5 Common Mistakes to Avoid When Renting a Car Abroad

Renting a car while traveling abroad is a fantastic way to explore beyond the tourist hotspots, enjoy more freedom, and reach hidden gems. But if you’re not careful, it can also lead to unexpected fees, insurance headaches, or even legal trouble.

Here are the 5 most common mistakes travelers make when renting a car abroad—and how to avoid them:


1. Not Checking Driver’s License Requirements

The mistake:
Assuming your home driver’s license is valid everywhere.

Why it’s a problem:
Some countries require an International Driving Permit (IDP) in addition to your regular license. Without it, the rental agency may refuse to give you the car—or worse, your insurance may be invalid if you get into an accident.

How to avoid it:

  • Check if the country you’re visiting requires an IDP (especially outside Europe and North America).

  • Get your IDP well in advance from your local automobile association.

  • Always carry both your original license and the IDP when driving.


2. Declining Insurance Without Understanding the Risks

The mistake:
Relying solely on your credit card or travel insurance without confirming what’s actually covered.

Why it’s a problem:
Basic rental insurance often comes with high deductibles and limited coverage, and credit card insurance might not cover all damages, theft, or driving in certain countries.

How to avoid it:

  • Understand what’s included in the rental (Collision Damage Waiver, Third Party Liability, Theft Protection).

  • Contact your credit card company or travel insurance provider to check:

    • What types of vehicles and countries are covered?

    • Are you covered for damage, theft, or third-party claims?

  • If unsure, consider full coverage through the rental agency or a third-party provider.


3. Not Reading the Fine Print

The mistake:
Clicking “book now” without reviewing terms and conditions.

Why it’s a problem:
You may face hidden charges for mileage, fuel, extra drivers, border crossings, or returning the car late or to a different location.

How to avoid it:

  • Read the rental agreement carefully.

  • Check for:

    • Mileage limits (unlimited vs. capped)

    • Fuel policy (full-to-full is best)

    • Cross-border restrictions

    • Extra fees (young driver, GPS, toll passes, out-of-hours drop-off)


4. Not Inspecting the Car Before (and After) Rental

The mistake:
Driving off without documenting the vehicle’s condition.

Why it’s a problem:
You could be held responsible for damages that weren’t your fault.

How to avoid it:

  • Do a full walk-around inspection before taking the car.

  • Take clear photos or videos of any scratches, dents, or interior damage—include timestamp if possible.

  • Ask the rental agent to mark existing damage on the rental form.

  • Repeat the process when returning the car.


5. Underestimating Local Driving Rules and Conditions

The mistake:
Assuming driving abroad is just like driving at home.

Why it’s a problem:
Each country has unique driving laws, signage, road habits, and conditions. Ignorance can lead to fines, accidents, or invalid insurance.

How to avoid it:

  • Research:

    • Which side of the road to drive on

    • Speed limits and toll systems

    • Local driving etiquette (roundabouts, overtaking, use of lights/horns)

  • Use offline GPS apps like Google Maps or Maps.me if mobile data is limited.

  • Don’t forget to check parking rules—many fines come from illegal parking.