Published 26 March 2025
Hiring a car in Europe? Here's what you need to know…
Hiring a car in Europe is simple with a bit of planning. Here’s what to keep in mind:
- Do your research to get the best value.
- Set a budget and book early for discounts.
- Check currency conversions when comparing prices.
Comparing car rental companies
Before booking, compare rental companies to understand costs, policies, and optional extras. Booking early often secures you a better rate.
First, start with price comparison sites, but also consider additional costs like child seats or extra insurance. Large rental agencies can also offer more flexibility with pick-up and drop-off points. But, if you have a preferred UK rental company, check if they operate in Europe.
Make sure you keep all paperwork for your records. It’s also important to verify your travel insurance to see what’s covered and check car hire policies before booking.
Key points to consider are:
- Pick-up and drop-off locations.
- Open office hours.
- Extras like ski racks.
- Flexible contracts.
Choosing the right car
When it comes to choosing a car, it’s important to consider what’s best for your needs.
You might want to consider the following things:
You might want to consider the following things:
- Number of passengers.
- The amount of luggage.
- Weather or terrain you’ll be driving in.
- How long you will need the car for.
These factors will impact your budget, so set out what you’re willing to pay. It’s useful to know that typically, the longer you hire the car, the cheaper it is per day.
How much should you pay?
Check currency conversions carefully as rental companies might not provide accurate exchange rates, and always use a reliable converter to avoid surprises.
It’s best practice to pay upfront to avoid on-the-spot charges or international transaction fees. Making sure you keep proof of your prepaid booking.
Other key things to think about include:
- The cancellation policy - look for flexibility and make sure you’re aware of the terms.
- Full-to-empty fuel policies - it’s recommended to avoid these, as you may face a hefty upfront charge for fuel you won't use.
- Insurance covers - confirm what the insurance covers such as collision damage waver.
- Excess fees - it’s important to check for any excess fees and consider standalone excess cover.
- Extra drivers - look into the cost of additional drivers if needed, if the driver is below 25 this could also bump up costs.
- Cleaning charge - try and avoid service or cleaning charges by checking they’re covered in the initial hire charges.
What documents do you need?
Since June 2015, the paper counterpart to your driving licence (or photocard ID) is invalid. To hire your car, you'll need to get a code from the DVLA website to show the rental company when you arrive.
The code shows any convictions or speeding offences and is valid for 21 days. But, some rental companies might not need this, so check in advance.
Local laws can require drivers to carry safety equipment such as a warning triangle or reflective jackets, so check your hire company provides these.
If you’re arriving at your holiday destination but not hiring a car straight away, all you'll need is to go online, register your details, get the code and show the car hire company. Many accept proof of your code from a smartphone screenshot.
For driving in certain countries in Europe, we’ve pulled this useful table together with key information.
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France
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Spain
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Germany
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Italy
If you hold a paper licence (not a photocard licence) or a licence from Gibraltar, Jersey, Guernsey, or the Isle of Man, you may need an International Driving Permit (IDP). French law also requires you drive with:
- Reflective jackets.
- A warning triangle.
- Headlamp beam deflectors.
- A first aid kit.
Also, devices that show the location of or detect speed cameras are illegal.
No International Driving Permit required.
Similar to France, speed camera detectors are illegal, but mapping devices showing the locations are allowed. Carrying spare petrol is also prohibited.
Similar to France, you need:
- Reflective jackets.
- A warning triangle.
- Headlamp beam deflectors.
- A first aid kit.
An International Driving Permit is not needed, but check for reflective jackets, a warning triangle and a headlamp beam defectors in your hire car.
Insurance when hiring a car
When hiring a car in the UK or Europe, you'll need insurance. Your Allianz insurance policy won't cover a hire car, however most hire companies offer basic coverage, but it's important to check what’s included.
Some companies offer a damage waiver as part of the rental cost, often with an excess, which covers part of the costs for damage or theft. If the waiver doesn’t include an excess, you'll be liable for the full cost. Excess amounts vary by country, typically ranging from £100 to £2,000.
If you're worried about driving in a foreign country, extra insurance can give you peace of mind and protect you from higher costs.
Does Allianz car insurance cover me to drive in Europe?
Yes. If you're driving your own car in Europe, we've got you covered.
With our Allianz cover level, you'll have Comprehensive cover while driving your car in the EU for up to 180 days of the policy year.
With our Allianz Essentials cover level, you'll have the minimum compulsory cover needed by law to drive a car in Europe for up to 180 days of the policy year.
Check out Allianz car insurance to stay protected on the roads.
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