How to Hire a Car Abroad
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Are you planning to hire a car abroad? We have done it multiple times and enjoyed the freedom to move freely without worrying about tight schedules. Our comprehensive car hire guide offers valuable tips.
Covered in the Article
Car Hire - Freedom and Challenges
Most adult travellers hold a national driver’s licence issued in their home country. Car hire companies are springing up everywhere, reflecting the growing demand for hire cars among travellers. Even if you drive daily in your own country, hiring a car abroad can still be a big step. The traffic conditions may be unfamiliar, and driving an unfamiliar vehicle can add to the difficulty.
In many destinations, hiring a car is the easiest way to move around. This is particularly true in distant natural destinations with poor public transportation. While going on a day trip via a tour package and exploring the sights at your destination is wise, taking a road trip around the country is even wiser. A hired car offers more freedom and is often a cheaper way to explore.
Who Can Hire a Car?
You need a valid driver's licence to hire a car. You may need both an international and a national driving licence, as well as a national driving licence issued in your country of residence. That is the case, for example, in Israel. A licence from any EU country is often enough in the EU area. Almost all car hire companies require the driver's licence to be at least one year old. Rarely can you find companies making exceptions to this rule; usually, it is smaller car hire companies.
Younger and older people may need to pay extra fees to hire a car. In some circumstances, some of these age groups find it impossible to hire a car at all. At least, the most expensive cars are often excluded from the young/inexperienced drivers. If a company refuses to let you buy a car because of your age, you may always call them and try to negotiate.
The exact terms vary between car hire companies. Big chains often have stricter terms than small private companies. Big companies may also be unwilling to negotiate. Sometimes, the insurance company sets the terms, so the car hire company can't deal with them. Before placing a booking, read the terms carefully.
Driving a Hire Car Abroad
Before looking for a hire car, take a little time to do proper background checks thoroughly. Traffic culture at the destination may differ from that in your home country, and roads may be more challenging to drive on. With enough background information, it will ease your decision about hiring a car.
Use Google to find information about the traffic rules in the destination. Discover people's genuine driving experiences. YouTube is great for videos of people driving in famous tourist spots. Again, with enough information, you are ready to decide whether to drive yourself on holiday.
Things to Understand When Hiring a Car
The car hire process is simple in theory. Find a car, hire it, pay for it, and then drive. This is how it works in theory, but in the booking phase, there are essential details you need to understand.
Comparison and Booking
Hiring anything from a small car to a big van is possible. Naturally, the better car you wish to hire, the higher the price. That's why the first task is to decide the car size you wish to hire. A small car may be enough if you travel alone or with someone. A bigger car is more suitable when the whole family is with you. However, as studies have proven, larger cars are safer than smaller ones in collisions. Large vehicles weigh more and have longer hoods and bigger crush zones, giving them an advantage in frontal crashes.
A small car is more practical if you intend to drive in the mountains.
On car hire companies' websites, you will see a list of car brands with photos. Rarely, you will get the brand you have chosen but a similar car in the same size class. For example, if you hire Toyota Aygo, you may get Citroen C1. Or if you hire Ford Fiesta, they may give you Opel Corsa. The car you'll get is often better than the one you've chosen.
Our advice is not to get fixed to the brand but to choose the size class. If you're looking for a car with extra features like parking radar or automated gears, select a car class that offers these features.
It is not enough to compare just cars , but you also need to compare car hire companies. Unfortunately, there are some companies with a bad reputation. Typically, these companies offer lower car hire fees, but their vehicles may be in poor condition. If you mistakenly choose a cheap car hire company, you may end up paying for damages you never caused. If a company has a poor rating, it is best to skip it and opt for a more affordable competitor.
Add-ons and Accessories
Car hire companies are eager to sell add-on services. That is a way to increase their business's profitability.
An extra driver add-on gives another person the right to drive the car. You must buy this service if two people drive the same car. Some car hire companies permit multiple drivers, provided the car hire agreement signer remains in the vehicle at all times.
Many other services are also available: GPS, Wi-Fi, child seat, etc. Choose only the ones you need.
Car Hire Insurance
Choosing the right insurance is the most critical decision for a car hirer. In Europe, all cars have third-party liability insurance, a Collision Damage Waiver (CDW) and Theft Protection (TP) included in the hire price. However, this is not always the case, so be sure the car has these insurances. For example, some car hire companies hire vehicles without insurance in the USA..
Your travel insurance may not include hire car insurance abroad.
If the car lacks insurance, you will be liable for all damages. It would be best to have personal insurance to cover or pay all the expenses with your own money. An accident or a theft can become very expensive, so ensure you have the needed insurance as well.
