Renting a car abroad: 12 tips to avoid hidden costs

Renting a car abroad sounds simple: you book online, pick up the keys and drive off. In practice, the devil is in the details. The price you see when booking is often not the price you end up paying. Extra insurance, an unfavourable fuel policy, young-driver surcharges, toll roads and fines can drive the total up considerably. So for travelers heading to France, Spain, Italy or further afield, it pays to read up properly in advance.

This guide brings together twelve concrete tips to help you avoid hidden costs, and then digs deeper into the things you really need to understand: the insurance, the pick-up and drop-off process, damage and disputes, and driving across borders. Read through it calmly before you book. Half an hour of preparation often saves you more than you think, and spares you nasty surprises at the counter.

1. Compare early and don’t book on impulse

Rental prices swing sharply with the season, the destination and how early you book. During peak holiday periods, demand for popular destinations rises fast, and that shows up in the rates. Count on early booking generally working out cheaper than a last-minute deal at the counter, especially in the summer months. Compare several providers and look not just at the daily rate, but at the total price including any mandatory charges.

2. Booking platform versus renting directly at the counter

You can rent in two ways: through a comparison or booking platform, or directly with the rental company (online or at the counter). Both have their pros and cons.

A platform helps you compare quickly, but read carefully to see who is responsible for what if something goes wrong. At the counter you have a single point of contact, but the rates and the sales pressure for extras are often higher there.

3. Understand the insurance: CDW, excess and deposit

This is the part where most surprises lurk. A standard rental usually includes basic cover for damage to the rental car (often called CDW, Collision Damage Waiver) and theft (TP), but almost always with an excess. That excess can run high and is blocked as a deposit on your credit card at pick-up.

Important to know: a basic CDW is far from covering everything. Damage to windows, tyres, the roof, the underside and mirrors is often excluded. That is why the counter is keen to sell you additional cover that lowers or removes the excess. That counter insurance is usually expensive. A standalone excess insurance policy taken out through a third party is often cheaper, but works differently: you pay for the damage yourself first and claim it back afterwards.

Read up on this before you leave via our separate guide on excess and deposit. Once you understand it properly, you will know exactly which extra cover you can decline at the counter.

4. Watch the fuel policy

The fuel policy is a classic source of extra costs. The cheapest option is usually “full to full”: you get a full tank and bring it back full yourself. Where possible, avoid the “full to empty” policy, because then you pay for a full tank up front, often at an unfavourable rate, and get nothing back for whatever fuel is left.

Take a photo of the fuel gauge at pick-up and do the same at drop-off. Read all the details in our guide on the fuel policy.

5. Bring the right documents

Without the right paperwork you won’t be driving off with the car, no matter how well you booked. Generally count on a valid driving licence, your ID card or passport, the booking confirmation and a credit card in the name of the main driver. Travelers from outside the EU usually need an International Driving Permit alongside their national licence, and sometimes a certified translation, so check the requirements before you travel. A debit card or prepaid card is often not accepted for the deposit.

Check what applies for each destination in our guide on which documents you need.

6. Be alert to surcharges that are easy to forget

Various surcharges aren’t always prominent in the first price you see. Keep these in mind:

• Young- or senior-driver surcharge, often below a certain age (around 25) or above a certain age.
• Additional driver, usually per day.
• Pick-up or drop-off at the airport, sometimes with a separate “airport fee”.
• One-way rental (dropping off somewhere other than where you picked up).
• Child seats, GPS and snow chains as separate options.

Add these options while booking rather than at the counter, where they are usually more expensive.

7. Check the mileage policy

Not every rental is unlimited on mileage. Some rates, especially for long distances or larger vehicles, come with a mileage limit and a surcharge per extra kilometre. If you’re planning a road trip or a lot of driving, deliberately choose unlimited mileage and confirm this in black and white in the terms.

8. The pick-up process step by step

The moment of pick-up determines whether you end up with a dispute later. Take your time and don’t rush, even if there’s a queue.

