Renting a car in the United States: what travelers should arrange in advance

For many travelers, renting a car in the United States is the start of a trip they never forget. The American road is not a detail of the holiday but often the main goal itself. Endless highways, deserts that stretch on for hours, coastal roads along the Pacific and parking lots so large that your car disappears into them: driving in the US feels completely different from a spin close to home.

It is also a country of distances that you easily underestimate. What looks like a short hop on the map is in reality sometimes a four or five hour drive. A road trip through the American Southwest or along the Florida coast is therefore not about speed, but about space, freedom and the rhythm of the road. You fill up along the way, you stop at diners, you drive through states that are bigger than many entire countries.

But before you get behind the wheel, there are a few things you really need to arrange in advance. American car rental has its own rules around documents, payment cards, age and above all insurance. That last point in particular is a trap where travelers often pay hundreds too much or too little. In this guide we walk you through it step by step.

Which documents do I need to rent a car in the US?

You need your national driving licence, and on top of that an international driving permit (IDP) is strongly recommended. Then there is the travel context: a valid passport and an approved ESTA travel authorisation to enter the country.

Your national driving licence is in principle valid in the United States, but if it is not written in English, an American rental desk or a police officer at a check cannot always read it. The international driving permit is essentially an official translation of your national licence and solves that problem. You always show it together with your regular licence, never on its own.

You apply for the international driving permit at the competent authority in your country. Allow some time for delivery and bear in mind that it is not always ready straight away. So apply well in advance, and not the week before departure. The document is valid for several years, so if you regularly drive abroad, it remains usable.

In addition, for the trip itself you need a passport that is still valid for a good while, and an approved ESTA. That is the electronic travel authorisation you apply for online before you leave. You need it to enter the country, separate from the car rental. For a complete overview of what to bring per country, it is best to read our guide on which documents you need.

Do I need a credit card or is my bank card enough?

For the deposit you almost always need a real credit card in the name of the main driver. An ordinary debit card or bank card is very often refused at the desk, certainly at the larger rental chains.

This is one of the most underestimated stumbling blocks for travelers. When you pick up the car, the rental company blocks a deposit on your card. For that they want a credit card (Visa or Mastercard credit), because they can reserve an amount on it without it actually leaving your account. A debit card, where the money is taken immediately, is not accepted by many offices or only under strict conditions.

The card must also be in the name of the person listed as the main driver in the contract. If you travel together and the reservation is in your partner’s name, then the credit card must also be in his or her name. Also check that there is enough available limit on the card, because the blocked deposit can be a substantial amount that temporarily eats up your available credit.

How old do I have to be to rent a car in the US?

In most states the minimum age is 21, but drivers under 25 almost always pay a hefty young driver surcharge. In a few states or for certain vehicle categories the age limits are even higher.

The young driver fee is a daily rate that comes on top of your rental price. Over a trip of two or three weeks it can add up considerably and sometimes even approach the base rental price. Certain vehicle categories, such as larger SUVs, premium models or motorhomes, are often not available at all to drivers under a certain age.

If you travel with several drivers, the surcharge applies in principle to every driver under the age limit that you have added to the contract. So only register the drivers who really get behind the wheel. How this works exactly and how to limit the costs is explained in our guide on the young driver surcharge.

Which insurance do I need in the United States?

This is the most important part of the entire reservation. The legal liability cover that comes as standard with an American rental car is in many states legally very low, and damage cover for the rental car itself is often not automatically included. For travelers it is strongly advisable to top up the cover.

In many countries we are used to a broad liability insurance being a given. In the US that is not the case. The minimum liability required in a state can be utterly insufficient in a serious accident, and you can be held personally liable in the US for the difference. That is why many travellers recommend taking out additional liability cover (Supplemental Liability Insurance), alongside damage cover for the vehicle itself.

The abbreviations at the desk are gibberish to many people. Below you can see what they mean.

LDW and CDW are comparable in practice: they are waivers that ensure the rental company does not hold you liable for the full damage to its own car. Strictly speaking it is not a classic insurance but a waiver of recourse, but the effect for you is the same: less risk of an enormous bill in the event of damage.

