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CAR RENTALS ABROAD: A LONG AND WINDING ROAD

Going abroad and need a set of wheels? It's not as easy as dropping by Rent-A-Wreck. Hiring transportation overseas can mean paying stiff basic charges, plus such costly add-ons as insurance waivers, drop-off fees, and peculiar airport levies. You may face travel restrictions in such theft-prone spots as former communist countries. And in some places, you can forget about automatic transmission and air conditioning.

While all that may make you look twice at the train, the difficulties of renting can be managed. Making arrangements beforehand is essential--preferably with help from an experienced travel agent. Booking and even prepaying in U.S. dollars lets you avoid unexpected rate changes and currency fluctuations. You'll get a voucher spelling out whether unlimited mileage is included, double-digit value-added taxes are paid, and what are the pickup and drop-off times.

Your choice of a rental company may depend on whether you intend to hopscotch around countries. If you plan to pick up the car in London and Chunnel over to France, you might consider Hertz's ``Le Swap'' service, which provides a right-drive car in Britain and a left-drive replacement on the Continent. Hertz conveniently bundles the charges, so you'll pay about $445 a week for an economy-car package that includes tax, a collision-damage waiver, a round-trip ticket on the Eurotunnel train, and drop-off in Paris, if needed.

DAMAGE WAIVER. Generally, you'll pay more with a global operator such as Avis or Hertz than with the local equivalent of Jalopies-R-Us, but there are consolations. For one, if the car is damaged in an accident, you'll be able to deal with a domestic office back home, rather than haggle by transatlantic phone. Just keep all documentation. You can also feel more secure about getting amenities such as air conditioning or automatic transmission. It will cost extra though: over $80 a week more for an automatic in France, for example.

It might pay to shop around. For travel solely in Britain, Thrifty Rent-A-Car will provide a midsize car with an automatic transmission for about $332 a week, most charges included. Want air conditioning? With Thrifty, that means renting a Lexus at $604 a week plus $148 for a damage waiver and theft protection. If you drive out of the country, you'll face a 50% surcharge just for crossing a border.

Traveling about the Continent can raise problems. Fearing theft, some rental companies bar travel in Eastern Europe, charge extra for insurance waivers, or refuse to let you drop off a vehicle there. But practices vary: Auto Europe, a Portland (Me.) car-rental broker that subcontracts out to outfits such as Avis and Europcar, will arrange to rent General Motors cars for travel in Eastern Europe because they appeal less to thieves. Even in Western Europe, dashing about capitals can be problematic: One agent found a company that demanded $277 extra to pick up a car in Paris and drop it in Munich, while another charged $50.

Outside Europe, renting can be still more challenging. Base price alone to hire an economy car with stick shift in Singapore tops $990 a week. In Moscow, a Ford Scorpio costs $192 a day with a driver, which is highly recommended. As for Tokyo, Nippon Interrent wants $463, plus damage waivers, for a minimum four-day rental. Renting in some spots can be an adventure: Jennifer Czerniak, industry relations director for Minneapolis-based Carlson Wagonlit Travel, says that once in Barbados she contracted with a U.S. company and wound up with a locally built open-air car called a Moke, which would never meet U.S. safety standards.

NIGGLES. Wherever you're traveling, check your insurance coverage first. Most American Express cards and MasterCard or Visa gold cards will pay for collision damage abroad, but read the fine print. Exotic cars such as DeLoreans are sometimes excluded, and corporate-card coverage varies by whatever terms employers negotiate. Practices differ by country, with Australia, Italy, and New Zealand requiring locally purchased rental-car coverage. Also check with your own auto insurer to see if you're covered for liability abroad.

Would-be global renters should also get an international driver's permit. Available at AAA offices for $10 with two passport-size photos, it translates your domestic driver's license information into several languages. It is often not mandatory for driving, but in countries such as Spain and Japan, you can't rent a car without it.

TABLE: TIPS FOR RENTING OVERSEAS

-- Book in advance and prepay to save money, guarantee a rate, and make sure your car will be ready.

-- Work through an experienced travel agent or a broker. They can find the best rates and most reliable suppliers.

-- Check your credit cards and your own auto insurer to see if you're covered for damage and liability, and buy waivers from the rental companies if you're not.

-- Ask for automatic transmission and air conditioning, since they are often unavailable and cost more. Also, request such extras as a child safety seat.

-- Get an international driving permit at AAA. Though not universally required, it's helpful backup identification.

DATA: BUSINESS WEEK

EDITED BY AMY DUNKIN By Joseph Weber


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Updated June 14, 1997 by bwwebmaster
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