1. Check the contract before you sign: rate, fuel policy, excess, drop-off date and time.
2. Calmly decline what you don’t need; you don’t have to let yourself be pushed into extra cover.
3. Inspect the car thoroughly together with a member of staff: bodywork, windows, tyres, wheel rims, mirrors, roof and interior.
4. Have any existing damage noted on the inspection form, no matter how small.
5. Take photos and a short video all around the car, with a visible date, including existing scratches and the fuel gauge.
6. Check the fuel level and whether a spare wheel or tyre kit is present.

9. The drop-off process without surprises

The same rules apply at drop-off, but in reverse. Bring the car back on time and with the agreed amount of fuel. Preferably return it during opening hours, so a member of staff can check the car with you and sign it off. Where possible, avoid dropping off after hours via a key box, because then you can’t dispute the condition the car was in when you left it.

Take photos and a video again of the whole car and the fuel gauge at the moment of return. Ask for a document or confirmation that the car has been found in order, or at least keep proof of your drop-off. Also keep an eye on the block on your deposit until it has been fully released.

10. Damage and disputes: how to stand strong

If something happens on the road, stay calm and gather evidence. In a collision with another party you fill in a European accident statement. That is the standard form used in many European countries to record the facts of an accident: who, where, when, and a sketch of the situation. Fill it in carefully and honestly, sign it together with the other party and keep your copy. Take photos of the damage, the location and the number plates, and note down any witnesses.

Notify the rental company according to the instructions in your contract, often within a set deadline. If you later contest a damage claim or a withheld amount, your photos and the signed inspection form help enormously. If you can’t reach an agreement with the rental company, you can usually turn to a dispute body or consumer organisation. Within the EU there are channels for cross-border consumer disputes that can help you further.

11. Driving across borders and low-emission zones

If you want to take the rental car across a border, check whether that’s allowed. Some rental companies restrict driving to certain countries or charge a surcharge, and not every insurance policy covers all countries. Ask about this explicitly and have it noted if necessary.

Also watch out for local rules. Many European cities have low-emission zones where you need a sticker or registration. If you’re driving in France, you’ll need a Crit’Air sticker in various cities. Read how that works in our guide on the Crit’Air sticker for France. Also keep in mind toll roads, vignettes in countries such as Austria or Switzerland, and the way fines reach you via the rental company, often with an administrative fee on top.

12. The electric rental car

More and more often you can rent electric. That can be cost-effective and comfortable, but it calls for a little more preparation. Ask about the drop-off requirements around the battery: some rental companies expect a minimum charge level at return, similar to a fuel policy. Check how charging on the road works, whether a charging card or app is provided and what costs are attached to it. Bear in mind that the real range is lower on the motorway and in cold weather, and plan your charging stops in advance on longer trips.

Frequently asked questions

Do I need a credit card to rent a car abroad?

In most cases, yes. Rental companies usually block the deposit on a credit card in the name of the main driver. Debit and prepaid cards are often not accepted for the deposit, even though you can sometimes use them to pay for the rental itself. Check the terms of your specific rental company in advance.

Is the counter insurance worth it?

That depends on your situation. The counter insurance that removes the excess is convenient because you don’t have to advance any money, but it’s usually expensive. A standalone excess insurance policy is often cheaper, but with that you pay for damage yourself first and claim it back afterwards. Weigh convenience against cost and decide before you’re standing at the counter.

Do I have to fill up before returning the car?

Usually “full to full” is the cheapest policy, and in that case you do have to bring it back full. Fill up just before drop-off and keep the fuel receipt. If you don’t return it full under that policy, you can typically expect a refuelling charge at an unfavourable rate.

What do I do in the event of damage or an accident with the rental car?

Gather evidence and stay calm. In a collision, fill in a European accident statement, take photos of the damage and the situation, and notify the rental company according to the instructions in your contract, usually within a set deadline. Keep all your documents; they help you if a dispute over the damage arises later.

Am I allowed to take a rental car across the border?

Not always without restrictions. Some rental companies don’t allow driving to certain countries or charge a surcharge, and not every insurance policy covers every country. Ask about this explicitly in advance and have it put in writing where necessary, so you’re not caught out by surprises.