Navigating European Car Rentals: A Comprehensive Guide

PUBLISHED ON Jan, 22 2024

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Exploring Europe by car offers a unique freedom, allowing you to travel at your pace, make spontaneous detours, and reach off-the-beaten-path destinations. However, renting a car in Europe can be a bit more complex than in other parts of the world. This guide aims to help you navigate the process, ensuring you get the best deal and avoid potential pitfalls.

Choosing a Rental Company

Major car rental companies in Europe include Avis, Hertz, Budget, Europcar, and Sixt. When choosing a company, don’t just compare initial price quotes. Look at the overall package, including rates, service, and pickup/drop-off locations. Larger companies often have a wider range of pickup and drop-off locations, which can be advantageous.

Consider using a broker like Auto Europe, Rentalcars.com, or Expedia, which compares rates among various companies and passes the savings onto you. However, with a broker as a middleman, it’s crucial to inquire about add-on fees and restrictions ahead of time.

Factors Affecting Rental Price

Several factors can influence the price of your rental. Manual vehicles are more common and cheaper in Europe, but automatics are available, albeit at a higher cost. Picking up and dropping off the car at different locations can also affect the price, as can picking up the car at an airport or train station.

Cross-border fees may apply if you’re planning to drive the car into certain non-EU countries. Additionally, some countries require a vignette, a sticker proving you’ve paid the highway tax, which you’ll need to purchase if you’re driving a rental car into a country that requires it.

International Driving Permit and Green Card

An International Driving Permit (IDP) translates your driver’s license into ten different languages and may be required in countries like Spain, Germany, Italy, Greece, Slovenia, Poland, Hungary, Austria, and Bosnia & Herzegovina.

A Green Card is a cross-border insurance card that proves your car has the minimum level of insurance required. It’s required in a few countries, including Bosnia & Herzegovina, Albania, and Montenegro, and is issued by your rental car company when you make your reservation.

Understanding European Driving

European cars are typically smaller than American models, and manual transmissions are the norm. If you’re not comfortable with a stick shift, you might need to upgrade to a pricier automatic vehicle.

Driving on the left is standard in the UK and Ireland, which can be intimidating for those accustomed to driving on the right. The driver’s seat will also be on the opposite side of the vehicle, requiring you to shift gears with your opposite hand.

Familiarize yourself with European street signs, which can differ significantly from those in other countries. Also, be aware that what Americans call “gas,” Europeans refer to as essence, petrol, or benzine. Prices are listed in liters, making it seem cheaper, but one gallon of gas costs roughly €7 in Europe.

Car Rental Insurance

When renting a car in Europe, one of the critical aspects to consider is insurance. Car rental insurance is designed to cover the vehicle in case of an accident, theft, or damage. It’s essential to understand the different types of insurance available, what they cover, and how they work to ensure you’re adequately protected during your trip.

When deciding on car rental insurance in Europe, consider the following:

  • Check your existing coverage: Your existing auto insurance or travel insurance policy may already cover you when renting a car. Additionally, some credit card providers offer rental car insurance as a perk for their cardholders. Check these policies before purchasing additional insurance from the rental company.
  • Understand the coverage: Make sure you understand what each type of insurance covers. Ask the rental company to explain any terms or conditions you don’t understand.
  • Consider the deductible: The deductible is the amount you’ll have to pay out of pocket before the car hire excess insurance coverage kicks in. A lower deductible often means a higher insurance cost, and vice versa. Our European Car Rental Excess Insurance coverage is at least 70% cheaper than rental company excess waivers. It covers  all drivers between the ages of 21 and 84 years that are listed on the rental agreement. It covers types of damage excluded by rental companies, including single vehicle damage, roof and undercarriage damage, auto glass and widescreen damagetowing expenses, misfuelling, loss of car key and tire damage.
  • Beware of exclusions: Many insurance policies have exclusions, which are specific situations where the insurance won’t cover you. For example, some policies won’t cover you if you’re driving in certain countries or if you have an accident while breaking the law (like speeding).

