Car hire looks cheap online, but excess insurance, cross-border and one-way fees, young driver surcharges and fuel policies can double the price. This guide covers where to book, how the insurance layers work (and the cheaper alternative to the desk upsell), the fees to check before you pay, and how to protect yourself at pickup and return.
Where to Book: Comparison Sites vs Direct
How you book affects what you pay, what protection you get, and how smoothly pickup goes.
Comparison and Broker Sites
- Rentalcars.com: The largest aggregator. Good for comparing prices across multiple companies. Offers its own insurance products.
- Discovercars.com: Often surfaces the cheapest prices, particularly for European rentals. Includes full protection insurance option at checkout.
- AutoEurope / Kemwel: US-focused brokers with strong European coverage and competitive rates.
- Google Travel (Cars): Useful for a quick price comparison but does not cover all suppliers.
Booking Direct
Booking directly with Hertz, Avis, Europcar, Sixt, or Enterprise is often slightly more expensive, but it can be smoother at pickup because the desk staff are dealing with their own booking system. Direct bookings are also easier to modify or cancel. Loyalty programmes (Hertz Gold, Avis Preferred) offer useful benefits like skip-the-counter pickup.
Book through a comparison site for the best price, but also check the direct price with the same company. Sometimes direct is cheaper, especially during promotional periods. Some premium credit cards (mostly US ones) include Collision Damage Waiver when you pay with the card; UK cards rarely do, so don't assume.
Insurance: The Biggest Trap
Insurance is where rental companies make much of their money, and where renters make the most expensive mistakes.
Understanding the Layers
- Collision Damage Waiver (CDW): Usually included in the base price. This is NOT full insurance. It limits your liability if the car is damaged, but you still pay an excess (typically EUR 800-2,000) for any damage.
- Theft Protection (TP): Also usually included. Same principle: you are covered but with a high excess.
- Super CDW / Excess Reduction: Reduces or eliminates the excess. This is what the desk will push hard at pickup. It costs EUR 10-25 per day from the rental company.
- Personal Accident Insurance (PAI): Covers injury to you and passengers. Usually unnecessary if you have travel insurance.
- Roadside Assistance: Often included, sometimes an add-on.
The Desk Upsell
At pickup, the desk agent will ask if you want to reduce your excess to zero. They will show you the EUR 800-2,000 excess figure and suggest that for "only" EUR 15-25 per day, you can eliminate it. On a two-week rental, this adds EUR 210-350 to your bill. This is where third-party excess insurance saves you serious money.
Third-Party Excess Insurance
Companies like iCarhireinsurance.com, Insurance4carhire, and Worldwideinsure offer annual excess reimbursement policies for EUR 40-60 per year. These reimburse you for any excess charged by the rental company if the car is damaged. The process is: you pay the excess to the rental company, then claim it back from the third-party insurer. This is much cheaper than the rental company's daily rate. Our travel insurance guide covers the rest of your cover.
Take an annual excess insurance policy even if you only rent once a year. At EUR 40-60 per year, it is cheaper than a single rental company's daily excess reduction for a one-week trip. Make sure the policy covers the country you are renting in and includes single-vehicle accidents (many do, some do not).
Hidden Fees That Inflate Your Bill
The advertised price is rarely the final price. Here are the fees that catch people out.
Cross-Border Fees
If you plan to drive the rental car into a different country from where you picked it up, you often need to declare this at booking. Cross-border fees typically range from EUR 30 to EUR 150 per country, per rental. Some companies prohibit certain border crossings entirely (e.g., into Eastern Europe from Western Europe, or into specific countries like Albania, Kosovo, or Montenegro). Failure to declare cross-border travel can void your insurance entirely.
One-Way Fees
Picking up in one city and dropping off in another almost always incurs a one-way fee, ranging from EUR 50 for a short domestic one-way to EUR 500+ for international one-ways. Some routes are cheaper than others depending on fleet rebalancing needs. Occasionally, one-way rentals are actually discounted if the company needs to move cars in your direction.
Age Surcharges
- Under 25: Most companies charge a young driver surcharge of EUR 10-30 per day. Some companies will not rent to drivers under 21 at all, or will restrict the vehicle categories available.
- Over 70-75: Some companies in certain countries charge a senior surcharge or require a medical certificate. Check the terms before booking.
Additional Driver Fees
Adding a second driver costs EUR 5-15 per day at most companies. Over a two-week trip, that is EUR 70-210. Some comparison sites include a free additional driver as a booking perk. Some companies and loyalty schemes include a partner or second driver free, so check. Driving without declaring an additional driver voids the insurance.
