Ultimate Guide: Renting a Car Abroad (2026 Edition)

Last updated: July 22, 2026.

Renting a car abroad is one of the best ways to explore a destination comfortably and at your own pace. However, there’s more to it than simply picking up the keys and hitting the road. From understanding what your rental car insurance actually covers to knowing which credit card to bring—the details can make or break your experience. In addition, you might be caught off guard by pickup conditions at the airport or local rules that vary from country to country.

In this guide, you’ll find a step-by-step breakdown of what to look out for when renting a car abroad.

When is a rental car really necessary when traveling abroad?

Renting a car makes sense if you want to explore areas that simply aren’t accessible by public transportation, such as rural villages, back roads along the coast, or national parks. Renting a car is also the smartest choice for families or groups traveling with luggage, or when your itinerary changes daily and flexibility is important.

When is public transportation a better option than renting a car?

The answer to this question is simple: if you’re only visiting larger cities. Driving in cities is usually a hassle. Parking is expensive, traffic is unpredictable, and you’ll get around faster by public transportation, especially if there’s a subway. Public transportation is also the better option if you’re traveling solo on a limited budget.

When do you save money with a rental car?

Renting a car for your vacation is almost always more cost-effective if you’re traveling with a group. Additionally, a rental car saves money at destinations where taxis are expensive. Booking a rental car well in advance can make a significant difference in the price you pay.

Best Destinations Where a Rental Car Is Essential

In many places, having your own transportation is indispensable. We can’t list them all, but some examples include Iceland’s Ring Road, the Scottish Highlands, road trips through Ireland or southern Italy, and the wide-open landscapes of Namibia or the American Southwest.

How much will it cost to rent a car abroad in 2026?

Prices for renting a car abroad vary widely, as they are closely tied to a country’s average standard of living.

High Season vs. Low Season

In Europe, the summer months are the busiest vacation season, and car rental prices are relatively high. The winter months are generally the cheapest time to rent a car. This does not apply to typical winter sports destinations such as Innsbruck, Salzburg, and Zurich, where winter is actually the high season. Warmer destinations are also popular during this time (Christmas break), such as Gran Canaria and Crete.

Additional Costs

Be aware of any additional costs on top of the base rental price. If you want to take turns driving, choose a rental car with a second driver option. An additional driver must meet the same age requirements as the primary driver. For young drivers under a certain age (often 25), you’ll usually have to pay a surcharge.

If you want to return the rental car to a different location than where you picked it up, in most cases you’ll have to pay a so-called one-way fee. There are also often costs associated with crossing a national border in the rental car.

It’s also a good idea to check the prices for extras and accessories, such as child seats, a navigation system, or snow chains.

How can you save up to 30%?

The first way to find an affordable rental car for your vacation is to use a comparison site. EasyTerra offers a lowest price guarantee, and because we compare car rental companies, we can always offer you the most competitive rates.

Booking a rental carwell in advance can make a significant difference in the price you pay. Car rental rates change constantly. If the price of your rental car drops, you can easily cancel your reservation for free and rebook the car at the lower price.

Furthermore, with EasyTerra, you can easily compare different locations—for example, providers just outside the airport, which are often more affordable.

Insurance and Deductibles Explained

What types of insurance do you need when renting a car abroad, and what exactly do they cover? Read about it below.

What does CDW mean?

All abbreviations in the international car rental industry are derived from English terms: CDW stands for Collision Damage Waiver, the standard damage insurance that is mandatory for rental cars and is therefore always included. The other two basic insurance types aretheft protection (TP) andthird-party liability insurance (TPI).

What is a deductible?

An excess is the maximum amount you must pay out of pocket if you cause damage to your rental car. This can run into the hundreds of euros. But don’t worry: if you rent a car from EasyTerra with the Worry-Free label, your excess is covered. Please note: an excess is not the same as a security deposit. For example, any traffic fines are also paid from the security deposit.

When is additional insurance a good idea?

Additional insurance, also known as comprehensive coverage, is a good idea if you’ll be driving on rough roads. Think of vacations in Iceland, Namibia, or other areas where the risk of flat tires, for example, is high. Damage to tires, windows, the roof, and the undercarriage isn’t covered by standard collision insurance, but it is covered by comprehensive coverage.

What does credit card insurance cover—and what doesn’t?

With some credit cards, you’re automatically insured for the deductible on your rental car. Without exception, these are credit cards with designations such as “Gold,” “Silver,” or “Platinum”—not “regular” credit cards. Even if you have such a card, there may still be all sorts of conditions and limitations. For example, certain types of rental cars may be excluded, or damage to the interior may not be covered. Be sure to read the fine print thoroughly!

Picking Up a Rental Car at the Airport—Here’s How It Works

Most people who fly to their destination prefer to rent a car immediately upon arrival: at the airport. There are a few things you should keep in mind.

Airport counter vs. shuttle bus

You often have the choice between reserving a rental car at the airport itself or near the airport. In the latter case, you’ll be taken by shuttle bus from the terminal to the rental car company’s office. That doesn’t take much longer than waiting at a counter in the terminal, and you have a good chance of finding a cheaper rental car!

