Travel Guide

Car Rental Abroad: The Complete Guide 🚗

Everything you need to know to rent a car safely and affordably: licenses, insurance, and common pitfalls.

Renting a car abroad gives you complete freedom of movement, flexibility in planning your trip, and access to places unreachable by public transport. In this guide, we've compiled everything you need to know - from insurance to driving in Italy - so you won't have any surprises.

International Driving Permit (IDP)

By law, every Israeli driver must have an International Driving Permit to drive abroad. Hundreds of Israelis get stuck at the rental counter and are refused service because they lack an international permit.

Essential Info
  • Cost: only ~11 ILS.
  • Where: At dozens of authorized optics stores nationwide.
  • Validity: Usually 3 years.
  • You must carry both your Israeli and International licenses.
Problematic Countries
Japan: Requires a special license based on the 1949 Geneva Convention! The regular IDP is not valid there.
Europe: In France, Austria, and Cyprus, Israelis have previously been fined for driving without an IDP.

Insurance - The Most Important Topic

Insurance is often the most expensive component of the rental. Here are the main types of insurance you must know:

CDW
Collision Damage Waiver

Covers damage to the rental car (excluding windows, tires, and undercarriage). Usually includes a deductible that can reach hundreds of dollars.

TP
Theft Protection

Insurance against vehicle theft. Here too, there is usually a high deductible in case of theft.

3PLC / TPL
Third Party Liability

Third Party Liability. Mandatory everywhere! Covers damage you might cause to someone else's vehicle or property.

Excess/Deductible Refund Insurance

To waive the deductible, rental companies offer extended insurance (SCDW) for $15-$30 per day. You can significantly reduce this cost by purchasing "deductible refund" insurance in advance from a third-party agency, which costs only $5-$10 per day. In case of damage, you pay the rental company - and the external insurance refunds you.

Hidden Fees & Pitfalls

  • Refueling Penalty: Returning a car without a full tank (if you chose the Full-to-Full policy) will result in a double or triple charge for fuel plus a "service fee".
  • Young Driver: Drivers under 25 usually pay an additional $10-$65 per day! Mandatory to check in advance.
  • Crossing Borders: Entering another country requires approval from the rental company and usually involves an extra charge for "cross-border insurance".
  • Airport Pickup Fee: Picking up a car directly from an airport terminal is sometimes 20-30% more expensive than picking it up from a branch in the nearby city.

Driving in Europe: Must-Know Facts

ZTL Zones in Italy (Zona a Traffico Limitato)

This is a restricted traffic area in city centers. Vehicle entry is prohibited, and there are automatic cameras on every corner. Fines can reach €300, and they may arrive in the mail months after the trip.

How to avoid? Park outside the old city (Rome, Florence, Milan) and commute. Use Waze as it alerts you about ZTL zones.

Toll Stickers (Vignette)

In countries like Austria and Switzerland, you must purchase a "toll sticker" (or digital version) before entering highways. Fine for not having one: hundreds of euros! If you rented a car in Germany and drive to Austria - it is your responsibility to buy the sticker at a gas station before the border.

Winter Equipment

Between November and April, many countries legally require winter tires (e.g., Austria and Germany). In some companies (especially in Germany), cars are automatically equipped with winter tires, but in Italy or France you will have to request them specifically and pay extra.

UK & Ireland: Left-Side Driving

Remember that traffic flows on the left. Roundabouts run clockwise, and priority is given to traffic coming from the right. Standard manual rental cars will have the gear shift on your left side!

Cyprus: Left-Side Driving, Red Plates & Northern Border

Driving in Cyprus is on the left side of the road! Rental cars have prominent red license plates to warn locals you are a tourist, but this also attracts thieves (do not leave valuables in the car). Additionally, it is strictly forbidden to cross into Northern Cyprus (Turkish-controlled side)—all insurance is completely voided at the border!

Germany & France: Low-Emission Zone Badges

Germany (Umweltplakette) and France (Crit'Air) require special windscreen stickers to enter low-emission zones in major cities (Berlin, Munich, Paris, Lyon). Rental cars registered in other countries do not come with these automatically! Fines can be up to €135.

Germany: Autobahn Driving Rules - Speed Limits, Overtaking & Emergency Corridors

Contrary to popular belief, not all of the Autobahn is speed-limit-free. Around 30% of the highway network has permanent or dynamic speed limits (especially near cities or construction zones) which are strictly enforced by speed cameras. In unrestricted zones, there is a "recommended" speed of 130 km/h (Richtgeschwindigkeit)—exceeding this isn't illegal, but in the event of an accident, you can be held partially liable simply for driving faster than 130 km/h.
Critical rules: Overtaking on the right is strictly illegal, and the left lane is strictly for passing. Furthermore, during traffic jams or sudden slowdowns, you are legally required to form an emergency corridor (Rettungsgasse): drivers in the leftmost lane must pull over as far left as possible, while those in other lanes must pull over to the right.

Greece: Roundabout Priority & Island Driving

In Greece, unless marked otherwise, entering traffic has roundabout priority over vehicles already inside! Also, if driving on the Greek islands (Crete, Rhodes, Santorini), roads are extremely narrow, steep, and winding. We highly recommend renting an automatic car to avoid rollback on steep hills.

