Renting a Car in Europe – 10 Mistakes That Can Cost You Big

Hiring a car in Europe can be the best way to see the hidden gems of Italy, France, Spain and many other countries, all in one amazing trip, but if you aren’t careful, it can also be a total financial nightmare. 

I lived in the old continent for many years, and travel back regularly, and today, I’m breaking down the 10 biggest mistakes travellers make when renting a car in Europe and how to avoid them.

The Cross-Border Trap

Assuming you can just drive anywhere in the old continent, crossing all the European borders, is the first mistake. 

If you rent a car in Milan and head to Switzerland, you’re crossing a border. 

Many providers charge a ‘Cross-Border Fee’ of 20 to 30 Euros, or worse, some forbid it entirely. 

Always check the rental conditions before you book, or your insurance might be void the second you cross that line.

I’ve also dedicated a full video to this because every country has different rules.

Booking the Wrong Size

In the US or Australia, a ‘compact’ car is a mid-sized sedan. 

In Europe, a compact car is tiny. If you have four adults and four large suitcases, they simply will not fit in a Fiat 500 or a VW Golf. 

A big SUV is great for highways, but it can be challenging to park in cities. Plus, country roads are narrower! 

You get the point, you should rent the correct car size in Europe. Things work differently in the old continent.

You want a car small enough for the streets of a French village, but big enough for your gear. Don’t upsize just for ‘luxury,’ but don’t downsize into a car you can’t actually fit in. You get the point!

Chasing the Lowest Price

Chasing the Lowest Price is not always a great idea, and this is where most people get scammed.

Based on my experience, the rock bottom prices are usually an indication of ‘shady’ companies that will add hidden fees at the desk when you won’t have any other option but accepting them. 

Of course, I am not saying that there are no bargains around, especially if you book well in advance, but you need to be careful, it doesn’t matter which European city. 

For the last 7 years, I’ve used a comparison site called DiscoverCars, where every car rental is rated from 5 to 10 stars by real customers. It works basically as the ‘Airbnb of car rentals’.

I usually filter above 8 or even 9 stars to book my car only from the most trusted operators. So far, I have had only good experiences at competitive prices, too.

My biggest tip here: if you find any interesting deal, I suggest booking straight away because cancellation is usually free of charge (up to 48 hours before the pickup on DiscoverCars).

Buying Insurance at the Desk

When you arrive at the desk to pick up your car, the agent will try to scare you into buying their ‘Premium Full Insurance‘ or “Custom-made no-excess insurance” for 30 to 50 Euros a day. 

I always suggest having full insurance in Europe, just think of those narrow streets, but not at the counter, way too expensive.

Check your credit card instead, it may include it free of charge, although it may have its own excess, mine is, for example, $1,000, which helps, but it’s not great.

Otherwise, use the one offered on DiscoverCars. You can add full insurance for just 8 or 9 Euros a day during checkout. It covers everything, including roadside assistance, for a fraction of the cost

If you are not familiar with how car rental insurance works, I highly suggest watching my short video

The Credit vs. Debit Card Disaster

Mistake number five is the #1 reason people are denied their car. I experienced it myself, unfortunately!

Most European agencies require a physical Credit Card in the main driver’s name for the security deposit. 

A Debit card—even if it has thousands of dollars on it—is often rejected. 

If you don’t have a Credit Card, they will force you to buy their most expensive insurance.

If you don’t have a Credit Card, don’t just give up. There are a couple of workarounds to use a debit card to rent a car.

The “One-Way” Fee Trap

Are you planning to pick up your car in Milan and drop it off in Rome, or even worse, in Paris?

Watch out for Mistake number 6, the ‘One-Way Fee.’ It can sometimes cost more than the rental itself! 

If you’re on a budget, try to plan a ‘loop’ route that starts and ends at the same airport to keep your costs down.

If you’re renting for more than 4 weeks, look into a Car Lease instead; it is usually a more flexible system.

If you are not familiar with Car Lease, I suggest watching this video where I compare Car Lease with Car Rental.

Ignoring the “Vignette”

Mistake 7 is Ignoring the “Vignette”

In Switzerland and Austria, you don’t pay tolls at booths; you buy a sticker called a Vignette. The same happens when you rent a car in Hungary.

If you’re on a highway without one, the fine is massive. Some rentals include them, but most honestly don’t. 

Check your windshield before you leave the lot! Usually, you can buy them at the border, petrol stations, or even online.

Mistake 8: The ZTL Trap

Mistake number 8 is about the ZTL Trap

In Italy, ‘ZTL’ stands for Zona Traffico Limitato. These are historic centres where only residents can drive. 

If you follow your GPS blindly into a ZTL, a camera will snap your plate, and you’ll get a €100 fine in the mail six months later.

 Always look for the ‘Red Circle’ sign and park outside the city walls.

Forgetting your IDP

Mistake 9 is Forgetting your IDP. 

If your license is from outside the EU (like the US, Canada, or Australia), you need an International Driving Permit (IDP). It’s just a translation, but most car rentals won’t give you the car without it.

Even if the rental desk doesn’t ask for it, the police will if you get pulled over. Don’t risk 

Also in this case, I dived deep into this—and a common pickup scam—in this short video.

Waiting to Book an Automatic

And finally, mistake number ten, don’t wait to book an automatic.

Most Europeans drive a manual (stick-shift). If you need an automatic, book months in advance. 

If you wait until the last minute, the few automatics left will be double the price of a manual, or they might be completely sold out, leaving you without any option.

And also in this case, I have broken this mistake down with a dedicated short video