Costco has earned a loyal following among travelers for its sharply priced rental cars, simple booking process and member perks. For international trips in particular, Costco Travel can be an appealing way to secure a car abroad while keeping costs and surprises in check. At the same time, renting through a warehouse club rather than directly with a rental company adds layers of fine print that you need to understand long before you reach a foreign counter after an overnight flight.
This guide walks through how Costco rental cars work for international use, what benefits actually matter once you leave the United States, and the pitfalls to watch for in Europe, Mexico and beyond. For a broader explanation of how the Costco rental car program works overall, including pricing, eligibility and booking rules, see our Costco Rental Car Program explained guide.
How Costco Travel Rental Cars Work
Costco Travel is a booking platform available to Costco members in the United States and Canada. For standalone car rentals, it partners with major brands rather than operating its own fleet. Current partners are Alamo, Avis, Budget and Enterprise, although availability by country and date can vary. You search for cars on the Costco Travel site, compare rates across these brands, then receive a confirmation that contains both a Costco reference and the underlying rental company’s reservation number.
Behind the scenes, the contract you are entering into is primarily with the rental car company, not with Costco. Costco negotiates specific rate structures, inclusions and perks, but the day to day rules that govern your rental, such as fuel policies, damage assessments and country specific insurance requirements, are driven by Alamo, Avis, Budget or Enterprise. Costco’s own terms emphasize that all car rentals are subject to the rules and regulations of the rental company and that auto insurance is the responsibility of the driver.
For international rentals, the process looks much the same as for a domestic booking. You choose an overseas pickup location, typically an airport in Europe, Latin America or another region where Costco’s partners operate. The main difference comes later, when you arrive at the counter and face a local rental agreement in a foreign country, possibly in another language and almost certainly subject to very different insurance, taxation and liability norms than in the United States.
This is where the Costco brand can be both reassuring and slightly misleading. The Costco name and consistent interface suggest a certain uniformity of experience, but international rentals are still governed by the host country’s legal environment and the rental company’s local franchise practices. It is essential to treat a Costco international rental as a framework for better pricing and some perks rather than as a guarantee that everything will work abroad the way it does at your neighborhood warehouse.
Member Benefits That Matter Abroad
Two of Costco Travel’s best known benefits are its competitive pricing and the inclusion of one additional driver at no extra cost with its car rental partners. For international trips, these perks can dramatically affect the total cost of your journey, especially when you plan to share driving duties or are renting in countries where surcharges add up quickly.
Costco advertises that one additional driver fee is waived for members in specific regions with certain partners. For example, Alamo and Enterprise generally waive the fee in the United States, Canada, the United Kingdom, Puerto Rico, France, Germany, Ireland and Spain, while Avis and Budget typically extend that waiver in the United States and Canada. Because partner policies and participating countries can change, you must verify the current list at the time of booking and not assume that the additional driver will automatically be free everywhere in Europe or Latin America.
Another benefit for U.S. members is the potential to earn a 2 percent reward on rental car spending if you hold an Executive membership. Over the course of a long international road trip, this rebate can be meaningful, particularly when combined with a credit card that earns travel rewards. Remember that this reward is based on the amount you pay through Costco’s booking. Local charges added at the counter, such as roadside assistance packages, traffic violation fees or damage claims, are separate and will not generate Costco rewards.
Perhaps the less obvious but still significant advantage of using Costco for an overseas rental is the ability to comparison shop across several large brands in one place without navigating language barriers or unfamiliar local discounters. Costco’s search tool filters out smaller, less transparent companies that often dominate price comparison sites in Europe or Mexico. That can reduce your exposure to aggressive up-selling or questionable damage practices, although it certainly does not eliminate the need for vigilance.
Where Costco Shines for International Rentals
Travelers planning road trips in Western Europe, the United Kingdom and parts of the Caribbean often find that Costco’s negotiated rates compare well with booking directly. Independent pricing analyses regularly report that Costco’s car prices are at least competitive with the major brands’ pay-now rates and often lower than flexible rates purchased on the rental company’s own site. While pricing fluctuates daily, Costco frequently undercuts the walk up or standard online rates for the same vehicle class in the same city.
