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Also need to be completely sure what documents you must have in order to cross the border in BOTH DIRECTIONS. I don't know the answer to that - I let my passport expire as I have no need for it. I tell my Dad that if he gets stuck in BC when up there fishing that he'll have to get help from someone else to get back out.
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What You'll Need
I have done this (rented a car in Bellingham for use in Canada), and several thousands of other people do it routinely. Bellingham is serviced by Allegiant Airlines as their alternative to more expensive airports such as SeaTac and Vancouver International. The car rental franchises at Bellingham are quite used to providing the documentation needed. Typically, this amounts to nothing more than a card showing proof of insurance coverage in Canada. The only problem I have ever had crossing the border in a rental car came when I took a Canadian rental (for which I had not pre-cleared use in the U.S.) into Point Roberts, a unique bit of the U.S. reachable only from Canada. When I drove back into Canada I was told I shouldn't have done that, but was let back in anyway. So, when you reserve your car, just make sure to tell them that you plan to take the car into Canada (and bring it back to the U.S.). Mention this again when you actually pick up the car and all should be fine.
Edit: And yes, you will need passports for crossing the border in both directions!
AZBuck
