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Top destinations to rent a car in Palau

A coastal landscape with a bridge, clear blue waters, and islands.
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Koror

Koror

What you need to know for your Palau car rental

Reasons to book a car rental in Palau

Renting a car in Palau is a popular choice for travelers seeking the freedom and flexibility to explore the country's stunning attractions at their own pace. With a rental car, you can easily manage your luggage and create a travel plan that suits your interests, whether you are drawn to beach experiences, outdoor activities, or breathtaking scenery. Notable destinations include Palau Pacific Resort Beach and Nikko Bay, both perfect for beach and outdoor experiences. Jellyfish Lake offers a unique blend of scenery and romance, making it a must-visit spot. Additionally, you can explore vibrant cities like Koror, where you'll find cultural sites such as the Etpison Museum and Ngarachamayong Cultural Center. Malakal Island and Meyungs also feature key attractions, including the Palau Pacific Resort Beach. Having a rental car not only saves time but also enhances your experience by allowing you to visit these key locations comfortably and conveniently. Thus, consider renting a car to fully enjoy the diverse offerings of Palau, whether you are looking to relax on the beach or immerse yourself in the local culture.

Most popular car rentals in Palau

  • Compact: Compact cars are a popular choice for travelers in Palau, accommodating up to 5 people and allowing for up to 3 medium suitcases. This makes them ideal for solo travelers, couples, and families looking to explore the island at their own pace while managing luggage easily.
  • Midsize Pickup: Midsize pickups are another highly booked option, comfortably fitting 5 travelers with space for up to 2 large suitcases. This vehicle type is perfect for families, couples, or small groups who need a bit more room for both passengers and gear, making it a versatile choice for your Palau adventure.
  • Economy: Economy cars are favored by many visitors, accommodating 5 travelers with up to 2 medium suitcases. This option is great for solo travelers, couples, and families alike, offering a balance of affordability and space while ensuring you can navigate Palau’s roads with ease.

Where to stay in Palau

  • Koror: Koror is a vibrant city known for its stunning outdoor scenery and beautiful beaches. Travelers can explore landmarks like the Etpison Museum for cultural insights and Nikko Bay for breathtaking views. With various options for dining and shopping, Koror serves as a central hub for adventure activities and underwater sports, making it an ideal base for your Palau trip.
  • Malakal Island: Malakal Island offers a serene escape with its picturesque beaches and lagoons. Visitors can enjoy activities such as diving and walking tours, with highlights including the Palau Pacific Resort Beach and cultural experiences at the Ngarachamayong Cultural Center. This scenic island is perfect for those seeking outdoor adventures while being close to Koror's amenities.
  • Meyungs: Meyungs is a charming city surrounded by pristine beaches and islands, perfect for a relaxing getaway. Key attractions like the Etpison Museum and Palau Pacific Resort Beach provide cultural and recreational opportunities. With dining options nearby, Meyungs caters to travelers looking for a mix of exploration and leisure amidst stunning natural beauty.

10 tips to save on your car rental in Palau

  1. Use filters to find the right car: Refine your search by vehicle type and specific features. Whether you need an SUV for added space, a convertible for summer drives, or an economy car for budget-friendly travel, utilize the filters on Expedia to discover the best option for your journey.
  2. Book in advance to help lower costs: Rental prices can vary based on demand, so it’s advisable to secure your car well ahead of your trip. Booking early often allows you to lock in lower rates and ensures better availability, especially during peak travel seasons.
  3. Consider a smaller car for savings: Compact cars are usually more affordable to rent and easier to maneuver in crowded areas. Mid-size rentals strike a good balance between cost, comfort, and fuel efficiency.
  4. Age guidelines: Drivers under 30 may encounter higher deposits or daily fees, and certain vehicle categories—such as SUVs or luxury models—might not be accessible. This can also apply to renters over 70 years old. Always verify the age requirements prior to booking.
  5. Check fuel policies: Some rental agreements require a full-to-full fuel policy, meaning you must return the car with a full tank to avoid extra charges. This is typically the most advantageous option. Others may offer full-to-empty or prepaid fueling alternatives, which are also acceptable. Just ensure you return the car empty in that scenario.
  6. Save on city and airport pickups: Picking up your rental car at airports often incurs a surcharge, but the added convenience may justify the cost.
  7. Know your payment options: Most car rental companies accept only credit cards for payment.
  8. Understand your insurance coverage: Car rental insurance can help you avoid unexpected expenses and provides peace of mind if something unforeseen occurs during your trip. Adding car rental insurance is easy when booking through Expedia.
  9. Consider unlimited mileage: If you’re planning lengthy road trips, seek out rentals that offer unlimited mileage to prevent additional charges.
  10. Bring your driver's license and ID: A valid driver's license is necessary to rent a car.

