How to Rent a Car
Learn how to rent a car step by step. Covers comparing prices, understanding insurance, required documents, vehicle inspection, and avoiding hidden fees.
Renting a car should be simple. Pick a car, show your license, drive away. But somewhere between the online booking and the actual counter, things get complicated. The agent asks if you want CDW, LDW, supplemental liability, a fuel service option, a toll transponder, and roadside assistance. Suddenly you are not sure if you are renting a car or buying one.
We have spent more time at rental counters than we would like to admit, and most of it was sorting through extras we did not need. Those extras are mostly optional, and some are completely redundant if you have the right credit card or insurance policy. Once you know what to look for and what to skip, the whole process takes about fifteen minutes.
This guide covers renting a car in the US with notes on what changes when you are picking one up in Europe.
A valid driver's license A credit card in the driver's name A reservation confirmation (printed or digital) An International Driving Permit if renting outside the US
Figure out what you actually need
Start with the basics. Where are you picking up the car, and where are you dropping it off? If those are two different locations, that is a one-way rental, and it usually costs more. Some companies charge a one-way fee anywhere from $50 to $200 depending on the distance. Next, decide on car size. Economy and compact cars are cheapest and easiest to park, especially in cities. If you are driving with family or hauling luggage, a midsize or full-size sedan makes more sense. SUVs and minivans cost significantly more but they are worth it for longer trips with a group. Most rentals charge by the 24-hour period. If you pick up at 10 a.m. on Monday and return at 10 a.m. on Wednesday, that is two days. Return it at noon and some companies will charge you for a third day. Plan your pickup and return times carefully. If you are renting in Europe, keep in mind that manual transmission is the default. Automatic cars are available but cost more and need to be requested specifically when you book. If you have only ever driven an automatic, do not assume the car will have one.
Good to know: Weekly rates are often cheaper than daily rates added up. If you need a car for five or six days, check whether a full seven-day rental actually costs less.
Compare prices and book early
Do not just walk up to a rental counter at the airport. You will pay the highest rate available. Book online at least a few days ahead, and ideally two to three weeks before your trip. Start with aggregator sites that compare rates across multiple companies at once. Then check the rental company's own website directly. They sometimes offer a lower rate or a promo code that aggregators do not show. Rental bookings are unusually forgiving. Most major rental companies in the US let you cancel or modify your reservation for free as long as you do it before the pickup time. That means you can lock in a rate now and keep checking for lower prices. If the rate drops, cancel and rebook at the new price. In Europe, the same aggregator approach works. Booking ahead matters even more during peak summer travel season, when popular destinations can sell out of certain car sizes entirely.
Good to know: Picking up from a location outside the airport can save you 10 to 20 percent. Airports charge concession fees and facility charges that get passed directly to you in the final price.
Sort out insurance before you get to the counter
Counter insurance is where rental companies make a big chunk of their profit, and it is the easiest place to pay twice for cover you already hold. The agent at the counter will offer you several types of coverage. Collision Damage Waiver (CDW), sometimes called Loss Damage Waiver (LDW), covers damage to the rental car itself. It typically costs $15 to $30 per day. Supplemental Liability Protection covers damage you cause to other people or their property. Personal Accident Insurance covers medical costs for you and your passengers. Before you accept any of these, the Federal Trade Commission recommends checking two things. First, your personal auto insurance policy may already cover rental cars. Call your insurer and ask whether your collision and comprehensive coverage extends to rentals. Second, many credit cards include rental car coverage as a built-in benefit when you use that card to pay for the rental. Premium cards often include primary coverage, which means they pay first without involving your personal policy. If you are renting in Europe, your credit card's coverage may not apply or may be limited to certain countries. Check the card's benefits guide before your trip. European rentals include basic third-party liability insurance by law, but the excess (what you would call a deductible in the US) can run over 1,000 euros. You can buy an excess reduction waiver from the rental company or a third-party provider for much less than the company's full CDW.
Heads up: If you decline all coverage and have no personal policy or credit card benefit that applies, you could be on the hook for the full value of the car if something goes wrong. Make sure you have at least one layer of coverage before you drive off the lot.
Bring the right documents
At the counter you will need three things: a valid driver's license, a credit card in the driver's name, and your reservation confirmation. The credit card part matters. Rental companies place a hold on your card for the estimated cost plus a security deposit of several hundred dollars. With a debit card, that hold ties up real cash in your checking account until the car is returned. Some companies restrict or refuse debit cards entirely. A credit card avoids both problems. If you are under 25 in the US, you can still rent from most major companies, but expect a young driver surcharge of $20 to $30 per day. Some companies waive this fee for members of certain loyalty programs or organizations. A few states, including New York and Michigan, prohibit or limit young driver fees by law. If you are renting in Europe, bring an International Driving Permit (IDP) along with your US license. An IDP is a standardized translation of your license, and while not every European country legally requires one, rental companies in Italy, Germany, Austria, Greece, Spain, and much of Eastern Europe will refuse to hand over the keys without it. You can get one through AAA for about $20 before your trip.
