Asia is taking to the roads – and there is no sign of the engine slowing down. With Asian economies such as China and India growing rapidly, cars are swiftly filling the streets of their major cities. Naturally, overcrowded roads and congestion have become a major issue for many Asian metropolises. For foreigners, unfamiliarity with road conditions and traffic rules makes driving in these urban mazes a daunting prospect.
However, there are advantages to getting behind the wheel in some of the region’s big cities. Here is a quick guide to renting and driving a car in three Asian cities to mitigate the fear of the unknown.
Hong Kong
Hong Kong roads are some of the best in Asia, but the city also has one of the highest car-to-road space ratios in the world. Peak periods (7am-9am, 5pm-7pm on weekdays and 6pm-9pm on weekends) can mean crawling or gridlocked traffic, so try to avoid those hours if possible.
Availability: Avis and Hertz are the main car hire agencies, but local operators such as HAWK provide cheaper rates – albeit with less backup than the bigger international companies.
Licence: Holders of a driver’s licence from more than 30 countries can apply for direct issue of a Hong Kong full driving licence (see www.td.gov.hk for the full country list). Those holding a licence from a country not listed can undergo a driving test through the Hong Kong Licensing Office for a nominal fee of HK$90 (US$12). The International Driver’s Document is also accepted.
In-town: Hong Kong has one of the best public transport systems in the world, but having a car helps if you need to head out into the New Territories to places such as the Hong Kong Science & Technology Parks or industrial areas such as Fo Tan, where the walk between the train station and your final destination can be long.
Parking: Rush hours can be difficult, but parking facilities in Hong Kong are generally sufficient. Prices are about US$5 an hour, but if you dine at a restaurant located in a mall or hotel with dedicated parking, you can get a voucher for free parking for up to two hours.
Inter-city: Hong Kong is a Special Administrative Region of China, so to drive across the border to the mainland, the vehicle must have licence plates for both jurisdictions and you must also have a valid Chinese driving licence. Therefore, there are no in-town rental companies offering cars that can be driven into China.
Costs: Rental is expensive in Hong Kong because of the relatively large number of cars already on the road. Rental prices for regular four-door Sedans start from HK$450 (US$58) per day; and for premium luxury cars (BMW 525i, Mercedes Benz E240, Lexus IS250, etc) prices can reach up to HK$1,990 (US$256). Note that rental prices on weekends are, on average, HK$60 (US$8) more expensive as well. Basic Collision Damage Waiver insurance for rented cars in Hong Kong is included in the rental rates unless otherwise stated.
Extras: Kayak (www.kayak.com/cars) provides a search service for the best car rental deals in the territory.
Shanghai
Shanghai is one of the most modern cities in China, and road conditions are slowly but surely being raised to international standards. However, the bustling economy of the city – coupled with the guerrilla-style, every-man-for-himself attitude of local drivers – means that rush-hour periods could be challenging even for the most confident of drivers.
Availability: Car rental services are widely available, with the bigger companies like Avis and Hertz plying their trade at both Shanghai Pudong International Airport and Shanghai Hongqiao Airport. Smaller car rental establishments charge more or less the same prices but are situated throughout different parts of the city, thus they are more accessible if you are staying in a suburban area. Pricing in big companies is more consistent and they also run special offers such as “rent five days, get the sixth day free”.
Licence: To drive in Shanghai, a Chinese permit must be obtained, which requires taking a practical course and an examination. The tests are not difficult and the cost is around RMB50 (US$8). There are booths in both the Shanghai airports for this procedure, which generally takes no more than two hours (visit www.visainchina.com).
In-town: The style of driving in Shanghai – like most parts of China – is rather aggressive and impatient. If you’re considering renting a car here, you should be a seasoned and even-tempered driver.
Parking: Car parking in the downtown area of Shanghai is very cheap. Rates are priced by the hour, starting from US$2 for the first hour and decreasing every hour after that. The law forbids any car to be parked within 30 metres of a fire hydrant.
