Car Rental in Palau for US Travelers

Palau, with its pristine beaches and rich marine life, is a favored destination for US travelers. Renting a car in Palau offers the freedom to explore its wonders at your pace. Before you embark, it’s vital to understand the legal, financial, and practical aspects of car rentals in this island nation.

Can I drive in Palau with my US license?
What rental car options are available, and how much does it cost?
Are there specific driving rules and road conditions unique to Palau?
What type of insurance coverage is required for a rental car in Palau?
Is it feasible to rent a car for inter-island travel in Palau?

This guide is tailored to provide clear and practical information for US travelers planning to rent a car in Palau. By following these insights, you can navigate the rental process confidently and enjoy a more enriching travel experience. A summary table is provided at the end for quick reference to essential rental factors.

Can US Citizens Drive in Palau?

Yes, US travelers can legally drive in Palau with the proper documentation. Age restrictions and additional document requirements may apply.

Form of ID:
A valid passport is required.
Driving licence:
Accepted driving licence include:
• Original driving licence + International Driving Permit (IDP)
or
• Original South Korea Driving Lisense (English version)
Accepted cards:
Physical credit cards in the full name of the main driver are required. Accepted cards include Visa, Master, JCB, and AMEX.
Age requirements:
Drivers must be between 18 and 80 years old.

Ready to Rent?

Requirements may vary between rental companies. Always confirm details when booking.

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Which Car Rental Companies Are Best?

Consider different car rental providers in Palau that cater to various travel needs, ensuring a smooth and enjoyable experience.

Global Chain Companies

Local Brands

Alamo
global
8.5
Locations:
6
Prices:
$$
Key Advantages
- Easy online booking
- No hidden fees
- Wide range of vehicle options
- 24/7 customer service
Best for
Budget-conscious travelers and families

Travelers' Recommendations for Car Rentals

Advantages of Global Chains

Consistent service quality across locations
Wide range of vehicles available
Strong customer support network
Ideal for business or frequent travelers

Advantages of Local Brands

Competitive pricing for budget travelers
Unique vehicle options reflecting local culture
Personalized and attentive service
Great for exploring Palau's local attractions

How to Choose the Right Car?

Choosing the right rental car can make your journey more comfortable, safe, and enjoyable. Think about your travel group, the destinations on your route, and the type of driving you'll be doing. With QEEQ, you can compare multiple car types and policies to find the one that best suits your journey.

Seating and Luggage
Consider your travel group size and luggage needs
- Economy cars (2-4 people, 1-2 suitcases)
  Perfect for city driving and short trips
- Compact cars (4-5 people, 2-3 suitcases)
  Good balance of space and fuel efficiency
- Mid-size cars (5 people, 3-4 suitcases)
  Comfortable for longer distances
- Full-size/SUV (5-7 people, 4+ suitcases)
  Ideal for families and group travel
Transmission Type
Choose between automatic and manual transmission
- Automatic transmission
  Easier for city driving and traffic, more common in USA
- Manual transmission
  Often cheaper, better fuel economy, more control
- Consider your comfort level with left-hand driving and automatic cars
Insurance Included
Check what insurance coverage comes with your rental
- Basic liability
  Covers damage to other vehicles and property, usually included
- Collision Damage Waiver (CDW)
  Covers damage to your rental car, often optional
- Theft protection
  Protects against car theft, may be included or additional
- Personal insurance
  Check if your insurance or travel insurance covers rentals
Cancellation Policy
Understand booking flexibility and fees
- Free cancellation
  Usually available up to 24-48 hours before pickup
- Prepaid vs. Pay-at-counter
  Prepaid often cheaper but less flexible
- Change fees
  Cost to modify dates, locations, or car type
- Travel insurance
  Consider coverage for trip cancellations or delays
Mileage Policy
Check distance restrictions and additional charges
- Unlimited mileage
  Best for long road trips and cross-country travel
- Limited mileage
  Cheaper daily rate but extra charges for excess miles
- Consider your planned route distance and potential detours
- Factor in mileage costs when comparing total rental prices
Fuel Policy
Understand fuel requirements and costs
- Full-to-Full
  Return with same fuel level, most economical option
- Full-to-Empty
  Pay upfront for full tank, convenient but often more expensive
- Same-to-Same
  Return with same level as pickup, fair pricing
- Pre-purchase fuel options
  Compare costs with local gas station prices

