Renting a Car in Europe: Is It Worth It? What to Know

In over a decade of solo travel across 25+ European countries, I’ve rarely rented a car.

Trains, buses, and my own two feet usually get me where I want to go.

But every so often, I travel with friends or family to places where public transportation only gets you so far, such as Rhodes, the largest island in the Greek Dodecanese.

That’s why I’ve rented cars at four European airports: Rhodes in September 2021, Rovaniemi in the Arctic Circle in January 2024, Munich in May 2025, and Oslo in June 2025.

If you’ve never driven abroad and you’re wondering whether renting a car in Europe is worth it, this guide will help you decide.

Whether you’re planning to castle-hop across southern Germany or want the flexibility to hunt for the aurora borealis in Finnish Lapland, I’ll cover what car rental was like for me as an American, the requirements, how to rent a car, and why I don’t cross borders in a rental.

Most importantly, I’ll share how I decide if renting a car in Europe isn’t worth it, so you can make the right call for your trip.

Quick Answer

Is renting a car in Europe worth it?

Renting a car in Europe is worth it when your plans go beyond the train lines or buses take too long: islands, Arctic landscapes, and the countryside. For city-to-city trips, trains are usually easier, and you skip parking costs. I’ve rented at the airport in Rhodes, Rovaniemi, Munich, and Oslo. Bring your U.S. license, get an IDP for about $20 at AAA, and confirm your insurance coverage before you book. It’s best for small groups covering rural ground on their own schedule.

When Is Renting a Car in Europe Not Worth It?

A car buys you freedom, but it adds costs and hassles a train ticket doesn’t:

Extra costs: fuel, parking, tolls or vignettes, insurance, and a deposit hold on your card
Extra stress: unfamiliar road rules, narrow village streets, and finding parking in cities

Here’s when I skip the rental:

When you’re sticking to big cities. London, Vienna, Paris, and Barcelona have extensive public transport systems, so you don’t need a car.

When you’d drop the car off somewhere else. Just like in the US, picking up a car in one place and returning it elsewhere can drive up the price. Factor this in before you plan your international trip.

When public transport is cheaper. Sometimes the train or bus takes longer, but it’s so cheap that it’s worth the extra couple of hours. I’ve seen train tickets from Vienna to Salzburg as low as €13.99. No car rental will beat that.

When you’re not comfortable driving in snow. I hadn’t lived somewhere snowy in years, so my travel buddy from Minnesota drove in Lapland. The roads were well maintained even at -20°F. She kept extra distance from the car ahead, and we slowed down for reindeer on the roadside.

Even though the driver we passed, who’d slid into a snowbank, was already being helped by a support vehicle, I was still nervous to drive myself.

Straight snow-covered two-lane highway stretching to the horizon through a dense forest of frosted spruce and birch trees, the treetops glowing pink and orange in the low polar winter sun under a clear pale blue sky fading to peach at the horizon. Winter road trip in Lapland, Finland. — Driving through Lapland, Finland

When you’re not a defensive driver. The State Department notes that Greece has one of the highest traffic fatality rates in the EU. Traffic can be busy, fast, and chaotic.

And when I say chaotic, I mean it. We saw a couple on a scooter, and the passenger was holding a toddler in their arms. Had they taken a spill, that kid would have been done for.

When you’re traveling solo. I never rent a car when I travel alone, mainly because I don’t want to risk a flat tire or other problems in a foreign country on my own.

Even on solo road trips in the US, like my US history road trip, I drove only during the day so I could at least deal with any issues in daylight.

If you’re on your first solo trip, you don’t want to add the stress of driving alone.

When Renting Has Paid Off for Me

In Finnish Lapland during winter, we went without a car for most of the trip and rented one only for the last few days.

That was enough to reach farther-off places, like Ranua Wildlife Park and the Korouoma frozen waterfall hike.

In Rhodes, buses could have gotten us to most sites, but it would have taken much longer. Their schedule would have dictated our 2.5 days, so we might not have been able to visit as many Rhodes attractions as we did.

In Southern Germany, my travel companion and I decided to castle-hop from Munich across to Frankfurt. There weren’t many public transport options that went to places like Linderhof Palace or Hohenzollern Castle.

In Oslo, my family rented a car because we were headed to family homes and Norwegian attractions, and getting to local communities would have been time-consuming.

However, my uncle drove so slowly that I considered that even if it were a ‘plane, train, or automobile-style’ trip, it might have been faster.

View through a car windshield entering the blue-lit underground roundabout inside the Vallavik Tunnel, with a glowing yellow rock pillar, a ring of blue lights overhead and cars circling, a passenger's hand resting on the dashboard. Near the Hardanger Bridge in Ulvik, Vestland, Norway. — Driving through one of Norway’s long tunnels

My Experience Renting a Car in Europe as an American

Each time I’ve rented a car in Europe, I’ve done so from the airport.

It’s just convenient.

Or close to it: in Rhodes, a shuttle took us to the nearby rental lot.

However, a wonky thing about the Rhodes rental place. As we took the shuttle, I had no idea where that rental place was. The address wasn’t online or in our paperwork either. I only found it because we drove past it later, and I pinned it on my map.

All of the cars were automatic. I don’t know how to drive a stick shift. I tried once in the States and wasn’t very good at it, so attempting it on roads I don’t know isn’t a good idea.

However, manual transmission is still the default in much of Europe, so automatics can cost more and sell out first. Be sure to book ahead to ensure you get one!

Insurance depends on whom I’m traveling with. In Greece, I bought insurance on-site because I didn’t want to deal with problems abroad. I’m thrilled that I did because when I went to return the car, one of the employees started telling me the car was damaged. It wasn’t.

