The Ultimate Guide to Renting a Car Abroad

Are you planning a vacation or business trip overseas and contemplating whether to rent a car abroad? The world is your oyster, and the best way to discover it is by taking a road trip in a foreign land.

We’ve experienced car rental in St. Lucia, Barbados, Albania, Italy, Mexico, Puerto Rico and many other countries – the tips in this article have ensured every rental has been a smooth process (touch wood). 

This guide aims to ease the process of renting a car abroad, making your travels more enjoyable and less stressful. Whether you are a seasoned globetrotter or embarking on your first international escapade, this guide to renting a car abroad offers invaluable insights.

Ultimate Guide to Renting a Car Abroad

4 Benefits of Renting a Car When Travelling 

Renting a car abroad has several advantages, and we’ve explored 4 of the main advantages below. Ultimately, opting to hire a car while overseas can transform your trip, giving you a richer, more flexible, and personalised adventure.

1. Freedom and Flexibility

Having a rental car provides an unmatched level of freedom and flexibility. Unlike structured tours with rigid timelines or public transport schedules, you can set your own pace, explore off-the-beaten paths and adjust your itinerary whenever you like. The open road awaits!

2. Comfort

A rental car provides the comfort of your own space, away from crowded buses or trains. You can control the environment – adjusting the temperature, setting your favourite music, and conveniently storing luggage or shopping.

3. Accessibility

Some of the most awe-inspiring sights are tucked away in places public transportation cannot reach. Renting a car abroad can offer access to such areas, be they secluded beaches, quaint villages or breathtaking viewpoints.

4. Cost-Effectiveness

Renting a car can be more cost-effective than other modes of transport for specific trips, especially when travelling in a group. The cost can often be shared amongst passengers, making it an affordable and efficient travel option.

3 Things to Do Before You Leave Your Home Country

Before heading on your trip, you need to prepare yourself with an International Driving Permit (IDP) and assess whether you need rental car insurance.

1. Get An International Driving Permit (IDP)

An International Driving Permit (IDP) is an internationally recognised document that translates your domestic driver’s license into several languages, allowing you to drive a private motor vehicle abroad.

Also, an IDP can be much more cost-effective than buying a local license when you arrive at your destination. If you’re travelling to multiple countries, an IDP will save a lot of cash.

How Much Does An International Driving Permit Cost, and How Can You Obtain One?

The cost and process of obtaining an IDP can vary depending on your home country. Here are some guidelines for a few regions:

United Kingdom: In the U.K., an IDP costs around £5.50 at the Post Office. You’ll need your U.K. driver’s licence, a passport-sized photo, and proof of identification.

United States: American citizens can get an IDP from the American Automobile Association (AAA) or the National Automobile Club for around $20. You’ll need to complete an application form and provide two passport-sized photos and a copy of your US driver’s license.

Australia: Australians can get an IDP from state and territory motoring clubs for approximately $39 AU. The requirements include a current Australian driver’s licence and a passport-sized photograph.

Canada: Canadians can get an IDP from the Canadian Automobile Association for CAD$25. Requirements include a valid Canadian driver’s license and two passport-sized photographs.

When and Where Is It Necessary?

While an IDP is recognised in over 150 countries, its requirement varies by country. Some countries, such as those within the European Union, may not require an IDP for short-term visitors.

However, an IDP is compulsory for all foreign drivers in some countries. So, always check the driving requirements of your destination country before your trip.

You can check if you need an IDP in your destination country on websites like gov.uk.

Remember to take your domestic licence with you. An IDP is not a replacement.

2. Car Rental Insurance 

Many car rental companies offer insurance at an additional cost. However, it tends to be incredibly expensive, and they’ll attempt to sell you add-ons you’ll never need. 

Instead, check if your car insurance will cover you for car rental in another country – some do, some don’t.

Alternatively, and this is what we do, we use RentalCover. Whether we’ve rented a car abroad for a few days or two months, we always use RentalCover because the cover is comprehensive and affordable. The insurance premium has always been much cheaper than buying directly from a car rental company, and it is a better level of coverage.

3. Understanding the Local Driving Rules

Before you rev up the engine, you should familiarise yourself with the local driving rules of your destination. Traffic regulations vary worldwide, and what’s considered normal in your home country could be illegal elsewhere.

To avoid unpleasant encounters with local authorities, read up on road signs, speed limits, and parking rules of the country you’ll be visiting.