Quick Decision Guide

City Travel
Compact/Economy car with automatic transmission, full-to-full fuel policy
Koror, Airai
Road Trip
Mid-size/Full-size car with unlimited mileage, flexible cancellation
cross-country exploration
Vacation
Convertible/SUV with comprehensive insurance, prepaid fuel option
beach and island tours

Compare with Confidence on QEEQ

Don't settle for the first option you find. QEEQ makes it easy to compare car types, policies, and total costs from multiple providers. See all fees upfront, read real customer reviews, and choose the perfect car for your adventure.

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No hidden fees
Real customer reviews

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Popular Destinations in Palau for Travelers from the USA

Palau, a tropical paradise in the Pacific Ocean, offers stunning landscapes and cultural experiences. Key destinations include Koror, known for its vibrant city life and access to the Rock Islands; Babeldaob, rich with historical sites and lush terrains; and Peleliu, a peaceful island with significant historical landmarks. Car rentals are ideal for exploring these locations efficiently, providing flexibility and convenience.

What Insurance Do I Need?

Travelers renting cars in Palau should prioritize appropriate insurance coverage to ensure a safe and worry-free trip. Basic insurance is mandatory, but additional coverage is highly recommended to mitigate risks such as accidents, theft, or personal liability.

Types of Insurance Coverage

Collision Damage Waiver (CDW)
Covers damage to the rental car resulting from collisions or accidents.
$12-20/day
Essential
Theft Protection (TP)
Provides coverage against the theft of the rental vehicle.
$6-10/day
Essential
Third-Party Liability Insurance
Covers damage or injury caused to others and their property.
Often included in base price
Included
Personal Accident Insurance (PAI)
Covers medical expenses for the driver and passengers in case of an accident.
$4-8/day
Optional

QEEQ's Complete Protection Solutions

Perfect for travelers who want comprehensive protection without the complexity. One price covers everything, and AXA's trusted network ensures reliable claims processing throughout Palau. Get comprehensive coverage online for about 50% less than counter rates.

Insurance Coverage Comparison

Coverage Feature

QEEQ Full Coverage

Basic Rental Company

Collision Damage Waiver

Fully Covered

Theft Protection

Fully Covered

Personal Accident Insurance

Fully Covered

Not Covered

Tire, Window, Mirror Damage

Fully Covered

Not Covered

Roadside Assistance

Fully Covered

Not Covered

Know more About QEEQ Full Coverage

How to Book a Rental Car and Save Money?

Booking smart can save you significant costs when renting a car for your trip from the US to Palau. Car rental prices depend on multiple factors, so careful planning and informed choices are key.

Booking Tips for lower Prices

Book Early
Reserve your car well in advance, ideally several weeks before your trip, to secure better rates and ensure availability.
Save up to 30%
Compare Prices
Use trusted comparison websites like Kayak or Rentalcars.com to evaluate options and find the best deals.
Save up to 25%
Full Tank Policy
Opt for 'pick up full, return full' fuel policies and locate nearby gas stations for refueling at lower rates.
Save $20-40
Leverage Memberships
Check if your credit card or travel programs offer discounts on car rentals and insurance coverage.
Save up to 15%

QEEQ's Money-Saving Features

Diamond Membership
Save up to 20% on every booking - free trial available below.
View Details
Price Drop Protector
If your booked car price drops, QEEQ automatically rebooks it at the lower rate and refunds the difference to you.
View Details
One-Dollar Freeze
Lock in today's price with just $1 upfront and pay the rest later.
View Details
Flexible Payments
Pay with credit/debit cards or even cryptocurrency via BitPay.
View Details

What Should You Pay Attention To?

Important considerations and potential issues to watch for when renting a car in Palau (PW) as a traveler from the United States.

