings with rental providers.

Credit Card

A credit card in the driver's name is typically required for security deposits. Deposit amounts vary by agency and vehicle type.

Local Driving Permit

Information not available regarding Palau-specific driving permits. Contact local authorities or your rental agency for current requirements.

Most car rental agencies in Palau are located at Roman Tmar International Airport in Airai, making it convenient to pick up your vehicle upon arrival - book through comparison widgets to find current rates from international and local operators.

Before driving off, thoroughly inspect the vehicle for existing damage and photograph any scratches or dents, as Palau's coral rock roads can be rough - ensure you understand the insurance coverage and verify that spare tire and jack are included.

GPS signal can be unreliable in some areas of Palau, so download offline maps beforehand and ask your rental agency for a basic road map - main routes are generally well-marked, but smaller roads to beaches and attractions may lack clear signage.

Fuel stations are primarily located in Koror and can be sparse elsewhere, so fill up before heading to remote areas like Peleliu or northern Babeldaob - parking is generally informal and free at most attractions, though spaces near popular sites can fill quickly.

Plan to return your rental with a full tank as most agencies require this, and allow extra time for the final inspection - confirm the exact return location and hours with your agency, especially for early morning flights from the airport.

Palau's roads are generally narrow with limited shoulders, and many areas lack street lighting at night - drive cautiously after dark and watch for pedestrians and wildlife on roadways.

Heavy tropical rain can occur suddenly and create hazardous driving conditions with reduced visibility and slippery surfaces - slow down significantly during downpours and be alert for flash flooding in low-lying areas.

Speed limits are strictly enforced and generally lower than Western countries (typically 25-40 mph) - observe posted limits carefully as local police conduct regular traffic enforcement.

Many roads outside Koror are unpaved or poorly maintained with potholes and loose gravel - a 4WD vehicle is recommended for exploring beyond main areas, and always verify current road conditions before heading to remote locations.