First time I've driven in Greece and I found it fine.
The causeway into Argostoli is a little scary though

Driving in Kefalonia is great as the roads are fairly good we do not hire a car as we had a Greek friend who has taken us all over the Island places where tourist will never see, but the roads are quite mostly find Agostoli hectic especially around where the ferry boat comes in, but local transport is also very good it's a beautiful Island scenery out of this world and plenty to see so car hire would be a good thing we go again on Sunday 14th can't wait.
pojo

Some spectacular views from the road north to Fiscardo, look out for goats round blind bends. The locals tend to drive faster than the tourists and some of their cars are wrecks but the roads are generally quiet.

I found driving in Kefalonia to be fine. I've also done it in Corfu which was a bit of a nightmare. As previously said Argostoli is a bit built up and hectic (it has the islands only set of traffice lights too!!!) but everywhere else was fine. There isn't near as much traffic as the UK and although the roads are good you cannot yet up to great speeds making your driving experience safer. I agree, the views on the drive north to Fiskardo and Assos are nice especially above Myrtos Beach where you can get your photo taken from the vantage point just off the road (See Myrtos beach pics in the photo galleries). If you get a car go to the Drogorati Caves as they are well worth seeing (bar a power cut upon my first visit). Hope you have fun

Dean

We went to Kephalonia I think 4 years ago and had tremendous thunderstorms and rain for 6 days in August. This caused massive landslides which severely affected the roads. Also after a dry spell, the roads were treacherous after a small amount of rain. If it does not rain then the roads are OK. The main coast road from Scala to Fiskardo gives wonderful views but would be a nightmare in wet conditions as it is a long drive (1.5-2hours). Try and get car hire with tyre cover as well as undercarriage cover. Some car hire firms are cheaper than others mainly because if you do damage the tyres/undercarriage....you pay for it. Also
we heard stories of some companies wanting a deposit and your credit card details, then trying to charge for old damage when returning the car at the end of the hire period.
Take home message, do your homework, go through the rep ( then you have some comeback), or go by recommendation and do not go with the cheapest company...you will pay for it in the end.

We gave up renting cars through the tour operator years ago even though we sometimes use the same company, they just take too much commision. We have always understood the tyres and underbody to be uninsured although we usually pay for upgraded insurance. Check the car for damage before accepting it, on only one occasion have we refused to accept a car and that was due to 2 illegal tyres.

I too gave up using the reps for car hire several years ago. In October 2004, the Kosmar rep was quoting 199 euros for a Suzuki Jimny for 3 days. A contact i had used several times before gave me the same car for 4 days for 99 Euros!! The insurance was first class too. Be warned with regard to insurance, in general fully comprehensive in Greece is about the equivilant of our third party insurance so look closely at the policy you are offered.
Have fun exploring this wonderful island!