Cost Considerations
Understand the full cost of car rental in Palau.
- Ensure the quoted price includes taxes and fees.
- Be cautious of additional charges for accessories like child seats or GPS.
- Verify the fuel policy to avoid unexpected refueling fees.
- Plan for potential parking fees in certain areas.
Driving License Requirements
Verify if your U.S. driving license is sufficient.
- An International Driving Permit (IDP) may be recommended.
- Ensure your driving license is valid for the duration of your stay.
- Carry necessary identification documents at all times while driving.
Fuel Availability
Be aware of fuel availability and station locations.
- Fuel stations may be limited in remote areas.
- Plan refueling stops in advance.
- Check if the rental includes a full tank of fuel.
Road Conditions
Understand the road conditions in Palau.
- Some roads may be unpaved or in poor condition.
- Drive cautiously in less developed areas.
- Check if the rental car is suitable for the intended routes.
Rental Agreement
Read the rental agreement thoroughly before signing.
- Review terms on insurance and liability.
- Understand the policies on damage and repairs.
- Check the rental duration and return conditions.

Remember

Being prepared and knowing what to expect can save you hundreds of dollars and prevent stressful situations. Take time to understand all terms and inspect your rental thoroughly.

What Are The Differences Between US and Polish Traffic Rules

US and Polish traffic rules differ mainly in speed limits, signage units (miles vs. kilometers), alcohol tolerance (higher in the US), and right-on-red turns (more common in the US).

Right Turn on Red
PW
Allowed after full stop (unless prohibited by sign)
US
Not allowed at red lights
School Buses
PW
Must stop when school bus has flashing red lights
US
No special school bus rules
Highway Passing
PW
Pass on the left, slower traffic keeps right
US
Similar, but passing on right sometimes allowed
Blood Alcohol Limit
PW
0.08% BAC (varies by state)
US
0.02% BAC (much stricter)
Mobile Phone Use
PW
Hands-free only in most states
US
Hands-free only
Seatbelt Laws
PW
Mandatory for all occupants in most states
US
Mandatory for all occupants
Parking Rules
PW
Park in direction of traffic, colored curbs have meanings
US
Can park against traffic on one-way streets
Remember
- • Traffic rules vary by state - check local laws
- • Police stops are more common - stay calm and polite
- • Keep hands visible during police interactions
- • Always carry your license and rental agreement

Voices of our customers

Frequently Asked Questions

Common questions for travelers from United States renting a car in Palau

Is it necessary to rent a car when traveling in Palau?

It depends on your itinerary. If you're mainly staying in downtown Koror and joining tours with hotel pick-up, renting may not be needed. However, for exploring Babeldaob Island, waterfalls, ancient ruins, scenic drives, or dining/shopping at your own pace, renting a car greatly increases your freedom and enhances the experience.

Can I drive in Palau with my U.S. driver's license?

Yes, a valid U.S. state-issued driver's license allows you to drive legally in Palau for up to 30 days.

What if I plan to stay in Palau and drive for more than 30 days?

You'll need to apply for a temporary local driver's license at Palau's transportation department. Most rental agencies will inform you of this requirement.

Do I need an International Driving Permit (IDP) for Palau?

It's not legally required, but highly recommended. An IDP serves as an official translation of your U.S. license and can help avoid misunderstandings with police or in case of accidents.

Are there age restrictions for renting a car in Palau?

Yes. Most car rental companies require drivers to be at least 21. Some may require 25+. Drivers aged 21-24 may incur a Young Driver Surcharge.

What type of car should I rent—sedan, SUV, or 4x4?

A standard economy or compact sedan suffices for most visitors. Main roads are in good condition. If you plan to explore unpaved areas or travel during the rainy season, consider an SUV for better clearance. True 4x4s are generally unnecessary.

Are vehicles in Palau left-hand or right-hand drive? Which side of the road do they drive on?

Palau uses left-hand drive vehicles and drives on the right side of the road—just like in the U.S., so no adjustment is needed.

How far in advance should I book my rental car?

It's best to reserve at least 2-4 weeks in advance, especially during peak season (December–March) for the best selection and rates.

Are most rental car companies in Palau local or international brands?

Most are local companies, with locations at the airport and in Koror. While you may not find large U.S. chains, local agencies are professional and knowledgeable.

