Car rental

To drive in Bali you'll need an international driving license. Try to follow the rules as carefully as possible when in Kuta or the police may stop you and ask for Rp50,000 or Rp100,000.

Most importantly keep in mind that if you are in an accident you will automatically be considered at fault.  The logic is simple, the accident simply would not have happened if you, the tamu, (guest) weren't driving. 

Most auto rental places will include insurance for collision damage to the rented vehicle but will not include third party liability insurance thus making you responsible for all other damages and physical injuries.