The insurances also have its traps. It is important to understand that insurance may have an excess, sometimes called deductible. It is the money you need to pay yourself in case of an accident. The insurance company will cover the remaining amount if the repair costs exceed the initial estimate. The excess is typically around 1,000 euros, which is a substantial amount.
Almost all car hire companies sell super insurances which have a smaller excess. It can even be 0 euros. Then, you don't need to pay anything in case of an accident. Some parts of the car, such as windows and tyres, are often excluded from insurance coverage, and you are always responsible for them regardless of the insurance you have. Please read the terms and conditions carefully and thoroughly.
Car Hire Excess Insurance
You can also buy a car hire excess insurance from third-party companies. They are remarkably cheaper than car hire companies' super insurances but are also more complicated to use. In case of damage, you first need to pay the excess to the car hire company, and afterwards, you need to apply for your money return from the third-party insurer.
Travel Insurance
In an improbable situation during your travel, you may need treatment following a serious illness or incident. It is also wise to have good travel insurance that covers you in case of unexpected events. Check travel insurance offers from SafetyWing for an instant quotation.
Picking up the Booked Car
It is practical to hire a car that can be picked up from the airport right after landing. The most expensive car hire companies usually have their services in airport terminals. Still, cheaper companies generally transport passengers to their office nearby. Whether you wish to save 30 minutes but pay more is up to you.
In the car hire office, car hire papers will be made. The contract must include at least the car's details, all the drivers' names, and insurance details. These must also be documented if you have purchased additional services, such as crossing borders into another country. You must confirm that all information in the papers is correct before signing them.
Another important task is paying the car hire fee. In addition to the hire fee, the company will block the full excess amount from your credit card. This sum will be returned to you later if you return the car without any new damage.
When the papers have been signed, it's time for the hire car inspection.
Inspecting the Hire Car
You must carefully inspect the hire car's interior and exterior before driving. Often, even seasoned travellers forget to take photos of the car's interior. Doing so can save you from a potential car rental scam in the future. This is especially true if you get involved in a collision later. Some car hire companies may pass the already existing damages to you as the present car user.
Document also the fuel level and warning lights.
Unfortunately, damages are a source of income for some car hire companies. To protect yourself from fraudulent claims in the future, it is essential to take clear photos and videos of the car's original condition. Ensure that all faults are also documented in the car rental papers. Fraudulent claims may appear months after your hire period. We recommend sending photos to cloud storage immediately so they will be timestamped and safely stored in case you need them later as proof.
In short, inspect the car well and document its condition through photos and videos, noting any dents, scratches or other forms of damage. When everything is in order, you can finally start driving.
Super Insurance
Car hire companies typically sell their expensive super insurance when a customer picks up the car. If you don't have adequate additional insurance yet, it may be wise to consider buying super insurance. However, we recommend buying full insurance from a third party when booking a car online.
If you already have additional insurance, you may say: I do not want additional CDW coverage. My booking includes coverage for the excess and extended coverage.
Challenges with a Hire Car
Keys Left Inside
In an unfortunate situation, locking yourself out of a hire car is possible. You cannot do much if you accidentally leave the car keys inside the vehicle and the doors lock automatically. The only easy solution is to call the car hire company and ask them to come to your current hire location to open the car doors for you.
Many additional insurances cover the extra costs of critical problems.
Fines
Parking fines are easy to get abroad. You may also get fined for speeding because traffic cameras are everywhere. We recommend paying the fines before returning the car to the car hire office in case of these violations. Ignoring the fines may incur additional costs because the car hire company will likely send the bill to your home address and charge you for mailing it.
Not Enough Fuel
Returning the car with less fuel than agreed will lead to a penalty. As a consequence, you need to pay a higher price for the missing litres and also a service fee.Therefore, remember to refuel the car with the right fuel amount and correct fuel type before returning it. It is advisable to take a photo of the hire car's instrument panel showing the fuel amount at the start and end of your journey.
Technical Problems
Sometimes, hired cars are not in good condition. We recommend contacting the car hire company immediately if you notice any technical challenges. It is not your task to repair the car or find out what is wrong.
It is essential to document the problems well. Take photos of the warning lights and note the car's behaviour. Contact the company to obtain evidence of your interaction. Write down all the extra costs you incurred from returning the car and picking a new one from their office if this is the case. You then claim these later when you return the car.
Accident with a Hire Car
Car accidents are inevitable, even though you are as careful as you can be on the road. For this reason, having car and travel insurance in order is a primary concern.
