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Driving in Europe

While most European travel dreams come with a choo-choo soundtrack, and most first trips are best by rail, you should at least consider the convenience of driving. Behind the wheel you're totally free, going where you want, when you want.

Driving runs circles around trains on countryside-focused trips. The super mobility of a car saves you time in locating budget accommodations in small towns and away from the train lines. This savings helps to rationalize the "splurge" of a car rental. You can also play it riskier in peak season, arriving in a town late with no reservation. If the hotels are full, you simply drive to the next town. And driving is a godsend for those who don't believe in packing light...you can even rent a trailer.

Every year, as train prices go up, car rental becomes a better option for budget travelers in Europe. While solo car travel is expensive, three or four people sharing a rented car will usually travel cheaper than the same group using railpasses.

Renting a Car

European cars are rented for a 24-hour day, usually with a 59-minute grace period. Cars are most economical when rented by the week with unlimited mileage. Daily rates are generally quite high, but there are a few decent three-day deals — and various rail-and-drive passes can be a good option (these allow you to rent a car one day at a time at one-seventh the cheap weekly rate).

For the best deal on long-term rentals, book in advance from home (with the car-rental agency's US office, or through your travel agent). Even short-term rentals arranged from major companies in Europe can be so expensive that you'd save money by having someone back home arrange your rental for you.

There's no way to chart the best car-rental deals. Rates vary from company to company, month to month, and country to country. The cheapest company for rental in one country might be the most expensive in the next. After shopping for half an hour via the websites or toll-free phone numbers listed below, you'll know who has the best deal for your travel plans. Note that big-name companies (like Avis, Hertz, and Budget) generally charge more than consolidators such as Auto Europe (www.autoeurope.com) and Europe by Car (www.europebycar.com). Consolidators compare rates among various companies (including the big-name firms), find the best deal, and — because they're wholesalers — pass the savings on to you. You pay the consolidator, and they issue you a voucher to pick up your car in Europe. Because consolidators work with several different big companies, they also tend to be more knowledgeable about the practical ins and outs of European car rental.

Minimum and maximum age limits vary by location, type of car, and rental company. Younger and older renters can get stuck with extra costs, such as being required to buy CDW coverage or pay a surcharge of $14–22/day. Most companies will not rent a car to someone under 21, but those who are at least 25 years old should have no problem. Drivers over 70 may have trouble renting in the Czech Republic, Greece, Poland, Slovakia, and Turkey. The maximum age is 80 in Denmark, and some locations in the UK and Northern Ireland won't rent to anyone over 69. You can't rent a car in the Republic of Ireland if you're 75 or over, and you'll pay extra if you're 70–74. If you're considered too young or too old, look into leasing (see below), which has less stringent age restrictions. STA Travel seeks young renters (www.statravel.com, tel. 800-781-4040).

Rental cars come with the necessary insurance and paperwork to cross borders effortlessly in all of Western Europe. If you plan to drive your rental car from Western to Eastern Europe, state your travel plans up front to the rental company — many companies have limits on eastward excursions (for example, you can only take cheaper cars, and you may have to pay extra insurance fees). When you cross an Eastern European border, you may be asked to show proof of insurance (called a "green card"). Ask your car-rental company if you need any other documentation for ­crossing the borders on your itinerary.

Some rental companies allow you to take a rental car from Britain to the Continent or to Ireland, but be prepared to pay high surcharges and extra drop-off fees (see below). Hertz offers a unique "Le Swap" program — you get a round-trip Chunnel passage and a right-hand-drive car rental for Britain that's swapped for a left-hand-drive rental on the Continent. If you want to drive in Britain, Ireland, and the Continent, it's usually cheaper to rent three separate cars than one, thanks to the high cost of taking cars on ferries (between Ireland and Britain) and crossing under the English Channel via the pricey Eurotunnel (www.eurotunnel.com).

Note that some countries have unfamiliar laws. Many European countries require you to have your headlights on anytime the car is running, even in broad daylight. Most countries require safety seats for children under age four, but a few — Denmark, Germany, Sweden, and Switzerland — require boosters for six- and seven-year-olds. Some laws are more obscure: Austria requires each driver to have a reflective safety vest. Your car-rental company should be aware of these rules — just ask.

In some countries, you'll pay more to pick a car up at the airport or train station than in the town center (10–20 percent extra, or a flat fee of $30–150, depending on the destination and the company). When you're calling about prices, rental agents usually quote you this pricier airport pickup rate. Ask if they have a cheaper, downtown-pickup price. Some companies deliver the car to your hotel for free.