Are child safety seats available with rental cars?

Most companies can provide child seats for an additional fee and with advance notice. For specific standards or peace of mind, consider bringing your own from the U.S.

What are the main ways to book a rental car in Palau?

You can book directly through local rental companies or at airport counters. For transparent price and vehicle comparisons, international rental platforms like QEEQ are useful.

What is the average daily cost for renting a car?

Economy cars typically cost $40–$60 per day. SUVs and larger vehicles are more expensive. Prices vary by season, rental duration, and booking date.

What does the basic rental fee include?

Usually, basic rental covers the vehicle and the legally required minimum third-party liability insurance. Mileage is often unlimited, but confirm when booking.

What extra fees should I be aware of beyond the basic rental rate?

Possible extras: collision damage waiver (CDW/LDW), airport surcharges, young driver fees, additional driver fees, child seat rental, and taxes.

What is Collision Damage Waiver (CDW/LDW), and do I need it?

CDW/LDW limits your financial liability for vehicle damage or theft to a set deductible. It's strongly recommended in Palau, as repair costs can be high.

Can I use my U.S. credit card's rental insurance instead of buying CDW?

Some U.S. credit cards offer rental car insurance, but coverage in Palau may be limited or excluded. Always confirm with your card issuer and the local rental company—many require you to purchase their insurance regardless.

What is third-party liability insurance?

This covers damage or injury you cause to others or their property. It's legally required and usually included in the rental, but coverage limits may be low. Consider supplemental liability insurance if available.

Is a security deposit required for car rentals? How much is it?

Yes, nearly all companies require a credit card deposit (pre-authorization) ranging from $200 to $1,000, depending on vehicle type and insurance package. It is released after returning the car in good condition.

What payment methods are accepted for rental fees and deposits?

Credit cards (Visa, MasterCard) are widely accepted and preferred, especially for deposits. Some companies accept cash for rental fees, but nearly all require a credit card for the deposit. Debit cards are often not accepted.

Can I get a refund if I return the car early?

Usually not. Most agencies do not refund unused days for early returns. Always check the rental terms before booking.

Is there an extra fee for adding an additional driver?

Generally yes, a small daily fee applies. All drivers must present valid licenses and be listed on the contract, or insurance is void.

Are taxes included in the quoted rental price?

Check if prices include tax. Palau imposes a Goods & Services Tax (GST), usually added to the final bill.

Where can I pick up my rental car—airport or hotel?

Main pickup point is Palau International Airport (ROR). Many companies offer hotel delivery/pickup, sometimes for a fee.

What is the process for picking up a rental car at the airport?

Go to your rental agency's counter in arrivals. Present your passport, U.S. license (and IDP), booking confirmation, and credit card. After paperwork, staff will escort you to your car.

What should I check when picking up the rental car?

Inspect for existing scratches/dents (photograph as proof), tire condition, presence of spare, air conditioning, electronics, fuel level, and mileage. Make sure all damage is documented.

What is Palau’s typical fuel policy for rentals?

Most rentals are full-to-full: pick up with a full tank, return full. If not, you'll be charged a premium fuel price and service fee.

Is the car return process complicated?

No. Bring the car to the designated return spot (often airport parking), where staff check condition and fuel. Finalize payment, and your deposit is released (may take days to reflect).

What happens if I return the car without a full tank?

You'll be charged at a much higher rate per gallon plus a service fee. Always refuel before returning.

What if I need to return the car late?

Contact the rental company right away. Unapproved late returns may incur steep penalties. There’s usually a short grace period, then hourly or daily extra charges.

Can I return the car outside of business hours?

Some companies offer a key-drop box for after-hours returns. Be aware the final inspection happens after you leave, and you’re responsible for any issues found.

What are the speed limits in Palau?

Speed limits are strictly enforced and generally low—maximum 25 mph (40 km/h) on main roads, even lower near schools or villages. Always obey posted limits.

What is the road condition like in Palau?

Main roads, especially the Compact Road connecting Koror and Babeldaob, are paved and well maintained. Secondary roads may be unpaved, uneven, or muddy after rain.

