Renting a Car for the First Time

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Renting a Car for the First Time

Everything You Need to Know Before You Book

Renting a car for the first time can feel confusing. Insurance options, age limits, security deposits, and rental rules are not always easy to understand without previous experience.

With rental rates dropping significantly over the last few years in many tourist destinations, more travellers now book a rental car along with their flights and accommodation.

However, first-time renters often make small mistakes that can lead to extra charges, rental cancellations or refusals, and stressful situations when it's time to pick up the car

This step-by-step guide explains everything you need to know before renting a car for the first time, helping you enjoy a smooth and worry-free experience. We also explain the meaning of the most common options you may encounter when completing a car rental reservation.

Renting a Car for the First Time in santorini

Common Mistakes Made by First-Time Renters

Mistake #1: Not Reading the Car Rental Terms and Conditions

Why it happens:
Most people want to complete their booking quickly. At the same time, car hire companies make it very easy to finish a reservation without checking important details.

Whether you book with a large international company or a small local one, every car rental company has specific terms and conditions that must be met before the car is released and delivered to the driver.

How to avoid it:
Always read the terms and conditions carefully before clicking “I agree.” This helps you avoid last-minute unpleasant surprises such as cancellations, extra charges, or rental refusals.

Important things to check:

  • Driver’s age:
    Most companies accept drivers between 21 and 75 years old. Drivers under 21 are usually not allowed, even with prepaid reservations.
  • Driver’s license:
    Make sure your license is accepted. Travelers from outside the EU renting in Europe may need an International Driving Permit, which is valid only together with the original license. In most cases, the driver’s license must be valid for at least 12 months.
  • Credit card requirement:
    Most rental companies require a credit card in the driver’s name.
  • Security deposit:
    Check how much the security deposit is and how it is paid.
  • Fuel policy and mileage:
    Some rentals include unlimited mileage, while others have daily limits. Fuel policies also vary and should be checked in advance.

Mistake #2: Buying Insurance from External Providers Instead of the Rental Company

Why it happens:
Buying extra insurance from external online providers is heavily promoted by major international car rental portals, while important conditions are not always easy to see.

This insurance is offered by a third-party provider, not by the car rental company itself. If something goes wrong, the external insurance usually does not cover the damage directly. The client must first pay the rental company and then file a claim for reimbursement.

Many travellers report long paperwork processes and rejected claims in these cases.

How to avoid it:
For first-time renters, it is usually safer to buy insurance directly from the car rental company. This avoids payment disputes and simplifies the process if something goes wrong.

Mistake #3: Not Taking Photos of the Rental Car at Pickup

Why it happens:
The car may look fine at first glance, or travelers may be in a hurry to start their trip. Some renters simply do not realize how important photos are.

Taking photos of all sides of the car before driving away is essential. It is the only way to clearly document the vehicle’s condition at pickup.

How to avoid it:
Before leaving the rental location, take clear photos or a short video of the car, including wheels and any existing scratches. Keep these files for at least 48 hours after drop-off.

Mistake #4: Not Getting Extra Insurance for the Rental

Why it happens:
Some renters want to keep costs as low as possible or believe that nothing will happen during the rental.

If you do not have travel insurance or credit card insurance that covers rental cars, additional insurance from the rental company can significantly reduce your financial responsibility in case of damage.

How to avoid it:
Choose the best insurance option you can afford. A small extra cost can prevent large unexpected expenses later.

Mistake #5: Not Having a Phone That Works in case of Emergency

Why it happens:
Travelers may not check whether their phone works abroad or may want to avoid high international calling costs

In case of an accident, breakdown, or emergency, you may need to contact the rental company or local authorities, sometimes late at night or in remote areas.

It is very important to have the rental company’s 24/7 emergency phone number and the ability to make calls

How to avoid it:
Before renting a car, make sure your phone can make calls at your destination. A local SIM card or international plan can be very helpful. Also, make sure you have saved the company’s 24/7 emergency helpline number.

Frequently Asked Questions About Renting a Car for the First Time

Should I choose a big international company or a local one?

  • Large companies offer brand familiarity and similar procedures worldwide. However, they often have strict policies, require credit cards, block security deposits, and may cancel reservations for small issues such as name mismatches or flight delays. Local companies often provide more flexibility, easier communication, and faster assistance when unexpected situations occur. Many first-time renters find this approach more comfortable.

Should I rent a car if I am under 21?

  • In most cases, no. Insurance regulations usually do not cover drivers under 21. Renting a car under these conditions can expose the driver to serious financial and legal risk.

What is CDW insurance?

  • Collision Damage Waiver (CDW) insurance limits how much you pay if the rental car is damaged. The insurance covers the damage cost, no matter how high, and you are responsible only for the excess (deductible).

What is SCDW insurance?

  • Super Collision Damage Waiver (SCDW) insurance works like CDW but reduces the excess even further.

What Is the Excess or Deductible?

  • The excess (also called deductible) is the maximum amount of money the driver has to pay in case the rental car is damaged or stolen.

    For example, if the excess is €200 and the repair cost is €2,000, the insurance will cover the damage, but the driver will pay up to €200. The amount of the excess depends on the type of insurance selected and the type of the vehicle

    Choosing additional insurance (such SCDW) reduces the excess or makes it 0

    Understanding the excess is important, as this way you know how much you may need to pay if something goes wrong.

What is TPL insurance?

  • Third Party Liability (TPL) insurance covers damage caused to other people or property. It is usually included in the rental price.

What is TP insurance?

  • Theft Protection (TP) covers the rental car if it is stolen. It does not cover personal items or valuables stolen from the vehicle.

What is PAI insurance?

  • Personal Accident Insurance (PAI) covers passengers in case of an accident. The driver is usually covered up to a fixed amount.

What Is a Security Deposit When Renting a Car?

  • A security deposit is an amount temporarily blocked on the driver’s card to cover possible damage or missing fuel. The amount depends on the rental company and the insurance selected. The deposit is blocked at pickup and released after the car is returned in the same condition. Banks may take several days to make the funds available again.

What Is a Down Payment?

  • A down payment is an advance payment used to confirm a reservation. It is part of the total rental cost, not an extra fee. For example, if the rental total is €90 and a down payment of €20 is paid in advance, the client will pay only €70 at pickup.

How Are Rental Days Calculated?

  • Rental days are usually calculated in 24-hour periods. If the drop-off time is later than the pickup time, even by a few hours, an extra day may be charged.

Conclusion: Rent a Car with Confidence

When renting a car for the first time, don’t focus only on price. Check the rental terms, understand the insurance options, and always document the car’s condition at pickup.

With the right preparation, renting a car can be simple, safe, and stress-free — even on your first trip.

At Santorini-rent-a-car.com, you can rent a car in Santorini without a credit card and without a security deposit for most of our vehicles.