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Cheapest Car Hire Rates in Palau
Palau
Mini
Fiat 500 or similar
4
1
3
A/C
Auto
€ 24
per day
Palau
Economy
Toyota Yaris or similar
5
2
5
A/C
Auto
€ 29
per day
Palau
Compact
Volkswagen Golf or similar
5
3
5
A/C
Auto
€ 33
per day
Palau
Intermediate
Skoda Octavia or similar
5
4
5
A/C
Auto
€ 39
per day
The average cost of car hire is €34 per day, with 1,878 vehicles available and an average hire duration of 6 days.
Why Rent a Car in Palau?
Palau, an archipelago of over 500 islands, boasts pristine beaches, lush landscapes, and unparalleled diving opportunities. While Palau offers tours and taxis, renting a car provides the freedom to explore this Micronesian paradise at your own pace. Discover hidden gems, secluded beaches, and historical sites without relying on fixed schedules or costly transportation.
Unmatched Flexibility: Public transport in Palau is limited, making it difficult to explore beyond the main areas. A rental car allows you to venture off the beaten path and discover Palau's diverse attractions at your leisure.
Access to Remote Locations: Palau's islands are scattered, and many of its most stunning natural wonders are located in remote areas. A car provides access to secluded beaches, hiking trails, and cultural sites that are otherwise difficult to reach.
Comfort and Convenience: Enjoy the comfort of travelling in a private vehicle, especially during Palau's tropical climate. Avoid the heat and humidity while transporting your gear and exploring the islands at your own pace.
Cost-Effective for Groups: For families or groups, renting a car can be more economical than relying on taxis or organised tours. Share the cost of the rental and enjoy the freedom of exploring Palau together.
Driving in Palau: Rules, Tips & Local Regulations
Drive on
Right hand side
Speed limit within city centre
40 km/h or 25 mph
Languages
Palauan, English
Average petrol price
$1.20 per litre or $4.54 per gallon
Speed limit outside the city
64 km/h or 40 mph
Currency
US Dollar
Acceptable limit of BAC
0.00%
Score
7.5/10
Dialling Code
+680
Driving in Palau is generally relaxed, but it's important to be aware of local rules and customs to ensure a safe and enjoyable experience. Keep in mind that road conditions can vary, and it's essential to drive defensively.
1. General Traffic Laws Palau has a zero-tolerance policy for driving under the influence of alcohol. Seatbelts are mandatory for all passengers. Using a mobile phone while driving is prohibited.
- Seatbelt Usage
- Mobile Phone Use
2. Road Conditions Road conditions can vary, with some roads being well-maintained while others are unpaved or have potholes. Drive cautiously and be prepared for changing road conditions, especially in rural areas.
- Paved vs. Unpaved Roads
- Potential Hazards
3. Parking Parking is generally available in most areas, but it's important to observe parking regulations and avoid blocking traffic. In Koror, parking can be limited during peak hours.
- Parking Availability
- Parking Regulations
4. Traffic Signs Traffic signs are generally in English and follow international standards. Pay attention to speed limits and other regulatory signs.
- Language of Signs
- Signage Standards
5. Local Customs Be respectful of local customs and traditions. Driving slowly and cautiously is appreciated, especially in residential areas.
- Driving Etiquette
- Respect for Locals
Top drives in Palau:
Exploring Palau by car opens up a world of possibilities, allowing you to discover hidden gems and experience the islands' natural beauty.
From the bustling streets of Koror to the tranquil beaches of Babeldaob, a car provides the freedom to create your own adventure.
Car Rental Prices in Palau – Cost Breakdown
Car rental prices in Palau can vary depending on the type of vehicle, rental duration, and the specific rental company.
Business:
from £40 / $50 / €45
Electric:
Not Available
Classic:
from £25 / $30 / €28
Executive:
from £35 / $45 / €40
7 Seater:
from £50 / $60 / €55
Automatic:
from £30 / $35 / €33
SUV:
from £45 / $55 / €50
Hire price
Average price for hiring a car per day in Palau
Seasonal Trends
Peak season (December to March): Prices start at approximately £55 / $70 / €65 per day*. Increased demand due to dry season and holidays.
