Driving Overseas: The Freedom, the Fun, and the Fine Print

Do you love the open road and the idea of having the freedom to go anywhere at a moment’s notice? Of course you do. I did all my life, up until I moved to Europe.
I drove in all 50 states, across the Canadian provinces, and into Mexico while living in North America, because that sense of freedom is built into the American psyche. I have also driven in many places across Europe over the years, but this is a different animal. Other continents are different too, and so are the rules of the road. That is why I thought international driving, another subject that has come up often with clients, would be worth writing about.
But once you start thinking about driving overseas, the real question becomes: is renting a car abroad actually the best choice for your trip?
I have rented vehicles overseas on many occasions. Now that I live here, I really have not driven at all. In fact, I have not been behind the wheel since 2024, when I last rented a vehicle in Sicily to get around for a few days. Since then, I have relied on other forms of transportation, but there are still many of you who come to Europe and, in some cases, renting a car makes perfect sense.
For example, if you are traveling in parts of Germany that are not well connected by train, a car can be the right choice. But there are other times when it is absolutely not the best option. That is part of what I look at when clients come to me for travel advice and arrangements. I look at the whole picture and decide whether a car rental is the right move or whether it is better to leave the driving to others. Sometimes it is a combination of both. And sometimes what starts as a dream of freedom on the open road turns out to be a much better experience with a driver, a train, or a mix of transportation options.

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I do sometimes miss being able to just get in my vehicle and hit the road. It was easy back in America. You had the car, the road, and the sense that you could go just about anywhere. Things are a little more layered when you are driving overseas.
The costs you do not always think about
When considering whether to rent a car, and I am speaking especially about Europe, which I know well and have driven many times over the years in countries like Italy, France, Germany, Spain, Portugal, Austria, Switzerland, and even little Liechtenstein, there is a lot to think about.
Yes, I have even been pulled over once in Croatia for a bit of speeding many years ago. And after 9/11, I drove for a week in Ireland, so yes, I have driven on the opposite side of the road. Not the wrong side, of course, though some would argue otherwise.
And I cannot forget Iceland, Canada, and Mexico.
This blog post brings back memories of so many drives across America and throughout Europe. I may well get behind the wheel again someday, but having a driver take me from place to place, especially most recently in Iceland, has made me miss the open road less and less. Maybe that is age. Maybe it is simply not needing to have a car when there are so many other ways to get around. But from a business perspective, there are a lot of factors involved in driving internationally, not least of which are the costs.
​Yes, you may have the freedom of the road, but there are challenges too.

How much does it really cost to drive overseas? More than many people expect.
The first is cost. And I do not just mean the rental itself. There are also insurance costs, parking, tolls, taxes, road fees, traffic, and road conditions, all of which vary by destination. The base cost of the rental does not include all of the taxes, and it does not include insurance. And no, your own car insurance does not cover you in any country in Europe.
One thing many travelers forget to consider is the transmission. In many countries, especially in Europe, manual cars are far more common than automatics. For some travelers, that is not even a choice because they simply do not drive a manual, so the rental has to be automatic. But if you do know how to drive one, you may find that manual cars are easier to get and often less expensive, while automatics can cost more and may be harder to find. And then there is the size of the vehicle, which can also make a difference in price, because the larger the car, the more the cost tends to go up.
Now, getting back to the insurance piece for a second, you may say your American Express, Visa, or Mastercard covers you. Technically, yes, if it is spelled out in the card’s contract. But if you are in an accident and suddenly need to file a claim, I would much rather be sitting there knowing the rental is fully covered than trying to sort out the legalities of a foreign country through a credit card company.
That is why, whenever I book car rentals for clients, I include the insurance. Yes, it may be as costly as the base rental itself, but when trouble comes, it is a lot easier to walk away knowing you are covered. I have had clients damage very expensive cars and simply walk away and get a replacement, with no additional cost, because they had the correct coverage. Others, despite my strongest advice, chose differently.
​And in a country like Italy, you have no choice about certain protections because the government mandates insurance on the vehicle, so your rental cost includes it. Other countries do this too, and the number is growing.

