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Should You Rent a Car Abroad? A Practical Guide

Yes, renting a car abroad is usually straightforward if you prepare. Bring a valid driving licence, an International Driving Permit where the country or the rental company asks for one, and a credit card for the deposit hold. Before you sign, check three things: the insurance excess, the fuel policy and the rules for crossing borders.

Should You Rent a Car Abroad? A Practical Guide

Key takeaways

  • An EU or EEA licence is valid across the EEA; a UK photocard licence needs no IDP in the EU, Switzerland, Norway, Iceland or Liechtenstein, although a rental company may still ask for one.
  • Third-party liability cover valid in all EU countries must be included in the price; damage to the hire car itself comes with an excess.
  • Car hire is not covered by the EU's 14-day cooling-off period.
  • Tell the rental company at booking if you plan to drive into another country.
BMW for hire in Spain
BMW for hire in Spain

Is renting a car abroad worth it?

Renting pays off for places public transport serves poorly, trips with children or luggage, or routes linking several towns. On a city break it helps less: parking is scarce and many centres restrict access through low-emission or limited-traffic zones.

Rent a BMW in Spain
Rent a BMW in Spain

The real cost is more than the daily rate: add excess cover, fuel, tolls, parking and fees for extra drivers, child seats, one-way returns or cross-border trips. Compare full terms, not headline prices.

Driving licence and International Driving Permit rules

A licence issued in an EU or EEA country is valid across the EEA, so no International Driving Permit (IDP) is needed there. One catch: an EU licence obtained by exchanging a non-EU licence may not be recognised in another EU country. For UK drivers, GOV.UK sets out the position:

Licence you hold Where you drive IDP needed?
EU or EEA licence Any EEA country No
UK photocard licence EU, Switzerland, Norway, Iceland, Liechtenstein No (some countries limit the stay)
UK paper licence, or a Gibraltar, Guernsey, Jersey or Isle of Man licence Some EU countries and Norway Possibly
Any licence Where the hire company's terms require it Yes
Range Rover for rent in Spain
Range Rover for rent in Spain

Which IDP type you need

An IDP is a translation of your national licence, shown together with the original, and it is not valid in the country that issued it. The type depends on the convention the destination follows:

  • 1949 Geneva Convention: for example Spain, Ireland, Malta, Cyprus, the USA, Canada, Japan and Australia. Usually described as valid for one year.
  • 1968 Vienna Convention: for example Germany, France, Italy, Austria, Belgium, the Netherlands, Poland, Portugal, Switzerland, Greece, Croatia, Czechia and Ukraine. Usually quoted as valid for up to three years, or until your licence expires.

A multi-country trip may need both types. Buy an IDP only from your country's official issuing body, as unofficial online sellers exist; for unlisted countries, ask the embassy.

DVLA check code for UK drivers

A rental company abroad may want to see your UK driving record. You can create a licence check code up to 21 days before you travel and share it with the company. Northern Ireland licence holders should bring the paper counterpart instead.

Step-by-step: booking a rental car abroad

Jaguar for rent in Spain
Jaguar for rent in Spain
  1. Check licence and IDP needs for every country on the route.
  2. Choose where to book: directly with a rental company or through a broker.
  3. Read the full terms before paying: excess, deposit, fuel policy, mileage limit, cross-border rules, cancellation and age conditions.
  4. Decide how to cover the excess: the desk's own cover, a credit card benefit or a separate policy.
  5. Declare all drivers and all countries at booking.
  6. Inspect the car at pick-up and photograph every panel, the wheels, the fuel gauge and the odometer.
  7. Return the car as agreed, keep the fuel receipt and ask for a signed return report.
Step What to check Tools / time
Licence Validity in each country, IDP type Government licence pages; allow days for an IDP
Booking Total price, cancellation terms Rental terms; about 30 minutes
Insurance Excess, CDW exclusions, your own cover Card or travel policy wording
Pick-up Existing damage, fuel, equipment Phone camera; 10 to 15 minutes

Booking direct, through a broker or at the desk

According to EU guidance, a broker books the car in your name but does not supply it; the rental company is generally responsible for the contract unless the contract says otherwise.

Option Best for Pros Cons
Rental company website One contract, one contact Terms straight from the supplier Fewer offers compared at once
Broker or comparison site Comparing many suppliers Wide choice, useful filters Two parties; broker extras may not match desk terms
Desk on arrival Last-minute trips No commitment in advance Limited choice, little time to read the contract

EU rules also ban price or service discrimination based on your nationality or country of residence, online or at the counter. If the price changes once you reveal where you live, complain to the European Consumer Centre.

Card deposits, payment and driver age

Expect a deposit hold on your card. US consumer guidance from the FTC notes that the hold is usually larger than the rental cost, is not charged if you return the car as agreed, and can block other purchases if your card is near its limit.