Low season (June to September): Discounts available from around £30 / $40 / €35 per day*. Wet season with fewer tourists.
*Please note that these prices are approximate and can vary based on factors such as vehicle type, rental duration, and location
Tips for saving money when renting a car in Palau
Renting a car in Palau can be a great way to see the islands, but it's important to be mindful of costs. Here are some tips to help you save money on your car rental.
1. Book Early for the Best Deals.: Rental prices tend to be higher closer to your travel dates, so booking in advance can help you secure a better rate.
2. Compare Prices and Look for Discounts.: Use online comparison sites to compare prices from different rental companies and look for available discounts or promotions.
3. Choose the Right Car for Your Needs.: Opt for a smaller, more fuel-efficient vehicle if you don't need a lot of space. This can save you money on rental costs and fuel.
4. Decline Unnecessary Insurance.: Check your existing insurance policies to see if you're already covered for rental car damage or liability. If so, you can decline the rental company's insurance.
5. Refuel Before Returning.: Fill up the fuel tank before returning the car to avoid paying higher refuelling charges from the rental company.
6. Inspect the Car Carefully.: Before driving off, carefully inspect the car for any existing damage and document it with photos or videos. This can prevent you from being charged for damage you didn't cause.
What Do You Need to Rent a Car in Palau?
Renting a car in Palau requires a few essential documents and qualifications. Here's what you'll need:
Valid Driver's Licence: You'll need a valid driver's licence from your home country. International Driving Permits are recommended but not always required.
Minimum Age Requirement: Most rental companies require drivers to be at least 21 years old, though some may have higher age limits.
Credit Card: A valid credit card in the renter's name is required for the security deposit. Some companies may accept debit cards, but it's best to check in advance.
Passport or Identification: You'll need to provide a passport or other form of identification to verify your identity.
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This page was edited, fact-checked, and/or translated by our experts who are passionate about helping travellers experience the world by car. Our team of seasoned travel writers and editors has driven across more than 50 countries, hired cars on six continents, and explored countless scenic routes — from Icelandic fjords to Moroccan deserts.
Our Customer Reviews
Our clients rate such place as Palau as
To ensure every review is from a real customer, we do not allow reviews to be posted directly on this page. Instead, we invite every customer to leave a review after they have returned their hire car. This way, you can be sure that all reviews are authentic.
Exploring Palau was amazing! So glad I rented a car; it made getting around so easy. Stunning beaches and hidden gems everywhere.
Amelia Jones
Reviewed: 04.10.2024
Back in Palau after years away, and it's even more stunning than I remembered! Exploring the islands with a car was perfect.
Chloe Davis
Reviewed: 14.08.2025
Palau exceeded all expectations! It was my first time, and having a car let me discover hidden gems. The beaches were unbelievably beautiful.
Olivia Garcia
Reviewed: 22.02.2025
Pretty chill, overall.
Maya Rodriguez
Reviewed: 08.09.2024
Peaceful, kinda slow
Ethan Brown
Reviewed: 08.11.2024
Palau was paradise! My family and I had such a wonderful time exploring the islands. Having a car made it so easy to get around and visit all the places we wanted to see.
Ava Wilson
Reviewed: 24.03.2025
Pretty relaxed, overall.
Liam Neeson
Reviewed: 30.01.2025
Pretty laid-back, really.
Kai Jensen
Reviewed: 14.07.2025
Such a fantastic spontaneous trip! Palau's beauty was easily accessible with a car.
Jessica Lee
Reviewed: 19.07.2025
Palau was efficient for a short business trip. Getting around was a breeze with a rental car, and the scenery was stunning.
David Wilson
Reviewed: 12.08.2025
Palau was breathtaking! Our road trip took us through some incredible scenery. Having a car made exploring so easy; we hit all the highlights and even discovered some hidden gems. Definitely worth the trip!
Sarah Miller
Reviewed: 14.08.2025