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Hiring a car while you’re away can be the perfect way to explore your holiday destination at your own pace, giving you freedom that public transport or taxis can’t always provide.
That said, the process of renting a car abroad isn’t always straightforward. Hidden fees and rental pitfalls can quickly turn something that should be relatively straightforward into an expensive headache.
To help you avoid some of the most common car rental mistakes, here are five key things to keep in mind before you take to the road.
1. Book early
Leaving your rental until the last minute can cost you more than you think. Prices often rise the closer you get to peak holiday periods, so reserving your vehicle well in advance usually saves money. Don’t just stick with well-known brands either – use comparison sites to check smaller providers too. If you’re considering an unfamiliar company, take a few minutes to read customer reviews on sites such as Trustpilot to ensure they’re reliable.

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2. Bring the correct documents
Arriving at the rental desk without the right paperwork can stop you from driving anywhere. Read the terms carefully when booking, as requirements vary from company to company and depending on the country you’re visiting. Generally, you’ll need your driving licence, passport or another form of ID, your booking confirmation, proof of insurance, and a credit card for the deposit. In some destinations, an International Driving Permit (IDP) may also be compulsory. The AA has a full list of countries where an IDP is required here.
3. Inspect the car thoroughly
Take a close look at the car both inside and out before you drive away. Check for scratches, dents, or scuffs, and make sure all existing damage is written down in the rental agreement. Take your own photos or videos too – they could protect you from being held responsible for pre-existing marks when you return the vehicle. Even small blemishes like wheel scrapes can lead to unexpected charges if you haven’t got proof they were there before you hired the car.
4. Be cautious with add-ons
Many rental desks will try to upsell you extras such as sat navs, child seats, or the option to add another driver. While these may sound convenient, they often come with hefty charges. For example, according to icarhireinsurance.com, the average global cost of a week’s car hire in the summer of 2025 was £369. However, the average cost of extras stood at £189 for car hire excess protection, £53 for tyre and windscreen excess cover, £72 for a sat nav, £68 for an additional driver, and £70 for a child car seat, potentially adding up to a massive £452 on top if you needed all of these. If possible, you should therefore bring your own equipment to keep costs down and arrange separate excess waiver insurance before you travel.
5. Understand the fuel rules
Fuel policies differ between companies, so always clarify yours with the car rental company before leaving the forecourt. The most common fuel policy is “full-to-full” which as the name suggests means that you collect the car with a full tank and must return it the same way. Keep fuel receipts and, for extra peace of mind, take a photo of the gauge before drop-off. This way, you’ll have evidence if the company tries to charge you for fuel you’ve already paid for.

Unlock Low Car Hire Rates
Compare and save on car hire with Holiday Autos. Choose from 1,700 suppliers in 50,000 locations worldwide – with free cancellation, no hidden fees, and 24/7 support.
6. Know the mileage limits
Some rental agreements impose daily or weekly mileage limits. Exceeding them can result in steep charges per mile or kilometre. If you plan on doing long drives or road trips, make sure your contract includes unlimited mileage or calculate the likely cost in advance.
7. Check local driving rules
Driving laws vary widely between countries so it’s well worth swotting up on regulations before you take to the road. Some may require extra items in the car, like reflective jackets or warning triangles, and fines can be high if you’re unprepared. You should also check on unique laws like varying speed limits, headlight requirements, or rules for turning right on a red light. You can learn more about driving rules abroad on the RAC website.
A final thought…
Having a car can be a great addition to your holiday, and allow you to visit places you otherwise might have missed but it pays to plan carefully. By booking early, preparing the right documents, checking for damage, avoiding overpriced extras, and understanding the fuel policy, you’ll be in a much stronger position to enjoy your trip without any surprise costs following you home.
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Melanie Wright is money editor at Rest Less. An award-winning financial journalist, she has written about personal finance for the past 25 years, and specialises in mortgages, savings and pensions. She is a former Deputy Editor of The Daily Telegraph's Your Money section, wrote the Sunday Mirror’s Money section for over a decade, and has been interviewed on BBC Breakfast, Good Morning Britain, ITN News, and Channel Five News. Melanie lives in Kent with her husband, two sons and their dog. She spends most of her spare time driving her children to social engagements or watching them play sport in the rain.
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