It depends where your driver is based as to whether he needs to find accommodation each night. If he lives in south Bali/Ubud he will probably travel home the night you stay in Ubud. If he knows he will have to stay somewhere overnight he may include accomodation in the price he quotes you. Sometimes drivers choose to sleep overnight in their car rather than pay for a homestay out of their own money. If my driver needs to stay overnight I usually pay for his homestay & a meal. I'd rather he get a good night's sleep if he's driving us next day.
Many hotels have a room that the drivers can sleep in, just ask when you book if your driver has indicated that he will spend the night instead of going home.
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