Inter-city: Most companies do not allow you to rent a car in one city and return it in another; renting a car here is only good for short excursions or getting around the city.
Costs: Rental costs in Shanghai are very cheap. Prices start from about RMB150 (US$23) per day for small cars (Skoda Fabia, Ford Fiesta, etc) up to about RMB450 (US$71) per day for prestige cars (Buick Park Avenue, Volvo S40, etc). Insurance costs are scaled according to car size with a range of about RMB15-RMB40 (US$2-US$6) per day.
Extras: Parking wardens in Shanghai are very efficient. Tickets can and will be issued at any time of the day or night, so always make sure that the appropriate charges are paid up.
Seoul
Seoul, like most parts of South Korea, provides a generally very good and carefree driving experience. The roads are very safe, the road network is clear and well signed, and there are very few traffic jams or congestion even during peak hours.
Licence: The International Driver’s Document is accepted in South Korea, but most companies require that the driver be above the age of 21. Application for a temporary licence costs 17,000 won (US$15). For more information, visit http://dl.koroad.or.kr
Availability: The usual suspects – Avis and Hertz – are available at Incheon International Airport and provide mostly South Korean-made cars. Smaller companies are spread throughout the city and these provide an alternate source of vehicles. Note that many companies require a South Korean resident to sign the contract as your guarantor.
In-town: Seoul has a very well laid out public transport network of buses and trains, but having a car can be useful for accessing other parts of the National Capital Area as well as Incheon Metropolitan City.
Parking: There is no shortage of parking space in almost all parts of the city. The majority of buildings (both commercial and industrial) have their own parking facilities as well. In high-traffic commercial districts, parking fees can accumulate to about US$13 a day or more.
Inter-city: Most car rental companies in Seoul allow you to return a rented car in a different city, provided that they have a branch at your final destination. Most rental cars in South Korea are also equipped with GPS.
Costs: Rates start from 79,000 won (US$70) per day for a standard compact car (eg a Kia Matiz or Hyundai Verna) and more than double the price at 173,000 won (US$153) for premium cars (eg a Hyundai Grandeur or Daewoo Tosca). European luxury cars are expensive in South Korea, with rental costs for brands like BMW and Volvo easily mounting up to 400,000 won (US$353) or more. Insurance rates are also scaled to the size and class of the rented car, with basic insurance for compact cars starting from 5,000 won (US$4) per day up to 80,000 won (US$70) per day for luxury cars.
Extras: If your rented car does not have a GPS system fitted, you can use an online version through a smartphone or a portable device. One example can be found at http://emap.visitkorea.or.kr
Take Cover
Car rental companies often try to persuade customers to buy extra insurance, and while sometimes it might be a good idea, you should know what you’re getting. You will likely come across a few complicated types of insurance that are hard to differentiate. The following are a few common ones and what they cover:
Collision Damage Waiver (CDW) also called Low Damage Waiver (LDW) or Physical Damage Waiver (PDW)
Covers: Theft of, or damage sustained by,, the rented car.
• This type of insurance is provided by many credit cards, so make sure to check with your respective credit card company for more information before you commit to any form of additional CDW cover.
Personal Effects Coverage (PEC)
Covers: Loss of personal property from the rented car.
• This coverage guards against direct, sudden and accidental loss, but it is advisable not to leave important belongings in the car at any time.
Third Party Insurance (TP)
Covers: Claims made by other parties involved in any accidents.
• TP protects you from claims by multiple parties like drivers, passengers and pedestrians.
Liability Insurance Supplement (LIS) otherwise known as Supplemental Liability (SLI) or Additional Liability Insurance (ALI)
Covers: Extra protection for accidents and other incidents.
• The main point of LIS is to act as additional cover on top of any protection you might already have obtained.
Personal Accident Insurance (PAI)
Covers: Compensation in the event of injury or death.
• PAI will pay out a monetary figure in the event of injury (based on the severity) or death to the indicated dependent.
