Everything you need to know to rent a car safely and affordably: licenses, insurance, and common pitfalls.

Renting a car abroad gives you complete freedom of movement, flexibility in planning your trip, and access to places unreachable by public transport. In this guide, we've compiled everything you need to know — from insurance to driving in Italy — so you won't have any surprises.

International Driving Permit (IDP)

By law, every Israeli driver must have an International Driving Permit to drive abroad. Hundreds of Israelis get stuck at the rental counter and are refused service because they lack an international permit.

Essential info: cost is only about 11 ILS, available at dozens of authorized optics stores nationwide, usually valid for 3 years — and you must carry both your Israeli and international licenses.

Problematic countries: Japan requires a special license based on the 1949 Geneva Convention — the regular IDP is not valid there. In Europe, Israelis have previously been fined for driving without an IDP in France, Austria, and Cyprus.

Insurance — The Most Important Topic

Insurance is often the most expensive component of the rental. Here are the main types you must know:

CDW (Collision Damage Waiver) — covers damage to the rental car (excluding windows, tires, and undercarriage). Usually includes a deductible that can reach hundreds of dollars.

TP (Theft Protection) — insurance against vehicle theft. Here too, there is usually a high deductible in case of theft.

3PLC / TPL (Third Party Liability) — mandatory everywhere. Covers damage you might cause to someone else's vehicle or property.

Excess/deductible refund insurance — to waive the deductible, rental companies offer extended insurance (SCDW) for $15–$30 per day. You can significantly reduce this cost by purchasing 'deductible refund' insurance in advance from a third-party agency, which costs only $5–$10 per day. In case of damage, you pay the rental company, and the external insurance refunds you.

Hidden Fees & Pitfalls

Refueling penalty — returning a car without a full tank (if you chose the full-to-full policy) will result in a double or triple charge for fuel plus a service fee.

Young driver — drivers under 25 usually pay an additional $10–$65 per day. Mandatory to check in advance.

Crossing borders — entering another country requires approval from the rental company and usually involves an extra charge for cross-border insurance.

Airport pickup fee — picking up a car directly from an airport terminal is sometimes 20–30% more expensive than picking it up from a branch in the nearby city.

Driving in Europe: Must-Know Facts

ZTL zones in Italy (Zona a Traffico Limitato) — a restricted traffic area in city centers with automatic cameras on every corner. Fines can reach €300 and may arrive by mail months after the trip. Park outside the old city (Rome, Florence, Milan) and commute; Waze alerts you about ZTL zones.

Toll stickers (Vignette) — in countries like Austria and Switzerland, you must purchase a toll sticker (or digital version) before entering highways. Fines for not having one can reach hundreds of euros. If you rented a car in Germany and drive to Austria, it is your responsibility to buy the sticker at a gas station before the border.

Winter equipment — between November and April, many countries legally require winter tires (e.g. Austria and Germany). In some companies, especially in Germany, cars are automatically equipped with winter tires, but in Italy or France you'll have to request them specifically and pay extra.

UK & Ireland — left-side driving. Traffic flows on the left, roundabouts run clockwise, and priority is given to traffic coming from the right. Standard manual rental cars will have the gear shift on your left side.

Cyprus — left-side driving, red plates & the northern border. Rental cars have prominent red license plates to warn locals you are a tourist, but this also attracts thieves — do not leave valuables in the car. It is strictly forbidden to cross into Northern Cyprus (the Turkish-controlled side); all insurance is completely voided at the border.

Germany & France — low-emission zone badges. Germany (Umweltplakette) and France (Crit'Air) require special windscreen stickers to enter low-emission zones in major cities (Berlin, Munich, Paris, Lyon). Rental cars registered in other countries don't come with these automatically; fines can be up to €135.

Germany — Autobahn driving rules. Around 30% of the highway network has permanent or dynamic speed limits, strictly enforced by speed cameras. In unrestricted zones there is a 'recommended' speed of 130 km/h (Richtgeschwindigkeit) — exceeding it isn't illegal, but you can be held partially liable in an accident. Overtaking on the right is strictly illegal, and during traffic jams you are legally required to form an emergency corridor (Rettungsgasse).

