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European Travel: Train or Car Rental?

Car Rental: Adding up the Costs

By Mark Kahler, About.com

Car rental prices in Europe (and everywhere else) are not always what they appear at first glance.

The add-ons are sometimes amplified in the European market. I found this out when I reserved what I thought was an excellent day rate for a compact car.

The company wrote to confirm by return email and then advised me the drop-off fee in Amsterdam will be 174 EUR ($211 USD at the time).

I thanked the company for its clarity but canceled the reservation. Further shopping revealed that drop-off fees in Europe are expensive, but vary enough to warrant several comparisons.

My rental eventually came with Alamo/National, which charged me a 100 EUR ($121 USD) drop-off fee, more than twice the daily rate for the rental. But the total cost for the rental, taxes and drop-off was 176 EUR ($213 USD), almost precisely what the other company wanted just for the privilege of returning the car to a different location.

This cost is less than half the price of the second-class train fare for four, but we're not done spending just yet.

An $18 USD insurance policy through Orbitz pays out $40,000 in the event the car is totaled. I waived other insurance the company offered in Berlin. It's also worth checking with your credit card company to see if it covers car rentals overseas. Auto insurance policies frequently do not provide such coverage.

Many European countries (including Germany and Holland) require drivers from other countries to have an International Driving Permit (IDP). This is little more than a translation of your home license.

The IDP is available at American Automobile Association (AAA) branches for $21 USD. It can be obtained on the spot or through the mail and is valid for one calendar year. In my experience, no one asked to see it at any point in my trip. But keep in mind that there are places where fines or other problems could arise if you don't have it.

A more certain expense on these trips is high gasoline prices. The compact car I rented got 31 miles/gallon. I consider this good mileage, given much of the trip was on the German Autobahn, where fuel economy isn't exactly a top priority.

The 800 kilometer trip required 58 liters (15.4 gallons) of gasoline, which was purchased in Germany for 1.23 EUR/liter ($5.63 USD/gallon) and in Holland for 1.40 EUR/liter ($6.41/gallon). Total fuel cost was $93.

So the total for rental, license, insurance and gasoline came to $345 USD. It's a fairly hefty pricetag, considering I had the car only for about 24 hours. But I did save $101.50 over the price of four second-class train tickets. This also beats the $366 first-class fare for two adults.

Click "next" to see some other financial considerations for would-be drivers in Europe.

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