Then another employee waved him off, said something in Greek, and it suddenly became a non-issue. I can only assume the second guy told him I had their insurance.

The other three times I’ve rented a car in Europe, other people booked it and used their credit card insurance or their personal car plan that they’d confirmed had coverage.

Document the car. No matter where I rent a car, I always photograph it before I drive off. This way, I have timestamped evidence if shady people claim I damaged this or that.

Get an IDP (International Driving Permit). I got one before visiting Greece at AAA for $20, and they checked it when I arrived at the car rental place. The other times, I haven’t seen them ask for it. It varies by country, so check your particular destination’s rules.

⚠️ The only three legitimate ways to get an IDP are to visit a local AAA branch, apply by mail, or apply online at AATA’s website, so skip the online sellers.

Close-up of an International Driving Permit booklet issued in the United States by AAA, with the front cover displaying the fee, official seal, and a note that it is not valid for driving in the U.S. The booklet is open to pages that include multilingual driving classifications and personal driver information.

Know your fuel type before you reach the pump. Gas goes by Benzin or Super in Germany, bensiini in Finland, bensin in Norway, and αμόλυβδη (amolyvdi) in Greece. Diesel is labeled diesel almost everywhere, and putting the wrong one in is a costly mistake. Prices are listed per liter; one U.S. gallon is 3.785 liters.

Budget for parking fees. Of the seven nights we castle-hopped through Germany, only two of our stays had free parking. We paid about €12-15 per night at the others.

Get familiar with driving rules and signage. My travel buddy downloaded all the German road signs before we departed. Honestly, they’re very similar to those in the USA, but it’s still good to review beforehand. Also, know a little of the language. I got pretty good at “Ausfahrt,” which means “exit.”

Yellow rectangular sign with bold black German text reading Vorsicht Ausfahrt!, meaning Caution, Driveway Exit!, framed by a thin black border and mounted in a dense green thuja hedge, warning drivers of vehicles pulling out of a private driveway. A common residential roadside sign in Germany. — Vorsicht Ausfahrt! means Caution: Driveway Exit!

Download offline maps. I know a lot of you love an eSIM, but I’ve yet to see the allure and instead download offline maps. My travel buddy always gets an eSIM, and even she lost signal in the German countryside, but I was able to navigate due to my pre-downloaded offline map from Maps.me.

Google Maps is a good alternative, but be aware that Google My Maps isn’t available offline.

Should You Cross Borders When Driving in Europe?

I avoid crossing borders while renting, as it costs extra.

Cross-border fees in Europe typically range from €20 to €50 per rental, depending on the rental company and the countries you visit.

Getting to the Alpine Coaster in Oberammergau would have been quicker if we’d gone through Austria.

However, we kept the whole trip within Germany and never crossed into Austria, so we didn’t have to deal with cross-border fees or a vignette.

If you plan to cross borders, tell the rental company every country you plan to enter, as rules vary. Driving into a country without permission can also void your insurance.

How to Rent a Car in Europe

Renting a car in Europe isn’t really much different than anywhere else.

It’s more about being aware of things like their preference for manual cars over automatic, making sure you either get their insurance or confirm with your insurance company that your plan covers you abroad, and whether you’ll need an IDP.

Between my travel companions and me, we’ve booked through a comparison site, a broker, and an online travel agency:

Rhodes – VIPCars.com
Rovaniemi – Expedia
Germany – DiscoverCars
Oslo – booked by a family member

I have no preference. I typically go with whoever has the best prices, and I’ve recently been finding the best rates on Booking.com

Choose a compact car or small hatchback, as European streets, parking garages, and historic city centers are very narrow.

Book several months in advance of peak summer travel to secure better rates and availability. Or visit during the shoulder season to avoid crowds and get lower rates.

European Car Rental Requirements

Requirement	Details
Driver’s license	Valid U.S. license, usually held for at least one year
International Driving Permit (IDP)	About $20 from AAA or AATA. Required in some countries, like Italy and Spain, and rental desks may ask for it even where it isn’t required
Credit card	In the main driver’s name, for the deposit hold. Many desks don’t accept debit cards
Minimum age	Often 18 if you’ve had your license for a year. Under 25 usually pays a young-driver surcharge
Insurance	Buy it at the desk, or confirm your credit card or personal policy covers you abroad
Passport	Bring it to the rental desk as photo ID alongside your license

FAQs

How old to rent a car in Europe?

In most European countries, you can rent a car at 18 if you’ve held your license for at least a year.

Drivers under 25 usually pay a daily young-driver surcharge at the rental desk and get fewer car choices.

Drivers under 21 may have to buy the rental company’s insurance instead of using credit card coverage.

The exact rules appear once you enter your birthdate on the booking site.

Can Americans rent a car in Europe?

Yes, Americans can rent a car in Europe, but you’ll need a valid U.S. license.

Some countries, such as Italy and Spain, also require an International Driving Permit (IDP), and many rental companies ask for one even where the law doesn’t, like in Greece.

An IDP costs about $20. Get it before you leave, as applying from abroad is slow, so add it to your things-to-do before going abroad checklist.

Do I need an International Driving Permit in Europe?

It depends on the country and the rental company.

An IDP is a translation of your U.S. license and only works alongside it.

Some countries don’t require one by law (Greece, for example, began recognizing US licenses in November 2021), but rental desks there often ask for one anyway. For about $20, it’s worth carrying.

Related Travel Planning Guides

Want to remember this? Pin this Renting a Car in Europe: Is It Worth It? + Things to Know Before You Drive article to your favorite Pinterest board!