Costco also offers substantial flexibility. Many international rentals booked through Costco allow you to reserve now and pay at the counter without a prepayment, making it easier to adjust plans as you finalize flights and hotels. Because there is no separate booking fee from Costco, you can rebook if you see a lower rate emerge closer to departure. This ability to lock in a car without paying upfront can be particularly valuable in high season destinations such as Italy, Spain or Ireland, where vehicle availability can tighten while prices surge.
Another advantage is the way Costco displays options and estimated taxes in U.S. dollars for American members searching overseas locations. While ultimate charges in Europe will be processed in euros or local currency, seeing a clear, apples to apples daily rate in dollars helps with budgeting. Costco’s interface also prominently notes important rental conditions, such as mileage allowances or whether the rental is limited to pick up and drop off within a single country, which is vital information when planning cross border drives in the Schengen Area, the United Kingdom and Ireland, or between the United States and Mexico.
Finally, Costco’s role as a high volume partner means that rental companies have a commercial incentive to resolve major issues that reach Costco’s travel support channels. While day to day disputes about minor charges are still likely to be handled at the local branch level, having Costco as a second point of contact can be a modest safety net if something goes badly wrong and you need another party to escalate your complaint with Avis, Budget, Alamo or Enterprise after returning home.
Insurance, Liability and Country Specific Rules
The biggest area of confusion for Costco rental cars on international trips is insurance. Costco Travel itself does not sell or bundle primary auto coverage into standalone car rentals. Its terms specify that auto insurance is the responsibility of the registered driver. That means you must assemble your own protection using a combination of your personal auto policy, credit card benefits and, when required by law or prudence, insurance sold at the rental counter.
Outside the United States and Canada, countries have different mandatory coverages, often embedded into the legal framework for car rentals. In much of Europe, rental rates commonly include basic third party liability and may include or strongly encourage collision damage waivers with deductibles. In Mexico and some parts of Latin America, liability coverage requirements are stricter and local authorities can insist that liability insurance be issued by a Mexican insurer, which can limit reliance on foreign credit card coverage.
Booking through Costco does not exempt you from these local rules. The rates you see may or may not include certain protections by default. For example, an apparently low daily price in Italy or Ireland might reflect a base rate before collision and theft waivers are added at the counter. Some countries are also notorious for refusing to recognize credit card supplied collision coverage as a valid substitute for buying the rental company’s own protection. In those markets, you should assume you will need to purchase additional waivers even if your card theoretically covers damage.
Before committing to a Costco rental abroad, you should read both the fine print on Costco’s confirmation and the underlying rental company’s country specific terms. Verify exactly which coverages are included and which are optional or mandatory add ons. Cross check this information with the benefits guide for whatever credit card you intend to use, looking closely at excluded countries, excluded vehicle classes and requirements such as declining the rental company’s collision damage waiver. This homework is tedious but essential to avoid an expensive surprise at the counter or, worse, in the aftermath of an accident.
Practical Tips for Using Costco Rentals Overseas
Once you understand the basic structure of Costco’s international rentals and the insurance landscape, a few practical strategies can make your experience smoother. First, always bring a physical Costco membership card and a valid major credit card in the name of the primary driver. Although many travelers report that they are rarely asked to show the Costco card at pickup, the rental company has the right to verify membership, particularly if the booking reflects a negotiated Costco rate or perks such as a free additional driver.
Second, decide well ahead of time who will drive and, if your booking promises one free additional driver, allow sufficient time at the counter to add that person to the contract. The additional driver must usually meet all the same age, license and credit requirements as the primary renter. In Europe and other regions, age restrictions can be tighter than in the United States, with surcharges or outright bans for younger and sometimes older drivers. Relying on an unlisted driver, even for a short leg of your trip, can void coverage and complicate matters if there is a collision.
Third, understand the transmission, fuel and size norms at your destination. In much of Europe, the default rental car is a manual transmission, and automatic vehicles can carry a substantial premium and limited availability. Costco’s search filters allow you to select automatic transmission, but you should book early and confirm that detail in your reservation if you cannot drive a manual. Similarly, be realistic about vehicle size. Narrow streets and parking spaces in historic European towns are not friendly to oversized SUVs, and local fuel prices can make gas guzzling models expensive to operate for long distances.