Best time to rent a car in Palau

The best value period to rent a car in Palau is May, when prices are slightly low and demand is moderately low. March and April also offer decent options, with average demand and prices. However, January tends to be the most expensive month, with slightly high prices and moderately high demand. October and December follow closely, with slightly high prices and December being particularly busy. January to April is generally the busiest and priciest time for car rentals in Palau.

Find Palau Car Rentals

Expedia.com makes it easy for you to book your next Palau car rental. We work with the best car rental companies in Palau, bringing you discount car rental rates and a wide variety of car rental classes including economy, compact, midsize, full-size, convertible, van, luxury and SUV rentals. Our partner car rental companies in Palau offer different pick-up and drop-off options. If you are ready to book your Palau car rental, follow the links on this page to view more information and details on your next short or long term car rental.

Expedia.com offers a wide selection of rental cars in Palau to meet nearly every need. If you need any special equipment, like a child seat or ski rack, let us know and we will forward your request on to the rental car company. And what's more, when you choose to rent a car from one of our Palau airport car rental partners you'll be dealing with a rental car company that has made a special commitment to provide Expedia customers with great customer service, a wide choice of top quality cars, and competitive total pricing.

Expedia.com offers many Palau rental cars pick up locations

Find the best place to get your Palau airport rental cars by searching tons of pickup locations with Expedia.com

Frequently asked questions

What are the cheapest car rentals in Palau?
The most affordable car rentals in Palau are typically the smaller classes, such as economy and compact cars, which are efficient for navigating the islands. You'll find these options readily available in cities like Koror. Nationwide suppliers such as Avis and Alamo Rent A Car offer a range of these budget-friendly vehicles. Rates can vary significantly by city, specific pickup location, and the time of year, so it's always a good idea to compare different cities and dates on Expedia to find great value for your trip.
What are the best car rentals in Palau?
Car rentals across Palau come in a full range of vehicle types from providers like Avis, Enterprise, and Alamo Rent A Car, broadly available in major cities such as Koror, Malakal Island, and Meyungs. The most common car classes include:
  • Economy 2 or 4 door
  • Midsize 2 or 4 door
  • Compact 2 or 4 door
  • Fullsize 2 or 4 door
  • Standard pickup regular cab
These options cater to various travel needs, whether you're a solo explorer, a couple, a family, or a small group. Choose based on passenger count, luggage, and whether you're driving primarily in the city or covering longer distances between regions.

What are the best car rental companies in Palau?
For car rentals across Palau, well-rated providers like Avis, Enterprise, and Alamo Rent A Car offer a strong mix of vehicles with wide availability in major cities such as Koror, Malakal Island, and Meyungs. These companies are known for their diverse fleets, catering to various travel styles and budgets. Compare suppliers and pickup points on Expedia to find the right vehicle for your trip and ensure a smooth experience exploring the region.
Can I rent a car one-way in Palau?
Yes, one-way car rentals are a great way to see Palau, allowing you to pick up your vehicle in one city and drop it off in another. This is ideal for a cross-region road trip, for example, picking up in Koror and dropping off in Malakal Island. Providers like Avis and Alamo Rent A Car often offer flexible one-way options. A one-way drop-off fee usually applies and can be higher over longer inter-city distances, so it's always best to confirm any associated fees when booking your rental on Expedia.
What are the best luxury car rental companies in Palau?
For luxury car rentals across Palau, providers like Avis, Enterprise, and Alamo Rent A Car offer premium categories such as fullsize cars and SUVs. These high-end vehicles provide extra comfort and space for touring the region in style. You'll find these options available in major cities like Koror and Malakal Island. Use Expedia's car-class filters to browse premium options and compare before you book, ensuring you select the perfect vehicle for your upscale travel experience.
What are the best car rentals in Palau for families or groups?
For families or groups exploring Palau, SUVs and minivans provide ample room for passengers, car seats, strollers, and luggage, and are available across major cities like Koror and Malakal Island. Consider these options for your trip:
  • Enterprise: midsize SUV — seats up to 5 with room for 3 large suitcases
  • Alamo Rent A Car: mini passenger van — seats up to 8 with room for 6 large suitcases
  • Avis: fullsize 2 or 4 door — seats up to 5 with room for 3 large or 5 medium suitcases
These vehicles ensure everyone stays comfortable for both city driving and longer trips between regions. It's wise to book a few weeks ahead, as larger vehicles can have lower availability during busy periods.

