Hiring a car in Europe can be different to hiring a car at home. Skyscanner is here to answer your questions and share insider tips to make sure the only thing you need to worry about is which route you want to take.

What are the biggest European car hire companies?

There are several major car rental Europe travellers can choose from, and the biggest are:

• Hertz 

• Sixt

• Europcar

• Budget

• Avis

That said, there are plenty of smaller car hire companies across the continent that may offer cheaper rates, a more sustainable fleet or a wider range of vehicles from budget runabouts to luxury rides if you're after something specific.

1. Compare European car hire companies

This should be your first step. With Skyscanner, you can pop in your pick-up and drop-off location and your dates on our car hire page, and we'll show you the cheapest options right away.

You can also search by specific parameters with Skyscanner. Can't drive a stick shift? Search for automatic transmissions. You can also filter for features like airco, four wheel drive, electric and hybrid options.

2. Manual or automatic?

Most European drivers drive cars with manual transmission. If you're a little nervous about driving a manual car in Europe, you can absolutely book an automatic rental car in Europe — but keep in mind that automatic car rental in Europe tends to be pricier and less widely available than back home. Make sure you book your automatic car hire in Europe well in advance, especially during peak travel season.

3. Be mindful of your pick-up and drop-off locations

You can definitely pick up and drop off your car in different cities, and in some cases even different countries, but this can add significantly to the cost of car rental in Europe. If you want to save money, stick to the same location for pick-up and drop-off.

Also worth knowing: picking up your rental car at an airport or train station can add anywhere from €20 to €80 on top of your bill, depending on the supplier and location. Switching your pick-up point to a city centre location can make a real difference to what you pay. Factor in the cost and time of getting there from the airport first.

4. Get yourself an International Driving Permit

The International Driving Permit (IDP) translates your Australian licence into nine different languages. Many European countries require this to be eligible to hire a car, so make sure you sort it out well before you depart.

The cost of an IDP is AUD $53 and once your application is approved, it will be sent within 3 business days (though delivery times can vary depending on your state). You can apply through your state or territory's motoring club — such as NRMA, RACV, RACQ, RAC or RAA — all of which are authorised agents of the Australian Automobile Association (AAA). The AAA and its member clubs are the only authorised distributors of IDPs in Australia, so steer clear of any third-party sellers.

5. Check you can take your car across borders

If you're thinking of travelling across multiple countries on your European road trip, read the conditions of your rental carefully. Some companies will charge extra to take your car across borders, and in some cases your insurance can be made invalid. Always confirm cross-border permissions before you book.

6. Check the tolls

Across Europe you'll find tolled roads, especially on motorways, so it's worth checking your route in advance. Some European car rental companies have automatic toll systems and will charge it to your card, while others require you to pay online or in cash. A useful resource is tolls.eu, which gives an overview of toll roads across the continent.

7. Speaking of tolls, have you heard of vignettes?

A vignette is proof that you've paid the highway tax for a given country, and several European countries require them. Many have now moved to electronic vignettes (e-vignettes) linked to your licence plate rather than a sticker on the windscreen, so the system has changed quite a bit in recent years.

Vignettes are used in Austria, Bulgaria, Czech Republic, Hungary, Romania, Slovakia, Slovenia and Switzerland. If your European car rental company doesn't supply one, you may need to purchase it online before you travel or at the border crossing.

In 2026, the shift to e-vignette systems is well and truly underway across Europe, which means you can often buy them online before you even leave Australia. Check requirements country by country before your trip.

8. Brush up on the road rules

If you're travelling across multiple countries, make sure you know each country's individual road rules and restrictions. For starters, much of Europe drives on the right-hand side of the road. Some signs are different from those in Australia, and it’s worth researching it before you hit the road.

9. Make sure you're insured

Staying insured can get complicated when you're travelling across multiple countries in cheap car rental Europe deals, as crossing certain borders may affect your coverage. Check your rental paperwork carefully to understand exactly what you're covered for in each country. Some travel insurance companies offer rental car coverage, but this is usually as an add-on. 

10. Do you need a green card?

Some countries — including Albania, Bosnia and Herzegovina and Montenegro — require you to have a green card, which is an insurance document confirming your car is covered in those countries. Your rental company should be able to provide this if you're travelling through the Balkan Peninsula, but always confirm this before you pick up the keys.

11. Refill your fuel tank

Always refill your tank to the level specified in your rental agreement before returning the car. Car hire Europe companies can charge significant fees if you hand the car back with less fuel than agreed.

Whether you're still in the planning stage or ready to hit the road, we've got you covered. Find out how to plan a multi-city trip to Europe, discover the best stopovers in Europe, get our top tips for finding affordable car rental deals, or start dreaming about the best Christmas markets.