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Booking and Returning the Car

Booking your car in advance can secure a better deal, especially for long-term rentals. When booking, also ask about your options in case you want to drop off your car at a different location or on a different date.

When returning the car, be sure to fill it up with the correct type of fuel. Also, keep all your paperwork, including the checklist used by the company to check the car’s condition, for a few months after the rental period in case a billing dispute arises.

Local Insights on Fuel, Tolls, and Road Access

In Europe, many countries, including Austria and Switzerland, have specific toll systems for highway access, which often involve purchasing a vignette (a toll sticker). Here’s an overview of some key insights regarding fuel costs, toll roads, and vignette stickers:

  1. Austria:
    • Vignette Sticker: To drive on Austria’s motorways and expressways, a vignette is required. The cost of an annual vignette for 2025 will increase by 7.7%, reaching €103.80. The vignette must be displayed on the windshield of the vehicle.
    • Additional Tolls: Some routes, like tunnels and mountain roads, may require additional tolls.

We encourage you to get tips on renting a car in Austria and navigating the scenic routes to make the most of your road trip through Austria.

  1. Switzerland:
    • Vignette Sticker: Switzerland requires an annual toll sticker (vignette) for use on its highways. The cost is CHF 40 (around €41) for the year. Additionally, specific tunnels and roads may incur extra fees.
    • Fuel Costs: Fuel prices in Switzerland are typically higher than in neighboring countries due to taxes and import costs.
  2. General Notes on European Vignettes:
    Many countries, such as Austria, Switzerland, and Slovakia, utilize vignette systems for highway access. These stickers can often be purchased at gas stations, border crossings, or online.

For travelers planning to drive across multiple European countries, understanding each country’s toll system, including the need for vignettes and specific road access fees, is crucial for budgeting and planning routes. If you anticipate encountering toll roads during your rental, familiarize yourself with the toll payment systems in the area you’ll be driving. Research the toll roads and bridges you may encounter and check if they offer cashless or electronic tolling options. With proper planning, you can navigate toll roads confidently, avoiding unnecessary expenses and enjoying your journey hassle-free.

Hotel Parking

Check if your hotel offers parking and what type. Options may include private parking on the hotel property, street parking, or a nearby parking garage. If your hotel offers private parking, determine if you need to reserve a space in advance.

Additional Tips for Car Rental

Consider obtaining quotes for weekly rentals. The cost per day generally decreases the longer you rent, and you might discover that a seven-day rental is equivalent to, or even less expensive than, a five or six-day rental.

Ensure you accurately convert currencies when comparing prices. Some rental companies based overseas might use misleading conversion rates, making the price appear cheaper in dollars than what will actually be charged on your credit card. Use a reliable conversion site like Oanda to do the conversions yourself.

If your travel plans are firm, it’s often wiser to pay for the rental car at the time of booking, rather than at the rental counter in Europe. This approach not only increases your chances of getting a discount, but also ensures you pay the exact amount quoted in dollars, avoiding international transaction fees on your credit card. If you’re buying a collision damage waiver from the rental company, it’s likely cheaper when paid upfront. However, be mindful of cancellation fees and don’t prepay if your plans might change. Always understand the company’s cancellation policy.

Conclusion

Renting a car in Europe can be a rewarding experience, offering the freedom to explore at your own pace. By understanding the rental process, from choosing a company to understanding the terms of your rental, you can avoid potential pitfalls and make the most of your European road trip.

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Frequently Asked Questions (FAQ)

Does my car insurance cover rental cars?

Short Answer: Most personal auto insurance policies extend to rental cars, but coverage varies by insurer and policy type.

Detailed Answer: Your personal car insurance typically covers rental cars with the same limits and deductibles as your regular policy. This includes liability, collision, and comprehensive coverage if you have them. However, coverage only applies to rentals for personal use, not business travel. Always verify with your insurer before traveling, as some policies exclude certain rental types or international rentals.

Key Considerations:
  • Coverage matches your personal policy limits
  • Same deductible applies to rental claims
  • Business rentals often excluded
  • International coverage varies by insurer
  • Luxury or exotic vehicles may be excluded

Will my car insurance cover a rental car abroad?

