For Indians travelling abroad, renting a car during foreign holidays is an option often exercised. But the experience of driving in certain countries is a lot different from that in India. It may be fun driving on good roads but the additional risks can end up making a deep hole in your pocket. We may not read the fine print in India and not bother about latent risks but abroad, you need to clearly understand what you are signing up for.
Indian Licence is accepted in few key countries for limited duration
Some of the popular international destinations that allow car rental on Indian driving licence include USA(check for specific States), UK, Norway, Germany, Switzerland, South Africa, Australia and New Zealand. Some of these countries drive on the left-UK, South Africa, Australia and New Zealand.
With an International Driving Licence, most countries in the world open up. It is a fairly simple process to apply and get an International Driving Licence in India.
Confirm licence requirements before booking
Once you have decided on renting a car, make sure the weather forecast is good for driving. During heavy snowfall or heavy rains, it may be better not to rent a car but rely on available public transport. Thereafter, satisfy yourself on the destination’s driving licence requirements. This is your responsibility, not that of the car rental company. They will accept a licence if it is in English and valid.
Key considerations for renting a car
Renting a car is a very simple process and very quick but there is fair bit of home work required.
Choice of car
Choose a car of size that you normally drive in India as you will have maximum familiarity with similar sized cars. If you drive a Honda city, look at equivalent options and avoid the temptation to rent a Toyota Highlander SUV. Don’t choose a bigger and a different car only because the stated rent differential is small. Consequential losses, should anything go wrong and in the absence of comprehensive insurance, is directly proportional to the value of the rented vehicle.
Choose a reputed rental company
Choose a reputed car rental company. If you are not sure, stick to well known international names such as Europcar, Avis, Hertz etc. Read the terms and conditions carefully, the related FAQs and country specific information on the website.
Identify pick-up and drop-off points
Based on the tentative itinerary, identify the pick-up and drop-off points and the estimated time of pick-up and drop. Closer these are to your hotels or points of departure(airport, railway station), the better it is. It is quite possible costs may be slightly higher at select pick-up points such as airport and when the drop-off point is different from pick-up point. You can try different options but choose what is most convenient.
Book online before arrival
Book the car online before arrival. Choose all relevant add-ons. The collection counter is not the place to debate on add-ons. Booking can normally be cancelled or modified before arrival. International car rental companies typically allow online ‘check-in’. You can upload scanned copy of driving licence and complete other formalities. This will significantly reduce the time you spend at the collection counter.
Familiarise with traffic regulations
Get familiar with local traffic regulations, including traffic signs. Unlike India, violations of signs painted on the road – for e.g. bus only, no parking, no stopping(there may not be a display board like in India) – will invite fines. Seat belts for all passengers and child seats may be mandatory. Understand fines and penalties levied for traffic offenses.
What are the components of car rental cost?
Normally, the initial car rental will have three components:
- a basic rental per day, that will include standard insurance.
- Add-ons that are priced individually. Could be comprehensive insurance, insurance for non-accidental damages, GPS rental, additional driver, younger driver surcharge(levied in some countries if the driver is less than 26 years of age), prepaid fuel, road side assistance, child safety seat, etc.
- Local taxes, VAT
Three items requiring focus
There are three aspects that I pay close attention to. First is the car insurance, the second is additional driver fee and the third is fuel.
A) Car insurance
Rental companies typically provide only standard insurance that covers fully the liability to third parties but provides partial coverage against damage and theft.
Liability to a Third party – in the form of medical expenses, death or damage to property or business interruption- is fully covered as per local legal requirements and you will not normally need any additional insurance. But do confirm if there are any exclusions or limits.
Vehicle Damage and theft – The insurance kicks in only after the ‘excess amount’ which is defined. Until this limit is reached, the hirer/driver has to meet the costs. Lower the excess amount, higher is the premium. Conversely, higher the excess amount, lower is the premium.
To keep the rental low, the excess amount beyond which insurance kicks in may be kept high under the standard cover offered by the rental company. If you want the excess to be brought down, additional premium as an add-on will have to be paid. It is a trade off. I normally keep the excess amount at INR 50k or 100k depending on the incremental premium but this an individual choice.
For non – accident related damages to windshield, tyres etc., it may be advisable to opt for add-on insurance. If roadside assistance is taken, it may cover only the labour costs and towing charges but not cost of parts replaced.