A credit card in the main driver's name is the usual requirement, because the company may later charge for damage, tolls, fines or missing fuel. Some accept debit cards, sometimes only with proof of a return ticket, or a cash deposit. Drivers under 25 commonly pay a young-driver surcharge, and some luxury or high-performance cars have a higher minimum age.

CDW, excess and car hire insurance explained

Rental cover in Europe comes in layers; our car glossary explains related terms:

  • Third-party liability (TPL): compulsory, included in the price and valid in all EU countries. It covers damage or injury you cause to others.
  • Collision or Loss Damage Waiver (CDW/LDW): covers damage to the rental car, not injuries or belongings. It is a waiver, not insurance: without it, you could owe up to the car's full value.
  • Excess (deductible): what you still pay after damage or theft. Desks sell products to reduce it, often called Super CDW.
  • Optional extras: driver injury, theft of contents, vandalism and legal assistance.

Alternatives exist. Some credit cards include CDW, usually only if you decline the company's own waiver, and the cover can be voided by reckless or impaired driving or an undeclared driver. A separate car hire excess policy reimburses the excess after a claim; you normally pay the rental company first, then reclaim. Travel insurance may not include this.

Fuel policies and returning the car

Full-to-full is the most common policy: you collect the car full and return it full. If you return it short, the company refuels at its own price, which the FTC describes as usually higher than at a filling station. Prepaying for a full tank can cost more if you bring the car back with fuel left.

Refuel near the return point and keep the receipt. To estimate a road trip's fuel bill, use our fuel cost calculator; if the car's data quotes mpg rather than l/100 km, the fuel economy converter translates it, and other motoring tools are listed on the same page.

Driving the rental car across borders

Tell the rental company at booking if you will drive into another country, so it can provide the right documents, insurance and breakdown cover. Some companies charge a cross-border fee or exclude certain countries.

If you rent outside the EU, for example in Switzerland, and plan to enter the EU, say so: the company can provide an EU-registered car to avoid customs problems. It must also make sure the car meets local rules; winter tyres, for instance, are compulsory in many countries in certain months, and our winter tyre guide explains the markings. You are responsible for equipment the destination requires, such as a reflective jacket or warning triangle.

Using mobile data for navigation abroad

Inside the EU, mobile data follows "roam like at home": data used in another EU country is charged at your domestic rate, so your own phone and navigation app can usually replace a rental sat-nav.

Fair-use rules expect you to spend more time at home than abroad. If you spend over four months mostly abroad and roaming exceeds domestic use, the operator may ask you to explain within 14 days. Where a surcharge applies, Your Europe gave the 2025 data cap as EUR 1.30 per GB excluding VAT, falling to EUR 1 per GB from 2027; under the 2025 rules, data is cut off by default once extra charges reach EUR 50, unless you change the setting. Switzerland and the UK are outside these rules, so check your tariff or download offline maps.

Cancellations, complaints and your EU rights

There are no EU rules written specifically for car hire, but basic consumer rights apply: clear information, fair terms and access to alternative dispute resolution. Online, phone and email bookings carry no automatic right to cancel, and car hire is excluded from the 14-day cooling-off period, so the company's terms decide. For a dispute with a company in another EU country, contact the European Consumer Centre in your country (ECC-Net); the EU's free contact line is 00 800 6 7 8 9 10 11.

Common mistakes when renting a car abroad

  • Skipping the IDP check for the destination or the rental company.
  • Arriving with a debit card when only credit cards are accepted for the deposit.
  • Assuming a credit card or travel policy covers the excess.
  • Not declaring a second driver or a trip into another country.
  • Ignoring low-emission zones, where fines can arrive weeks later with an admin fee added.

FAQ

Do I need an International Driving Permit to rent a car in Europe?

Not with an EU or EEA licence, which is valid across the EEA. UK photocard holders need no IDP in the EU, Switzerland, Norway, Iceland or Liechtenstein, but a hire company may still require one.

Can I rent a car abroad with a debit card?

Sometimes. A credit card is the norm because of the deposit hold and later charges; some companies accept debit cards, occasionally only with proof of a return ticket.

What is the difference between CDW and excess?

CDW limits what you pay for damage to the rental car; the excess is the amount you still owe under that waiver. Excess cover from the desk, a card or a separate policy reduces or reimburses it.

Can I cancel a car hire booking within 14 days?

Not by right. Car hire is excluded from the EU's 14-day cooling-off period, so cancellation depends on the rental company's own terms.

Can I take a rental car to another country?

Usually, if you tell the company at booking. It must supply suitable documents and insurance, and it may charge a cross-border fee or exclude some countries.

Safety note: before leaving the car park, adjust the seat and mirrors, find the lights and hazard switch, and save the rental company's breakdown number in your phone.

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