If you want to drive your rental car from one country into another, the rental company might charge you a 'cross-border fee'. Here's what you need to know. Rental companies charge a cross-border fee to cover the extra insurance required when you drive in a different country from where you hired the car.

A "cross-border card" or fee in car rentals is a mandatory surcharge or documentation required when you plan to drive a rental vehicle out of the country where it was originally picked up. This is most common in Europe, where travelers often rent a car in one nation (e.g., Germany) and drive into neighbors like Austria or Switzerland. The fee covers the additional insurance and roadside assistance necessary for the vehicle to operate legally and safely in a different jurisdiction. When you pay this fee, you are often issued a "Cross Border Card" or a notation on your rental agreement that acts as proof of authorization. Failure to declare your intent to cross a border can result in the voiding of all insurance coverage, meaning you would be personally liable for any damages or theft occurring outside the primary country. Some rental agencies also use these "cards" to ensure the car is equipped with the necessary equipment for the destination country, such as winter tires or high-visibility vests required by local laws.