There are plenty of destinations around the world where travelling without a hire car just isn’t the same. Whether you want to explore the natural beauty of the USA, set off across New Zealand or South Africa, or simply want the freedom and independence of not having to rely on timetables, you’ll no doubt find yourself heading to a car hire company.

How does the car hire process actually work, and what are the key things to bear in mind? There’s no need to worry – we’ve put together a basic guide for you, and once you’ve read it, nothing will take you by surprise.

Where to book a car

There are dozens of booking portals. Choosing a car works in much the same way as booking flights. You can use search engines that compare offers from all available car hire companies, or book directly on the websites of individual car hire companies.

Via search engines 

In most cases, booking via a search engine is the clearest option. Among the most popular and user-friendly isBooking.com, which we use ourselves very often.

When booking via a search engine, you’ll always be told which rental company you’re hiring the car from, and the rental terms and conditions should also be described in detail. Avoid comparison sites with tempting prices where you won’t find this information; for example, we do not recommend using economycarrentals.com.

Booking via such search engines has theadvantage of comparing most offers, from the cheapest to the most expensive, so you don’t have to search through the individual websites of car hire companies. What’s more, booking via such websites is often cheaper than booking directly through the car hire company’s website.

Book a car via booking.com

On the other hand, one ofthe disadvantagesis that you need to read the rental terms and conditions carefully and twice. It often happens that, after selecting a specific offer, the terms and conditions are updated and thus differ from the original text. So be sure to read them through again before making payment.

When you book, you pay the money directly to the website in question, and any changes or cancellations are dealt with through them.

Via the car hire company’s website 

Every car hire company, of course, operates its own booking systems through which you can book a car. In most cases, this option tends to be more expensive than booking via the search engines mentioned above, though this is not always the case. We recommend always comparing offers.

Particularly in various premium locations – that is, places that are very popular with tourists or, conversely, remote areas – it may be cheaper to book directly via the car hire company’s website. Among the best-known companies operating worldwide are Alamo, Avis, Budget, Dollar, Europcar, Sixt, Hetz, Alamo, Thrifty and others.

Car hire companies best avoided

Not all companies are reputable; despite offering attractive prices, they may ultimately charge unreasonable fees or, upon returning the car, try to fabricate various claims of damage and deduct money from your card.

Traditionally, the worst car hire companies include Goldcar, Centauro, Firefly, Record and InterRent.

At the airport or in town? 

Always check the hire prices at the airport branch and in a nearby town. Prices may differ by as much as tens of per cent in favour of branches outside the airport (though this isn’t always the case), so compare them to see whether it’s worth making the short journey from the airport by local transport. You can find information on transport from more than 600 airports in our guides.

When to book and how much it costs to hire a car 

Generally speaking,the earlier you book a car, the less you’ll pay. Most car hire companies and booking websites such as booking.com allow free cancellation 48 hours before collection, so there’s nothing to stop you from booking a car well in advance to be on the safe side and checking prices from time to time – car hire companies may also run various special offers.

Just as with flight tickets, it’s not just a question of how far in advance you book the car, but also the dates you choose.

In holiday destinations, you’ll pay the most during the summer holidays; conversely, in winter, prices are often absurdly low, at just a few hundred crowns a day (for example, in Ireland, Spain or Portugal).

Book your car hire in advance

It even depends on the days of the week on which you hire the car. If you’re heading to a tourist destination, weekend rates will be the most expensive (these usually start at midday on Thursday and end at midday on Monday), whereas in large cities, where cars are hired for business purposes, weekdays will be the most expensive.

Whenever you make a booking, you’ll need to enter the date and exactpick-up time, which plays an important role. This is because rates are calculated for each day or part thereof. If you hire a car on Friday at 10.30 am and return it on Saturday at 10.30 am, you’ll pay for 1 day; however, if you return it at 11.00 am, you’ll be charged for 2 full days.

It’s also true thatthe longer the hire period, the less you’ll pay per day. For example, if you hire a car in the US for 14 days, you’ll most likely pay less than 30 usd per day.

What to watch out for when booking 

There are several pitfalls to watch out for when choosing the cheapest deals, some of which could have unpleasant consequences for your wallet. Put simply, when hiring a car, it’s more important than ever to read the terms and conditions.

Insurance, excess and deposit 

Three magic words that you’ll probably come across most often when hiring a car. They’re all closely interlinked.

