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When you travel frequently, how do you actually get around? Public transport? Well, that works most of the time. But if you want flexibility, or want to go on road trips, or get access to places tours don’t cover, renting a car becomes the better option.

The tricky part? Renting rules change from country to country. Documents, age limits, insurance, payment methods — it’s not always as straightforward as it seems. To help you out, we created this guide on how to rent a car abroad. It breaks down (no pun intended!) everything there is to know about renting a car internationally. 

What do you need to rent a car?

Here’s what most rental companies will ask for:

  • Valid driver’s license.
  • Passport or government-issued ID.
  • Credit card (in the main driver’s name).
  • Minimum age requirement (usually 21+).
  • Insurance (sometimes included with rental).
In most countries, you need a valid license, passport, and a credit card. Requirements vary slightly by destination.

Driver’s license requirements (Do you need an international permit?)

This is where things can get confusing.

When is your local license enough?

If you’re traveling between regions with mutual agreements, your regular license works. For example:

  • Driving between the USA and Canada.
  • Driving between the UK and EU countries.
  • Driving between EU countries. 

When do you need an International Driving Permit (IDP)?

Some countries require or strongly recommend an IDP. These include:

  • Japan
  • Australia
  • Morocco
  • Thailand

Even when not mandatory, having an IDP can make things smoother during police checks or rental verification. 

Here’s everything you need to know about an International Driving Permit (IDP).

Minimum age to rent a car

Age rules aren’t universal. But, here’s a general idea.

  • 21 years old is a standard minimum globally.
  • In many countries, if you’re above 21, but under 25, expect to pay a “young driver fee”.
  • 25+ years old gives you access to more vehicle categories.

Here’s a quick comparison:

CountryMinimum Age for Renting a Car
UK21
USA21 is the standard age. But 18+ can rent vehicles in certain states
Spain21
Germany18
UAE 21
Australia21
Japan18 is acceptable. But, popular rental companies require drivers to be at least 21
Singapore21-23, depending on rental company
Iceland20 for passenger cars and small 2WDs. 23-25 for larger vehicles, and 4x4s
Costa Rica21-25, depending on rental company
Minimum age for renting a car.

Need more information? Here are a few guides to help you out:

Renting a car abroad? Here’s how to do it right

Payment methods (credit card, debit card, or cash?)

When figuring out how to rent a car, payment methods play an important role. You might have the right documents and meet the age requirements, but without an accepted payment method, the rental simply won’t go through. To add to it, payment policies vary by country and company. Understanding this upfront will save you from rejected bookings, or being forced to pay higher fees on the spot.

Credit cards (most reliable option)

  • Required for the security deposit.
  • Must be in the driver’s name.
  • Widely accepted worldwide.

Debit cards

Accepted in some places, but with conditions:

  • Limited car options.
  • Higher deposits.
  • Possible credit checks.

Cash

Rarely accepted by major rental companies. This one’s usually limited to small, local agencies, and even then, not guaranteed.

Most international rental companies require a credit card for the deposit.

Car rental insurance explained

Insurance is the part that can silently increase your total cost. But it’s super important as well. At first glance, it all sounds included, but the level of protection, deductibles, and what’s actually covered can vary significantly between countries and rental companies. So, knowing exactly what you’re paying for, and what you’d still be responsible for, will help you avoid dealing with unexpected charges after your trip.

Basic insurance (usually included) covers:

  • Collision Damage Waiver (CDW).
  • Theft protection.

Additional insurance options:

You might want to consider these before your road trip.

  • Liability insurance (covers damage to others).
  • Full coverage (reduces or eliminates deductible).

Does your credit card or travel insurance cover it?

Yes, many premium credit cards offer rental coverage, but only if:

  • You pay using that card.
  • You decline the rental company’s insurance.

As far as your travel insurance is concerned, it sometimes covers rental cars, but as an add-on. Basically, car rental insurance is rarely included in standard policies. Instead, it’s generally offered as an optional upgrade.

Here’s everything you need to know about international car rental insurance.

How the rental process works (step by step)

Here’s how to rent a car abroad:

Step 1 – Choose a rental company

Look for reliable global brands or well-reviewed local providers.

Step 2 – Compare prices and conditions

Don’t just check the price. Also look at:

  • Insurance inclusion.
  • Fuel policy.
  • Mileage limits.

Step 3 – Book online (recommended)

Booking in advance help you:

  • Lock better prices.
  • Get more vehicle options.

Step 4 – Bring required documents

Don’t forget to carry your:

  • Passport
  • Driver’s license + IDP (if applicable)
  • Credit card

Step 5 – Pick up the car 

Before driving:

  • Take photos of the car.
  • Check for scratches or dents.
  • Confirm fuel level.

Step 6 – Return the car properly

  • Refuel if required.
  • Return on time.
  • Get written confirmation.

Common mistakes to avoid when renting a car

Here are a few mistakes to avoid when renting a car: 

  • Not checking insurance coverage.
  • Using a debit card without confirming acceptance.
  • Ignoring fuel policies (full-to-full vs pre-paid).
  • Not inspecting the car before leaving.
  • Booking at the airport without comparing prices.
  • Not checking mileage limits.
  • Overlooking cross-border restrictions if you’re planning to drive from one country to another.
  • Not bringing the same card used for booking.

Is renting a car worth it for travelers?

Sometimes yes, sometimes no.

When it makes sense

  • Road trips.
  • Exploring remote areas.
  • When you want flexible travel schedules.

When it doesn’t

  • Cities with strong public transport.
  • Short stays in urban areas.

For example, renting a car in central London might not be necessary, but it’s a great idea for countryside trips.

Tips for renting a car internationally:

If you want things to go smoothly, keep this in mind:

  • Book online and in advance for better rates.
  • Use comparison platforms before deciding.
  • Always check reviews.
  • Understand local driving laws.
  • Keep a buffer for deposits and insurance.

And most importantly, read the fine print. It’s not exciting, but it’ll save you from unpleasant expenses later.

Holafly subscription plans got you covered in more than 160 countries.

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Niyati Shinde

Niyati Shinde

Freelance writer

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