It is not worth the effort or money to drive in Prague. The large quantity of 1 way streets and the crowded roads are both extremely infuriating. Moreover, parking in the centre is frequently limited and only available to locals who own parking stickers, which they have paid for in advance. The sole time when you may wish for a car, is if you have a few spare days and you want to venture out to other places in the Czech Republic.
The worst thing for you in Prague will be the trams and buses. Keep in mind that you must give way to them at all times. Be aware that trams will be on your left and are usually hard to see. Finding a parking space and driving in the city centre requires quite a lot of patience, and you should be prepared for frequent jams etc, similar to other world cities. There are also plenty of one-way streets and no-turns. The road system and traffic handling in Prague is not the best, and definitely needs a lot of improvement. Drivers in Prague are also quite aggressive and are not willing to give way unless they really have to. All Prague’s drivers seem to always be in a rush, and ready to step out of the car or open a window and shout at you if you are too slow, or make some driving error. Occasionally, usually at night at some crossroads, the traffic lights controlling the junctions turn to “flashing orange”. This means that nobody has the right of way and traffic must sort it out for themselves. All vehicles are required to drive with lights on.