The most common mistakes when renting a car abroad – insurance and deposit

Renting a car abroad can make your vacation more comfortable, flexible, and often cheaper than taxis or transfers. At the same time, however, itis one of the most common sources of complaints from European tourists – from unexpected fees and misunderstood insurance to problems with credit card deposits.

In this article, we will explain step by step what mistakes tourists most often make when renting a car abroad, how insurance and deposits work, what the latest European statistics say, and how you can avoid unnecessary costs. We will also add practical examples from Payless Car Rental Slovakia.

Why is renting a car abroad risky for tourists ?

Car rental tempts people to make quick, last-minute online reservations. Tourists often focus primarily on the price and size of the car, but overlook details that determine whether the rental will be carefree or an expensive nightmare.

The most common reasons for problems:

• The terms and conditions are in a foreign language and are often unclear.
• There are differences between what constitutes "full insurance" and "full coverage."
• high deposits blocked on your card,
• strict rules for fuel, mileage, or returning the car outside of opening hours,
• damage to the bodywork, interior, or wheels documented too late.

Studies by European consumer centers show that the most common reasons for complaints in the car rental sector are:

• alleged damage to the vehicle after return,
• additional charges for fuel and additional services,
• unclear insurance and excess.

For the average tourist, this means that if they do not understand the contract and insurance, they may end up paying hundreds of euros extra.

How insurance works when renting a car abroad

Most car rental companies in the EU use a similar insurance structure. The basis is compulsory contractual insurance (PZP / Third Party Liability) and accident insurance with varying levels of co-insurance. Additional packages are offered on top of this.

Basic terms you need to know

• Compulsory contractual insurance (PZP) – covers damage you cause to other road users. It does not cover damage to the rented car.
• Accident insurance (CASCO) – covers damage to the rental car, but usually with an excess. For example, 10-20% of the amount of damage, at least several hundred euros.
• Excess – the amount you pay yourself in the event of damage or theft. The rest is covered by the insurance company or car rental company.
• Insurance to reduce or eliminate the excess (e.g., SCDW, Super Cover, Zero Excess) – supplementary insurance that reduces your financial risk to a very low amount or to €0.
• Insurance for the windshield, tires, chassis, roof – damage that is normally excluded but is covered by an extra package.

With brands such as Payless in Slovakia, basic insurance products are incorporated directly into the rental terms and conditions – the price includes compulsory third-party liability insurance and accident insurance, while additional packages (reduced excess, extended coverage) are optional. However, the same may not apply to cheap foreign rental companies or anonymous "broker" portals.

Most common insurance mistakes

1. Relying on travel insurance or credit card

Many tourists assume that their travel insurance or credit card automatically covers all damage to a rental car. Reality:

• Coverage often applies only to certain types of damage (e.g., theft, co-insurance up to a limit).
• Some cards are only valid for rentals in your home country.
• Luxury categories, vans, or minibuses may be excluded.
• Payment for the rental must be made with this card.

Recommendation: always check what exactly your bank/insurance company covers. If the coverage is limited or unclear, it is safer to pay extra for extended insurance directly at the car rental company or in the form of specialized "car hire excess" insurance.

2. Misunderstanding of deductibles

A typical mistake: clients hear that "insurance is included in the price," but fail to notice that deductibles can be €600, €900, or even €1,500. In the event of a minor accident or careless parking, they then end up paying an unnecessarily high amount.

In Slovakia, the excess for car rentals is often in the hundreds of euros. With some insurance packages, it is possible to reduce or eliminate the excess for a daily surcharge. The same logic applies to foreign destinations, just with different amounts.

Tip for tourists:

• When booking, check the maximum amount you can pay out of pocket.
• Compare the daily price for reducing your deductible vs. the risk of paying the full deductible.
• For more expensive cars (SUVs, premium class), extended insurance is almost always worthwhile.

3. Lack of knowledge about insurance exclusions

Even with good insurance, there are exclusions – situations where the insurance company will not cover the damage and everything remains the responsibility of the client. Most common:

• driving under the influence of alcohol or drugs,
• gross violation of traffic regulations,
• use of the vehicle for motor sports,
• reporting an accident only after returning home, without a police report,
• damage to the interior, storage space, or improper handling of cargo.

4. Underestimating insurance for glass, tires, and chassis

Damage to the windshield, wheels, tires, or chassis is relatively common on vacation—especially when driving on mountain roads, unpaved roads, or parking in narrow streets.

