Things Travelers Should Know Before Renting a Car Abroad

Renting a car abroad gives travelers flexibility and freedom to explore beyond tourist hubs. However, driving in another country comes with unfamiliar rules and added responsibilities. Many travelers underestimate how different road laws, insurance terms, and liability rules can be. This matters more as international travel continues to rise. 

ITA figures show that the United States welcomed about 72.4 million international travelers in 2024. That is a sharp increase from 19.2 million visitors in 2020. Countries like Argentina and Israel saw notable growth in U.S. tourism. 

With more travelers on the road, understanding rental requirements, insurance coverage, and accident procedures becomes essential before driving abroad. In this article, we’ll break down the key things travelers should know before renting a car in another country.

Understanding Local Driving Laws and Road Rules

Driving laws can vary widely from country to country. Travelers should not assume rules are the same everywhere. One major difference is which side of the road vehicles use. 

According to Statista, around two-thirds of the global population drives on the right side. This includes the United States and most of Europe. In total, 174 countries and territories follow right-hand traffic rules. Only 78 countries drive on the left side. Many of these are former British colonies.

Another important consideration is documentation. Some countries require an International Driving Permit alongside your home license. An IDP helps local authorities verify your driving credentials. Rental companies may also request it. Checking IDP requirements before travel can prevent rental issues, fines, or delays at checkpoints.

Insurance Coverage and Liability Awareness

Insurance coverage is one of the most important details to check before renting a car abroad. Many travelers assume rental insurance covers everything, which is rarely the case. Most countries require at least third-party liability insurance to drive legally. It pays for harm or losses suffered by third parties. 

According to the Motor Insurers’ Bureau, the Green Card allows drivers to travel across Europe and nearby regions. It removes the need to purchase separate insurance for each country. This simplifies cross-border driving and provides minimum liability coverage.

Rental companies often offer additional damage waivers. These may still include deductibles. Credit card coverage can help, but it usually excludes liability. Always confirm coverage limits before driving.

What to Do Immediately After a Road Accident Abroad

After a road accident abroad, safety should always come first. If it is safe to do so, get out of harm’s way and assess whether anyone is injured. Contact emergency services right away if medical help is needed. Record the scene thoroughly by capturing images of the vehicles, damage, roadway, and license plates. 

Share contact and insurance details with the other driver and note any witnesses. Local authorities should be notified whenever injuries, major damage, or legal requirements apply. Rental companies must also be informed as soon as possible to avoid coverage issues. This becomes especially important in risky conditions. 

For example, KKTV reported that the Colorado Springs Police Department went on Accident Alert status on January 8, 2026. This was due to heavy snowfall across the city. Travelers driving in such areas should keep emergency numbers readily available. They should also know that consulting a car accident attorney in Colorado Springs can help clarify liability and next steps.

Springs Law Group states that a local lawyer can explain traffic laws. They can also handle insurance communication and guide travelers through claims when fault or coverage is unclear.

Rental Agreements, Fine Print, and Hidden Charges

Rental agreements often contain important details that travelers overlook. Reviewing the detailed terms can prevent surprise charges from appearing later. Fuel policies vary and may include prepaid or full-to-full options. Mileage limits may apply in some countries. Extra charges are common for additional drivers, late returns, or cross-border travel. 

Damage clauses can be strict, even for minor scratches. Some rentals charge administrative or cleaning fees after return. Taxes and local surcharges may not be included in the quoted price. Always confirm what is covered before signing. Ask for written clarification if something is unclear. 

Taking a few minutes to review the agreement carefully can prevent billing disputes and reduce stress after the trip.

Vehicle Inspection and Documentation Before Driving Away

Inspecting a rental car carefully before driving away is essential when traveling abroad. Many disputes begin with pre-existing damage that was never documented. 

According to The National, one in five customers who used Goldcar rentals reported issues with vehicle condition. Another 23 percent said they were charged extra at pickup or return. Past investigations also highlighted pressure-selling tactics for additional insurance. These findings show why documentation matters. 

Walk around the vehicle slowly and check for scratches, dents, glass damage, and tire condition. Capture detailed photos or video footage from different viewpoints to fully document the situation. Make sure all existing damage is recorded on the agreement. Keep copies until the rental ends. Proper inspection helps avoid unfair charges later.

Emergency Contacts and Support While on the Road

Store important local emergency contact numbers on your phone ahead of your journey. These may differ from your home country’s services. Keep the rental company’s roadside assistance number easily accessible. This helps in case of breakdowns or vehicle issues. 

Save the contact details of your hotel or local host as well. Travelers should also note their embassy or consulate contact information. This can be helpful during legal or medical emergencies. 

If traveling to remote areas, inform someone of your route and schedule. Being prepared with the right contacts reduces panic and helps you respond quickly during unexpected situations on the road.

Frequently Asked Questions

Do I need an international driving permit for every country?

An international driving permit is not required everywhere. Some countries accept your home license, while others require an IDP alongside it. Rules vary by destination, so checking local requirements in advance helps avoid rental issues or fines.

How can I avoid being overcharged after returning a rental car?

Document the car’s condition before and after use with photos or video. Keep fuel receipts and return paperwork. Follow the agreed fuel policy and return time. Reviewing the final invoice immediately helps catch and dispute unexpected charges quickly.

What documents should I always keep in the car while driving abroad?

Keep your valid driver’s license, passport or ID, rental agreement, insurance documents, and vehicle registration copy in the car. Some countries also require an international driving permit, so carry it if applicable to avoid fines or delays.

Driving Abroad With Confidence and Preparedness

Renting a car abroad can greatly enhance your travel experience, but preparation is key. Understanding local driving laws, insurance requirements, and rental terms helps prevent costly mistakes. 

Taking time to inspect the vehicle, document everything, and keep emergency contacts ready adds another layer of protection. Road conditions and legal rules can change quickly, especially in unfamiliar destinations. 

By staying informed and cautious, travelers can enjoy driving abroad while reducing stress, delays, and unexpected costs.