• You can arrangeinsurance either through a third party – for example, when booking viabooking.com– or independently with another company, or directly with the car hire company.
• Excessis the maximum amount the car hire company may charge you in the event of damage to or theft of the vehicle.
• A security depositis the amount that will be held on the day of hire and released once the car is returned, provided it is returned in good condition. Please note that the money is not automatically released on the day of return; the whole process can take up to three weeks.

Which insurance should you choose? What are the risks and rules? Find out in our new article‘Car hire insurance: directly from the hire company or an external provider?’

Credit or debit card? 

The deposit also raises the age-old question of which type of payment card to use. You’ll need a credit card to hire a car. These days, however, many car hire companies also accept debit cards. Most car hire companies require a debit card specifically to block the deposit.

This is one of the most common queries, so we’ve written a detailed article on the subject : Renting a car without a credit card: when is a debit card enough?

Be aware of the fuel policy 

The fuel policy should be clearly stated when you book the car. The most common and transparent policy isthe so-called‘Full–Full’ policy. You collect the car with a full tank and return it with a full tank; you pay exactly for the fuel you use.

Car hire companies may offer a cheaper rate with the ‘Full–Empty’ or ‘Prepaid Fuel’, where you hire the car with a full tank and return it empty. Avoid such offers. This does not mean that you’ll get a car with a full tank for free.

You’re effectively paying for the petrol in advance, on the understanding that you can return the car with an empty tank. Firstly, the rental company will charge you the highest possible rate for petrol, and secondly, towards the end of the hire period, you’ll be constantly keeping an eye on the fuel gauge to ensure you don’t overpay unnecessarily and return the car truly ‘empty’.

Mileage limits and area restrictions 

Pay close attention to the ‘Miles/Kilometres’ section. Not all car hire companies allow you to drive an unlimited distance. Or rather, they do allow it, but you’ll be charged for exceeding the free allowance.

If this section states ‘unlimited’, then you can drive as far as you like. If not, the maximum number of kilometres you can drive free of charge (per day) is always stated, along with the charge for each additional kilometre, which is usually around 1 usd.

It is also common for car hire companies to prohibit journeys into other countries. If you wish to travel beyond the borders of the country where you are hiring the car, always check in advance to ensure that this is actually permitted.

Number of drivers 

When making a booking, you’ll be asked whether you wish to add an additional driver. If you do not pay extra for this service, it is automatically assumed that only the person in whose name the car is hired will drive it.

If the car is driven by someone other than the driver named in the contract, this is not illegal. However, if any problem arises with the car or an accident occurs – whether you’re at fault or not – and the car is being driven at that moment by someone not named in the contract, you’ll be liable for all the costs. This applies even if you have paid for comprehensive insurance with zero excess.

Driver’s age: young and old pay a surcharge 

If you’re hiring a car and you’re under 25 or, conversely, over 65, expect to pay a young driver surcharge – something you simplycannot avoid at any car hire company anywhere in the world.

Statistically speaking, young and older drivers are more prone to accidents, and car hire companies are well aware of this. In some countries, higher compulsory third-party liability insurance premiums must also be paid if a young driver is at the wheel.

The amounts are really high and often exceed the total cost of the hire.

If you’re under 21, most countries won’t let you hire a car at all – not even for an extra fee.

Car type  

When booking, you naturally have the option to choose from various car sizes and classes. Bear in mind, however, that the rental company cannot guarantee a specific make and model. Always look out for the note ‘… or similar’, which means you’ll be given the same or a similar car in that class.

Also bear in mind that cars with manual gearboxes may not always be available; in particular, you’ll hardly ever come across them in the USA, Australia or New Zealand.

One-way car hire 

It’s tempting to plan an epic road trip across the whole country, but it’s less practical to have to return to the very same branch where you hired the car. The vast majority of major car hire companies will allow you to return the car to a different branch (though always within the same country). However, check the final price very carefully, along with the details of what is not included in the price.

Book a one-way car hire

Fees for one-way car hire tend to be very high, often several times higher than the hire price itself. Less reputable car hire companies do not include this fee in the total price, but merely mention it in small print in the list of items not included in the price.

There are, of course, exceptions where the one-way fee isn’t exorbitantly high, typically in smaller countries or on islands, but also at some car hire companies in the US, South Africa or European countries.

