Marbesol World Car Rental Guide 2018

Car rental is one of the fastest growing markets in the travel sector globally. By 2022, the number of users is expected to reach 97.2 million, according to Statista. This trend is allowing tourists of all nationalities and genders to drive a rental car in almost all parts of the world, from Asia to America, Europe, Russia, Africa and Australia.

Travelling the world means discovering new cultures and opening our minds to different rules. In some cases, breaking our expectations can provide pleasant surprises. But as a tourist, one may also feel upset if those expectations aren’t met.

The different laws that apply in each country are the ones that establish the compulsory insurance, pricing, driving licence and age requirements. As an international car rental company based at an airport, Marbesol gets visitors from all over the world. This has encouraged our editorial team to research the differences in car rental between different countries.

How insurance influences car rental prices

Understanding what coverage is needed in each country isn’t always obvious when booking a car online. Car rental companies will include or exclude certain types of insurance depending on their national or state laws. In practice, this doesn’t mean you won’t need them to guarantee a safe trip.

Despite the variety of terms used to describe rental car insurance, there are certain types that apply worldwide. The main types of insurance are:

• Collision Damage Waiver (CDW), also known as Loss Damage Waiver. This protection isn’t real insurance, but a waiver that limits the amount that can be charged for repairs. Before finishing your booking, remember to check which parts of the car are included in this waiver. Surprisingly, CDW isn’t obligatory in every country, which means you may have to buy it separately.
• Third Party Insurance (TPI), also known as Liability Insurance. Third party insurance covers any damage caused by the driver to third parties during the rental period. However, it does not cover damage to the rental car itself. Although it is generally compulsory, and therefore included in the price, in countries like Brazil and Chile it is not required. It is worth pointing out that some car rental companies offer so-called ‘international third party insurance’, which covers the driver all over the world.
• Theft Insurance (TI). It waives your liability if the car is stolen or if there is an attempt to steal it. Personal belongings aren’t covered by it.
• Glass and Windscreen Coverage. Certain companies offer to cover the glass and windscreen in case they crack.

In any event, be aware that these types of insurance only apply when the car has been treated properly.

Do credit cards offer sufficient coverage?

Some tourists are advised not to buy additional coverage, based on the belief that their credit card insurance will be enough and that otherwise they would be paying twice for the same service.

Generally speaking, credit cards offer a basic collision damage waiver. In countries like the US, CDW isn’t compulsory. For this reason, it is not included in the price. This is a case where credit card insurance would be useful.

However, if CDW is obligatory in the country you are visiting, it is likely to be already included in the rental price. Collision damage cover should not be confused with a full insurance package, which covers the driver in all other cases. Moreover, full insurance packages usually include other important services, such as roadside assistance, GPS and a free additional driver. In contrast, third party insurance isn’t included in most credit cards.

How old do you need to be to rent a car?

The minimum driving age also changes from one country to another. In France the minimum age is 15 if the person drives under supervision. That being said, international car rental companies don’t usually accept drivers under 21. In Germany and South Africa, some companies accept customers over 18. In most cases, drivers younger than 25 are required to pay an additional daily fee. Similar conditions apply to customers over 70. Most countries limit the driving age to 75, although it is normally possible to come to an agreement if it’s an experienced driver in good health.

The International Driving Permit

If our driving licence isn’t valid in the destination country, we will need to apply for an International Driving Permit (IDP) at our national traffic authority. For example, European citizens don’t need an IDP to move around the EU, but they do when visiting the US. To be valid, the IDP needs to be accompanied by your national driving licence.

Special requirements for renting cars worldwide

Asia

In Central Asia, all car rental companies offer a chauffeur service as well as self-drive. There are many reasons for this. First of all, the International Driving Permit isn’t valid in China, as the country never signed the convention that created it. Therefore, driving in China is only possible with a Chinese licence. In other countries, like India and Pakistan, a driver should have some experience on the roads to avoid accidents. Whereas in China traffic runs on the right side of the road, in Hong Kong, Japan, India and Pakistan you drive on the left. In contrast, Korea and South Asia follow international standards. In any of these cases, it is important to book full insurance, including third party liability.

United States

Car rental prices in the United States include a number of fees which aren’t usually charged to the customer elsewhere. Some examples which can be found at most rental companies are:

• Concession recovery fee: the fee the car rental company is charged to have an office at the airport.
• Vehicle license recovery fee: companies also charge you for licensing their vehicles.

Remember that CDW isn’t obligatory for rental (but advisable) and that third party insurance isn’t required in all states.

Latin America

Since in some Latin American countries third party insurance isn’t obligatory, it is recommended to enquire about it before booking.

Australia

Australia is known for its long distances and toll roads, although not all of them accept cash. To make things easier for tourists, the Australian government created the eMU Pass. The eMU Pass is linked to your number plate, so that your credit card is charged each time you go through a toll. The eMU Pass is valid for 30 days and can be bought online.

Africa

Although the situation varies depending on the region, the best way to avoid incidents is to respect the speed limits. In certain areas, the police can be very strict with tourists. In any case, remember to buy roadside assistance for longer trips.

Europe

Although the EU is considered a single region, car rental companies don’t usually cover drivers for visiting other countries within the European Union. Moreover, EU cars cannot be driven outside its borders.

Russia

As a major oil producer, Russia offers low fuel prices. The downside is that traffic jams are quite common and so are road accidents. As a result, many companies offer a chauffeur service. If you do decide to rent a car, you will be charged a ‘winterisation fee’, which is legally required. This fee pays for the winter equipment of the car, including winter tyres and snow chains. In fact, the winterisation fee is often obligatory in ski resorts and colder countries across Europe (Austria, Finland, Denmark, Iceland and Sweden).

Iceland

Iceland is the only country in the world to offer so-called ‘Sand and Ash Protection’ (SAAP), as well as ‘Gravel Protection’ (GP). Sand and Ash Protection covers a car in case it is damaged by volcanic ash or sand. Although most of the time it only affects people who drive into a sandstorm, it is important to know that the sand and ash period runs from February to April.

About Marbesol

Marbesol is a car rental company based at Malaga Airport (AGP) and in Marbella, allowing you to rent a car throughout the Costa del Sol in the south of Spain, whether you live in Andalusia, are spending your long-awaited holidays here or simply need a vehicle for a quick trip.

This article contains the full report published in 2018. You can download it as a PDF: Marbesol World Car Rental Guide 2018 [PDF].

All images are free-licensed pictures from Pixabay and Unsplash.