If these parts are not covered by basic insurance, each scratch or defect may be charged as a separate claim. Extended packages that also cover these risks usually cost a few euros a day – compared to the risk of a bill for several hundred euros, this is often a worthwhile "insurance policy for your peace of mind."

Car rental deposit: what it is and why it can be problematic

A deposit is an amount that the car rental company temporarily blocks on your payment card as a security deposit for the vehicle. It serves to cover:

• co-participation in damage or theft,
• unpaid fees (fuel, fines, tolls),
• any minor damage.

For Payless brands in Slovakia, the deposit varies depending on the vehicle category and rental length. As a rule, the following applies:

• higher vehicle class = higher deposit,
• longer rental = possibility of higher deposit,
• the deposit must be blocked on a physical payment card (not via Apple Pay or Google Pay),
• the card must be valid for at least several months after the end of the rental.

Most common deposit errors

1. The customer does not have sufficient funds on their card
   – They reserve a car, but upon pick-up, they find out that the bank has refused to block the funds. Staff are not legally allowed to release the car without a successfully blocked deposit.
2. Using the wrong type of card
   – Some foreign rental companies only accept credit cards, not debit cards. The same may apply to higher-end vehicles. If you only have a debit card, they may not release the car to you.
3. Confusion between deposit and rental price
   – The deposit is not an extra fee, but a blocked advance payment. If no damage has been caused and everything went well, it must be released. However, the release may take several days to weeks, depending on the bank.
4. Forgotten blocked amounts
   – Clients sometimes do not notice that they have several hundred euros blocked in their account from previous rentals, which reduces their available limit during their vacation.

Practical tip: Before departure, check:

• the current available limit on your card,
• any old blocks,
• whether your card meets the requirements of the rental company (credit vs. debit, physical card, validity period).

Hidden fees and unclear contracts

Many conflicts arise not because the car rental company has done something illegal, but because the customer did not read the contract or misunderstood the terms and conditions. The most common areas where tourists get burned:

Fuel policy

• Full-to-full – you pick up the car with a full tank and return it with a full tank. If you return it with less fuel, you will pay for the fuel + a service fee.
• Full-to-empty / pre-paid fuel – you pay for a full tank in advance and can return the car with an empty tank. Convenient, but often more expensive than filling up yourself.

If you don't know the fuel policy, you can easily end up paying tens of euros extra. Check it when you make your reservation and make sure that the fuel level on the report matches reality.

Mileage limits

Not all rentals are "unlimited mileage." Especially with special offers or vans, the limit may be, for example, 300 km/day with a surcharge for each additional kilometer. For longer vacations or road trips across several EU countries, the surcharge for kilometers can become significantly expensive.

Surcharges for returns outside opening hours and other services

• return outside opening hours (e.g., keys to the box),
• second driver,
• child seat,
• GPS or portable Wi-Fi,
• travel to other countries (not automatically permitted everywhere).

Reputable brands (Payless) usually list these fees clearly on their website under "Fees" or "Car Rental Terms and Conditions." However, with anonymous local rental companies or through resellers (broker portals), the terms and conditions may be unclear.

Vehicle condition: handover and acceptance protocol

One of the most costly mistakes is insufficient documentation of the vehicle's condition.

When taking delivery of a car

• Inspect the car thoroughly – check the bodywork, bumpers, windows, wheels, and tires.
• Also check the interior, trunk, and roof (if accessible).
• Have any scratches, dents, or damage recorded in the report and, ideally, take photos of them with your cell phone.
• Check the fuel level and mileage on the odometer vs. in the contract.

When returning the car

• Try to return the vehicle during opening hours so that its condition can be checked in your presence.
• Keep a copy of the handover report.
• If you have to return the car outside opening hours (e.g., early morning departure), take photos of the entire vehicle in the best possible lighting.

In many cases where clients complain about "unjustified" charges for alleged damage, the problem is that they do not have their own evidence. Photographs and a report are your best "shield."

Trends and statistics: what EU data says

Data from European consumer centers and the European Commission show that car rental has long been one of the top areas of complaint in tourism. The most common areas of concern are:

• alleged damage charged after returning the vehicle,
• additional charges for fuel and additional services,
• unclear or aggressive offers of additional insurance,
• lack of clear information before booking.

