Having just returned from an accident marred trip to Italy, I have a few possibly pertinent comments:

1. Auto Europe www.autoeurope.com has competitive rates within Italy. The cars normally come from Avis or Europcar and include all insurance including $00.00 deductible. VERY Important should you have a misfortune. I suggest that you call them at 1-800-223-5555 and discuss your situation with one of their very knowledgable agents.

2. To avoid the taxes involved with airport pick-up, rent from a city location, not a train station location as they a lesser tax than the airport. You can however return the car to an airport or train station location. Often there is no drop off fee.

3. Many Italian cities have imposed a restriction on cars entering the central core area. Thus one must park outside and walk in. A real pain, especially in the larger cities. We had an interesting conversation with a Polizista in Parma about our being in the wrong place at the wrong time. Fortunately, a traffic ticket was not forthcoming, but neither was a parking place. Beware: In some cities, they have photo-entry cameras resulting in your car rental agency receiving the ticket. Europcar, tacks on $25 to deal with your indiscretion (charged to your credit card per the rental agreement - yes, I do read them especially when the agents finger is pointing at the pertinent section).

4. You pay an additional $2.50 (based on 1 to 1 conversion to the Euro) per day that the car is in your possession as an Italian road tax. Billed to your credit card.

5. Insurance is mandatory in Italy and is provided by the rental company.

6. Should you decide to take the Autostrada, tolls are quite high. They are normally payable with a credit card, thus affording you the best exchange rate.

7. As of Late October, fuel prices were in the range of $.87 per liter for diesel and $1.07 for gasoline. Try to rent a diesel if at all possible. We ended up upgraded beyond our normal upgrade to a VW Passat, 5 speed diesel. Quite a big car for Italy, but it cruised all day at 160 kph on the Autostrada and negotiated the back roads of Tuscany, The Marches, and Amalfi without hesitation at about 30 mpg.

8. Should you decide to do the one way rental and wish to visit Switzerland, be aware that one must buy a tax sticker for the autobahns. I think this is about $50 for the vehicle.

9. It probably would be best to drop the car in a city such as Bolzano and take the train over the Alps. Bolzano-Innsbruck-Munchen. Austrian car rental costs are normally even higher than in Italy. You might want to rent a car in Munchen and drive back into Austria. It is not that far.

My conclusion given the circumstances listed, rent and return in Italy. Take the train to Munchen. Rent a car in Munchen (Hauptbahnhof) and visit Austria and Bayern