Best Way to Rent a Car Abroad in 2026
Renting a car is where good trips quietly leak money — at the booking screen, and again at the counter. Here’s how to book it for the right price, understand the insurance and excess that actually matter, decline the upsells you don’t need, and dodge the traps that catch travellers out anywhere in the world.
The short version
The cheapest, least stressful way to rent a car abroad is to book ahead through a comparison site rather than walking up to an airport desk or booking one supplier direct. Compare the all-in price (car + insurance), reduce your excess so a scratch can’t ruin your trip, choose a full-to-full fuel policy, and photograph the car at pickup. We book through DiscoverCars — it lines up local and international suppliers on one page with the total cost up front and free cancellation on most rates. Already know where you’re going? Jump to the country guides below.
Where to book a rental car (and why it matters)
Where you book changes the price more than almost any other decision. You’ve got three options, and for most travellers only one is right:
| How you book | The reality | Best for |
|---|---|---|
| Comparison site (aggregator) | Shows local + international suppliers side by side with the all-in price; usually the cheapest, with free cancellation on most rates. | Almost everyone |
| Direct with one supplier | You only see that one brand’s price and fleet. Occasionally wins with loyalty status or a corporate rate. | Loyalty members |
| Walk-up airport desk | The most expensive option, and the cheap cars/automatics are often gone in peak season. | Nobody, by choice |
An aggregator wins because car rental is a fragmented market — every destination has a mix of global names (Hertz, Avis, Europcar) and cheaper local operators, and their prices for the identical car can differ wildly day to day. A comparison site surfaces all of them at once, which is the only practical way to know you’re not overpaying. That’s why I book through DiscoverCars: it aggregates local and international suppliers worldwide, shows the total price including the insurance option up front (not a teaser rate that balloons at checkout), books in English, and offers free cancellation on most rates — so you can lock in a price and keep an eye out for better.
They’re all aggregators too, and the principle is the same — comparing always beats a single direct quote. The differences come down to which suppliers each has deals with and how transparent the insurance pricing is. DiscoverCars consistently shows the all-in cost clearly and has strong supplier coverage in the places this site writes about, which is why it’s our default. The meta-point matters more than the brand: compare, don’t walk up.
Compare prices for your destination
See local and international suppliers on one page, with the all-in price including insurance and free cancellation on most rates.
Compare rental cars on DiscoverCars →Book in advance, not at the airport
This is the simplest money-saver in car hire: book ahead. Walk-up desk rates are the most expensive, and in busy seasons (summer in Europe, peak periods anywhere) the cheap cars and automatics sell out entirely, leaving you to pay whatever’s left on the lot.
Booking early through a comparison site does two things: it locks in a lower price, and — because most rates offer free cancellation — it lets you keep checking without risk. Reserve something reasonable now, and if a better deal appears closer to the date, rebook and cancel the first. You carry no downside and pocket the difference.
Rental insurance & excess, explained simply
This is where the real money is won or lost, and where the counter staff make their margin — so it’s worth understanding before you book. Rental insurance isn’t one thing; it’s layers:
- Third-party liability — covers injury and damage you cause to others. Legally required and almost always built into the rental.
- Collision Damage Waiver (CDW) — not really “insurance” but a waiver that caps what you owe if the car is damaged. Crucially, basic CDW still leaves a large excess (the deductible you pay first), and it excludes a lot.
- Theft Protection (TP) — caps your liability if the car is stolen. Usually bundled with CDW outside the US.
- Excess reduction / Super CDW — the part that matters: it lowers or removes that excess, so a bump or scrape doesn’t cost you four figures.
Even with CDW, you’re typically still on the hook for: the windscreen and glass, tyres and wheels, the undercarriage and roof, keys, interior damage, towing, and your personal belongings. Damage from negligence, wrong fuel, off-road driving or drink-driving voids cover entirely. These exclusions are exactly where surprise charges come from — read your waiver’s small print before you decline anything.
So the real question isn’t “am I insured?” (you’re partly covered by default) — it’s “how big is my excess, and how do I shrink it?” You have three ways, cheapest to most expensive:
| How to reduce excess | Cost | How it works |
|---|---|---|
| Full-cover option at booking | Cheapest | Add zero/low-excess cover when you reserve online — often a few dollars a day, far below the counter price. |
| Standalone excess policy | Cheap | A separate annual or trip policy from a third-party insurer. You pay any damage first, then claim it back. |
| Counter upsell at pickup | Most expensive | The “full protection” the desk pushes hard. Convenient, but you’ll usually pay a big premium for it. |
Add excess reduction at the booking stage (or hold a standalone excess policy), so you arrive already covered and can confidently decline the counter upsell. Check first whether your travel insurance or credit card already includes rental excess cover — many do, and then you’re not paying twice. Whatever you choose, photograph the car all over at pickup (and film a walk-around), so existing damage can’t be pinned on you.