This gives rise to two trends:

1. Regulators are pushing for greater transparency – major international brands must provide clearer information about the total price, type of insurance, and conditions when booking online.
2. Customers are more informed and risk-sensitive – more and more tourists are comparing insurance policies in advance, reading reviews, and using specialized insurance to reduce their deductibles.

For Payless, this is an opportunity to differentiate itself through a fair approach, transparent conditions, and clear communication about insurance and deposits. For clients, it is a signal to prefer verified brands over unknown "low-cost" offers.

Practical checklist: how to avoid mistakes when renting a car abroad

Before booking

• Compare offers – don't just look at the price, but also at the type of insurance, mileage limits, and deposit amount.
• Check the card terms and conditions – credit vs. debit, minimum validity, sufficient limit.
• Check whether PZP and accident insurance are included in the price – and what the co-payment is.
• Read reviews not only about the rental company, but also about the specific branch (e.g., “Bratislava Airport”).

When picking up the vehicle

• Read the contract and terms and conditions carefully.
• Ask the staff about anything that is unclear (insurance, deposit, fuel).
• Inspect the car and have any damage recorded in the report.
• Take photos or a short video.

During the rental period

• Follow traffic regulations and speed limits.
• Do not park in places where there is a risk of damage (narrow streets, illegal parking).
• In the event of an accident, contact the police and the car rental company immediately.

When returning the vehicle

• Refuel according to the fuel policy.
• Check the interior (to make sure you haven't forgotten anything).
• Insist on inspecting the vehicle in your presence.
• Keep the report and receipts (fuel, tolls, fines).

Investment perspective: car rental vs. other forms of mobility on vacation

Even when renting for tourism, it is good to look at the decision economically:

• Renting a car is worthwhile if you are planning an active vacation with multiple transfers, trips outside the resort, or a family vacation where taxis and transfers would be many times more expensive.
• Alternatives – car sharing, local public transport, or a combination of train + local rental for 1–2 days may be more advantageous for city breaks or stays in one city.

Brands such as Payless offer short-term and medium-term rentals that allow you to optimize costs—for example, renting a car only for part of your vacation (trips around the area) and getting around on foot or by public transport for the rest of your stay.

Frequently asked questions (FAQ)

1. Is it mandatory to have a credit card when renting a car abroad ?

Not everywhere, but in many countries and for higher vehicle categories, yes. A credit card reduces the risk for the rental company and makes it easier to block the deposit. For lower car classes, some rental companies also accept debit cards – always check the terms and conditions in advance.

2. How long does the deposit remain blocked on the card ?

Usually several working days to 2-3 weeks after the end of the rental. It depends on the bank and the type of card. If the deposit was blocked, not deducted, it should be automatically released after confirmation of the end of the rental.

3. Is it worth paying extra for insurance with reduced or zero excess ?

In most cases, yes – especially for more expensive cars, longer rentals, and driving in unfamiliar conditions. Short-term excess insurance can cost you tens of euros, while full excess in the event of damage can be hundreds or even thousands of euros.

4. What if I discover damage after leaving the rental office ?

Take photos and contact the branch immediately – ideally within a few tens of minutes of picking up the car. The longer you wait, the harder it is to prove that the damage was already on the car before you rented it.

5. Do I need an international driver's license ?

Within the EU, a valid driver's license issued in an EU member state is usually sufficient. Outside the EU, an international driver's license may be mandatory. Even if it is not formally required, in some countries it will facilitate communication with the police and insurance companies.

Keywords and entities

Main keywords:

• car rental abroad,
• car rental insurance,
• car rental deposit,
• car rental Bratislava,
• Payless Car Rental,

Related keywords and entities:

• compulsory contractual insurance (PZP),
• accident insurance (CASCO),
• excess,
• excess reduction insurance,
• glass and tire insurance,
• full-to-full fuel policy,
• mileage limits,
• credit card vs. debit card,
• deposit blocking,
• European Consumer Centre,
• tourist car rentals,
• short-term vehicle rentals,
• holiday by car.

TL;DR – short summary

• The biggest problems when renting a car abroad are related to insurance, deposits, and insufficient documentation of the vehicle's condition.
• Insurance "included in the price" almost always means a deductible – check the amount and consider additional insurance.
• The deposit can be hundreds of euros and must be blocked on a physical payment card with a sufficient limit.
• Always read the terms and conditions – especially the fuel policy, mileage limits, and fees for additional services.
• Choose verified brands (e.g., Payless) with transparent terms and conditions over unknown "ultra low-cost" offers.