Is it expensive to rent a car in Europe?

Car rental rates in Europe vary greatly based on your pick-up city and the time of year your are booking. Travelers can find rates for compact vehicles in Ireland as low as $5 a day or $12 a day in Italy. Full size vehicles and SUVs could cost as much as $20-25 a day in some cities.



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Holidaymakers face soaring car hire costs as shortages drive up prices. The cost of renting a car in European holiday destinations has almost doubled in the past three years, and experts predict prices will remain high as global shortages mean car hire firms are paying more for new vehicles.

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Having a car provides a lot of freedom and convenience when traveling through Europe. You can travel at your own pace, stop frequently to take in the view, and get to some places that are difficult to reach with public transportation.

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Whether you're American or Canadian, your passport and driver's license are all you need in most European countries. However, some countries also require an International Driving Permit (IDP).

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16 Top Tips On How To Travel To Europe On A Budget
  1. Avoid Visiting during Peak Season.
  2. Visit Eastern Europe for Christmas Markets.
  3. Travel Carry-On Only. How to Find Budget Accommodation in Europe.
  4. Stay in Hostels in Europe.
  5. Try Couchsurfing.
  6. Camping in Europe. Finding Cheap Food in Europe.
  7. Cook your own food.
  8. Eat like a local.


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Car rental rates were very high in Italy when I checked in August for September. $1875 for a compact in Italy vs $825 in France for similar car. Most credit cards also do not cover rental car insurance in Italy. Drop off fees may be less than the increased costs of renting in Italy.

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