Good to know: Take a photo of your reservation confirmation, your license, and your credit card before you head to the counter. If your phone dies or you lose the printout, you still have a backup of everything you need.
Inspect the car before you leave the lot
This step takes two minutes and can save you hundreds of dollars. Before you drive away, walk around the entire car and look for existing damage. Scratches, dents, chipped paint, cracked windshield, scuffed bumpers. Check the wheels and the roof too. Take photos or a quick video of every side of the car with a timestamp visible. If you spot something, make sure it is noted on the rental agreement before you leave. Inside the car, check that the fuel gauge matches what is listed on your contract. It should be full. Test the headlights, turn signals, windshield wipers, and air conditioning. Adjust the mirrors and seat. Familiarize yourself with the dashboard controls, especially if it is a model you have not driven before. If anything seems off, go back to the counter and ask for a different car. It is much easier to switch now than to dispute a damage charge later.
Heads up: If you skip the walkaround and the company finds a scratch when you return the car, they have no way to know it was there before you drove off. You will be charged for the repair. Photos with timestamps are your best protection.
Return the car and avoid surprise charges
Most rentals use a full-to-full fuel policy. You pick it up with a full tank and return it with a full tank. If you bring it back less than full, the rental company will charge you to refuel at their own rate, which is usually two to three times what you would pay at a regular gas station. Fill up at a station near the return location right before you head back. Return the car on time. Grace periods vary by company, but going over by more than 30 minutes to an hour can trigger an extra full day charge. If your flight gets delayed or your plans change, call the rental company ahead of time. They are usually more flexible when you give notice. If you drove through any toll roads, sort that out before you return. In the US, many rentals come with an optional toll transponder that charges you per use plus a daily convenience fee that adds up fast. In parts of Europe, you may need to purchase a toll vignette (a sticker for your windshield) for countries like Austria, Switzerland, and the Czech Republic. Ask the rental company about tolls at pickup so you are not caught off guard. Before you hand over the keys, check the car for personal belongings. Look under the seats, where phones, chargers and sunglasses end up. Get a copy of the return receipt showing the final mileage, fuel level, and condition of the car. If a damage charge shows up on your credit card weeks later, that receipt is your evidence.
Renting a car is one of those things that feels complicated the first time and completely routine after that. The biggest mistakes we see are overpaying for insurance you already have and skipping the walkaround inspection. Book early, know what your credit card and personal insurance already cover, and take two minutes to photograph the car before you drive off. Everything else is just picking up keys and hitting the road.
Questions we get asked about this
Answers from experience, not a textbook.
Yes, most major rental companies in the US rent to drivers aged 21 and older. However, drivers under 25 typically pay a young driver surcharge of $20 to $30 per day on top of the base rate. A few companies rent to drivers as young as 18 in certain states, but options are limited and fees are higher. In Europe, the minimum age varies by country and company, usually ranging from 21 to 25, often with similar surcharges for younger drivers.
It depends on what coverage you already have. If your personal auto insurance includes collision and comprehensive coverage that extends to rental cars, and your credit card offers a rental car benefit, you are likely covered without buying anything extra from the counter. Call your insurer and check your card's benefits guide before your trip. If you do not have personal auto insurance, which is common for people in cities who do not own a car, the rental company's CDW is worth considering.
It depends on the country. An International Driving Permit is a translated version of your US license. In Italy, Germany, Austria, Greece, Spain and much of Eastern Europe you should count on needing one, whether because the country requires it or because the rental company will not release the car without it. Other countries like the UK, Ireland, and France accept a US license on its own for short-term rentals. Even in countries where an IDP is not legally required, some rental companies ask for it anyway. The US State Department recommends getting an IDP before traveling abroad. You can pick one up through AAA for about $20, and it is valid for one year.
Grace periods are typically 30 minutes to an hour past your scheduled return time, though they vary by company. After that, you will likely be charged for an additional full day at the daily rate. If you know you are going to be late, call the rental company as soon as possible. They can often extend your reservation at a better rate than the walk-in penalty. For delays longer than a few hours, update the reservation through the app or by phone rather than just showing up.
Off-site locations are almost always cheaper. Airport rental facilities charge concession fees, customer facility charges, and various local taxes that get added to your bill. These surcharges can add 10 to 30 percent to the total cost. If you are willing to take a short taxi, shuttle, or rideshare to a nearby branch, you can often get the same car at a noticeably lower price. The tradeoff is convenience, since airport locations are right there when you land.
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