Renting a Car in Popular Tourist Destinations: What to Know

21 October 2025

So, you’re planning your dream vacation, and the thought of relying on taxis or public transportation doesn’t quite sit well with you. Renting a car seems like the best option, right? It gives you the freedom to explore at your own pace, take the scenic route, and avoid the hassle of rigid tour schedules. But before you rush off to book a rental, there are a few essential things you need to know.

From hidden fees to international driving permits, rental companies can be tricky if you're not prepared. But don’t worry—I’ve got you covered! Here’s everything you need to know about renting a car in popular tourist destinations.

Why Renting a Car Can Be a Game-Changer

Let’s face it—traveling in a foreign country or even an unfamiliar city can be stressful. Buses run on their own time, taxis can overcharge you, and figuring out how to get from point A to point B can turn into a headache. But when you rent a car, you’re the one in control.

Want to stop for a breathtaking sunset? No problem. Found an off-the-beaten-path café that looks amazing? Pull over and enjoy! Renting a car gives you the ultimate freedom to explore without limits.

Things to Consider Before Renting a Car

Not all rental experiences are created equal. To ensure a smooth ride, here are the key factors you should keep in mind before booking.

1. Check If You Need an International Driving Permit (IDP)

Depending on where you’re traveling, your home country’s driver’s license might not be enough. Some countries require an International Driving Permit (IDP) to legally rent and drive a car.

For example, Japan, Italy, and Thailand are sticklers for this rule, while the U.S. and Canada usually accept foreign licenses. The last thing you want is to land at your destination, only to be turned away because you don’t have the proper permit.

2. Compare Prices and Rental Policies

Don’t just go for the first rental company you see at the airport. Websites like Kayak, Expedia, and Rentalcars.com can help you compare rates across different agencies.

Also, pay close attention to:
- Mileage Limits – Some rentals charge extra if you exceed a certain number of miles.
- Fuel Policy – Is it full-to-full or full-to-empty? (Hint: Full-to-full is usually the best.)
- Additional Fees – Extra charges may apply for things like GPS, additional drivers, or even young driver fees.

3. Understand Insurance Options

Car rental companies LOVE to upsell insurance. While it’s important to be covered, you don’t want to pay for something you don’t actually need.

Most rental agencies offer:
- Collision Damage Waiver (CDW) – Covers damage to the rental car.
- Liability Insurance – Covers damage to other vehicles or property.
- Personal Accident Insurance – Covers medical bills in case of injury.

Before you pay extra, check if your credit card or travel insurance already provides coverage for rental cars. You might save yourself some serious cash!

4. Be Wary of Hidden Fees

Rental companies can be sneaky with extra charges. Look out for:
- Airport Surcharge – Rentals from airports often come with extra fees.
- One-Way Fees – Dropping the car off at a different location might cost more.
- Late Return Fees – Even returning the car an hour late can lead to extra charges.

Always read the fine print before signing anything!

Best Tourist Destinations for Car Rentals

Some destinations are perfect for road trips, while others are best explored with public transport. Here are a few places where renting a car is worth every penny.

1. USA: The Road Trip Paradise

The U.S. is made for driving. Whether you’re cruising down Route 66, exploring national parks, or taking the Pacific Coast Highway, renting a car is almost essential.

👉 Pro Tip: Gas is relatively cheap in the U.S., but rental companies love to upsell fuel packages. Opt for a full-to-full policy to save money.

2. Italy: The Scenic Drives of Tuscany

If your dream vacation includes winding roads through vineyards and medieval towns, a rental car is a must in Italy.

👉 Pro Tip: Driving in big cities like Rome or Naples can be chaotic. Stick to rural areas or smaller towns for a stress-free experience.

3. Australia: The Great Ocean Road

Australia’s vast landscapes and coastal drives make renting a car the best choice. The Great Ocean Road offers one of the most breathtaking road trips on the planet.

👉 Pro Tip: In Australia, they drive on the left side of the road. If you’re used to right-side driving, take your time adjusting!

4. Iceland: Land of Fire and Ice

Public transport is limited in Iceland, so a rental car is the best way to see its stunning waterfalls, geysers, and volcanic landscapes.

👉 Pro Tip: Consider renting a 4x4 if you plan on exploring the rugged interior roads.

5. Mexico: Riviera Maya Adventures

While taxis and buses exist, renting a car in places like Cancun or Tulum gives you the freedom to visit hidden cenotes and Mayan ruins without stress.

👉 Pro Tip: Always opt for full insurance coverage—rental scams are common in Mexico.

Tips for a Smooth Rental Experience

Now that you know the ins and outs, here are a few bonus tips to make your rental process a breeze.

1. Take Plenty of Photos

Before you even leave the rental lot, take photos of the car from all angles. This ensures you won’t be blamed for pre-existing damage.

2. Verify the Fuel Policy

Make sure you understand whether you need to return the car with a full tank. Some companies charge outrageous prices for refueling.

3. Know the Local Traffic Laws

Speed limits, parking rules, and toll roads can vary greatly from one country to another. A quick online search can save you from unnecessary fines.

4. Avoid Renting at the Airport (If Possible)

Airport rentals are often more expensive due to added fees. If convenient, consider picking up your car from a city location instead.

5. Use a Credit Card for Deposits

Most rental companies require a deposit, and using a credit card is safer than a debit card. Some credit cards also offer rental car insurance as a perk!

Final Thoughts

Renting a car in a tourist destination can elevate your travel experience, giving you the freedom to explore hidden gems at your own pace. But it’s essential to do your homework—understanding local laws, choosing the right insurance, and watching out for hidden fees can save you a ton of money and stress.

So next time you're planning a trip, ask yourself: Would a rental car make my adventure even better? If the answer is yes, now you know exactly what to do!