What should you check when picking up the car?

No matter which location you choose, always take plenty of time to inspect the rental car before driving away. Check for damage such as scratches and dents, as well as stains or tears in the upholstery. Don’t forget the tires, windows, and mirrors. Take photos and make sure any damage not listed on the form is still included in the rental agreement before you sign it.

What if your flight is delayed?

Allow plenty of time between your flight’s arrival and picking up the rental car. It’s a good idea to provide your flight number when making the reservation. That way, the rental company can see if your flight is delayed and make adjustments if necessary. If you’re at risk of arriving late, contact the local rental company as soon as possible. They may hold the rental car for you longer, but this is never guaranteed.

Driving Rules by Country – What’s Changing in 2026?

If you’re renting a car abroad, you’ll probably want to know if there are any specific traffic rules you need to be aware of. We’ve listed the most important ones for you.

Toll Roads and Vignettes

Many countries charge tolls for using highways. Countries such as Austria, Switzerland, Hungary, and the Czech Republic require a vignette to drive on the highway, regardless of the distance. Rental cars in these countries almost always come equipped with such a vignette.

In other countries, you pay for using the highway at toll gates. In many cases, you can pay with cash, a credit card, or electronically, but in Norway and Portugal, you can only pay automatically using a toll badge in your rental car. The charges are then billed afterward.

In the United States, there are various toll systems.

Low-Emission Zones in Europe

Many European cities have introduced low-emission zones that restrict access for cars with emissions exceeding a certain standard. Most passenger cars you rent through EasyTerra easily meet that standard, as they are almost always relatively new cars.

But please note: there are an increasing number of zones in (historic) city centers that are off-limits to all cars, with the exception of residents, businesses, and emergency services. The best-known example is the Italian Zona Traffico Limitato, but car traffic is also being restricted in some cities in other countries.

Winter Tire Requirement

In several countries, winter tires are required by law during certain months or under certain weather conditions. In some cases, the requirement is seasonal; in others, winter tires are required when there is snow or ice on the road. If you’re looking to rent a car during a period and at a destination where winter tires are required, EasyTerra always highlights this at the top of the search results. At those destinations, rental cars are often equipped with them as standard, but not always. We recommend renting a car with winter tires if you’ll be driving in an area with a high chance of snow.

Driving on the Left

In almost all of Europe, traffic drives on the right side of the road. Exceptions include Great Britain, Northern Ireland, Ireland, Malta, Cyprus, and the Channel Islands of Guernsey and Jersey. Some other popular destinations where people drive on the left are: South Africa, Namibia, Malaysia, Suriname, Australia, and New Zealand.

If you’re driving on the left side of the road for the first time, it takes some practice, but follow our tips on driving on the left in a rental car and you’ll find that you’ll get used to it quickly enough. Rent a car with an automatic transmission so that shifting gears isn’t an issue.

Best Time to Rent a Car Abroad

Of course, you don’t want to pay too much for a rental car abroad, but what’s the best strategy for that? We’ll explain it below.

How far in advance should you book?

Don’t wait until right before your departure date to reserve a rental car abroad. Prices are often higher then, and the selection is definitely smaller, especially during peak season. Book your rental car well in advance and click the“Track Price” link. We’ll then send you an email if the price of the car you’ve reserved changes. If the price drops, cancel your reservation for free and book the same rental car again—but at the lower price!

When are prices the lowest?

In Europe, car rentals are generally cheapest in the winter, except during the Christmas holidays. That’s not surprising, since winter is the least appealing time to travel in many regions due to the inclement weather. The so-called shoulder seasons (early spring and late fall) offer a perfect compromise: renting a car is cheaper than during peak season, the weather is pleasant, and tourist attractions aren’t as crowded. Be sure to avoid spring and fall breaks, though.

What happens during school breaks?

More and more families are traveling with their children three or four times a year and are limited to school breaks. During these times, popular vacation destinations are busier, and renting a car abroad is more expensive. School breaks vary from country to country. Also keep in mind that in many European countries, summer school breaks are quite long: ranging from two to over three months.

Common Mistakes When Renting a Car Abroad

Renting a car abroad seems simple, but there are a few things that require extra attention. Choosing the wrong insurance or a confusing fuel policy can quickly make a trip with a rental car stressful. Most of these mistakes are easy to avoid once you know what to look out for.

Choosing the wrong insurance

Many travelers think they’re saving money by opting for minimal insurance or, conversely, end up paying too much for coverage they don’t need. Both approaches are wrong: insufficient coverage for a rental car abroad can lead to high bills, but duplicate coverage also costs money. EasyTerra has the perfect all-inclusive solution: book a rental car with the Worry-Free label for your vacation abroad!

Booking a Car That’s Too Small

It’s easy to underestimate how much space you actually need. A compact car might look fine online for two people, but add two large suitcases, carry-on luggage, and vacation gear, and you’ll struggle to fit everything in the trunk. Always opt for a slightly larger class of rental car if you’re unsure, especially for longer trips.

