The Budget minded with Germany on their travel menu will find it to be the cheapest country to start and end their extended car driving adventure.  A car rented in an "Italian neighboring country" is generally cheaper than renting one in Italy. Most companies who rent Italy require you buy CDW and theft protection insurance.  Theft  Protection Insurance is optional in most  other countries. You are expected to cover your own CDW through your Credit Card or  purchase it with rental. (Think there is some good safety advice implied in this policy!).  

 Most car rental agencies will allow you to  take your  Western Europe rental into any other country except the Eastern Block. Considering training into these countries and perhaps picking up a few day rental for rural driving if it is on your itinerary.

Additional Expenses  to budget for with car rentals are gas, parking, tolls, insurance, and occasional highway permits. Estimate gas at $6 a gallon or 130 euros per liter. Expect  freeway tolls in France and perhaps Italy; highway stickers for Switzerland (approx. $35) and Austria (approx. $15 ) Cars rented out side Switzerland will be required to pay the permit fee at the  Swissborder.  There is a hefty fine if you are caught driving without it. Most rentals originating in Switzerland have the price of this permit included.  Check with your rental agency.

To really compare car costs with train costs, figure your weekly unlimited mileage rental rate plus:

• Local taxes, which are clear and consistent with each country, generally 18% to 25% (less in Spain, Germany, Ireland, and Luxembourg, and zero in Switzerland — but Swiss rental rates are that much higher)
• CDW insurance supplement ($100 /wk)
• Gas ($200 a week—about 1000 miles @ $6. a gal.  Diesel is much cheaper)
• Tolls for super freeways in France and Italy,
• $35 for the highway decal as you enter Switzerland, and $15 /week for Austria
• Parking ($25 a day, only in big cities)
• Pick  up fees at airports ($35+.)  and at some rail stations ($12) or different country  from pick country drop fee.($100-500)
• Road Tax can range from $2. a day to $14 a week in France & the UK.
• CDW insurance in Italy is required by all car rental agencies.

Collision Damage Waiver insurance, or CDW, entirely covers the car's deductible. At the cost of about $15+ a day, you can walk away scot-free from any accident. CDW is worth the peace of mind and payable at the car rental agency where you pick up the car. Pre-trip alternatives: Some credit cards automatically cover CDW for rental charged on their Credit Card—check with your credit card company before you Rent a car.

City/train drop offs are generally free (check with your rental agency) with the exception of France &  UK which has a 92 pence per day local tax . Air port Drop Off's can run $$35+ extra. Dropping Off in another country can cost  $100 to $500 (latter is between Spain & Portugal)  Italy, Eastern Block countries and Greece require International Drivers License. Most of Western Europe recognizes your US Drivers License.

Rail & Drive Passes
Many countries offer a "Rail & Drive" pass that gives travelers a set number of days of car rental to mix in with a set number of days of train travel (e.g., any 4 rail days and 3 car days within a 2-month period). These passes can be a worthwhile option. Train days are best spent on long hauls and going from big city to big city. Car days are most enjoyable when exploring the countryside. See Rail Drive Passes available in 17 country Eurail versions and 5 country Europass Versions. There are single country rail and drive versions too.  Many clients find the Selectpass Rail & Drive pass an economical way of taking care of Scandinavia & Eastern Europe countries.. The Rail & Drive Pass  for Italy is very popular & includes CDW insurance

Create your own "Rail and Drive" combination using Selectpass Railpass or  Combo 2 country rail passes or Single Country Rail Passes with separate car rental. Should you need 3 or more car days in a row, TERC recommends buying a rail pass and a separate car  rental to save money.   TERC staff will be glad to assist you with these decisions.  808 395-2083.  or e-mail your ca rrental requirements to TERC.  remember manuals are easier to get in Europe compared to automatics and cheaper.

  More Useful  Europe by Car Links

     Route Planner for Drivers  A very useful site for finding driving routes--with maps, mileage, driving time, and directions. Hit Plan Your Journey Link

      Americans Driving in FRANCE   or see Traffic Laws for Driving in France.

     Driving in Germany including the Autobahn + links to Traffic Laws

     Driving in Italy  A MUST READ before going to Italy

     Car Rentals sold by TERC