Why is car rental so expensive in Europe?

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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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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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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Out of all the popular cities in Europe, Lisbon is the cheapest city to rent a car in at just $3/day.

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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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Note that European roads are often narrower and more crowded than American roads, making it difficult to navigate sometimes. Additionally, signs and traffic signals may be unfamiliar or in a different language.

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Types of Car Rental Insurance in Europe. Every car rental from Auto Europe includes liability and fire insurance. Third Party Liability takes care of damage done to anyone and anything outside of your rental vehicle. Fire covers the rental vehicle itself in the event of a mechanical fire.

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As mentioned above, most one-way car rental itineraries will result in an additional charge added on to your final car rental rate. A common one way fee for a car rental from Amsterdam to Paris is around $436, and from Paris to Barcelona is around $618.

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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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Cost savings for multiple people You can transport your group of five, or even eight, all over Europe for less than the cost of taking trains though several major cities. Travelers that choose to drive across Europe instead of take trains can also cover more ground for less.

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