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You will need an international driving permit to drive in Libya.
Do follow the advice of the Foreign and Commonwealth Office when visiting Libya. At the time of writing, the FCO were advising against all travel to most of the country and all but essential travel to the rest (two coastal areas, one around Tripoli, the other around Bengazi).
Travelling against the advice of the FCO will invalidate most travel insurance policies.
Libya is one country where it is possible and worth considering paying for a professional driver with your car hire.
It is possible to purchase car hire excess insurance for rentals in Libya, but do check directly with the insurer that the policy will not be affected by any financial sanctions in place in Libya.
This content was last reviewed on 14/11/2017