Finally, take the usual defensive steps at pickup and return, even if you feel reassured by booking through Costco. Inspect the car meticulously, photograph all sides and the interior, and make sure any scrapes, dings or windshield chips are written into the departure report. At return, keep copies of your fuel receipt, your final signed rental agreement and time stamped photos of the odometer and exterior. These habits are important everywhere, but they are especially critical abroad where challenging language dynamics can complicate later disputes.
Limitations and Common Pitfalls for International Trips
Costco’s car rental deals are not a universal solution for every international trip. One obvious limitation is geographic coverage. While its partners have broad global networks, Costco’s negotiated rates are concentrated in popular destinations and airport locations. In some countries or smaller cities, especially outside Western Europe and North America, you may find that the Costco Travel search yields few or no results, forcing you to look at local agencies or other brokers.
Another issue is that certain member perks are heavily U.S. and Canada centric. The widely promoted free additional driver benefit is precisely defined by country and partner, and outside the specified list it may vanish altogether. Loyalty integration can also be less seamless overseas. While Costco allows you to add your Avis, Budget, Alamo or Enterprise loyalty number to collect points or qualify for expedited service, the skip the line or choose your own car privileges that are common in the United States may not be available at all foreign branches.
Looking ahead, Costco’s partner mix can evolve over time as corporate contracts change. In recent years, members have noted shifts in which brands are available on Costco’s platform in future booking windows. That means you should not assume that your preferred brand or deal structure will exist unchanged for every International trip planned far in advance. It also means that advice based on an older experience with, say, National or a certain type of Enterprise benefit may not apply to a booking made today for a trip next year.
A subtler pitfall is overreliance on Costco’s reputation as protection against poor local practices. While partnering with large global brands usually improves standards, airport locations around the world are still run by regional subsidiaries or franchisees with varying cultures. Reports of aggressive damage claims, high pressure insurance sales and disputed fuel charges can and do emerge from branches connected to every large rental group. Booking through Costco does not immunize you from those risks. You still need to comparison shop reviews for the specific branch you plan to use, read your final invoice and challenge improper charges quickly and in writing.
Special Considerations by Region
Conditions for international Costco rentals can feel very different depending on where you are traveling. In Western Europe and the United Kingdom, Costco’s partners are firmly established and operate at most major airports and many city locations. Driving infrastructure is excellent, but you must pay serious attention to toll systems, congestion charges and low emission zones in cities such as London, Paris and Milan. Italian and Irish rentals in particular are known for strict insurance norms, so verify what collision and theft waivers are included in your Costco rate long before departure.
In Mexico, Costa Rica and other popular sun destinations, the main challenge is understanding mandatory insurance and liability rules. In Mexico, local law can obligate drivers involved in an accident to demonstrate proof of certain liability limits issued by an approved Mexican company. Some rental locations will refuse to release a vehicle unless you purchase their liability package, regardless of what your Costco confirmation shows. In such markets, it is vital to treat any low headline rate with caution and build realistic budget room for the legally required coverage sold at the counter.
In Australia and New Zealand, Costco’s partners often provide competitive rates and long distance road tripping is common, but you must remember that traffic flows on the left and that rural driving can involve long stretches without services. Look closely at kilometer allowances and consider upgrading to a plan that includes unlimited kilometers if you are planning multi week drives. In parts of Asia and Africa, road conditions and rental standards vary widely. In some countries, self drive rental cars exist mainly in large cities and many travelers opt for car and driver arrangements instead, which Costco’s current car only platform does not address.
Across all regions, cross border travel deserves special attention. Your Costco confirmation and the rental company’s terms should spell out whether the vehicle may be driven into neighboring countries and what paperwork is needed. In parts of Europe, it is possible to drive through several countries on one rental, but crossing from Western Europe into some Eastern European states, or from South Africa into neighboring countries, may be restricted or trigger additional fees. Never assume that a rental booked in one country is automatically permitted to travel in all nearby nations.