What is it like driving in Koror?

Koror has the heaviest traffic. Main roads can be congested during rush hours (7:30–9:00 AM, 4:30–6:00 PM). Roads are narrow, traffic is slow, and parking can be limited.

Are there any local driving habits or risks to watch out for?

Yes: sudden stops to greet friends or let pedestrians cross, absolute pedestrian right-of-way, stray dogs/chickens/crabs on the road, and sudden downpours that reduce visibility and traction.

Are gas stations common in Palau? What are their hours?

Gas stations are mostly in Koror. On Babeldaob, they're rare—sometimes dozens of miles apart. Always fill up in Koror before long trips. Most stations operate from 7 AM to 9 or 10 PM; none are 24-hour.

How can I pay for fuel in Palau?

Most stations accept cash (U.S. dollars) and credit cards. Fuel prices are per gallon, similar to the U.S.

Is parking easy in Palau? Do I have to pay for parking?

Parking is free and easy at most hotels and tourist sites. In downtown Koror, parking can be scarce near popular spots, but there are currently no meters or paid lots.

Are there highways or toll roads in Palau?

No. There are no highways or toll roads; all roads are toll-free.

Is it safe to drive at night in Palau?

Main roads are generally safe, but outside Koror, most roads lack streetlights. Night driving is difficult due to darkness, pedestrians, and animals. Avoid night driving in unfamiliar or remote areas.

Can I use my phone while driving?

Handheld phone use (calling or texting) while driving is illegal. Use a hands-free device or phone mount for navigation.

What are the rules about drunk driving in Palau?

Palau has zero tolerance for drunk driving. Penalties are severe and strictly enforced. Never drink and drive.

Can I use Google Maps or Waze for navigation?

Yes. Google Maps works well on main roads. Download offline maps, as cell signal may be spotty in remote areas.

Are there police patrols or speed cameras?

Police patrol main roads and enforce laws, especially for speeding, seat belts, and DUI. There are no widespread speed cameras yet, but don’t rely on their absence.

Can I drive to the Rock Islands?

No. The Rock Islands are offshore limestone formations only accessible by boat. Rentals are limited to road-connected islands, mainly Koror and Babeldaob.

What should I do if I get into a car accident?

Stay calm, ensure safety, and move to the roadside if possible. Call 911 immediately, even for minor incidents. Obtain a police report for insurance, inform your rental company, exchange details with other drivers, and document the scene with photos.

What if the rental car breaks down?

Call the 24-hour emergency number provided by your rental company. They will arrange assistance or repairs. Do not attempt repairs yourself or use unauthorized mechanics.

What is the emergency contact number in Palau?

Dial 911 for police, ambulance, or fire. Keep your rental company’s emergency number handy as well.

How do I handle a traffic ticket or fine?

Follow instructions on the ticket to pay at the designated government office. If unresolved before returning the car, your rental company will charge your credit card and may add an administrative fee.

What if I accidentally lock the keys in the car or lose them?

Contact your rental company’s emergency number. They will send help or provide a spare key, usually for a fee, especially in remote areas.

Will I be charged if there are new scratches when returning the car?

It depends on the severity and your insurance coverage. Full CDW with zero deductible usually covers minor damage. If not, you may be charged repair costs, highlighting the importance of thorough pre-rental inspection and documentation.

Still have questions？

Contact QEEQ via online chat or hotline for specific advice. Contact Support

Car Rental in Palau for US Travelers

Can US Citizens Drive in Palau?

Ready to Rent?

Which Car Rental Companies Are Best?

Travelers' Recommendations for Car Rentals

How to Choose the Right Car?

Quick Decision Guide

Compare with Confidence on QEEQ

Popular Destinations in Palau for Travelers from the USA

What Insurance Do I Need?

Types of Insurance Coverage

QEEQ's Complete Protection Solutions

How to Book a Rental Car and Save Money?

Booking Tips for lower Prices

QEEQ's Money-Saving Features

What Should You Pay Attention To?

Remember

What Are The Differences Between US and Polish Traffic Rules

Remember

Frequently Asked Questions

Other Popular Destinations