In the event of an accident, the first task is to take care of the people involved in the accident and call for emergency help. Make sure you have a working phone and know the emergency number of the country you are travelling in. Even if there are no injuries, car hire companies typically require you to call the police to file a report. This is necessary to receive compensation from the insurance company.
Again, it is wise to carefully read the car hire terms, from which you will know how to act in case of an accident.
Minor Scratches
Minor scratches in a car hire can become a huge problem. You must scrutinise the vehicle for scratches before driving. During the inspection, if dents or scratches are found, they must be documented together with the staff of the car hire company. Some car hire companies try to transfer the cost of damage done by other drivers or even by their staff onto the next unsuspecting customer.
Failing to do the check-up may lead to a situation in which you are asked to pay the repair costs of the scratches you did not even cause. Limit your excitement to drive carefully and inspect the car thoroughly. Compare the markings indicated in the car inspection papers and immediately notify the car hire company staff to include such missed markings before driving the vehicle. This way, you don't pay for existing scratches or damages you didn't cause yourself. Thanks to smartphones, photographing the car carefully is easy. Make it a practice to do proper documentation before starting the engine of a hired car. In short, ensure all damages have been documented in the car hire rental forms.
Returning the Car
It is important to return the car at the agreed time to avoid penalties. We do not recommend returning the car earlier since small car hire companies may not always have staff present.
Unfortunately, some car hire companies are eager to check the car extra carefully when you return it. They may find minor scratches that could cost up to 500 euros to repair. Because the insurance usually has an excess, you must pay this amount yourself. Only if you have insurance with a 0 euro excess are you safe. You may apply for a refund later if you have a third-party extra cover.
Before returning the car, inspect the car yourself so as not to be surprised if the car hire company finds new damage. Keep your previously taken photos ready to prove the existing scratches. Inspect with the car hire company's representative. Never let them inspect the car without you because defending yourself later becomes impossible. Additionally, insurance companies typically require your presence during the inspection when applying for compensation. That is why it is essential to allocate sufficient time to document any potential damage.
Our Car Hire Experiences
We have hired a car multiple times during our journeys abroad. Everything has gone well without incidents.
Hiring a Car on Canary Islands
On El Hierro Island, we hire a car from Enterprise. We had made a booking beforehand and picked up the car from El Hierro Airport.
The car cost €40/day and had €0 of excess included. The vehicle was provided by Cicar, not Enterprise itself. We received a complimentary upgrade to a sporty Opel, perfect for mountainous terrain. Even though the agreement's fuel policy was full-to-full, we got the car with only half a tank. We were asked to pay for the fuel during the pickup and promised a refund of unused fuel.
Returning the car was smooth, and we were refunded for the unused fuel as promised. However, the refund was a few euros less than we had expected.
Based on our experience, we can recommend Cicar in the Canary Islands.
Hiring a Car in Alicante
In Alicante, we hire a car from Alamo. The Hyundai i10 costs only €16.12 / day, but the agreement had an excess of about €800. We purchased a Super Collision Damage Waiver (SCDW) with a € 0 excess for €16 / day.
Also, the fuel tank was not full this time. We were asked to return the car with the same fuel level. That was a fair deal, but actually, we returned more fuel than we had got. The whole hiring process was smooth.
Based on our own experience, we can recommend Alamo in Spain.
Hiring a Car in the Azores
On Sao Miquel island, we hired a car from Autocunha car hire. We paid about 55 euros/day for a car with a €300 excess and an additional young driver included. We understood that the company was small and family-owned. Although the company wasn't the cheapest, its customer service was friendly and helpful. They put a lot of effort into helping us with our plans before we placed the actual booking. The company followed a full-to-full fuel policy well.
We also got a free car upgrade, and the Opel Corsa was brand new.
Based on our own experience, we can recommend hiring a car from Autocunha on the Azores islands (Porto and São Miguel).
Hiring a Car in Terceira
On Terceira Island, we hired a car from Autatlantis. We initially booked with Rhodium, but due to its terrible reputation, we changed the booking to Autatlantis.
We picked up Citroen C1 from Terceira Airport. The car cost €23.60 / day and had an excess of €800. We were given the car papers inside the terminal and told there were only three (3) scratches on the car. We inspected the car ourselves and found approximately ten scratches. We informed the staff who came for a new inspection and corrected the paperwork. Previously, we had already documented the car's physical condition with multiple photographs. This company also followed a full-to-full fuel policy.
Surprisingly, when we returned the car, no one inspected it. So the car hire was a smooth process.
Based on our own experience, we can recommend hiring a car from Autatlantis on the Azores.
