Driving around Corfu island is mostly a pleasure, since the main road is usually next to the sea. Driving at high speed is not recommended at all, the road has a lot of curves and tourists may get on it without notice. Greek taxi drivers may seem insane, but they know the road much better than you, so they can drive faster.
Driving on the eastern coast is easy, since the hills are not very high. You can get from Corfu Town to the northern or southern parts rather easy. The western side has some higher hills and some more difficult roads. You should drive very carefully and slowly, since you will meet other cars in curves with little visibility. It is best to avoid these areas at night if you are tired or inexperienced. It’s not that dangerous if you pay attention.
Parking in Corfu is usually free and easy. Most hotels and villas have some form of private or public parking. Beaches also have places to leave the cars, even though these may not be enough during high season. Some beaches have only paid parking, but this is rather unusual in Corfu. You will see that Greeks have small cars and use every possible place to park. It is not uncommon to see a small car parked in a tiny cave on one side of the road.