France, Spain & Portugal: Electronic Tolls (Free-Flow & Via Verde)

Many highways use electronic tolling with no physical booths (like Flux Libre in France or certain autopistas in Spain). You must pay online within 72 hours to avoid heavy administrative fines.
Portugal: On many toll roads (e.g., A22 in Algarve), you must rent a "Via Verde" transponder from your rental agency; driving without it forces you to settle tolls at local post offices (CTT), which is a major tourist headache.

Netherlands & Denmark: Absolute Bicycle Priority

In cities like Amsterdam or Copenhagen, cyclists have absolute right of way. When turning right at intersections, you must check your right mirror and blind spot for cyclists going straight in dedicated lanes—they will not stop for you and have complete legal priority!

Georgia: Wild Driving, Animals on Road & Off-Road Bans

Driving in Georgia can be wild! Beyond aggressive local habits, you will frequently encounter cows, pigs, or sheep standing in the middle of roads, especially in mountain areas like Svaneti or Kazbegi. Also, most rental agencies strictly prohibit driving on dangerous unpaved mountain passes (like the road to Tusheti via Abano Pass) without a tough 4x4 and explicit prior authorization.

Iceland: Highland F-Roads, River Crossings & Wind Damage

Driving in Iceland requires extreme care! Standard 2WD cars are strictly prohibited from driving on interior highland roads (marked with an "F", like F-roads). Also, absolutely no insurance policy covers damage caused by crossing rivers or bodies of water! Critical tip: Iceland's winds are so intense that they can bend or rip car doors right off their hinges when opened—always hold the door firmly with both hands!

Switzerland & The Alps: 24/7 Headlights & Alpine Right-of-Way

In many European countries (such as Switzerland, Italy, Scandinavia, and Eastern Europe), you are legally required to drive with your headlights on at all times (24/7), even on sunny summer days—forgetting can result in an instant fine! Additionally, on narrow Alpine passes, vehicles driving uphill always have the right-of-way (except for Switzerland's yellow post buses, which have absolute priority).

Norway: AutoPASS Tolls, Integrated Ferries & Fjord Passing Bays

Norway's tolls are fully automated via the AutoPASS system—rental cars usually come equipped with an electronic tag, and charges are billed through your rental company. Fjord travel also relies heavily on car ferries, which increasingly use automated license-plate scanning (FerryPay). On narrow, single-lane fjord roads, look out for passing bays marked with a white "M" (Møteplass)—if the bay is on your right, you must pull in to let oncoming traffic pass.

USA & Canada: Right Turn on Red & School Bus Stop Laws

Driving rules in North America differ from Europe. In most of the USA and Canada (excluding places like New York City or Montreal island), you are legally permitted to turn right on a red light after coming to a complete stop and yielding to traffic and pedestrians, unless a sign states "No Turn on Red". More importantly, safety laws around yellow school buses are extremely strict: when a school bus stops with flashing red lights and an extended stop sign, you must come to a complete stop in both directions (on undivided highways)! Overtaking a stopped school bus carries severe fines and criminal penalties.

Croatia & The Balkans: Mandatory Green Card for Border Crossings

If you plan to rent a car in Croatia and drive into non-EU or non-Schengen neighbors like Montenegro, Bosnia & Herzegovina, Albania, or Serbia, you must obtain a physical "Green Card" (Cross-Border Insurance Card) from your rental agency. Without this paper document, you will be turned away at the border and left uninsured. Note that while the Pelješac Bridge now allows you to bypass Bosnia's Neum corridor to reach Dubrovnik without border checks, a Green Card remains absolute mandatory if you actually plan to tour neighboring Balkan countries.

Czechia, Slovakia & Hungary: Absolute Zero Tolerance for Alcohol

Unlike much of Western Europe, these Central European countries enforce a strict 0.0% blood alcohol limit for driving. Even a single sip of beer or wine at lunch can result in immediate license suspension, massive fines, or arrest if you are stopped for a random breathalyzer test. Never drink and drive.

Spain, Italy & Greece: Blue Zone Parking & Ticket Traps

In Southern Europe, blue painted lines on the street indicate paid parking zones (Zona Azul in Spain, Strisce Blu in Italy). You must purchase a ticket from a nearby machine and display it on the dashboard, or use mobile apps like EasyPark. White lines usually indicate free parking (though in Italy they are often reserved for residents—check the signs!), while yellow lines mean parking is strictly prohibited.

Fly-TLV's Golden Tips

  • Document Everything!
    Take a video of the car from every angle at pickup (including roof and bottom), and take a photo of the fuel gauge and mileage at both pickup and return.
  • Book in Advance:
    Rental prices can double during the tourist season (July-August). Booking 3-4 months in advance can save hundreds of dollars.
  • Offline Maps:
    Don't rely on the rental company's built-in GPS ($15/day). Download your area in advance on Google Maps to navigate even without the internet.

Frequently Asked Questions

Yes, according to Israeli law, every Israeli driving abroad must have an International Driving Permit. Even if the rental company doesn't ask for it, it can be very problematic in case of an accident or police check.

CDW (Collision Damage Waiver) covers collision damage with a deductible. LDW (Loss Damage Waiver) covers both theft and collision damage - essentially combining CDW and TP.

Excess insurance from a third party usually costs $5-10 a day, compared to $15-30 a day from the rental company. It's also worth checking what your credit card covers before buying.

It is recommended to pay within 5 days to get a 30% discount. Ignoring it can lead to higher fines and problems entering Italy in the future.

Yes, this is called a One-Way Rental. There is an additional fee (usually $50-$200), and you must coordinate it in advance. There is sometimes no fee between airports of the same company.