Rental Cars and Insurance Abroad: What Do You Need to Know?

Is it possible to rent a car abroad?

You can choose to rent your car before departure or to do so on-site at the counter at your destination. The easiest option is to rent the car in advance; that way, you’re guaranteed a car that meets your needs. You can rent the car directly from the local rental company, or through a car rental agency in the Netherlands. In that case, the agency acts as an intermediary between you and the local company. To rent a car abroad, you must have a valid driver’s license. In some countries, you’re also required to present an International Driver’s Permit. In addition, you’ll almost always need a credit card. Finally, many rental companies abroad set a minimum age for car rentals, and the renter must have held a driver’s license for a certain number of years.

Can I get rental car insurance for use abroad?

A rental car abroad is never covered by your Dutch auto insurance. Even if you purchase travel insurance, you are not covered for your rental car. For this, you always need separate auto insurance, which you purchase from the rental company. Think about how you want to be insured while you’re still at home. This way, you’ll avoid having to make decisions when you pick up the rental car and prevent yourself from being influenced by the rental company.

Third-Party Liability Coverage

Are you renting a car in an EU country? If so, you are required to purchase liability insurance for the rental car. This liability insurance covers damage you cause to others.  This insurance is often included in the rental package. In the Netherlands, the minimum coverage amount is set at five million. However, in some countries, such as Turkey, Slovenia, and Croatia, the coverage amount is very low. Make sure you choose third-party liability coverage that provides sufficient payout. Claims can run up to very high amounts in the event of major damage.

Third-Party Liability + Comprehensive Coverage

Comprehensive coverage, also known as “All Risk,” covers any damage to your (rental) car. Unlike liability coverage, this type of insurance is not required. When purchasing comprehensive insurance, be sure to check the amount of the deductible. The deductible can sometimes be as high as one thousand euros. It is therefore often wise to buy out the deductible entirely.

Other Coverage

Theft of a rental car is not automatically covered under a comprehensive insurance policy. When renting a car abroad, you are often offered various insurance options. Carefully consider which coverage you really need and make sure you don’t end up insuring yourself twice for the same risk. When renting a car abroad, you can often choose from the following types of coverage in addition to your liability insurance:

• TPI (Third-Party Insurance): This is liability insurance
• ALI (Additional Liability Insurance): This allows you to increase the insured liability amount up to a certain maximum.
• CDW (Collision Damage Waiver): With CDW insurance, you are covered for damage to your rental car that you cause yourself.
• LDW (LostDamageWaiver): LDW insurance is CDW insurance supplemented with coverage for theft and vandalism.
• SCDW (Super Collision Damage Waiver): This is a comprehensive insurance policy that usually has no deductible.
• TP (Theft Protection) or THW (Theft Waiver): This is theft insurance.
• PEC (Personal Effects Coverage): This is baggage insurance.
• PAI (Personal Accident Insurance): This is passenger insurance.

Renting a Car Without Insurance

In most countries, car insurance is required by law. Renting a car without insurance is therefore virtually impossible. Just as in the Netherlands, third-party liability insurance is mandatory abroad, even for rental cars. This is often already included in the rental package. However, taking out additional insurance is not required. You can therefore decide for yourself whether you want to purchase it. Rental companies often recommend additional insurance at the counter, such as liability coverage. Whether this is necessary, however, varies by country.

Damage to the rental car—what now?

Before you actually rent the car and hit the road, it’s a good idea to inspect the car together with the rental company to check for any damage. You should also take photos of the car if you’re returning it outside the rental company’s business hours.  If you cause damage to the rental car, ask the rental company to provide a written description of the damage. Also take photos of the damage. This is to ensure that you cannot be held liable later for damage to the car that you did not cause yourself.

Tips for Renting a Car Abroad

• Read and keep the rental agreement carefully. This agreement outlines all the terms agreed upon, such as who will be driving the car, the odometer reading at the start of the rental, and any pre-existing damage to the car before you hit the road. This form should also clearly state who will be driving the car. This is also the person who is insured.
• If you are required to return the car with a full tank, fill up just before returning it and keep the receipt. This is to avoid additional fuel charges.
• Renting a GPS can easily cost ten euros a day. In some cases, it’s therefore more cost-effective to bring your own GPS device or purchase one yourself.
• If you experience car trouble, always contact the rental company first, and never have the damage repaired on your own without consulting them.