What to avoid when renting a car? 7 Common Mistakes

Renting a car abroad offers ultimate freedom, but one simple mistake can cost you hundreds of dollars or euros. I have been renting cars for 25 years, and I have experienced and seen all sorts of scams, traps and wrong assumptions. 

In this guide, I’m giving you my list of the 7 most common mistakes travellers make and what to avoid when renting a car. Watch out for the last mistake that can really screw up your holiday.

Forgetting the IDP is a big mistake

Always check the license requirements. 

In many countries, like Japan, Italy, or Spain, your home license is not enough. You legally need an International Driving Permit (IDP) alongside it.

The rental company might not check, but if the police pull you over, the fines are huge. Not to talk about the car insurance that could be invalidated

The simple solution is to check the requirements early. I talk more extensively in my guide to the IDP about when you need it and how to easily and quickly get one.

A few quick examples, well, Australians and Americans need an IDP to drive in Europe, but they don’t for driving in Costa Rica, unless the car provider wants one.

I know it’s complicated, and that’s why I always suggest doing it. Last mention, Europeans can drive in any EU country with their home license.

The low price trap

The second mistake is focusing only on the lowest price and booking directly. 

When you book direct, you lose the ability to compare the real reputations of the companies. You risk choosing a provider known for massive upselling and unfair claims.

Google Maps helps, but based on my experience, I found so many fake comments that I am starting to not trust the review section any longer. There are too many competitors or friends who manipulate the scoring, especially when the reviews are in a small number.

My Solution?

I personally use a comparison website called DiscoverCars, where all the providers are rated between 5 and 10 stars based on genuine customer reviews, with the same process as Airbnb rates the apartments.

I filter above 8 or even 9 stars and book from there—that is a shortlist of the most trusted providers. I have been using this website for over 5 years without a single problem, and that’s why I suggest it.

Cover your car rental insurance excess

The third Mistake is paying for overpriced full insurance at the counter desk.

I already posted a guide where I talked uniquely about car rental insurance. Briefly here, most providers include in the price both the TPL (Third Party Liability Insurance) and the Collision Damage Waiver (or CDW), but they leave an excess, also called a deductible, which ranges between 1,000 and 5,000 Euros or US dollars.

This is basically your max out-of-pocket. Keep in mind that for a small scratch, they may charge you 400 or even 500 euros or US dollars. 

At the counter, they will upsell their full insurance to cover this excess, which sometimes excludes a few things anyway, like the windscreen, for 30 to 50 Euros a day. I know, it can be more expensive than the car rental itself!

How to avoid that?

I personally always suggest having full insurance, but get it before you arrive at the counter. A few credit cards provide this option, but they have their own deductible; mine has, for example, 500 dollars.

Personally, I buy the full insurance on the comparison website I previously mentioned, DiscoverCars, for just 8 to 9 euros or US dollars a day. This is a real cheap lifesaver compared to the counter price, and it includes Roadside Assistance, which is a must if exploring destinations far from big towns.

Last-Minute booking is not a great idea

Mistake Number 4 is booking too late. 

Waiting until the last minute or even until you arrive means you face peak prices, limited car choices, and long queues. The solution is simple: book your car as early as possible. 

The benefit is that you lock in the lowest price, and almost all suppliers nowadays offer free cancellation if your plans change

Document your car to avoid the damage scam

Now, you have to assume that if you don’t document existing damage, the rental company will charge you for it when you return the car. Sometimes the providers genuinely miss adding these damages to the rental contract; other times, honestly, they just try to scam you

The simple solution is to make sure all damages are in the rental contract, but I know it’s easy to miss small damages, especially in the dark or after a long, tiring flight.

And that’s why I always suggest taking plenty of photos of the car before you drive away, focusing on every panel, the wheels, the undercarriage on all four sides of the car and the windscreen. 

Also, photos of the interior are super important because, for example, a cigarette burn may not be covered even by full insurance. This is your definitive proof against any false claim.

Don’t ignore borders and state limits

Mistake Number 6 is assuming you can drive anywhere. 

Many rental contracts strictly forbid driving across country borders (especially in Europe), or even crossing state lines within a country, like when you rent a car in Australia. There may be no more customs to go through, but still, you are driving to a different country or state.

Breach of contract nullifies your entire insurance policy. 

My rule of thumb is to never assume I can. I always check the rental conditions or just enquire when I book the car. Sometimes, even ferry transportation is limited.

Deposit Hold – how it works

And finally, mistake Number 7, which is not accounting for the security deposit hold. 

When you pick up the car, the company places a large hold, often $1,000 to $3,000, on your credit card. 

Don’t worry, this is not a charge, but it reduces your available credit for the entire duration of your trip and actually a bit more than that. It is, in fact, usually released one or two weeks after the day you drop off the car.

The Solution?

Always check the deposit amount in the rental conditions before you book, because it can really limit your holiday budget, especially if it’s a tight one. 

For example, assume your credit card has a maximum spending limit of $5,000. If the rental company places a $3,000 deposit hold, that amount is locked. It means you only have $2,000 left available on that card for spending during the entire holiday, and one or two weeks after you drop off the car.

On the comparison website DiscoverCars, which I previously mentioned, you can also filter on the exact deposit hold amount, which can be super handy! A spoiler for you, I found car providers with even zero deposit hold in the past, or just a tiny amount, so there are options out there.