A recent study by car hire insurance provider ReduceMyExcess has unveiled that British tourists could be significantly overcharged for car rentals while on holiday, often without receiving the level of protection they expect. The findings reveal that holidaymakers might spend up to £450 more than necessary due to common upsells and add-ons at car hire desks.
The research highlights that many travellers fall victim to high-pressure sales tactics and costly add-ons, which inflate the total cost of their car hire. The typical extras pushed by hire companies during a seven-day European trip include:
- Excess waiver: £186
- Glass, undercarriage & tyres coverage: £17
- Child booster seat: £87
- Personal possessions insurance: £16
- Satnav rental: £74
- Roadside assistance: £55
- On-the-day payment fee: £18
The combined cost of these add-ons amounts to £453, which could be avoided with proper planning and the use of independent insurance providers.
Jon Rebuck, co-founder of ReduceMyExcess, emphasised that savvy consumers could save substantial amounts by preparing in advance and avoiding unnecessary add-ons. He offered several tips for holidaymakers to cut costs and ensure they receive adequate protection:
- Refuse the Excess Waiver: Car hire companies often charge a daily fee to waive the excess, which can be substantially higher than the cost of standalone car hire excess insurance. This insurance, available for as little as £24, covers accidental damage costs, potentially saving holidaymakers hundreds of pounds.
- Avoid Extra Damage Coverage: Many hire companies offer additional protection for tyres, windows, and the undercarriage. This coverage, costing an average of £17 per week, is often included in standalone excess insurance policies at no extra charge. By securing this insurance separately, travellers can avoid paying inflated fees for coverage that may not be necessary.
- Bring Your Own Car Seat: Hiring a child seat can cost up to £87 per week. Most airlines allow free transport of car seats, so bringing your own can result in significant savings. Car hire companies often upsell seats at inflated prices, making this a cost-effective alternative.
- Consider Personal Possessions Insurance Carefully: Hire companies may offer personal possessions insurance, but this often comes with high excesses and limited coverage. Independent excess insurance policies may include this protection at no extra cost, making it a better option for safeguarding personal belongings.
- Use Smartphone Navigation: Renting a satnav can add £74 to the total cost. Instead, travellers can use smartphone navigation apps, many of which are free or low-cost, and avoid paying for a device that offers no additional benefit over mobile apps.
- Skip Extra Roadside Assistance: Additional roadside assistance offered by hire companies is often only necessary for specific situations, such as lost keys or misfuelling. Many standalone excess policies cover these issues, eliminating the need for extra fees.
- Pay Online in Advance: Paying at the hire desk can incur an additional charge of up to £26. By booking and paying online beforehand, travellers can avoid this extra cost and bypass the hard sell for unnecessary add-ons at the counter.
The study underscores the importance of preparation and awareness for British holidaymakers seeking to avoid hidden costs in car hire. By using independent insurance providers and understanding the true cost of add-ons, travellers can save money and avoid unnecessary charges during their trips.
ReduceMyExcess’s research shows that with a little foresight, the typical £450 in additional charges can be avoided, ensuring a more affordable and stress-free car hire experience abroad.