What you can usually decline at the counter
Once you’ve sorted excess cover at booking, most of the desk pitch is upsell. Common add-ons you can often safely decline:
- Prepaid fuel (“full-to-empty”) — you pay for a whole tank and get nothing back for what you don’t use. Choose full-to-full instead and refuel before return.
- Duplicate “full protection” — if you already have zero-excess cover or a standalone policy, you don’t need theirs. Don’t pay twice for the same risk.
- Extras you can supply — GPS (your phone does it), child seats sometimes (check airline/local rules first), additional-driver fees if only one of you will drive.
Things genuinely worth considering: cover for excluded items (glass and tyres, especially in places with gravel or rough roads), and an additional driver if you’ll genuinely share the wheel on a long trip.
Licence & International Driving Permit rules
Whether you need an International Driving Permit (IDP) depends entirely on the country and your licence:
- Some countries accept your home licence alone if it’s in their language or in English (e.g. New Zealand accepts English-language licences for up to 18 months).
- Others legally require an IDP — a paper translation carried alongside your original licence (e.g. South Korea requires the 1949 IDP).
- Within the EU/EEA, member-state licences work across the bloc; visitors can usually drive on a home licence for a set period (often up to ~6 months).
Two universal rules: an IDP is never a standalone document — always carry your original licence with it — and you must obtain the IDP in your home country before you travel (it can’t be issued abroad). When in doubt, check the rule for your exact nationality and destination; our country guides below spell it out for each.
The 60-second pre-booking checklist
- Compare on an aggregator rather than booking direct or walking up.
- Read the all-in price — car + insurance, not the teaser rate.
- Reduce your excess at booking (or via a standalone/credit-card policy).
- Pick full-to-full fuel, not prepaid.
- Filter for automatic if you can’t drive manual — they cost more and sell out.
- Check the licence/IDP rule for your destination and sort the IDP at home.
- Choose free cancellation so you can rebook if the price drops.
- At pickup: photograph everything and confirm the fuel level and existing damage on the sheet.
Quick decision guide
Car rental guides by country
Once you’ve got the universals above, each destination has its own quirks — the rules, the costs and the local traps. These guides cover the specifics, all using the same compare-first approach:
You’ll want maps and navigation working the moment you collect the car. Sort an eSIM before you fly — see our best travel eSIM guide — and a fee-free card like Wise saves you on fuel, tolls and the rental deposit hold versus your home bank’s overseas rates.
Car rental FAQ
What is the best site to book a rental car?
For most travellers a comparison site beats booking direct, because it shows local and international suppliers side by side with the all-in price. DiscoverCars is our pick — it compares hundreds of suppliers, shows the total cost including insurance, books in English, and offers free cancellation on most rates. Booking direct only wins with loyalty status or a corporate rate.
Is it cheaper to book in advance or at the airport?
Almost always in advance. Walk-up desk rates are the most expensive, and in peak season the cheap cars and automatics sell out. Booking ahead locks in a lower price, and free-cancellation rates let you keep checking for a better deal without risk.
What car rental insurance do I actually need?
Every rental includes basic CDW and third-party liability, but CDW leaves a large excess and excludes common damage. The key is reducing that excess — via a full/zero-excess option at booking, a cheaper standalone policy, or (most expensively) the counter upsell. Take some form of excess reduction unless your travel insurance or credit card already covers it.
What does CDW not cover?
Standard CDW commonly excludes the windscreen and glass, tyres and wheels, undercarriage and roof, keys, interior, towing and your personal belongings — plus anything caused by negligence, wrong fuel, off-road driving or drink-driving. Read your waiver’s exclusions before declining extra cover.
Do I need an International Driving Permit?
It depends on the country and your licence. Some accept a licence in their language or English on its own; others legally require an IDP (a paper translation carried with your original). Get the IDP in your home country before you travel, and check the rule for your specific destination.
Should I prepay for fuel?
Usually no. Prepaid fuel means you pay for a full tank up front with no refund for what’s left, so you typically overpay. Choose full-to-full — collect the car full, return it full — and decline prepaid unless you have a rushed return and can’t refuel nearby.
Ready to book?
Compare local and international suppliers on one page, see the all-in price including insurance, and book in English with free cancellation on most rates.
Find your rental car on DiscoverCars →Disclosure: This guide contains affiliate links — if you book through them, Backpacking Is Life may earn a small commission at no extra cost to you. Insurance terms, fees and driving regulations vary by country and change over time; this guide explains the general principles, but always read your specific rental, insurance and toll terms, and confirm the licence rule for your nationality, before you book. Last updated June 2026.
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