Which airports in Palau can I pick up a rental car?
In Palau, the primary location to pick up a rental car is Palau Airport (ROR), which serves as the main gateway for travelers visiting the region, including cities like Koror. Choosing to pick up your rental directly at the airport offers convenience upon arrival. You can compare rental rates and available vehicles at Palau Airport (ROR) on Expedia to find a great option for your trip.
What are the best road trips in Palau by rental car?
With a rental car, Palau opens up for multi-stop road trips between its main cities and points of interest, allowing you to explore at your own pace:
  • Koror to Meyungs: This short drive of about 3 miles takes you from the main city of Koror to Meyungs, where you can visit the Palau Pacific Resort Beach.
  • Exploring Koror and Malakal Island: Discover the vibrant heart of Palau by driving between Koror and nearby Malakal Island, visiting sites like Nikko Bay and the WCTC Shopping Center.
A rental car makes it easy to visit multiple destinations, and a one-way rental can be convenient for point-to-point routes so you don't have to double back. Compare pickup cities and one-way options on Expedia to plan your trip.

Which side of the road do you drive on in Palau?
In Palau, you drive on the right-hand side of the road. This is important to remember as you navigate the roads between cities like Koror, Malakal Island, and Meyungs. If you're accustomed to driving on the left, give yourself a little extra time to adjust to the local traffic flow, especially at intersections and roundabouts, which will operate in the opposite direction. Keeping to local speed limits and traffic laws can help ensure a safe and enjoyable drive throughout the region.
Are there any hidden fees when renting a car on Expedia?
Expedia aims to show the key price and important rental details clearly during booking, so you know what to expect before you reserve. In some cases, car rental companies may apply additional charges at pick-up or during the rental, such as security deposits, tolls, fuel charges, extra driver fees, or local requirements, so it's worth checking the supplier's rental terms before you book.
Are there any long-term car rentals in Palau?
Yes, there are several long-term car rental options available in Palau. Whether you're planning an extended holiday with the family, relocating temporarily, or simply need a vehicle for several weeks or months, many car rental providers offer flexible long-term rental plans tailored to your needs. Click on our long-term car rental deals page, enter your trip information and then book a ride that suits.
Do you need insurance to rent a car in Palau?
No, you don't need personal auto insurance to rent a car in most cases. You will, however, be required to purchase some insurance to cover the duration of the rental. Rental companies will offer this insurance when you rent the car. Certain personal car insurance policies can also be applied to rental cars, and travelers can even use non-owner car insurance if they rent cars often but don't have a car of their own. Additionally, some car rentals simply include rental car insurance within the price of the rental.
How much does it cost to rent a car in Palau?
Budget car rental in Palau can be easy to find, with prices based on rates seen within the past seven days . To find some of the cheapest options, sort your search results by price and use filters to match your budget and travel needs. For added flexibility, it's also worth exploring one-way car rentals.
What are the top car rental deals in Palau?
No matter what kind of vehicle you're looking for, Expedia makes it easy to find a great car rental deal in Palau. The easiest way to get a good deal on a rental car is to use our filters. At the top of the filter list, you'll find a section featuring our best car rental offers. Check the filter for "Great Deal," and your search results will be filled with specials. Compare offers from trusted rental providers, choose the option that fits your trip, and book with confidence. For even more value, bundle your Palau car rental with a hotel or flight to unlock additional savings.
What do I need to rent a car in Palau?
To rent a car in Palau, a current driver's license and a credit card in the same name are essential. If you're opting out of the company's insurance plan, then you may also need proof of other coverage. Rules may differ between rental companies, so read through your policy.
What happens if I need to cancel my Palau car rental?
If you need to cancel your Palau car rental, read over the policy to be sure, but almost all prepaid rentals are eligible for a complete refund if you notify us at least six hours prior to the pickup time, though there may be some exclusions so check your itinerary for more information, or just click through to our Customer Service Portal.

Car Rental Information

Popular car types:
SUV, Full Size, Economy
From the airport to your hotel:
Airport Transportation