Car Rental in Palau (2026) - Driving Guide & Best Rates
Car rental in Palau: compare rental companies, daily costs, driving rules, parking tips, and road conditions for self-drive travel in Palau.
Driving Requirements
Visitors may drive on a valid foreign license for up to 30 days after arrival. An International Driving Permit (IDP) is not legally required if the license is in English. If it is in another language, an IDP or certified English translation is strongly recommended to avoid issues at checkpoints.
Palauan traffic law sets the minimum driving age at 18. Rental companies typically set their own higher thresholds, commonly 21 or 25 years old, and some add a young-driver surcharge up to age 25. Policies vary by provider, so check the rental widget for exact terms.
Third-party liability insurance is compulsory for all vehicles under Palauan law. Rental companies usually include this minimum coverage in the base rate and offer optional collision-damage waivers or supplemental liability upgrades. Review the contract to confirm what is included.
Rental companies universally require either a major credit card for a security hold or a refundable cash deposit that can range from Budget to Premium levels depending on vehicle class. Debit cards are rarely accepted. Verify the exact amount and card policy in the booking widget.
Traffic drives on the right-hand side. Speed limits are generally low, often 25, 40 mph (40, 65 km/h) on main roads, and strictly enforced. Right turns on red are prohibited unless a sign explicitly allows it, and pedestrians in crosswalks always have priority.
Helpful Tips
Pick up at ROR (Palau International Airport) for the widest fleet and 24-hour desks; city-center offices in Koror may shave a few dollars but add a 30-minute shuttle each way.
Walk around the car with the agent and photograph any pre-existing coral-dust scratches, some operators treat these as new damage unless noted on the form.
Google Maps covers Koror and the main highway but drops off on Babeldaob's side roads. Download Maps.me or the offline Palau map in the rental Wi-Fi zone before you leave the lot.
All stations sell regular unleaded only. Fill up at the two 24-hour docks in Koror on return day, most contracts are full-to-full, and prepaid fuel is rarely offered.
Daytime parking is free and plentiful at tourist sites and shopping areas. But overnight in Koror you'll use the fenced hotel lots. Leave nothing visible due to petty theft.
Driving Warnings
Palau drives on the right. Right-on-red is banned everywhere. Only a green arrow allows the turn. Break the rule and you pay on the spot.
Heavy rains turn the compact ring road around Koror into a shallow lake. The Malakal Bypass floods just as fast. Expect standing water and washouts from May to November.