Mileage Limits
Many European rentals include unlimited mileage, but not all. Budget-focused brokers sometimes offer lower prices with mileage caps of 200-300 km per day. Exceeding the limit costs EUR 0.15-0.30 per km. For a road trip, always book unlimited mileage. The slightly higher daily rate is far cheaper than excess mileage charges.
Fuel Policies
- Full-to-full: The best option. You receive a full tank and return it full. You only pay for the fuel you use.
- Full-to-empty / Pre-purchase: You pay for a full tank at pickup (at an inflated price) and return it empty. You almost never use the whole tank, so you are paying for fuel you do not use. Avoid this.
- Same-to-same: Return the car with the same level as pickup. Subjective and can lead to disputes.
Picking the Right Car for Your Road Trip
Size Considerations
- Two people, light luggage: Economy or compact class is fine and saves on fuel and rental cost.
- Family or group of 3-4 with luggage: Mid-size or estate. Do not underestimate luggage space. Four people with suitcases will not fit in a compact.
- Mountain or winter driving: Consider 4WD or AWD if your route includes mountain passes, gravel roads (Iceland, Norway), or winter conditions.
- Long motorway trips: Prioritise comfort. An extra EUR 10 per day for a larger class car is worth it over 2,000 km of driving.
Manual vs Automatic
In Europe, manual transmission is the default. Automatic costs more (sometimes 30-50% more) and has lower availability. If you cannot drive manual, book the automatic well in advance, especially in peak summer. Arriving at the desk and requesting an automatic upgrade rarely goes well.
Diesel vs Petrol in Rentals
You rarely get to choose, but diesel rentals are more fuel-efficient for long-distance driving. Many European cities have low emission zones. Hire cars are usually new enough to comply, but some zones need a sticker (France's Crit'Air, Germany's Umweltplakette), so ask at pickup whether the car has one.
At Pickup: Protecting Yourself
- Photograph the car thoroughly before driving away. Take photos of every panel, all four corners, the roof, all wheels, and the interior. Include close-ups of any existing damage. Take a photo of the odometer and fuel gauge. Email these to yourself so they are timestamped.
- Check the damage form. Ensure every scratch, dent, and chip you find is recorded on the rental agreement. If something is missing, insist it is added before you sign.
- Confirm the fuel policy and the current fuel level.
- Check the tyres visually. If they look worn or damaged, ask for a different car.
- Test all the basics: lights, air conditioning, windscreen wipers, and that the boot opens properly.
- Ask for 24-hour emergency contact numbers in case of breakdown or accident.
- Have your licence ready. UK licence holders are sometimes asked for a DVLA check code; you can generate one online shortly before you travel. See using a UK licence abroad.
At Return: Avoiding Disputes
- Return the car on time. Beyond a short grace period, late returns are often charged as a full extra day.
- Fill the tank at a station near the return location, and keep the receipt as proof.
- Photograph the car again at return, including the odometer and fuel gauge.
- Get written confirmation that the car has been returned in acceptable condition. If the return desk is unmanned, photograph the car in the return parking area with a clear timestamp.
- Check your credit card statement in the days following return for any unexpected charges.
Return the car during staffed hours whenever possible. Cars returned out of hours to unmanned drop-off areas are more likely to have spurious damage claims made against them, because you have no opportunity to dispute the condition report on the spot. If you must return out of hours, video the entire exterior of the car with your phone before dropping the keys.
To work out how many days you'll need the car, plan your route first.
Frequently asked questions
Can I drive a rental car from one European country to another?
Usually yes, but you must declare it at booking and may pay a cross-border fee (EUR 30-150 per country). Some companies restrict travel to certain countries, particularly in Eastern Europe or the Balkans. Always check the cross-border policy in the rental terms before booking. Undeclared cross-border driving voids your insurance, and if the car has GPS tracking, the rental company will know.
What is the cheapest way to rent a car in Europe?
Book 4-8 weeks in advance through a comparison site like Discovercars.com or Rentalcars.com. Choose manual transmission, pick up and return at the same location (avoiding one-way fees), and take third-party excess insurance instead of the rental company's daily waiver. A week's rental for a compact car in southern Europe can be as low as EUR 100-150 in shoulder season using this approach, compared to EUR 300-500 if you book last-minute with full insurance from the desk.
Should I rent from the airport or a city location?
Airport locations often add an airport surcharge and can be more expensive overall. City centre locations are cheaper but less convenient if you are flying in. The best approach depends on your itinerary: if you are spending a few days in the city before heading out on the road, pick up from a city location later. If you are driving straight from the airport, the convenience of airport pickup usually outweighs the surcharge, especially when you factor in taxi costs to a city location.