Additionally, drivers in each country have their own quirks. For example, in the U.K., drivers honk their horns when they’re angry, but on most Caribbean islands, drivers honk the horn on blind corners as a courtesy to drivers coming in the other direction.

15 Important Things to Check With a Rental Car Company

Renting a car abroad requires some groundwork to ensure you get the best deal and avoid surprises. Consider the following aspects:

Rental Costs

Rental costs include the daily rate, taxes, and surcharges. There are extra charges for additional features or services, so it’s essential to ask the rental company and read the fine print before confirming the booking.

Insurance Coverage

Car rental companies offer various insurance options, ranging from basic to comprehensive. 

Remember, if insurance isn’t included, check if your car insurance provider will cover you. If not, use RentalCover instead.

Driver Age Requirement

Most car rental companies require drivers to be at least 21 years old, although this can vary. However, in many countries, if you’re under 25, you’ll be charged a young driver fee. These additional fees will vary depending on the country you’re renting in and the company you rent from.

Fuel Policy

Companies have different fuel policies. Some provide a full tank and expect you to return it full, while others allow you to return it empty. 

Usually, the company will record the amount of fuel in the tank and ask you to return at the same level.

Understand the fuel policy to avoid unexpected charges. You could find yourself paying a €150 fee for as little as €5 worth of fuel.

Additional Driver Fees

If you’re planning on sharing the driving, there is usually an additional driver fee. Sometimes, car rental companies charge a fixed rate for additional drivers, no matter the length of the rental period. 

However, other companies charge per day, so check the cost and confirm the policy before adding drivers.

Car Inspection

Before driving off, inspect the car thoroughly for any existing damage. Ensure that all damage is documented to avoid disputes during the return.

The best way to do this is to record a thorough video of the exterior and any interior damage. This covers your back if the rental car employee inspecting the car missed any damages on the contract.

Mileage Limit

Most companies offer unlimited mileage, but some people get caught out by those who don’t. If a car rental looks ridiculously cheap compared to the competition, the mileage is probably limited.

As you’d expect, if you exceed the mileage, you could attract a lot of additional charges.

Roadside Assistance

Confirm whether roadside assistance is included and how to access it. If you don’t, you could find yourself stranded or paying a private company for help.

Drop-off Location

Confirm the drop-off location with the rental company – particularly if you want a one-way rental. If you’re returning the car to a different branch than the one you collected it from, expect to pay more than a same-location drop-off.

Equipment Rental

Car rental companies often provide everything you need if you’re travelling with kids, bikes, or without a GPS.

Additional equipment rental can include car seats, bike racks, GPS, beach chairs, picnic coolers, and much more.

Toll Fees

Some companies offer an automated toll payment system, an unlimited tolls package, or you can choose to manually pay at toll booths.

Try to research and estimate how frequently you will use toll roads.

Late Return Policy

Returning the car later than agreed will attract additional fees. Often, the car you’re renting will quickly be turned around for someone else to use, particularly in busy destinations. 

If you know you’re going to need the car longer, you need to let the rental company know as soon as possible, allowing them to accommodate your request.

Cancellation Policy

If your plans have changed or you found a better deal, you might need to cancel your car rental. Before booking, assess the cancellation policy. Often, you can cancel for a limited time for no charge. However, the closer you get to the booking date, the less likely cancellation will be free. 

Car Type

Choose the car type that suits your needs, considering size, fuel economy, and luggage capacity. When you arrive at the rental agency, be sure to check your booking and compare it with the vehicle they’ve assigned to you.

Credit Card Hold

Most companies require a security deposit to cover any additional charges. This amount is typically held on your credit card and refunded after returning the car.

IMPORTANT: This credit card hold must be on a card in the name of the main driver.

How to Find the Best Rental Car Deals

There are numerous platforms to help you find the best deals for car rental abroad. Comparison sites like DiscoverCars, Kayak and RentalCars.com compare prices from various car rental companies, providing a range of options.

Comparison sites don’t cover every destination in the world, so it’s best to check a few to see which has the best deals.

Final Thoughts on Renting a Car Abroad

Renting a car abroad can add an exciting dimension to your travel, offering the freedom to explore at your own pace. However, it requires careful planning and consideration. Be sure to check local driving rules, ensure you have the necessary documents, understand your rental agreement, and use comparison sites to get the best deals.

During our time travelling, we’ve spent time with and without a car. Honestly, the freedom you get when renting a car makes travelling a thousand times more enjoyable, so if you’re debating renting a car abroad, we think you should go for it!