Expensive optional extras 

If you’re travelling with children, you’ll most likely book a child car seat along with the car. However, take a good look at how much it will cost. Standard prices for a week’s hire of a child seat range from around EUR, and it may work out cheaper to bring your own seat from home, as most airlines transport them free of charge.

Avoid paying extra for a sat-nav at all costs, as prices often reach absurd levels of around 100 eurper week.

What will I need? 

We’ve mentioned the main pitfalls you might encounter when booking a car. But what do you need to have with you to be allowed to hire a car in the first place?

First and foremost, you’ll needa credit card in the name of the driver with whom you booked the car. We’ve touched on the issue of debit versus credit cards above.

Another essential item isan international driving permit. There are, of course, exceptions. For example, if you hold a driving licence from an EU country and are travelling to another EU country, an international driving permit is not required.

You must also carry yourstandard driving licence with you, as the international licence is invalid without it.

We also recommend downloading offline maps onto your phone whilst still at home, so you don’t end up paying extra for a GPS device.

What to expect on arrival 

When collecting your car 

When collecting your car, you may encounter three different collection methods. At the largest airports, car hire counters are usually all located together in a dedicated building, clearly signposted; alternatively, you can get there yourself by the local shuttle bus or train, which is always free.

At smaller airports, the counters are usually located directly in the arrivals hall, and at the very smallest airports, someone holding a sign may be waiting to take you to the branch.

At the counter, you’ll hand over all the necessary documents (passport/ID card and driving licence with an international driving permit) and decline any additional services the rental company may offer you. These usually include an LDW (i.e. comprehensive insurance with zero excess) or a pre-paid fuel tank.

Insurance is usually arranged in advance, and a pre-paid fuel tank is not usually good value for money.

You will then present a credit card to pay the hire charge, and a deposit of a predetermined amount will usually be blocked on it. This amount is always specified in the hire terms and conditions.

After that, there’s nothing to stop you from collecting the car. You’ll always be given a form which either you yourself or a rental company employee will fill in in your presence, detailing where and to what extent the car is damaged. Don’t underestimate the importance of this inspection – make sure you note down all visible damage, from minor scratches to a dirty interior.

You then hand the form in to a member of staff or, when leaving the car park, pop it into one of the designated boxes (this is common in the US, for example).

When returning the car 

Before you return the car, make sure it isn’t extremely dirty; if it is, take it to a car wash and vacuum it. This will work out cheaper than the cleaning fee the rental company would charge (usually around 60 usd).

Returning the car itself is usually a quick formality. You arrive, hand over the keys, and that’s it. At some rental companies, a member of staff will inspect the car straight away and let you know if anything is amiss; at others, you won’t even meet a living soul and will simply drop the keys into a designated box.

Whilst collecting a car outside the rental company’s opening hours is either not possible at all or subject to a special surcharge, returning it outside opening hours is usually free of charge. You simply drop the keys into the box at the counter.

It’s a good idea to check your credit card statements regularly for at least a few weeks after your return. Most reputable car hire companies will notify you by email if they discover any issues (or, for example, if you need to pay a fine), and will only then deduct the money from the hold; though there are also some car hire companies that won’t bother to inform you.

Conclusion 

Hiring a car can make travelling much easier and also allow you to explore new places you wouldn’t otherwise be able to visit. However, it is important to be fully aware of, carefully study and, above all, understand the terms and conditions of the hire agreement.

More than anywhere else, the seemingly cheapest offer may not actually be the cheapest in the end. As there are several things to watch out for, we’ve included a brief summary to round off this guide.

Compare car hire prices

• Insurance is not usually included in the basic price. You can arrange cheaper cover through a third party, but in the event of a claim, you’ll have to sort everything out yourself and the car hire company will withhold a high security deposit. The second option is significantly more expensive insurance arranged directly through the car hire company. The advantage is that the car hire company will handle any incident on your behalf, so you won’t have to worry about a thing, and you’ll pay a low or no deposit.
• With many car hire companies, you’ll need a credit card, so make sure it has a sufficient limit to cover the security deposit. However, many car hire companies also accept debit cards; always check this before booking your car.
• Don’t be caught out by the fuel policy; the best option is to collect and return the car with a full tank.
• After returning the car, check your credit card statements regularly, as less reputable rental companies may well continue to charge additional fees.