Short Answer: Most US car insurance policies do not cover rental cars outside the United States and Canada.

Detailed Answer: Standard US auto insurance policies typically exclude coverage for rentals outside North America. Some insurers extend coverage to Canada, but European, Asian, and other international rentals usually require separate coverage. For international travel, consider purchasing rental insurance from the rental company or a third-party provider like CarInsuRent that specializes in international rental protection.

International Coverage Options:

- Rental company insurance (most expensive)

- Credit card coverage (limited protection)

- Third-party providers like CarInsuRent (comprehensive, cost-effective)

- Travel insurance with rental coverage

- Temporary international auto policies

What's the best rental car insurance for international travel?

The data is clear: CarInsuRent offers up to 70% savings on rental car insurance

Beyond savings, CarInsuRent offers:

  • Transparency: Clear policy terms you can read at leisure.
  • Control: You choose coverage levels without sales pressure.
  • Flexibility: Coverage travels with you across countries and rental companies.
  • Protection: Comprehensive excess coverage at a fraction of rental counter cost.
In an industry notorious for expensive add-ons and pressure tactics, CarInsuRent, the best rental car insurance for international travel, puts travelers back in control while saving substantial money.

Should I buy rental car insurance from the rental company?

Whether you should buy the rental company’s insurance depends on what coverage you already have and your personal risk tolerance. Here’s a practical decision framework most people use:

Skip the rental company insurance if ANY of these apply:

  • Check if your personal auto policy include coverage for rental cars.
  • Most major credit cards (Visa, Mastercard, AmEx, Chase Sapphire, etc.) offer primary or secondary collision damage waiver offer rental car insurance coverage. Note: Almost always this coverage excludes liability, theft of personal items, and exotic/luxury vans/trucks. You must decline rental company CDW and charge the entire rental to that card.
  • Check if your travel insurance (e.g., Allianz, World Nomads, credit-card trip insurance) includes rental collision.

Buy (or seriously consider) rental company insurance if:

  • You have no personal auto insurance (e.g., you don’t own a car).
  • You’re driving in a country where your U.S./home policy explicitly excludes coverage (fairly rare, but happens in Ireland, Jamaica, Israel, etc.).
  • Your credit card coverage is secondary and you don’t want to deal with filing through your personal policy first (deductible + possible rate hike).
  • You want zero-deductible peace of mind and don’t mind paying $30–$60/day extra.
 

Can I buy a plan for just one day?

Yes. Insurance for a single day is available.

Can I buy a plan when I pick up my rental car?

No. You should purchase a policy before starting your travel.

Can I use the policy for car hire in my home-country / country of residence?

Local rentals are covered by our Car Club / Car Sharing Hire Excess Insurance. You can use it in your Country of Residence and there are no restrictions regarding proximity of use to your home address.

If You are renting a Vehicle for use within your Country of Residence and if you purchased Multi Trip (Plan B) Policy, You must also have at least 2 nights pre-booked accommodation in your Country of Residence. The Annual Policy is priced for travelers who rent cars intermittently across multiple trips, not as a substitute for owning a car. Tourists typically drive fewer total days/miles per year and face different risks. Local renters drive far more and more often, which materially increases claim frequency and would break the pricing if covered at the same annual premium. The product is excess reimbursement for short-term rentals, not long-term / leasing / continuous domestic car use.

If You are renting a Vehicle for use within your home country and if you purchased Daily coverage (Plan A) you are covered even if theft or damage occurs within 150km of your home provided that you are a resident of the EEA.

Multiple rentals are allowed as long as each rental will not exceed 45 consecutive days.

in event that You return the rental vehicle and pick up another rental vehicle during the 48 hours after you return the first rental vehicle, the new rental is not covered under this policy, unless the new rental occurs within more than 150km from the rental station where you left the first rental vehicle.

We encourage you to read our full guide about Car Rental Insurance in Europe to learn everything you need to know about European car rental insurance.

Find the answers you’re looking for to the most frequently asked car hire insurance questions as well as other questions relating to our products and services.

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