Renting a car in Europe gives you the freedom to explore places that trains and buses can’t reach — think small Tuscan villages, remote Greek beaches, or winding roads through the Dolomites. But car rentals also come with hidden fees and confusing rules that can quickly eat into your travel budget. Here’s a clear guide on how to rent a car in Europe, what to watch out for, and how to save money while doing it.
Do You Really Need a Car?
Not every European trip requires a car. In big cities like Rome, Paris, or Barcelona, public transport is cheaper and much less stressful. But in destinations such as the Greek islands, Sicily, or Mallorca, having your own wheels makes the difference between being stuck in tourist hubs and discovering hidden gems.
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If you decide a car is worth it, start by comparing car rental offers — it’s the easiest way to see deals from multiple providers in one place.
Check Reviews Before Booking
Don’t just look at the price. Always check Google or Trustpilot reviews for the specific rental office. Even well-known brands can vary in quality from one branch to another. If a location consistently gets bad reviews, avoid it.
Documents You Need
A valid driver’s license (some countries require at least one year of driving experience).
An International Driving Permit (IDP) if your license is non-EU (many European countries require it for U.S. and Canadian drivers).
A credit card in the driver’s name for the security deposit. Debit cards are often not accepted.
Choose the Right Insurance
Insurance can double the cost of your rental, but it may save you a lot of stress. Standard rentals usually include basic coverage, but the excess (deductible) can be high.
Collision Damage Waiver (CDW): Covers damage to the car.
Theft Protection: Covers if the car is stolen.
Full Coverage / Zero Excess: Usually the most expensive but eliminates surprise charges.
If you prefer peace of mind, book cars with full insurance included directly when comparing providers.
Fuel Policy Matters
The fairest policy is full-to-full: pick up the car with a full tank, return it full. Avoid “full-to-empty” policies where companies charge inflated prices for fuel.
Pick-Up Location Tips
Airports are usually the most convenient but not always the cheapest. In some destinations, you might find better prices or friendlier service by renting from local agencies or even your hotel (as I’ve done in Mallorca, Crete, and Sardinia). Just make sure you’re comfortable with the terms and insurance.
Hidden Fees to Watch Out For
Young driver fees if you’re under 25.
One-way rentals (dropping the car in another city or country).
Extra driver fees.
Cross-border charges if you take the car into another country.
Always read the fine print before confirming your booking.
How to Save Money on Car Rentals in Europe
Book early, especially in summer or holiday seasons.
Choose a smaller car — it’s cheaper, and narrow streets in Italy or Spain make it much easier to drive.
Compare prices on Rentalcars instead of booking directly.
Avoid extras like GPS or child seats if you can bring your own.
Where Renting a Car Is Worth It
Some of the best European trips are by car:
Mallorca: Hidden beaches and mountain villages (see my Smart Travel Guide to Mallorca).
Sicily: Small towns and archaeological sites.
Greek islands (Crete, Rhodes, Corfu): Beaches and mountain drives.
Dolomites in Italy: Scenic drives through mountain passes (read Affordable Italy — Best Places to Visit, Eat, and Sleep).
For a full itinerary idea, check my Mallorca itinerary for families and my 7-Day Italy itinerary for budget travelers.
Extra Tips for U.S. Travelers
Many of my readers come from the United States, and renting a car in Europe has a few surprises:
Automatic vs. manual: Most European rentals are manual. Automatics are available but usually cost more, so book early if you need one.
International Driving Permit (IDP): Some countries (like Italy and Spain) officially require it for U.S. licenses, even if rental companies don’t always check. It’s cheap and easy to get before your trip.
Insurance overlap: Check if your U.S. credit card offers car rental insurance abroad. Sometimes it covers CDW, but not liability or theft. Always confirm the details.
Final Recap
Renting a car in Europe can be one of the best ways to explore, but only if you know what to look out for. Always check reviews, understand insurance, go for a fair fuel policy, and book early. When you’re ready, compare car rental deals on Rentalcars for the easiest way to find the best option.