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Car Rental

If you're traveling abroad and want to hit the road, you'll probably need to rent a car. Let's review some of the main factors to consider.

Rental Companies

While cost is usually the deciding factor when choosing a car rental company, it shouldn't be the only one. Think about the types of car available through an agency, as well as its location, hours, drop-off policy, online presence, and its extra services, such as roadside assistance. While you might save money through a national chain, a smaller, local company may be more flexible and better able to fit your needs.

If you're looking for newer models, U.S. airport rental locations only carry vehicles that are less than three years old.

Costs

Rental costs vary wildly according to a number of factors, such as the size of the vehicle, the length of the rental, and the number of miles driven. Generally speaking, the smaller the car, the cheaper the price. Some other tips to keep in mind:

Longer-term rentals are often cheaper on a per-day basis. Always opt for a lengthier deal and return the car early if there's any doubt about your length of stay. Returning a car late is a financial mistake. Most agencies offer unlimited mileage deals, but the base rates are higher than those that charge per mile.

Book early to get the best rates. Ask if any special rates are available. Some companies offer a price break if you book online, use a specific credit card, or belong to a frequent-flier or auto club.

Don't reserve a car at the counter unless you want to pay the most expensive rate. In general, airport locations have the highest rates overall, due to the convenience of their locations and higher taxes.

When renting a car for a week or less, it's hard to beat the price of the major car agencies (see our list below). For longer rentals, you may find a better rate through local companies. Usually the best rates are available where the competition is fiercest, so check location by major attractions.

Be sure to comparison shop online. Go directly to the rental company site for the best and latest deals. Use search engines to see if discount codes or coupons are available. No matter what rate you find, be prepared to pay a slew of extra fees and taxes.

When traveling abroad, it's best to book and pay for the rental before leaving home. Doing so eliminates confusion and the challenge of figuring exchange rates on the fly.

Type of Car

If you're traveling with a lot of luggage, small children, or tall passengers, it's best to opt for a roomier vehicle. When traveling with elderly passengers, assess the ease of entering and exiting the car. If traveling alone, a smaller, cheaper car will often suffice.

Think about whether you need extras, such as navigation devices, ski racks, special safety features, or four-wheel drive. Keep in mind the types of roads you'll be driving, as well as the routes you'll be taking.

Those who prefer traveling in style might want to spring for a higher-end or exotic car. Since these cars are usually in short supply, book early, and be willing to pay extra.

Visitors to the U.S. will generally find cars larger than they're accustomed to in their home countries, while the reverse is true for American travelers.

American travelers may find it challenging to drive abroad, due to winding roads, steep climbs, and faster speed limits. Consider this when choosing a car class.

Identification

Most rental companies simply require a valid driver's license from your home country to rent a vehicle.

It might be wise to obtain an International Driver Permit (IDP), just to play it safe. The permit, issued in your home country, translates your license to make it understandable to foreign officials.

In the U.S., citizens may obtain the permit through American Automobile Association (AAA) agencies.

Payment

Most agencies require travelers to book their rental with a major credit card. A few accept pre-paid vouchers, cash, debit cards, or checks.

Age Restrictions

Rental companies not only have minimum age requirements, but some have maximum age limits, too.

Age limits vary by company and country. In the U.S., drivers must usually be at least 18 to rent a car. Some agencies (for example in California) require that the driver be at least 25 years old. And some rental companies charge higher rates for younger drivers.

Meanwhile, drivers over the age of 70 may face limited rental choices or additional fees.

Insurance

Auto insurance policies typically do not cover driving a rental car in foreign countries. Consult your policy, or call your agent, to determine your specific coverage.

Some major credit cards automatically offer rental coverage if you book the rental on their card. Again, be sure to verify exactly what type of coverage is issued, and what the limitations may be. Sometimes the coverage offered is only supplemental, meaning it picks up where your insurance policy leaves off.

If you can't obtain coverage through your insurance provider or credit card companies, you'll have to settle for a collision damage waiver (CDW), loss damage waiver (LDW), or physical damage waiver (PDW) through the car rental agency. While these coverages are expensive, driving without them can be even more costly. Other types of coverage, such as personal accident insurance (PAI), personal effects coverage (PEC), and additional liability insurance (ALI), are usually offered. Check with the rental company for details on the types of coverage available.

Insurance only applies to the person renting the car. You'll likely have to pay extra to insure additional drivers.

Your coverage may be nullified if you're in an accident and are cited for being under the influence. Also, you're responsible for paying any traffic or parking violations, even though you don't own the vehicle.

If you refuse the rental company insurance, you may be required to provide proof of your own insurance. Make sure you meet the minimum driving insurance requirements for the country you plan to visit.

Parking

Renters often forget this important aspect of car renting. Parking accommodations can sometimes be limited, not only in crowded, metropolitan areas, but in rural locations, as well.

Inquire about the parking situation when making lodging reservations. Have a parking plan in mind for sightseeing, too. And don't forget to factor in parking costs when preparing a travel budget.

Standard or Automatic Transmission

Travelers to the U.S. will have a difficult time finding vehicles available with standard transmission. American travelers face the opposite problem―few vehicles with automatic transmission overseas. In either case, expect to pay a bit more for a transmission type in short supply.

Child Safety Seats

If traveling with small children, be sure to abide by the child safety seat requirements of the country. These seats are often available through the rental agency for a small fee.

In the U.S., child safety seat laws vary by state. Check our Safety Laws article for information on the states you'll be visiting. Americans may consult the car rental agency or foreign embassies and consulates for more information.

Gasoline

Most cars in the U.S. require unleaded gasoline, while many in Europe require diesel. Ask the rental company about the type of gasoline your vehicle takes. Some vehicles indicate the type of fuel required on the gas tank cover. Injecting the car with the wrong type of fuel can damage the engine, and leave with you a large towing bill, or something even worse.

American travelers should prepare to pay much more for gasoline than they're accustomed to back home.

Border-Crossing

While allowing renters to drive across country borders is standard industry practice, there are restrictions. For instance, some U.S. agencies will not allow a car to be driven into Mexico. To be safe, ask the rental company about its policy.

Vehicle Inspection

It's important to examine the car before you leave the lot. Make sure the rental company is aware of any dents or imperfections in the vehicle, so that you're not liable for damages when you return the car.

Doing Without a Rental Car

Can you get by without renting a car? Major urban centers offer a bevy of transportation choices for travelers, including bus, taxi, rail, train, subway, and even boat. While using these types of transportation may not always be convenient, doing so may be more cost-effective than renting a car, especially when parking, fuel, and insurance costs are considered. Besides, letting someone else handle the transportation allows travelers to fully enjoy the sights, unencumbered by worries over traffic, directions, and local driving laws.