Last Updated on May 20, 2025 by Kristin
Planning a bucket-list trip to Peru? Whether you’re planning to hike the 26-mile Inca Trail to Machu Picchu or visit Lima on a business trip, you might be wondering what it’s like to drive in this South American country known for its cuisine, cultural attractions and iconic natural landscapes. Here are nine things you should know about renting a car in Peru.
Essential Tips for Renting a Car in Peru
Book from home
If you know you’ll need a car in Peru, it’s best to make your reservation as soon as possible. Not only will it be cheaper to book your car from the United States, but by booking a “pay later” reservation, you might see a price drop before you arrive in South America. If a better price comes up, you can cancel and book at the better rate.
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Pay in local currency, not US dollars
Even if you have the option to pay for your rental reservation in U.S. dollars, paying in Peruvian soles will save you money. Dynamic Currency Conversion essentially offers you the choice of being charged in the local currency or your home currency. If you opt to pay in U.S. dollars, the rental car company converts the purchase amount from the local currency on your behalf. But this process is unnecessary, since your credit card company will process the transaction in either currency, and you will pay through the nose for the non-convenience.
You need an International Driving Permit
It’s inexpensive and easy to get an International Driving Permit, but you need to apply before you leave on your trip.
Don’t drive in Lima
Many visitors to Peru comment on the difficulty of driving in Peru’s sprawling capital of Lima. Traffic jams can reach epic proportions, and drivers must always be on high alert for pedestrians, buses and other hazards that can appear out of nowhere. In addition, the driving culture may be more aggressive than the one you are used to back at home. Even the most experienced drivers used to navigating U.S. cities may find Lima a bit overwhelming. Consider picking up your rental car on your way out of the city.
Plan ahead for toll roads
Toll roads are relatively common in Peru, and run throughout the country. You’ll need cash available to pay for tolls if you encounter a toll booth. It is also a good idea to ask the car rental company how they recommend paying for tolls, and if they have a toll transponder available for the vehicle.
Don’t drive during the rainy season
Peru can be susceptible to inclement weather and extreme weather events. Take extra precautions during the rainy season, which is usually between November and March. Flash floods and mudslides can appear with little warning. Be sure to listen to keep an ear out for local weather reports, and heed all warnings about road closures. Try to avoid driving during the rainy season if possible. When venturing into remote areas, always make sure to have enough gas in the tank and let someone know where you are headed. It’s also a good idea to have an offline map in case you lose cell service when driving in remote areas.
Keep your headlights on
In Peru, drivers on national roads are required to keep their headlights on, even during the day. Some tourists report getting pulled over on the highway and being fined for not having their headlights on.
Read the fine print about collision coverage
While a collision damage waiver (CDW) or loss damage waiver (LDW) may be included in the rental rate or available for an extra fee, deductibles can still exceed $1,000. Make sure to read the fine print and understand the deductible if you accept a CDW or LDW in Peru.
Don’t cross the Peruvian border in a rental car
While some countries such as Chile allow drivers the border in a rental car, you must stay within Peru when renting a vehicle in the country. Do not try crossing the border, or you could void the rental agreement and be on the hook for hefty fines.
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Inspect the vehicle carefully
No matter how excited you are to get behind the wheel of your vacation car in Peru, take time to protect yourself from potential false damage claims by inspecting the car and taking note of dings, dents and scratches. Document everything with photos at the time you pick up and return the car.
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