10 car rental tips that will save you money

How I Rented a Car in Europe for Less Than €5 a Day

On a recent surf trip in Portugal, a rental car changed everything. It was the easiest way to reach my accommodation and chase waves along quiet stretches of coast.

I rented from a few different companies and got better each time at avoiding sneaky fees and finding real bargains.

Yes — I once paid less than €2 a day

For the first stretch of the trip, I paid around €100 for three weeks. With insurance (about €5/day), the total came to just over €200.

Pretty good, right?

Then I realised you can rent a car for under €5/day. During the pandemic, I even found one for less than €2/day. That was rare, but even now you can still find amazing low-season deals using the same tricks.

10 car rental tips that will save you a lot of money

This guide will help you avoid hidden charges and actually pay the price you see when booking your car rental.

I picked up these tips in Portugal — but they work for cheap car rentals in Europe in general.

First, here are 3 key car rental tips everyone should follow. Then I’ll share 7 bonus tips most travellers don’t know.

3 crucial car rental tips everyone has to know

At first glance, car hire can look super cheap. But then come the extras — insurance, fuel, “premium” fees — and the price shoots up.

Truth is, those €3–€5 daily rates aren’t profitable on their own. Rental companies make their money from the add-ons. Follow these basics to dodge the traps.

1. Book with a full-to-full fuel policy
2. Pre-book your insurance
3. Bring your own navigation

Tip #1: Full-to-full fuel policy

If you’ve rented before, you probably already know — this is the big money-saver.

Choosing full-to-full barely costs more upfront, but skipping it can lead to €70–€150 in marked-up fuel charges and refuelling fees.

Other policies sound easier, like full-to-empty — but they come with inflated fuel prices plus a fee, even if you return the tank full.

Stick with full-to-full. Fill up just before returning and keep the receipt as proof.

Tip #2: Book car insurance in advance

Buying insurance at the desk usually costs €15–€50 a day, especially in high season or for bigger cars. Online? You’ll pay around €4–€6 a day — big savings.

But here’s the catch — most third‑party insurance work on reimbursement. So if there’s damage, the rental company will still charge your card, and you’ll claim it back later.

You’ll need to leave a deposit of €500–€1,500. And a lot of desks don’t accept debit cards for the deposit.

I paid with my debit card without issues — but they refused it for the deposit because they said they can’t re-imberse the money to online banks like Revolut or N26.

Where to buy your car insurance?

Booking ahead is the cheapest way. Here’s where you can get it:

• At the rental desk (not ideal — €15–€50/day)
• Online when booking your car (€4–€6/day)
• Specialist sites like IcarHireInsurance (~€3.30/day or ~€50/year)

If you’re only renting for a few days, the booking site’s insurance is usually easiest. For a week or longer, third‑party cover is often cheaper.

Key point: You can pay with a debit card if you’re using its insurance — but bring a credit card in the main driver’s name for the deposit. Many desks won’t hold it on a debit card.

Tip #3: Prepare your own navigation

Don’t pay extra for a GPS. Rental companies often charge €5–€10 per day — totally unnecessary.

Download offline maps from Google Maps or use Waze. Most modern cars support Apple CarPlay or Android Auto, so your phone does the job.

Bonus tip: Spend the savings on a local SIM or data plan. And bring a cheap phone holder — under €10 and makes driving much easier.

6 car rental tips most people don’t know

Bonus Tip #1: Check Skyscanner for the cheapest car rental

Skyscanner’s not just for flights — it’s one of the best tools for finding cheap car rentals in Europe.

I also rate www.carjet.com. Prices are usually close to Skyscanner, with a slightly cleaner layout.

It really can be that cheap — if you dodge the hidden charges we talked about earlier.

TIP: In Mexico, Kayak sometimes comes out cheaper. Just double-check those extras at pickup.

Bonus Tip #2: Check the opening hours to avoid extra charges

Landing super early or late? The rental desk might be shut. Out-of-hours pickup or drop-off usually adds €30–€60 to your bill.

Most desks run 07:00–22:00, but some open later or close earlier. Always match your flight times to the desk hours before booking.

If you land at 07:00, book a company that’s already open. Saves stress — and cash.

Bonus Tip #3: What you see is not always what you get

I once booked a Renault Clio SW — it fit my surfboards perfectly. Next time, the “similar” car didn’t… cue 15 minutes of boot Tetris.

The photo online is just an example. Always book by size category (like economy or SUV), not the exact model.

You’ll likely get a different make, but the category tells you how much room you’re getting.

Bonus Tip #4: Search for car rental with low additional/young driver fees

Sorting by lowest price is tempting — but check the extra driver and young driver fees if they apply to you.

Many companies charge €5–€15/day for drivers under 25 or for adding another driver. Some include it for free — so compare.

Big names like Hertz and Europcar let you filter for these extras easily.

Bonus Tip #5: Inform yourself about the toll highway system

Some rental desks will try to upsell a toll device. In Portugal, I paid €18 — and barely used it.

Most motorways accept cash or card. In the Algarve, a few are device-only — so check your route in advance.

Learn how tolls work before your trip. If you’re only using a toll road or two, skip the device and pocket the fee. This toll map for Portugal helps — and you can find similar ones for other countries.

Bonus Tip #6: Airport pick-up often results in extra charges

On-airport pickup is quick and easy. Off-airport usually means a shuttle, longer queues, and a slower handover.

On-airport takes about 30 minutes. Off-airport can stretch to 60–120 minutes during busy times.

Be aware of the airport tax

The catch with on-airport? The “premium pick-up” fee.

Most companies add around 12% to your total rental price, including any extras you buy at the desk. That can be up to €40 in peak season.

To check if it applies, look for terms like “premium pick-up fee” or “airport tax” in the booking policy.

Bonus Tip #7: Return the car on time

Always leave time for traffic, refuelling and the final inspection. Even being 60 minutes late can cost you a full extra day.

Need fuel? Or is the car dusty after a dirt road? That buffer time lets you sort it out and avoid a surprise fee.

Clean your car

Yes, they’ll clean the car anyway — but if it’s filthy, they might charge you. If you can write your name in the dust, it’s time for a rinse.

A €2 wash at a petrol station is usually enough. And if you’ve got time, refuel again — it’s cheaper than the fee for returning it dirty or low on fuel.

Summing it up

Cheap car rentals in Europe really do exist. I’ve paid under €5 a day — and during the pandemic, even less than €2. That was rare, but in low season, the right deals still show up.

Remember the big three: go for a full-to-full fuel policy, sort out your car hire insurance before the trip, and bring your own navigation setup.

Heading to Portugal or anywhere in Europe soon? Save this guide — and send it to a mate who’s booking too.

Safe travels!