Why are rental cars so expensive right now in Europe?

The price rises are mainly caused by car rental companies having sold off much of their stock of vehicles during the pandemic as demand collapsed. Now, with people taking holidays again, they are trying to rebuild their fleets, but a global shortage of semi-conductors means they are paying more for new vehicles.



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Rental car prices have been surging because demand is high and supply is low, both due to the coronavirus crisis and the chip shortage. To mitigate it, I should book as soon as I'm even *thinking* about traveling somewhere. I should also avoid certain locations (especially those near nature destinations).

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The cheapest country to rent a car is Poland, where car rental prices start from 3.97 EUR per day or 27.82 EUR per week.

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Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic. As demand for rental cars fell, rental car companies sold segments of their fleets to stay in business during the lean times.

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Why are car rentals so expensive right now in 2023? Car rentals cost more than they did a few years ago due to many different factors, but primarily because of supply chain issues related to the COVID-19 pandemic.

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When will rental car prices go back to normal? Rental car costs have dropped slightly in 2023 compared to 2022. However, most industry experts predict that rental car rates will, unfortunately, remain high for the foreseeable future. It may be a while before we see rental car prices return to normal.

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Can I take my rental into another country? In Europe, car hire companies typically allow renters to drive their vehicles across international borders into neighbouring countries. However, you may have to pay a cross border fee in order to drive the car abroad.

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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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Caroline Parot, chief executive of the largest listed car hire company in Europe, said prices had risen because providers could not source enough vehicles to meet demand from holidaymakers.

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A supply crunch, and corporate profits However, as the pandemic waned and demand picked back up, these companies couldn't quickly restore their fleets. Microchip shortages and other supply chain issues throttled supply and drove the cost of cars higher. “The surge in demand is what created that crunch,” Mangahas says.

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What is this? The legal driving age in Italy is 18 years old. In order to be able to rent a car, however, you need to have had your driver's license for at least one year. Generally, rental car companies in Italy require you to be 21 or over and no older than the maximum age (usually 70-75 years).

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Most U.S. auto insurers won't cover you while driving abroad, except for driving in Canada and driving in Mexico. Unless you have a credit card offering rental car insurance, you'll probably need to purchase your insurance from the rental company. Learn more about international car insurance and rental car insurance.

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Does car insurance cover international rentals? Most U.S. auto insurers won't cover you while driving abroad, except for driving in Canada and driving in Mexico. Unless you have a credit card offering rental car insurance, you'll probably need to purchase your insurance from the rental company.

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Through 2023 at least, limited vehicle availability will continue. However, most experts report some recovery on the horizon. There were finally early signs of increased allocation to rental fleet channels in fall 2022. Operators still need to be clever in how they source cars as we inch toward supply recovery, though.

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