When picking up your car, always check the entire vehicle for scratches, dings, and the gas level. If anything is not noted on the rental agreement, return to the counter to make adjustments. When you drop off the car, walk around the car again with the attendant to be sure there are no new problems. Otherwise, unexpected charges might show up on your credit-card statement. These are easier to dispute when the information is documented. On that same note, avoid dropping your car off after hours (at a drop box) — it's best to finalize the rental and receive the paperwork in person.

To avoid big-city driving and reduce backtracking, consider picking the car up in one city and dropping it off in another. (For maximum options, use a bigger company with offices in many cities.) There's usually no extra charge to do this within the same country. However, it will generally cost an extra $100–300 to drop the car in a different country. You'll find some happy (free) and some outrageous ($1,000+) exceptions. The farther the distance between your start and end points, the higher the fee.

Your American driver's license is all you need in most European countries. An international driving permit (IDP) provides a translation of your American license — making it easier for the cop to write out the ticket. Exactly where you need a permit depends on whom you talk to. People who sell them say you should have them almost everywhere. People who rent cars say you need them almost nowhere. People who drive rental cars say the permit is overrated (but it comes in handy as a substitute for a passport at places such as campgrounds and bike-rental shops that require some kind of photo ID as a security deposit until you pay). Police can get mad — their concern is in finding the expiration date — and fine you if you don't have an international permit. Those driving in Portugal, Spain, Italy, Austria, Germany, Greece, and Eastern Europe are likely to be fined if found without an international driving permit, and should probably get one (at your local AAA office — $15 plus the cost of two passport-type photos, www.aaa.com). You must carry your American driver's license as well as your international permit.

Most rental cars in Europe have manual transmissions. Automatics can tack on an extra $100 per week — or, worse, may only be available if you upgrade to a bigger, more expensive car. Since supplies are limited, if you must have an automatic, you'll need to arrange it farther in advance. Ideally, skip the automatic and brush up on your shifting skills. It's better to lurch through your hometown parking lot than grind your gears over the Alps.

Leasing and Buying

Leasing (technically, buying the car and selling it back) gets around many tax and insurance costs and is a great deal for people needing a car for three weeks or more. Leasing can even be more economical than railpasses, especially for trips eight weeks and longer. Leases are available for periods up to six months. Prices include all taxes, as well as zero-deductible theft and collision insurance (comparable to CDW) — and you get to use a new car. Leased cars can most easily be picked up and returned in France, but for an additional fee you can also lease cars in the Netherlands, Belgium, Germany, Spain, Portugal, Italy, and Great Britain. You can't lease a car in Ireland.

Europe by Car, which invented leasing more than 50 years ago, still offers good deals (for example, you can lease a Peugeot 206 with air-conditioning in France for as few as 17 days for $879, about $52 a day — www.europebycar.com, tel. 800-223-1516). Renault Eurodrive offers similar deals (www.renaultusa.com). The longer you lease the car, the lower the price (a 60-day lease can be as inexpensive as $28 per day).

Although Americans rarely consider this budget option, Aussies and New Zealanders routinely buy used cars for their trips and sell them when they're done. The most common places to buy cars are Amsterdam, Frankfurt, London, and US military bases. In London, check the used-car market on Market Road (Tube: Caledonian Road) and look in London periodicals such as TNT (www.tntmagazine.com), Loot (www.loot.com), and New Zealand News UK (www.nznewsuk.co.uk), which list used cars as well as jobs, flats, cheap flights, and travel partners.

Campers: Consider the advantage of a van or motor home, which gives you the flexibility to drive late and just pull over and camp for free. Fairly cheap to run, these vehicles use diesel — about the cost of gasoline, but with much better mileage (24–30 mpg average).

The 2008 edition of Europe by Van and Motorhome contains all the details on renting, buying, and shipping, and includes a free, personal consultation (David Shore and Patty Campbell, 268 pages, $16.95, free shipping for ETBD readers, Odyssey Press, www.roadtripeurope.com, tel. 800-659-5222, shorecam@aol.com). For more on campervanning, see David Shore's article.

Campanje, a Dutch company, specializes in long-term rentals of small-size, fully-loaded campervans and RVs (4–7 people) for camping through Europe. Rates run from $780 per week for a four-person camper van up to $1,280 per week for a seven-person RV (minimum 3 weeks), including tax and insurance. Ask about discounts for early booking and off-season (www.campanje.nl, Dutch tel. 030/244-7070, info@campanje.nl).

Updated for 2008. For lots more tips, check out our best-selling Europe Through the Back Door travel skills guidebook.