Renting a car in Europe: What to watch out for and how to avoid costly mistakes

by Wander Notes Team

Renting a car is one of the best ways to explore Europe, especially if you want to discover small villages, remote beaches, scenic routes and destinations that public transport does not easily reach. However, not every car rental experience goes smoothly. Hidden charges, insurance exclusions, unexpected tolls and disagreements over vehicle damage can turn an enjoyable holiday into an expensive experience.

Whether you are renting a car for a weekend city break or a longer European road trip, here are the most important things to check before, during and after your rental.

1. Choose a reliable car rental company

The cheapest offer is not always the best deal. While international brands such as Hertz, Avis, Europcar, Sixt and Enterprise are familiar options, local car rental companies can sometimes offer better prices, more flexible conditions and excellent customer service.

In many European destinations, smaller regional companies are well established and worth considering. For example, Centauro in Spain and Portugal, Sicily by Car in Italy, and AutoUnion in Greece and other European markets are alternatives to the major international brands.

Before booking, check:

  • Recent customer reviews, particularly complaints about deposits, insurance and unexpected charges.
  • Whether the rental office is located at the airport or requires a shuttle transfer.
  • The company’s fuel policy and mileage restrictions.
  • The deposit amount and accepted payment methods.
  • Its opening hours and procedures for out-of-hours collection or returns.

Always read the rental conditions rather than relying exclusively on comparison websites. A slightly more expensive company with transparent policies can save you considerable trouble.

2. Prefer full coverage insurance

Insurance is probably the most important consideration when renting a car. Basic rental rates often include Collision Damage Waiver (CDW) and Theft Protection, but these usually come with an excess (deductible). This means you may still have to pay a significant amount if the vehicle is damaged or stolen.

For greater peace of mind, consider purchasing full coverage insurance with zero or minimal excess.

Check carefully what the policy actually covers. Some insurance packages exclude:

  • Tyres, wheels and alloy rims.
  • Windscreen and windows.
  • Undercarriage and roof damage.
  • Lost keys and roadside assistance.
  • Damage caused by incorrect fuel or negligence.

It is also important to understand the difference between insurance purchased directly from the rental company and third-party excess reimbursement insurance. With the latter, you may need to pay the rental company upfront for any damage or charges and then submit a claim to get your money back. This is typically the case when booking a car through platforms such as discovercars.com, where insurance is provided by a third-party insurer rather than directly by the rental company.

If you prefer a straightforward experience, purchasing comprehensive coverage directly from the rental company is often the more convenient option, although it can be more expensive.

Renting a car in Europe: What to watch out for and how to avoid costly mistakes

3. Inspect the car before driving away

Never assume that the rental company has recorded every existing scratch or dent. Even minor damage can become a problem when you return the vehicle.

Before leaving the car park:

  • Walk around the entire vehicle and inspect the bodywork.
  • Check the bumpers, doors, mirrors, wheels and windscreen.
  • Take clear photographs and a video of the car from every angle.
  • Photograph the interior, dashboard and fuel gauge.
  • Check that existing damage is recorded on the rental agreement.

Pay particular attention to the wheels and lower parts of the bumpers, as these are easily damaged and sometimes overlooked.

If you notice damage that is not included in the inspection report, ask an employee to record it before signing or leaving.

4. Check the car again when returning it

The return procedure is just as important as collection. Ideally, return the vehicle during office hours and ask an employee to inspect it with you.

Take photographs and a video showing the car’s exterior, interior, mileage and fuel level. Keep the return receipt or written confirmation that the vehicle was accepted without additional damage.

If you must return the car outside opening hours, photograph the vehicle in its designated parking space and keep evidence of the exact return time and condition.

Do not discard your rental agreement, photographs or payment documents immediately. Keep them until your deposit has been fully released and all charges have been settled.

Renting a car in Europe: What to watch out for and how to avoid costly mistakes

5. oll payments vary considerably across Europe, so it is important to check the system used in each country you plan to visit before setting off.

