Nicaragua has one of the best road networks in Central America. That said, the country's road network is not in anything like what most Westerners would consider to be good condition.
The only paved roads in the country run between large towns in the Pacific and Central regions. Away from these major routes, and in the Caribbean region, the quality of roads deteriorates quickly and public transport is recommended.
Driving in Nicaragua can be dangerous, especially if you are not accustomed to Latin Americans unique driving style. If you do choose to rent a car, make sure you stay constantly alert to avoid potholes, random objects blocking the road, and especially the other, sometimes erratic, drivers. It is not a good idea to drive at night when the lack of visibility and occasional drunk driver makes the roads exponentially more hazardous. In larger cities, driving only during the day is especially important as criminals often target cars at night.
Extensive driving through Managua, Estelí and León are probably best avoided day or night, as complicated one way systems can act as traps for policemen looking for bribes.
Car Rentals
It is easy to rent a car in most major cities and airports (rentals at Managua airport cost around 15 percent more than elsewhere), all that is required is that you be over age 25, have a credit card and a drivers license. Rentals are relatively cheap and cost as little as $20 per day, including all taxes and mandatory insurance- however, if you intend on heading off major roads, or are driving in the rainy season, you will need a 4X4. Such vehicles cost between $35 and $120 per day.
Before you drive away, check you have all your paperwork and that the car is in good condition.

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