Not accounting for luggage

Luggage is one of the most overlooked factors when booking. Check the trunk space of the car you want to rent before confirming your reservation. Are you traveling with a group, a stroller, or sports equipment? Make sure everything fits in the car, because rearranging bags and suitcases in the airport parking lot isn’t a great way to start your vacation.

Misunderstanding the Fuel Policy

Choosing the wrong fuel policy can cost you money. The most common pitfall is the “full-to-empty” option, where you pay in advance for a full tank but rarely return it completely empty. The most cost-effective choice is almost always “full = full”: you pick up the car with a full tank and return it with the same amount of fuel.

Checklist: Renting a Car Abroad in 10 Steps

1. Determine your destination
   Of course, you’ll first decide where you want to travel and rent a car. If you’re planning a road trip, it’s worth comparing rental car prices in different cities.

2. Choose a Pickup Location
   Most people book a rental car abroad at or near the airport. In many major cities, there are also car rental offices at the main train station. It’s convenient to book there if you want to explore the city for a few days first.

3. Determine When to Book
   By booking weeks in advance, you’ll usually get better rates and ensure availability, especially during peak season. Choose your pickup and drop-off times wisely: the price for a rental car is calculated per 24 hours.

4. Selecting a car type
   To make the selection of rental cars easier to navigate, check one or two car types in our search system from which you’d like to choose. Take into account the number of passengers and the trunk space.

5. Check insurance
   Standard collision insurance is always included when renting a car, but coverage for your deductible is not. This is, however, the case for rental cars with EasyTerra’s Worry-Free label. In areas where this is desirable, cars with that label often also include comprehensive coverage (damage to the roof, tires, glass, and undercarriage).

6. Check the Deposit
   Be sure tocheck how much the deposit is for the car you want to rent. The Worry-Free label comes in handy here as well, since those cars never require a high deposit. If you haven’t caused any damage or received a traffic ticket, the deposit will be refunded at the end of the rental period.

7. Arrange for an additional driver
   If you’re traveling with someone else who also has a driver’s license, it’s nice to take turns driving the rental car. In that case, rent a car that allows a second driver. Please note: if you haven’t registered that additional driver, they’re not allowed to get behind the wheel!

8. Documents to Bring
   Before traveling abroad, make sure you have all the documents you need to rent a car: driver’s license, a physical credit card in your name, passport, and booking confirmation. Ensure you have sufficient funds on your credit card to cover the security deposit. Also check whether an international driver’s license is required at your destination.

9. Inspection upon pickup
   Never skip the inspection when picking up your rental car. Thoroughly inspect the car and make sure every scratch, dent, and damage is noted in the rental agreement.

10. Taking Photos
    Take photos and/or video of the entire car—including the roof, tires, and interior—before you drive away. Do the same when returning the rental car.

Frequently Asked Questions About Renting a Car Abroad

We often receive the same questions about renting a car for vacation, so we’ve compiled a list of the most common ones for you.

• Do you always need a credit card?
  Yes, you always need a credit card to book a rental car abroad. There are no exceptions.

• How much is the security deposit when renting a car?
  The amount of thesecurity deposit depends on various factors. The most important ones are the rental company’s policy and, of course, the car class. If you absolutely don’t want to pay a high security deposit, choose a rental car with EasyTerra’s Worry-Free label.

• Can someone else drive my rental car?
  Yes, as long as the other driver is registered with the rental company. You can easily arrange this when booking your rental car abroad. Don’t wait until you’re at the counter, because adding an additional driver is usually more expensive then.

• What happens in case of damage?
  If you happen to cause damage, we recommend taking a photo of it and calling the rental company immediately. Sometimes they’ll require a police report, especially if the damage is significant. Tip: Save the rental company’s phone number in your cell phone when you pick up the rental car.

• Is a rental car cheaper than taxis on vacation?
  That depends on how often you use a taxi and, of course, on local taxi rates. In a country where taxis are very cheap, that option might be more economical than renting a car. But in most cases, renting a car abroad will be cheaper. In any case, you’ll have much more flexibility.

• Can you rent a car if you’re under 21?
  Most car rental companies set the minimum age at 21 and do not rent cars to anyone younger than that. They also often charge a surcharge if you’re between 21 and 25 years old. Not all car rental companies are that strict. You can also find a rental car if you’re between 18 and 21 years old, although the selection for that age group is more limited. It’s important to always be honest about your age on our search form!

• What’s the difference between full-to-full and prepaid fuel?
  With prepaid fuel, you pay for a full tank and can return the rental car with an empty tank. That might seem like a good deal, but it isn’t. First, you pay the rental company’s (usually unfavorable) gas price; second, it’s never possible to return a car with a completely empty tank. Picking up and returning the car with a full tank (full = full) is the best option and is therefore always the fuel policy for rental cars with our Worry-Free label.

• Can you changeor cancela rental car reservation?
  Yes, you can easily change or cancel your reservation up to 48 hours before the start of the rental period. This is free, but if you make a change, the rate for the new rental period will apply. That new price may be either higher or lower.