In countries such as France, Italy, Spain and Portugal, many motorways have toll stations or electronic toll collection systems. In other countries, motorway use is covered by a vignette, which is a time-based permit that allows you to use the road network for a specific period.

For example:

  • Austria and Switzerland: A motorway vignette is generally required.
  • Slovenia: An electronic vignette (e-vignette) is required on most motorways.
  • Hungary: Electronic motorway vignettes are required.
  • France and Italy: Many motorways charge tolls according to the distance travelled.
  • Portugal: Both conventional toll booths and electronic-only toll roads exist.

Ask the rental company whether the vehicle comes with an electronic toll device or registration system (like e-vignette) and how the charges are calculated. Some companies charge an additional administrative fee on top of the actual tolls.

Never assume that tolls are automatically included in your rental price. Also, avoid entering electronic toll roads without understanding how payment works, as unpaid tolls can result in fines and additional administrative charges.

Watch out for restricted traffic zones in city centres. For example, Milan has Area C, a congestion charge zone covering the historic city centre, as well as Area B, which restricts certain vehicles. These are separate from motorway tolls, and entering a restricted area without meeting the requirements or paying the relevant charge can result in a fine. Always check local access restrictions before driving into a city centre, particularly when travelling with a rental car.

6. Check which side of the road you drive on

Driving rules are not identical throughout Europe. Most European countries drive on the right-hand side of the road, with the steering wheel on the left.

However, several countries drive on the left, including:

If you are accustomed to driving on the right, driving on the left can initially feel unfamiliar. Remember that you must also adjust to roundabouts, junctions and overtaking rules.

Take extra care during your first few kilometres, particularly when leaving the airport or entering busy urban areas. Choosing an automatic transmission can also make the transition easier, as you will not need to change gears with your left hand.

Renting a car in Europe: What to watch out for and how to avoid costly mistakes

7. Check fuel policy, mileage and cross-border restrictions

Before booking, understand the fuel policy. The most convenient option is usually full-to-full: you collect the vehicle with a full tank and return it full. Avoid prepaid fuel packages unless you are certain they offer good value.

Also check whether your rental includes unlimited mileage. This is particularly important if you are planning a long road trip across several countries.

If you intend to cross borders, inform the rental company in advance. Some companies allow international travel freely within certain regions, while others charge additional fees or prohibit travel to specific countries.

You should also check whether roadside assistance is included and what number to call in case of a breakdown or accident.

Quick pre-booking checklist

Before confirming your reservation, take a few minutes to go through this checklist:

  • Compare rental companies: Check customer reviews, reputation and rental conditions, not just the price.
  • Check insurance: Prefer full coverage with zero excess and confirm what is excluded.
  • Check the deposit: Find out how much will be blocked on your credit card and whether a credit card is mandatory.
  • Review the fuel policy: Choose full-to-full whenever possible.
  • Check mileage limits: Make sure unlimited mileage is included if you are planning a road trip.
  • Confirm border restrictions: Check whether you can drive the car into other European countries.
  • Understand toll payments: Find out whether the car has an electronic toll device and whether additional service fees apply.
  • Check collection and return times: Confirm office opening hours and out-of-hours procedures.
  • Inspect the vehicle: Photograph and record all existing damage before driving away.
  • Keep your documents: Save the rental agreement, insurance details, emergency contact number and booking confirmation.

Travel tip: Save a copy of your rental agreement and insurance policy on your phone. Having these documents readily available can make a big difference if something unexpected happens during your trip.

Renting a car in Europe: What to watch out for and how to avoid costly mistakes

Stress-free renting

Renting a car in Europe gives you the freedom to travel at your own pace, but a little preparation can prevent unnecessary expenses and unpleasant surprises. Choose a reputable rental company, read the insurance conditions carefully, document the vehicle’s condition before and after your trip, and familiarise yourself with local driving and toll regulations.

Most importantly, do not make your decision based on price alone. A transparent rental agreement, reliable customer service and comprehensive insurance are often worth paying a little extra for. That way, you can concentrate on enjoying the journey rather than worrying about unexpected charges.

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