Car rental guide from a frequent traveler — avoid common mistakes and save money

Best tips to avoid the drama at the rental counter and make the most out of your holiday.

Renting a car gives travelers a level of freedom that public transport rarely provides. In many destinations, having a vehicle is the only way to reach remote beaches, quiet villages, or historical sites that buses and trains don’t serve. Without the stress of fixed schedules, you can plan a trip that fits your specific needs and pace.

However, the rental process is often more complicated than it first appears. Rules, insurance options, and pricing can vary by country or company. Without a clear understanding of how these things work, you may run into unexpected costs or paperwork issues.

To keep your rental simple and affordable, it helps to know the basics. This guide explains the most important things to look out for and how to avoid common mistakes, ensuring your experience is as smooth as possible.

When to book

Timing your booking is critical, as car rental prices tend to rise sharply as travel dates approach, particularly during peak seasons. To secure the most competitive rates and a wider selection of vehicles, booking well in advance is essential. This is especially true in Europe, where manual transmissions remain the standard. While automatic vehicles are available, they are often in limited supply and cost more; if you are not comfortable driving a manual, waiting until mid-season may result in no availability at all.

Beyond seasonal trends, prices often spike significantly around national holidays, school vacations, or major local events like festivals and sporting competitions. In high-demand destinations, last-minute deals are rare, and the closer you get to your departure, the more you can expect to pay for a dwindling selection of cars. For these reasons, it is wise to check vehicle availability and transmission types before finalizing your travel itinerary to ensure your preferred car is actually obtainable for your trip.

Where to rent

Big names are usually the best rental options in most cases. You can expect professional service and almost brand-new cars. But, in many countries, especially on Greek islands or in parts of Southeast Asia, small local rental companies often offer better prices than international chains. These local agencies can be more flexible with pickup and drop-off, and usually more relaxed about minor scratches or dents, but you don’t always get the latest car models.

Cars, especially in southern Italy or Greece, are heavily used, and local agencies don’t care much about minor issues. In these countries, roads are narrow, and driving to the beach usually includes some off-road sections. I recommend checking local agencies in these places; just make sure they have good reviews (e.g., on Google) and clear insurance terms.

How to find the best price

When you buy something, you shop around, right? You should do the same with car rentals. Just don’t forget that cheap is often cheap, and the cheapest offer isn’t always the best.

Using platforms like Rentalcars.com, DiscoverCars, or Kayak can help you compare prices across multiple companies and car models in one place. They often offer free cancellation and customer reviews, but use them with caution.

They usually claim to have unbeatable prices and free cancellation, which is true until you encounter problems. The trick is that you book and pay through their system, but your actual rental contract will be with the rental agent, which can lead to confusion about rental policies and terms. The trick is almost always around the insurance, and the surprise usually starts when the rental agent tells you that the insurance you paid for hardly covers any damage, and you need to pay extra for proper coverage.

If you book directly with the rental company, you may not have the lowest price, but you will have a much better understanding of the different fees and policies. In this case, the entire payment and contract are between you and the rental agent, without any third-party involvement. It is worth registering an account with one or more of the biggest names and using it every time you search for prices or book cars. With this, you can get access to special discounts, free cancellation, and many other perks. Over time, you can earn loyalty points similar to those offered by Airlines and beat the price of the booking platforms.

My personal rental process is as follows: First, check prices on one of the rental sites, such as rentalcars.com or booking.com. Then, once you see who has the best offer or where the prices are, you go directly to the rental company’s website to check their offer. It is usually more expensive if you are not a member, but it is worth checking. If the price difference is only due to friction, it is better to book directly with the rental company.

Also, calculate the daily rental price. Some places charge a higher or lower daily rate if you rent for more than a certain number of days.

Pro tip: Check prices from the computer and the mobile app, too. Booking through your mobile app typically results in a slightly lower price.

Insurance

In the U.S., your personal car insurance or credit card might cover rentals, but this doesn’t apply abroad. Many rental companies require you to purchase local insurance or make a large deposit of 1,000-1,500 euros on your credit card. The base rental price almost always includes the standard base insurance, and you are liable for any damages up to a certain amount. By purchasing additional insurance at the counter, you can choose from several options to reduce your excess. Always read the fine print and check with your credit card company or travel insurance before declining coverage.

Pro tip: If you’re in a destination where you’re likely to drive on gravel roads outside the city, always ask about the rental policy. At many places, dirt roads are no-nos for rental cars, and if you return a car covered in thick dust from the road, they will charge you extra right away.

Use a credit card

99% of the cases, you will need a credit card in the driver’s name to rent a car. This is where they will put the security deposit. If you only have a debit card, don’t even try. Big names won’t accept it.

Many major credit cards offer collision damage coverage, but only if you use that card to book and decline the rental company’s insurance. This can save you money, but only if it’s valid in the country you’re traveling to. Always call and confirm the terms before your trip.

Fuel policies

There are typically two types: full-to-full and prepaid.

Full-to-full means you pick up the car with a full tank and return it full. This is the most economical option if you remember to refuel. Prepaid fuel might be convenient, but it’s usually more expensive.

With electric cars, the policy is usually 80% charge on return, which is usually achievable in a reasonable time, but it is better to plan ahead and leave time for charging, especially if you’re running to catch a flight.

Airport pickups

No surprises. Picking up a rental car at the airport often comes with extra fees. Sometimes, it’s worth taking a shuttle or taxi to a city branch location to save a surprising amount of money. But at the same time, if you land somewhere in the middle of the night, it is best to take a car directly from the airport and not wander around at night in an unknown city.

Airport locations usually offer 24-hour pickup and drop-off services, whereas other locations typically operate during normal office hours. If you pick up the car at the airport, I always recommend sharing your flight number with the agency. They will know that your flight is delayed and will hold the car for you.

Inspect the car

This is your most important task before you even start your rental car. Inspect the car thoroughly for scratches, dents, and other damage. Take photos or a short video of the exterior and interior from every angle. This protects you against being charged for damage you didn’t cause. If you find something, walk back to the counter and explain that you found something, so they can record it on the contract, and you are covered. This is especially important in countries where resolving disputes can be more difficult.

Local driving rules

If you travel to a new country, it is better to get familiar with the local rules before you go. Speed limits, road signs, and roundabout etiquette can vary dramatically. In countries like the UK or Australia, driving on the left adds another layer of adjustment. If you have never done this, start on a quiet road far from a busy city. It is not that hard, but you will probably need a bit of practice.

Parking and other fees

It sounds obvious, but it’s not for everyone. Parking charges are almost never included in rental agreements, and if you receive a fine, the rental company will charge you not only the fine but also an additional handling fee.

Tool roads and vignettes are another great way to loose money. Before you take the car, always ask for the rental policy. In some places, highway tools are included, while in other places, they will send you an extra invoice after return. Plan your route with GPS, and it will warn you if the route has any toll roads.

Check the return policy

Some companies have strict return windows or charge high late fees. Others close on weekends or public holidays, especially in smaller towns or outside the U.S. Make sure your return time aligns with their office hours. Bring the car back with full thanks or as agreed, and ensure it is in a reasonable condition. If the car is covered with mud, I can guarantee that you will get an extra invoice before you even blink. And one last thing before you drop off the car. You must take pictures again. Why? This is how you prove that the car was in good condition when you drop it off.