The Takeaway
Costco Travel can be a powerful tool for renting cars on international trips, combining competitive pricing, a streamlined search experience and meaningful perks such as a free additional driver in select countries. For many travelers heading to Europe, the United Kingdom, Mexico or other popular destinations, starting your car rental search at Costco is a smart move that often yields a solid deal with a familiar global brand.
Yet it is crucial to remember what Costco is and what it is not. It is a volume based broker that negotiates favorable terms with Alamo, Avis, Budget and Enterprise, but it is not an insurer, not the ultimate decision maker on local rental policies, and not a shield against the legal and cultural complexities of driving abroad. International Costco rentals work best when you pair the platform’s strengths with your own due diligence on insurance requirements, local driving rules and branch level reputations.
If you approach Costco rental cars for international trips as a convenient starting point rather than a complete solution, you can capture much of the savings and simplicity it offers while staying alert to the real world variables that shape every overseas road journey. With the right preparation, your Costco booked car can be the reliable backbone of a memorable adventure rather than the source of unwelcome surprises in a foreign land.
FAQ
Q1. Can I use Costco Travel to rent a car in Europe?
Yes. Costco Travel works with major rental brands that operate widely across Europe, and you can book pickups at many airports and city locations. Availability and pricing vary by country and season, so it is wise to search several dates and locations to find the best option for your itinerary.
Q2. Is the additional driver always free on international Costco rentals?
No. The free additional driver benefit is limited to certain partners and countries. For example, it may apply with specific brands in parts of Europe but not everywhere worldwide. Always check the current terms for your pickup country and verify at the counter that the extra driver has been added at no charge.
Q3. Does Costco provide car insurance for international rentals?
No. Costco Travel does not provide primary auto insurance for car rentals. Required and optional coverages are governed by the rental company and local law, and you must rely on a mix of the included protections, your personal auto policy where valid, and any coverage from your credit card or third party insurer.
Q4. Can I rely on my credit card for collision coverage abroad when booking through Costco?
Sometimes, but not always. Many travel credit cards include secondary or primary collision damage coverage, yet they often exclude certain countries or vehicle types and may require that you decline the rental company’s collision waiver. You should read your card’s benefits guide carefully and confirm that your destination and car class are eligible before relying on this coverage.
Q5. Do I need an International Driving Permit when renting a car through Costco overseas?
It depends on the country. Some destinations accept a U.S. or Canadian license alone, while others either require or strongly recommend an International Driving Permit. The requirement is unrelated to Costco and applies no matter how you book, so you should verify current rules with the destination’s official sources before your trip.
Q6. Can I cross borders with a car rented through Costco in Europe?
Often you can, but only if the rental company explicitly allows it in your contract. Some Western European cross border trips are straightforward, while trips into certain Eastern European countries or outside a specific region can be restricted or subject to extra fees. You must secure written permission and any necessary documents from the rental company before crossing any border.
Q7. Is it cheaper to prepay for my international rental car through the rental company instead of using Costco?
Not necessarily. In many cases, Costco’s pay at counter rates are competitive with or lower than the rental company’s prepaid offers, and they give you more flexibility to cancel or rebook if prices drop. It is still smart to compare a few direct quotes, but Costco’s negotiated rates are often very strong for popular destinations.
Q8. What happens if the rental company abroad claims new damage that I do not agree with?
You should document the condition of the car at both pickup and return with photos or video and insist on a written inspection report whenever possible. If a dispute arises, contact the rental company in writing immediately and share your evidence. You can also provide documentation to your credit card or insurance provider if a claim is filed, and, if necessary, ask Costco Travel to note your complaint in its system as an additional escalation avenue.
Q9. Can non U.S. residents use Costco Travel for international car rentals?
Costco Travel services are generally designed for members in specific home countries, such as the United States or Canada. If you are a member living elsewhere, you should check the eligibility rules for your local Costco Travel site and confirm whether standalone car rentals are offered and valid for your residency status.
Q10. How far in advance should I book a Costco rental car for an overseas trip?
For peak seasons in Europe, the United Kingdom, resort areas in Mexico or other heavily visited regions, booking several months in advance is prudent, especially if you need an automatic car or a larger vehicle. Because many Costco rates are flexible, you can reserve early to secure availability and then periodically recheck prices and rebook if a better deal appears.