Before you buy everything at the desk, it is best to check your overlap. A good travel insurance, your family liability insurance or the insurance attached to your credit card sometimes already covers part of it. The problem is that those cover types often have conditions (certain countries, certain vehicle types, a maximum rental period) and an American rental company takes no notice of them: they want to sell their own waivers. So read the fine print of your existing cover beforehand, and also look at our guide on excess and deposit to understand what really comes your way in the event of damage.

How do electronic tolls work in the US?

Many American toll roads work entirely electronically, without booths where you pay cash. Your rental car can take part via a rental company’s toll programme, but that usually charges a daily rate plus the actual toll costs, often with a service fee on top.

This is the American version of the toll trap that surprises many travellers. In states such as Florida (with SunPass toll roads) or California (with FasTrak) you simply drive under a gantry and the toll amount is registered electronically. There is no barrier and no place to pay. The rental company then links your number plate to its own toll programme.

The catch is in the costs. Such a toll programme usually charges a fixed amount per day that you use tolls, and the real toll costs come on top of that. On a long road trip that can add up. So when you pick up the car, ask explicitly how the toll is settled, whether the programme counts per calendar day or only on toll road days, and whether you can decline it if you want to avoid toll roads.

What should I watch out for while driving itself?

In the US an automatic gearbox is the standard and the distances are large, so plan generously. In addition there are a few traffic rules that may differ from what you are used to, such as turning right on red and the strict rules around school buses.

Almost every rental car in the US has an automatic. For those who drive a manual at home, that is often a relief, certainly in busy city traffic. Highways have several lanes and you may sometimes overtake on the right, which can feel unfamiliar. Also take the large distances into account: a daily leg of a few hundred kilometres is quite normal in the US and takes more time than you think.

A few rules deserve extra attention:

• Turning right on red. In many states you may turn right at a red light after coming to a complete stop and if no sign forbids it. Always watch for a “No turn on red” sign.
• All-way stop. At an intersection where all directions have a stop sign, the rule is: whoever stops first goes first. It works on a turn-taking basis and requires some eye contact.
• School buses. This is the strictest rule. When a yellow school bus stops and the red lights flash, all traffic must stop, often including traffic in the opposite direction. Driving on results in heavy fines.

Filling up also works differently. At many pumps you have to pay in advance (prepay) before you can fill up, either inside at the till or via the card terminal at the pump. That terminal often asks foreign card holders for a ZIP code (American postal code), which a foreign card does not have. The result is that your card is refused at the pump. The solution is simple: go inside, tell the cashier that you want to put a certain amount on a certain pump, pay there and then fill up.

Which region or airport is best to choose?

That depends on the kind of trip you want: sun and beaches, desert and national parks, or a coastal road. Florida, California and the Southwest around Las Vegas are the classics for travelers, while New York City itself barely calls for a car.

New York deserves a warning. Manhattan is a nightmare to drive in and parking is extremely expensive. For the city itself you do not need a rental car. Only when you head further inland or to the coast from New York does a car become interesting. In that case, ideally pick it up outside the centre.

Route idea 1: Florida, from Miami to the Keys and Orlando

Florida is ideal for a first American road trip: flat, easy to navigate and full of sun. Allow about a week to ten days to do it at a relaxed pace.

• Day 1 to 2, Miami. Land in Miami, get acclimatised and discover South Beach and the art deco district. You can wait to pick up your car until you leave the city.
• Day 3 to 4, the Keys via the Overseas Highway. The legendary road over the sea towards Key West. Treat it as a relaxed drive with plenty of stops, not as a sprint.
• Day 5, Everglades. On the way back towards the mainland you visit the Everglades, with a chance of alligators and airboat tours.
• Day 6 to 7, towards Orlando. Drive north. Orlando is known for its theme parks; set aside plenty of time for this if that is your thing.

Take the times above as a guideline. Because of crowds, weather or an unexpected stop, a plan always works out differently in practice.

