The cost of hiring a car for a week in the summer of 2024 typically varies by around £200 depending on which rental company you use, according to a study from iCarhireinsurance.com, showing the importance of shopping around.
The study, which compared the cost of basic car hire for a compact family car in the week from the 27th of July to the 3rdth of August 2024 in various popular holiday destinations – prime holiday time for many families – found that the biggest price difference between providers was in Nice, where Hertz quoted £593 for a medium compact car such as a VW Golf or Ford Focus and Sixt quoted just £381, a difference of £212.
In Milan, Europcar quoted £546, and Budget quoted £355, a difference of £191, and in Dalaman, Europcar quoted £455, and Sixt £279, a difference of £176. The research was carried out across major tourist locations in 12 different countries – Australia, Croatia, France, Germany, Greece, Italy, Portugal, Spain, Switzerland, Turkey, UK and the USA – and looked at prices offered by six different rental companies – Sixt, Hertz, Avis, Budget, Enterprise and Europcar.
Despite the differences in cost, many people fail to compare providers before choosing a company to rent a car from, often choosing to stick with the names they know.
Separate research from icarhireinsurance.com, found that over half (57%) believe they are better protected as a consumer if they book with a well-known international brand, with 16% of over 55s saying they would not use an independent local car hire company Over a fifth (23%) always hire from the same company.
Ben Wooltorton, iCarhireinsurance.com said: “The research clearly shows that people tend to feel more comfortable and better protected if they stick to well-known rental brands. Whilst most rentals will go off without a hitch, it’s important to know where to turn in the event that you do end up in a dispute with the rental company, yet our research shows that only 37% of people know where to turn if this happens.”
If you do have a problem with your holiday car hire, you must notify your rental company of your complaint within 14 days. If you’re not satisfied with their response, and provided the rental company is a member, you can approach the British Vehicle Rental & Leasing Association(BVRLA) for help. Alternatively, you can try the European Car Rental Conciliation Service (ECRCS) if the rental company you used has signed up to it.
The cost of renting a car keeps climbing when you factor in extras you might be sold at the rental desk. Insurance add-ons such as car hire excess insurance (also known as a super collision damage waiver), tyre and windshield cover and an extra driver can contribute substantially to your costs overall.
Expect to pay on average £67 for an extra driver, £82 for a satnav and £67 for a child’s car seat – a total of £216.
Mr Wooltorton said: “Cost-conscious travellers should approach hiring a car exactly as they do other aspects of their holiday planning to ensure they get the best deal. To make your money go further, shop around for the best prices and don’t waste money on extras at the rental desk, including on items like satnavs and child car seats, that could have been brought from home, or bought in advance.”
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How can I avoid paying too much for car hire?
There’s no avoiding the fact that the price of car hire has gone up, but there are still ways of easing the cost and making sure that you don’t blow your holiday budget.
For starters, always try to book your rental car in advance, as doing so on the spot will be much more expensive.
It’s absolutely worth the extra bit of research – looking at different providers and car models to see if you can make savings that way. Remember that you’re only likely to be away for a short while, so you probably don’t need the flashiest or best car – just one big enough to get your group from A to B.
As mentioned, the study also focused mainly on popular tourist cities, so it could pay to weigh up your options. For example, would it work out cheaper to hire a car from a different town and drive it to where you’re staying?
We’ve also seen how extortionate insurance add-ons and equipment can be if you buy straight from the rental desk. Rental cars typically come with basic cover in place, but your provider may well try and convince you you need much more comprehensive cover when you come to pick your vehicle up. Remember that there’s no obligation to get a policy from your rental car provider, and the best way to avoid paying for unnecessary add-ons is to decide what extras you need in advance, sort these out ahead of time with a standalone specialist provider, and refuse any add-ons when you collect the car.
For example, car hire excess insurance usually will be really costly if you buy straight from the car hire company, but they may also try to convince you that it’s vital you have it. An excess is the amount you pay if you need to make an insurance claim, and this tends to be particularly steep in a hired car. Having excess insurance means that this will be covered for you in the event of a claim, so it can be a good way of avoiding an unpleasant bill if you end up having a car accident on holiday. However, it is neither a necessity to buy if you think you don’t need it, nor do you need to buy it from the rental desk if you think you do. Read more about the best way to get cheap excess insurance in our article Your guide to buying car hire excess insurance.
You can read about the other kinds of car insurance add-ons out there in our article What are the best car insurance extras and add-ons to have? Remember that none of these are legal necessities outside of basic cover and again, if you do want them, you don’t need to opt for the rental car company’s policy. Be sure to search around and find the best deal you can.
Finally…
Remember to always read the small print on your policy really carefully when you hire a car to avoid being hit by any unnecessary charges. For example, you may be required to fill up on fuel before returning the car, and if you fail to do so, you could be charged an inflated cost for the missing amount. Or, there might be a limit on the number of miles you can drive your rented vehicle, with additional charges imposed if you exceed it.
Learn about more hidden travel costs that can catch you out in our article 7 hidden travel costs to watch out for, and find more ways to cut costs in our article 13 ways to reduce holiday costs.
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