Greece — roundabout priority & island driving. Unless marked otherwise, traffic entering a roundabout has priority over vehicles already inside. On the Greek islands, roads are extremely narrow, steep, and winding — an automatic car is highly recommended.

France, Spain & Portugal — electronic tolls (free-flow & Via Verde). Many highways use electronic tolling with no physical booths. You must pay online within 72 hours to avoid heavy fines. On some Portuguese toll roads you must rent a Via Verde transponder from your agency.

Netherlands & Denmark — absolute bicycle priority. Cyclists have absolute right of way. When turning right at intersections, check your mirror and blind spot — cyclists in dedicated lanes will not stop for you.

Georgia — wild driving, animals on the road & off-road bans. You'll frequently encounter livestock in the middle of roads, especially in mountain areas. Most agencies strictly prohibit driving on dangerous unpaved mountain passes without a tough 4x4 and explicit prior authorization.

Iceland — highland F-roads, river crossings & wind damage. Standard 2WD cars are strictly prohibited on interior highland F-roads, and no insurance policy covers damage from crossing rivers. Iceland's winds are intense enough to bend or rip car doors off their hinges — always hold the door firmly with both hands.

Switzerland & the Alps — 24/7 headlights & alpine right-of-way. In many European countries you are legally required to drive with headlights on at all times. On narrow Alpine passes, vehicles driving uphill always have the right-of-way.

Norway — AutoPASS tolls, integrated ferries & fjord passing bays. Norway's tolls are fully automated; rental cars usually come with an electronic tag, billed via the rental company. On narrow fjord roads, look for passing bays marked with a white 'M' (Møteplass).

USA & Canada — right turn on red & school bus stop laws. In most of the USA and Canada you may turn right on a red light after a complete stop, unless a sign states otherwise. When a school bus stops with flashing red lights, you must stop completely in both directions on undivided highways — overtaking carries severe penalties.

Croatia & the Balkans — mandatory Green Card for border crossings. If driving from Croatia into non-EU neighbors (Montenegro, Bosnia & Herzegovina, Albania, Serbia), you must obtain a physical Green Card from your rental agency, or you'll be turned away uninsured at the border.

Czechia, Slovakia & Hungary — absolute zero tolerance for alcohol. These countries enforce a strict 0.0% blood alcohol limit for driving; even a single drink can result in license suspension or arrest.

Spain, Italy & Greece — blue zone parking & ticket traps. Blue painted lines indicate paid parking zones — buy a ticket from a machine or use an app. White lines usually indicate free parking (though sometimes resident-only in Italy); yellow lines mean parking is strictly prohibited.

FlyTLV's Golden Tips

Document everything — take a video of the car from every angle at pickup (including roof and bottom), and photograph the fuel gauge and mileage at both pickup and return.

Book in advance — rental prices can double during the tourist season (July–August). Booking 3–4 months in advance can save hundreds of dollars.

Offline maps — don't rely on the rental company's built-in GPS ($15/day). Download your area in advance on Google Maps to navigate even without the internet.

Frequently Asked Questions

Is an International Driving Permit mandatory? Yes — according to Israeli law, every Israeli driving abroad must have one, even if the rental company doesn't ask for it, since it can be very problematic in case of an accident or police check.

What is the difference between CDW and LDW? CDW covers collision damage with a deductible. LDW covers both theft and collision damage — essentially combining CDW and TP.

Should I buy insurance from the rental company or a third party? Excess insurance from a third party usually costs $5–10 a day, compared to $15–30 a day from the rental company. It's also worth checking what your credit card covers before buying.

What should I do if I get a ZTL fine after returning from Italy? It's recommended to pay within 5 days for a 30% discount. Ignoring it can lead to higher fines and problems entering Italy in the future.

Can I rent a car in one country and return it in another? Yes — this is called a one-way rental. There is an additional fee (usually $50–$200), and you must coordinate it in advance.