If the vehicle is damaged or stolen
The key point to note is that if the driver breaches any local laws while driving, or is negligent resulting in theft or damage, the insurance company may reserve the right to recover all or part of the costs from the driver.
Otherwise, the maximum cost to the driver should normally not exceed the ‘excess amount’.
Medical expenses for occupants of rental car
These are not covered under the standard insurance provided but sometimes, the definition of third party includes occupants of car other than the driver/registered co-driver(s). You may wish to clarify though this though it will not be very important if you have anyway taken travel insurance from India. Given that the differential premium in India between a cover for USD 50k and USD100k is quite small, I always prefer a USD100k coverage at the minimum.
Car rental companies offer additional personal accident insurance with medical cover for the driver and occupants. Since travel insurance would cover these costs, I do not buy additional insurance.
B) Additional driver
It is important to understand the concept of additional driver. The main driver is the person who signs the contract and is expected to drive the car. No one else is allowed to drive the rental car even if in possession of valid driving licence. However, car rental companies allow additional drivers to be registered at a cost, that varies from country to country(for example, it could be USD 10 per day per each driver). Some rental companies allow spouse to be added free of cost. Original driving licence is required for registration and a form needs to be signed.
It is normally a good practice to add your spouse(if free) or any other co-traveller over 25 years of age as additional driver, unless the car rental is for a day or two only. But what is the risk if this is not done? For any reason, if the car is involved in an accident when a non –registered person was driving, the entire insurance can be repudiated, leaving the main driver with hefty claims. Don’t assume that mere possession of a valid driving licence is sufficient.
The fee needs to paid per day irrespective of whether the additional driver drives or not.
C) Fuel
The car normally needs to be returned full tank, often called full to full. If you don’t, the charges will set you back by a lot more than the cost of missing fuel, as refuelling charges are also levied. Best to ensure the tank is topped up before the drop-off point. I normally prefer this option though I once ended up paying over 2 times the fuel cost for not topping up.
Another option the rental companies offer is the full tank option. You pay for the full tank at the inception, and you can return the car with whatever fuel is left. You will not get any credit for fuel left in the tank. I have not tried this but theoretically, it should cost you more, unless the fuel tank is near empty when you return. Also important is the rate that the rental company charges for the fuel, and how different it is from the rates at fuel stations.
Check on correct fuel type
When taking delivery of the car, check on the correct fuel type for the car. Don’t use a lower grade than that prescribed. For example, don’t use Octane 91 if Octane 95 is recommended. Use of incorrect fuel may damage the engine and the insurance will not come to your rescue.
Few other matters to note
In most countries, traffic police will not be visible. But cameras are widely used. Unlike driving in India, don’t assume that no traffic police means no one is watching!
Right hand drive – In countries with right side driving, drive a bit slower than usual in the initial hours until you get comfortable. Prefer automatic cars.
GPS is very useful if you wish to drive off main roads. But if you intend to stick to main roads where directions are clearly indicated, a GPS may not be that useful. And if you have a local SIM with data connection, GPS is unnecessary. Some cars may actually come fitted with GPS and there is no extra charge.
While driving, if you notice anything that is not working, do inform the rental company as soon as possible. Do not wait till the end of the trip .
When dropping off the car outside office hours or at unmanned locations, take few photos of both the exterior and interior from different angles. If on the spot inspection is possible, better to wait for the inspection.
Off roading should be avoided unless specifically allowed. If the vehicle breaks down or gets stuck where you are not supposed to be driving, you may have to foot the costs.
Quick summary of required home work
Before leaving India
- Confirm licence requirements;
- Book online, choose all relevant add-ons. You can also select additional add-ons at collection point, after due enquiry;
- Get familiar with traffic regulations.
At the time of taking delivery of car
- Clarify insurance arrangements, and exclusions, if needed;
- Check on toll payments on the way;
- Type of fuel to be filled;
- Inspect documents kept in car – such as manual, proof of registration, insurance etc.;
- Check for tool kit and spare wheel-may not always be available;
- Inspect price list for damages – including minor scratches;
- Get phone numbers for Break down, thefts and accidents;
- Carry out a close visual inspection of the car – exterior and interior. Take photos if necessary.
Conclusion
Driving overseas has given me a whole lot of new experiences. I have always driven on the slower side, with frequent stops. Honestly, it is only after driving abroad that I have learnt to enjoy the drive also in India. Yes, there is an overhang of high fines but so long as you follow traffic rules, there is little to worry about.