Renting a Car on Holiday: Everything You Need to Know Before You Hit the Road

Hiring a car while on holiday can open up a world of possibilities. From discovering hidden beaches and remote villages to enjoying the freedom of travelling at your own pace, a rental car can transform a good holiday into a great one.

However, renting a vehicle abroad isn’t always as straightforward as collecting the keys and driving away. Different countries have different driving laws, insurance requirements, and road conditions, so it’s worth doing a little preparation before your trip.

Here’s everything you need to know about renting a car on holiday.

Why Rent a Car?

While public transport works well in many destinations, a rental car offers flexibility that buses and trains simply can’t match.

Benefits of hiring a car include:

• Access to off-the-beaten-track attractions
• Freedom to create your own itinerary
• Easier travel with children and luggage
• The ability to visit multiple destinations in one trip
• Greater convenience in rural areas

In destinations such as rural Spain, the Greek islands, Portugal’s Algarve, or the Italian countryside, a car can help you experience much more than you would otherwise.

Book Before You Travel

One of the biggest mistakes holidaymakers make is waiting until they arrive to arrange a vehicle.

Booking in advance often provides:

• Lower prices
• Greater vehicle choice
• More favourable rental terms
• Reduced risk of vehicles selling out

During peak summer months and school holidays, rental demand can be extremely high, particularly in popular tourist destinations.

Comparing several providers before booking can also help you identify hidden fees and secure the best deal.

Check the Driver Requirements

Most rental companies have minimum age requirements, which vary by destination and provider.

You may need:

• A full driving licence
• A passport or photo ID
• A credit card in the driver’s name
• Proof of address in some cases

Drivers under 25 may face additional charges, while some companies have restrictions for older drivers.

Always check the requirements before travelling to avoid unexpected problems at the rental desk.

Do You Need an International Driving Permit?

In many European destinations, a UK driving licence is sufficient. However, some countries outside Europe require an International Driving Permit (IDP) in addition to your licence.

Before travelling, check the latest guidance from official government travel advice for your destination.

It’s far easier to arrange the correct documentation before departure than after arrival.

Understand the Insurance

Insurance is often the most confusing aspect of car rental.

Basic rental agreements usually include some level of cover, but excess charges can be substantial if the vehicle is damaged.

Common insurance options include:

• Collision damage waiver (CDW)
• Theft protection
• Third-party liability cover
• Windscreen and tyre protection
• Excess reduction cover

Before purchasing additional insurance from the rental company, check whether your travel insurance or credit card already provides some protection.

Always read the policy carefully so you understand what is and isn’t covered.

Inspect the Vehicle Thoroughly

Before driving away, inspect the vehicle carefully and ensure all existing damage is recorded.

Check for:

• Scratches and dents
• Alloy wheel damage
• Cracked lights
• Windscreen chips
• Interior damage

Take photographs and videos from multiple angles, including the roof, bumpers, wheels, and interior.

Having a clear record can help prevent disputes when returning the vehicle.

Familiarise Yourself with Local Driving Laws

Driving rules vary considerably between countries.

For example:

• Many European countries require reflective jackets in vehicles.
• Some destinations require warning triangles.
• Headlight requirements may differ.
• Mobile phone laws vary.
• Speed limits may be displayed in kilometres rather than miles.

A few minutes of research before your trip can help you avoid fines and penalties.

Be Prepared for Different Road Conditions

Roads abroad may be very different from those you’re used to at home.

You may encounter:

• Mountain roads
• Narrow village streets
• Unpaved routes
• Busy city traffic
• Toll roads

If you’re uncomfortable driving a manual transmission, consider booking an automatic vehicle in advance, as availability can be limited in some countries.

Understand Fuel Policies

Rental companies typically operate one of several fuel policies.

The most common is:

Full-to-Full

You collect the vehicle with a full tank and return it full.

This is generally the fairest and most cost-effective option.

Before leaving the rental location, confirm:

• The type of fuel required
• The nearest petrol station to the return point
• The fuel return requirements

Returning a vehicle with less fuel than required can result in expensive refuelling charges.

Watch Out for Extra Fees

Rental agreements can contain a variety of additional charges.

Potential extras include:

• Additional drivers
• Child seats
• GPS navigation systems
• Airport collection fees
• Young driver surcharges
• Cross-border travel permits

Review the rental agreement carefully before signing.

The cheapest advertised price isn’t always the best overall value.

Parking and Toll Roads

Many holiday destinations have strict parking regulations.

Before setting off, research:

• Local parking rules
• Payment methods
• Low-emission zones
• Congestion charges
• Toll roads

Some toll systems use automatic cameras rather than payment booths, so it’s important to understand how charges are collected.

Returning the Vehicle

Allow extra time when returning your car, especially if you’re heading to the airport.

Before handing back the keys:

• Refuel if required
• Remove personal belongings
• Photograph the vehicle
• Obtain a return receipt
• Confirm there are no outstanding issues

Keep all paperwork until any security deposit has been returned.

Is Renting a Car Worth It?

For many travellers, the answer is yes.

A rental car can provide the flexibility to discover places that organised tours and public transport simply don’t reach. Whether you’re exploring coastal villages, national parks, mountain roads, or countryside vineyards, having your own transport can make a holiday far more enjoyable.

The key is preparation. By understanding the rental agreement, checking insurance carefully, and familiarising yourself with local driving rules, you can enjoy the freedom of the open road while avoiding unexpected surprises.

With a little planning, hiring a car can be one of the best investments you make during your holiday, allowing you to explore more, travel further, and create unforgettable memories along the way.