Finding a Cheap Hire Car
To find an affordable car, you need to compare car hire prices. We do recommend using Discover Cars which compares the prices of many car hire companies. They also sell extra covers to reduce the excess to 0 euros. This extra cover is cheaper than buying directly from car hire companies, and it covers the car well.
How Does Discover Cars Work?
We almost always use Discover Cars to book cars for our travels. It is simple to compare hire car prices on their website and place a booking. Typically, a small reservation fee is paid during the booking phase, with the car hire company charging the balance at pickup. Discover Cars allows cancellation, and the reservation fees will be fully returned.
Picking up the car is done with a booking confirmation that has all the agreed details marked.
Car Hiring Checklist
- Find information about the traffic culture in the destination.
- Choose the size class of a car you wish to have.
- Compare cars and prices on Discover Cars.
- Before booking, Google information about the hiring company's reputation. If the company has a bad reputation, consider skipping it and choosing another company. A big brand does not always guarantee quality.
- Book a car on Discover Cars and get a voucher. Consider purchasing an additional cover to drive with peace of mind.
- Prepare a credit card with enough balance to be able to pay the car hire fee and the excess.
- Collect the car with the voucher from the chosen location and sign the car hire papers. Inspect the car thoroughly, document all damages with the car hire company's representative, and take photographs of the car. Take a slow video.
- Follow the agreed fuel policy to avoid extra charges.
- Return the car and report any possible issues.
Common Questions
- Is hiring a car on a holiday trip a good idea?
- A hired car gives freedom, but it is up to the traveller to decide if they like driving on vacation.
- Who can hire a car?
- You must be over 18 years old, and your driver's licence must be at least one year old. Outside the EU, you may need an international driving licence. A young driver may need to pay extra fees. Some companies have stricter rules.
- What is the best car hire company?
- We do not recommend any single brand. However, we highly recommend comparing hire car prices online with a comparison tool. Choosing the cheapest car is seldom a good idea. We recommend hiring a car from a reputable company.
- Where can I compare hire car prices?
- Head to Discover Cars and compare the hire car prices of many companies. Remember to buy extra insurance.
- What does excess mean?
- In the case of damage, the excess is part of the repair costs you must pay yourself after applying for insurance.
- What does Deductible mean?
- It is equivalent to the excess.
- What are CDW, SCDW and TP?
- Collision Damage Waiver (CDW) is a type of car insurance that typically includes an excess. Super-CDW (SCDW, super insurance) is a type of insurance with a smaller excess. TP is Theft Protection.
- What is important when hiring a car?
- You need to check and document the condition of the car carefully before driving a single metre.
- What is the alcohol threshold for driving a car?
- Do not even think about it. Drinking and driving is not a good combination.
- Do I get the car make and model that I hired?
- Usually, you don't get the model you have chosen, but rather another car in the same size class.
- How much does it cost to hire a car?
- It depends on the car and destination. A budget car costs from €10 to €60 / day, plus any additional extras.
Bottom Line
We recommend driving a car during vacations. It is important to prepare well. Compare prices and book a car only from reputable companies.
Read the hire car terms and understand the insurance coverage well. It is advisable to purchase additional coverage, but this can often be obtained at a lower price from third-party providers. For example, Discover Cars sells inexpensive full protection covers.
As long as you follow the car hire terms well, there won't be any extra fees. Additionally, local traffic laws should be adhered to to avoid unnecessary fines. We recommend downloading an offline map of the region you are travelling to save data while navigating. Lastly, be willing to give way to speeding drivers. Prioritise safety while driving in all cases! Don't drink and drive. Fasten your seat belt and have a happy journey!
Have you hired a car abroad? Please share your experience or any additional tips with us.
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Comments (2)
Thanks to you, I now understand that finding out what local traffic condition looks like on a regular basis is a must to ensure we hire the right vehicle which suits the situation. I'll let my pen pal know about this so he could make a reservation properly after this. He'll be visiting New York for the first time next weekend and wonders if he should drive a car there.
Hi Amy,
Great to hear that you find this article helpful.
I just want to say that you have been ripped off for all your rentals and have paid over twice what I ever have. You should never pay the hire company to reduce your excess as this will normally cost more than the rental. Third party excess reduction insurance normally only costs £40 a year. The most I have paid for a rental was in France for around £25 a day. Cheapest was Croatia for £8 a day. I use economy car rentals to search for cars.
Thank you for a good comment.
We have a yearly 3rd party excess insurance costing less than 30 euros. Sometimes, buying excess insurance from the car hirer has a few benefits: return inspection is fast and dealing with minor scratches simple.
But you are right. Third party insurances become much cheaper.
We have not always chosen the cheapest rental companies. Just because their customer service level reflects the cheap price.