Then there are the other out-of-pocket costs, like parking, tolls, taxes, and road fees. This matters, because many countries require the correct road stickers or vignettes, and if you do not have them, you can be pulled over and fined. And that fine can be much higher than the sticker itself. This happens in places like Austria, and they are watching for it. 
Toll roads are often electronic now, and they are watching for other things too, including speeding, parking violations, and whether you are following the rules. Sometimes many months after your rental, you get a lovely little surprise in the mail from the government for an infraction you did not think much about at the time. And those fines must be paid, or you may find yourself refused another rental later on, which is essentially a kind of blacklisting.
Then there is fuel. The biggest cost of all is often the gas, which is likely to be far more expensive than in the United States, sometimes by a lot. I do not know what the current geopolitical environment means for prices everywhere, but I do know that fuel varies from state to state in America, and you will absolutely get sticker shock in many places abroad, whether you are filling up with petrol or diesel.
And of course there are electric vehicles, hybrids, and charging stations to think about too. Some countries are far ahead in that regard, and others are not. Fueling logistics can also vary depending on operating hours and availability, so there is plenty to keep in mind before you get behind the wheel.
The International Driving Permit

So, what exactly is an International Driving Permit, and do you actually need one?
And while all of the above concerns and considerations are extremely important, and the rules of the road are for the most part similar to back in the States, every country has its own rules, and they must be followed. Otherwise, the consequences can be severe, or at the very least, extremely annoying.
Which brings me to the International Driving Permit, or IDP.
The IDP is not an international driver’s license, because there is no such thing. It is a translation of your own state driver’s license and the information on it, and it does not replace your actual license. You must carry both. In the United States, it is easy to get if you have a AAA office nearby, and with passport photos and the IDP itself, it is very reasonable at around $25.
The IDP translates your information into many different languages, and many countries around the world require it. Italy is one example, and if you do not present your actual driver’s license, your IDP, and a major credit card, you may be refused your rental. Debit cards are generally not accepted.
If you leave the country and realize you forgot to get the IDP, and you are in a panic, there is an online company that can provide an electronic version of the IDP. I found myself in that exact situation some years ago when I decided last minute to rent a vehicle here in Italy and realized I did not have the mandatory IDP. That is when I was introduced to International Drivers Association, which was able to get me the IDP I needed online in short order.

That said, this is really a backup for last-minute situations or emergencies, not the first place you should go. In fact, they will tell you that you should go through the normal channels, such as your local AAA office, to get your IDP. But if you do find yourself in a similar situation, it absolutely came in handy for me, so I am sharing the link here for anyone who may need it:

International Drivers Association

Quick guide to driving overseas
Which countries require an IDP, which simply recommend one, and where might your U.S. driver’s license be enough on its own?
To make this a little easier, here is a quick guide to help you understand where an IDP is commonly required, where it is often recommended, and where a valid U.S. driver’s license may be usually sufficient for short-term visitors.
Which countries require an IDP, which simply recommend one, and where might your U.S. driver’s license be enough on its own?
To make this a little easier, here is a quick guide to help you understand where an IDP is commonly required, where it is often recommended, and where a valid U.S. driver’s license may be usually sufficient for short-term visitors.
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Commonly required
Italy
Japan
South Korea
Thailand
Spain in many cases
Austria for driving or rentals

Often recommended
France
Germany
Switzerland
Ireland
Portugal
Australia
New Zealand
Brazil
Argentina
Chile
Peru
India
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​Usually sufficient for short-term visitors
Mexico
Canada
Iceland
United Kingdom

Rules can change at any time, and rental companies may be stricter than the country itself. Always confirm the requirements for your exact destination before you travel, and if there is any doubt, get the IDP before you leave.
Final thoughts
Driving overseas can be a wonderful part of a trip. It can also be expensive, complicated, and occasionally frustrating if you are not prepared. That does not mean you should avoid it altogether. It simply means you should go into it with your eyes open.
Sometimes the open road is exactly the right choice. Sometimes it is not. And sometimes the smartest move is to let someone else do the driving while you sit back and enjoy the journey.
If you would like help planning your trip, including whether driving overseas is the right move, I would be happy to help you put the pieces together.