Driving in Europe

What's right for you?
Tips on driving abroad.
What you can expect to pay.
Find a company and know what to ask before you rent.
Understanding the Collision Damage Waiver, Super CDW, and more.

While most European travel dreams come with a choo-choo soundtrack, and most first trips are best by rail, you should at least consider the convenience of driving. Behind the wheel you're totally free, going where you want, when you want.

Driving runs circles around trains on countryside-focused trips. The super mobility of a car saves you time in locating budget accommodations in small towns and away from the train lines. This savings helps to rationalize the "splurge" of a car rental. You can also play it riskier in peak season, arriving in a town late with no reservation. If the hotels are full, you simply drive to the next town. And driving is a godsend for those who don't believe in packing light...you can even rent a trailer.

Every year, as train prices go up, car rental becomes a better option for budget travelers in Europe. While solo car travel is expensive, three or four people sharing a rented car will usually travel cheaper than the same group using railpasses.

Renting a car in Europe tends to be more expensive and more complicated than in the US, thanks to byzantine insurance options and other additional fees. But once you're free and easy behind the wheel of a European car, it's worth the hassle.

European cars are rented for a 24-hour day, usually with a 59-minute grace period. Cars are most economical when rented by the week with unlimited mileage. Daily rates are generally quite high; typically, the longer you rent for, the less it'll cost per day. For the best deal on long-term rentals, book in advance from home (easy to do online, or through your travel agent). Various rail-and-drive passes, which allow you to rent a car one day at a time at one-seventh the reasonable weekly rate, can be a good option.

There's no way to chart the best car-rental deals. Rates vary from company to company, month to month, and country to country. The cheapest company for rental in one country might be the most expensive in the next. After shopping for half an hour via the websites or toll-free phone numbers listed below, you'll know who has the best deal for your travel plans.

You might start by searching on a travel-booking site such as Expedia.com or Travelocity.com, see who has the best deals, then book on that company's own site. Booking directly with big-name companies (like Avis, Alamo/National, Budget, Dollar/Thrifty, and Hertz) generally charge more than consolidators such as Auto Europe and Europe by Car . Consolidators compare rates among various companies (including the big-name firms), find the best deal, and - because they're wholesalers — pass the savings on to you. You pay the consolidator, and they issue you a voucher to pick up your car in Europe. However, if you use a consolidator, you're working with a middleman rather than communicating directly with the vendor. This can make it more challenging to modify your reservation or register a complaint.

Complicating your comparison-shopping are the many types of fees that can be tacked onto your base rental price. You'll have to ask questions of the rental agency to determine your total cost. Each year I receive emails from unsuspecting readers who were charged more than they were expecting.

Just as an "open-jaw" flight plan can save time and money, it can make sense to pick the car up in one city and drop it off in another. For maximum options, use a bigger company with offices in many cities. While dropping off in another country can incur an extra fee, there's typically no extra charge to do this within the same country — but always ask when you reserve, just in case.

When picking up your car, always check the entire vehicle for scratches, dings, and the gas level. If anything is not noted on the rental agreement, return to the counter to make adjustments. When you drop off the car, walk around the car again with the attendant to be sure there are no new problems. Otherwise, unexpected charges might show up on your credit-card statement. These are easier to dispute when the information is documented. On that same note, avoid dropping your car off after hours (at a drop box); it's best to finalize the rental and receive the paperwork in person.

Your American or Canadian driver’s license is all you need in most European countries, but it can help to also carry an International Driving Permit (IDP), which provides a translation of your license — making it easier for the cop to write out the ticket. You can get one at your local American Automobile Association or Canadian Automobile Association office ($15 plus the cost of two passport-type photos). The AAA is authorized by the US State Department to issue the permits; avoid scam artists peddling overpriced, fake international licenses.

Exactly where you need a permit depends on whom you talk to. People who sell them say you should have them almost everywhere. People who rent cars say you need them almost nowhere (except in Spain and Italy, where you may be required to show the permit to pick up your car). People who drive rental cars say the permit is overrated, but can come in handy as a substitute for a passport as a security deposit. Police can get mad — their concern is in finding the expiration date — and fine you if you don't have an international permit. Those driving in Spain, Italy, Portugal, Austria, Germany, Greece, and Eastern Europe are likely to be fined if found without a permit, and should get one. You must carry your American or Canadian driver's license as well as your international permit.

Minimum and maximum age limits for renting a car vary by country, type of car, and rental company. Younger and older renters can get stuck with extra costs, such as being required to buy extra insurance or pay a surcharge of $14–39/day (fortunately, there are usually maximum surcharge limits). Most companies will not rent a car to someone under 21, but those who are at least 25 years old should have no problem. Drivers over 70 may have trouble renting in the Czech Republic, Greece, Poland, Slovakia, and Turkey. The maximum age is 80 in Denmark, and some locations in the UK and Northern Ireland won't rent to anyone over 69. You can't rent a car in the Republic of Ireland if you're 75 or over, and you'll pay extra if you're 70–74. If you’re considered too young or too old, look into leasing (explained later in this section), which has less stringent age restrictions. STA Travel is a good option for young renters (tel. 800-781-4040).

As Europe's internal borders fade, your car comes with the paperwork you need to drive wherever you like in Western and most of Eastern Europe. But if you're heading to a country that still has closed borders (for example, deep in far-eastern or southeastern Europe), state your travel plans up front to the rental company when making your reservation. Some companies have limits on eastward excursions (for example, you can only take cheaper cars, and you may have to pay extra insurance fees). When you cross these borders, you may be asked to show proof of insurance (called a "green card"). Ask your car-rental company if you need any other documentation for crossing the borders on your itinerary.

Some rental companies allow you to take a rental car from Britain to the Continent or to Ireland, but be prepared to pay high surcharges and extra drop-off fees. If you want to drive in Britain, Ireland, and on the Continent, it's usually cheaper to rent three separate cars than one, thanks to the high cost of taking cars on ferries (between Ireland and Britain) and crossing under the English Channel via the pricey Eurotunnel .

Leasing (technically, buying the car and selling it back) gets around many tax and insurance costs and is a great deal for people needing a car for three weeks or more. For trips eight weeks and longer, leasing can even be more economical than railpasses. Leases are available for periods up to six months. Prices include all taxes, as well as zero-deductible theft and collision insurance (comparable to CDW) — and you get to use a new car. Leased cars can most easily be picked up and returned in France, but for an additional fee you can also lease cars in the Netherlands, Belgium, Germany, Spain, Portugal, Italy, and Great Britain.

Europe by Car , which invented leasing more than 50 years ago, still offers good deals (for example, you can lease a Peugeot 207 with air-conditioning in France for as few as 17 days for $949, about $56 a day; tel. 800-223-1516). Renault Eurodrive offers similar deals. The longer you lease the car, the lower the price (a 60-day lease can be as inexpensive as $34 per day).

Although Americans rarely consider this budget option, Aussies and New Zealanders routinely buy used cars for their trips and sell them when they're done. The most common places to buy cars are Amsterdam, Frankfurt, London, and US military bases. In London, check the used-car market on Market Road (Tube: Caledonian Road) and look in London periodicals such as TNT , Loot , and New Zealand News UK , which list used cars as well as jobs, flats, cheap flights, and travel partners.

Campers: Consider the advantage of a van or motor home, which gives you the flexibility to drive late and just pull over and camp for free. Fairly cheap to run, these vehicles use diesel — about two-thirds the cost of gasoline, but with much better mileage (24–30 mpg average). For more tips on camping, see Camping European Style .

Updated for 2009. For lots more tips, check out our best-selling Europe Through the Back Door travel skills guidebook.