Car Rental in Cambodia - All You Need To Know
Updated: May 22, 2025
With its low-lying plains, towering mountains and vast stretches of coastline, the Southeast Asian nation of Cambodia is a magical place to explore by rental car.
Situated in the southwest of the Indochinese peninsula where it occupies some 181,000 square kilometres of land, travelling around Cambodia by car can be an invigorating experience. By not relying on public transport or internal flights, you benefit from maximum freedom and independence, stopping off as often as you please and making unplanned detours on a whim. If you’re planning to rent a car in Cambodia, we’ve created a comprehensive guide to help you below.
Legal Considerations
As surprising as it might sound, international driving permits aren’t recognised in Cambodia and you can only rent a car if you have a Cambodian driver’s licence. This inevitably reduces the number of people wanting to hire a car here. Those who do and are staying for less than six month will need to apply for a Cambodian license by showing your home country’s license, passport, visa and a couple of passport photos at the Ministry of Public Works and Transport.
Most rental companies require drivers to be at least 21, but if you’re under 25 you’ll likely need to pay an extra fee. You’ll also need to present your Cambodian driver’s license and a credit card for the security deposit, so it’s advised to keeping copies of your passport, visa, and license in the car in case you get stopped.
A common error made by drivers overseas is getting the side of the road you drive on wrong. This is both illegal and dangerous, so always try to keep at the front your mind the side you should be on. In Cambodia, they drive on the right-hand side, just like in the U.S. and most of Europe.
One final thing: even though you’re not legally required to carry a first aid kit in your car, it’s certainly worth considering having one on you, as it can make all the difference in an emergency situation.
Insurance
When renting a car in Cambodia, it's vital to understand the insurance landscape to ensure you're adequately covered. Firstly, most standard car insurance policies from your home country won't cover international rentals, including those in Cambodia. Therefore, it's essential to verify with your insurance provider whether your policy extends to international car rentals.
Many travel insurance policies offer rental car coverage either as part of their standard plans or as an add-on. This typically includes Collision Damage Waiver (CDW), which covers damage to the rental vehicle in case of an accident or theft. However, these policies often don’t cover liability or medical expenses incurred in an accident.
Additionally, some credit cards provide rental car insurance when you use them to pay for the rental. For example, Visa offers Auto Rental Insurance that covers accidental damages to the rental car for rental periods up to 31 days, provided you decline the Collision Damage Waiver offered by the rental company.
Tips on Driving in Cambodia
Driving in Cambodia can be quite the adventure, starting with the quality of the roads. Cambodian roads are a mixed bag – to put it politely. While highways are improving, rural areas can still be unpredictable, so you should be prepared for everything from potholes to wandering livestock.
In Cambodia, your horn isn't just for emergencies, either; it's a vital communication tool. Locals use it liberally to signal their presence, especially when overtaking or approaching intersections. You might want to do the same, even if your driving instructor taught you it was a cardinal sin.
As for traffic, in cities like Phnom Penh it can feel a bit like organised chaos. Motorbikes, tuk-tuks, cars and even the occasional ox cart all vie for space on the roads, so it’s important that drivers unfamiliar with the terrain stay calm, go with the flow, and stick to the principle that patience is key.
Once the sun sets, road conditions become even more challenging. Limited street lighting, unexpected obstacles and unmarked vehicles are a perpetual hazard and make nighttime driving risky. If possible, you may want to try and plan your trips to conclude before dusk to ensure a safer journey.
Where to Park
In bustling cities like Phnom Penh, finding a parking pot can be tricky. Here, shopping malls are often your best bet as they usually offer secure parking facilities. Some hotels and office buildings also have paid parking, but spaces here can be limited. If you're heading to popular tourist spots, parking tends to be scarce.
When parking on the streets in Cambodia, it's customary to tip parking attendants a small amount. This gesture ensures your vehicle is looked after and also helps support the local community.
Local Rental Agencies
In addition to the major European car rental brands like Budget, Enterprise, Europcar, and Avis, you'll also find a small handful of local car hire companies throughout Cambodia.
A popular local option is Lyna whose agency is conveniently located in the capital of Phnom Penh, where it has been serving travellers since 2001. Lyna offer a range of vehicles at competitive prices – often more affordable than larger international agencies. They also provide easy booking and flexible insurance options.
The Cost of Renting a Car in Cambodia
When it comes to cost, tenting a car in Cambodia can be a mixed bag. On average, you're looking at about $88 per day for a rental. However, prices can fluctuate based on the type of car and the rental company. For instance, smaller cars like a Hyundai i10 might set you back around $54 per day, while larger vehicles or SUVs can climb up to $112 daily.