Route idea 2: the Southwest national parks loop from Las Vegas

This loop is a dream for lovers of desert landscapes and national parks. From Las Vegas you make a round trip past some of the most famous parks in the country. Allow at least ten days, preferably more.

• Day 1, Las Vegas. Arrival and possibly a day to acclimatise.
• Day 2 to 3, Zion National Park. Impressive canyons and hikes.
• Day 4, Bryce Canyon. Known for the red-orange rock pillars (hoodoos). At a higher elevation, so cooler in the evening.
• Day 5 to 6, towards Monument Valley. The iconic rock formations from countless westerns. Long drives, so plan generously.
• Day 7 to 8, Grand Canyon. One of the most famous natural wonders in the world. Take your time for the viewpoints.
• Day 9 to 10, back to Las Vegas. Close the loop and return the car.

An alternative for those who prefer to follow the coast is the Pacific Coast Highway between San Francisco and Los Angeles: a spectacular coastal road along cliffs, beaches and towns such as Monterey and Santa Barbara. There too the rule is: plan daily legs generously, because you drive the most beautiful parts slowly.

What does renting a car in the US cost and when is it best to go?

The price depends heavily on region, season, vehicle type and above all the chosen insurance, so exact rates are hard to give. The high season also differs per region: in Florida the winter is precisely the popular time, while the Southwest is most pleasant in spring and autumn.

Count on the real cost being higher than the bare daily price from a comparison site. On top of the base rental there are often the additional insurances, a possible young driver surcharge, extra drivers, the toll programme and local taxes and airport surcharges. A seemingly cheap deal can turn out considerably more expensive after all those surcharges.

In terms of timing it pays to book early for popular periods, and to match the season to your destination. Florida is very popular in winter because of the warm weather, while the desert states are scorching hot in summer and much more pleasant in spring and autumn. For a general booking strategy, also have a look at our 12 tips for renting smartly.

Which mistakes do travelers make most often?

Most misunderstandings revolve around insurance, payment cards and underestimating distances. A short list of pitfalls:

• Comparing on daily price only. The cheapest deal often has low minimum cover. Compare cover, not just the bare price.
• Not bringing a credit card. A debit card is often refused for the deposit. Bring a credit card in the name of the main driver.
• Forgetting to apply for an international driving permit. Apply for it well in advance with the competent authority in your country.
• Underestimating tolls. Electronic tolls with a daily rate and service fee add up. Ask about the system when you pick up the car.
• Underestimating distances. A short distance on the map is often hours of driving. Plan generous daily legs.
• The ZIP code trap at the pump. Your card often does not work at the fuel terminal. Pay inside at the till.

Frequently asked questions

Is my national driving licence valid in the United States?

In principle yes, but if the document is not in English, we strongly recommend adding an international driving permit (IDP). You always show both documents together.

Do I really need an international driving permit?

It is not strictly legally required in every state, but it is strongly recommended. It prevents discussions at the rental desk and during a possible police check. Apply for it well in advance with the competent authority in your country.

Can I rent a car with a debit card?

Often not. Most rental companies want a real credit card in the name of the main driver for the deposit. Some offices accept a debit card under conditions, but do not count on it.

Which insurance should I take in the US?

In addition to the standard liability, it is strongly advisable to take out additional liability (SLI) and damage cover for the vehicle (LDW or CDW). First check what your travel insurance or credit card already covers.

Can I rent a car under 25?

Usually yes from age 21, but you then pay a young driver surcharge, and some vehicle categories are not available. The surcharge is a daily rate that can add up considerably.

How does paying tolls work in the US?

Many toll roads are entirely electronic, without a cash option. Your rental car can take part via a rental company’s toll programme, but that usually charges a daily rate plus service fees. Ask about it when you pick up the car.

Why is my card refused at the fuel pump?

The pump terminal often asks for an American ZIP code, which a foreign card does not have. The solution is to pay inside at the till and tell them which amount should go on which pump.

Do I need a car in New York?

Not in the city itself. Manhattan is difficult to drive in and parking is expensive. A rental car only becomes interesting when you head further into the region from New York; in that case pick it up outside the centre.