This year, car hire prices reached historic highs. Telegraph Travel’s own snapshot survey – repeating and comparing research we did in 2019 – revealed that the cheapest rate for a basic model rented for an off-peak week from Malaga Airport in May had gone up from £77 to £192 in three years. In fact, since the end of the pandemic rental costs in virtually all holiday destinations have soared.
And there is no sign of them coming down in 2023. In order to survive the pandemic, car hire companies sold off many of their vehicles and have been unable to replace them fast enough. At peak times especially, there aren’t enough to go around – so prices have risen to reflect a shortage which is likely to continue through next year.
And while high prices are a new phenomenon, the long standing issues which have been plaguing customers for years continue. These include high pressure sales of over-priced extras at the pick up desk and unexpected and extortionate charges for damage which continue to be a minefield for consumers trying to find a decent deal.
Many get it wrong and end up paying a high price as a result – these are the most common mistakes to avoid.
1. Failing to compare prices
Rates for the same car can vary hugely and if you go to the wrong company without getting other quotes, you could easily pay twice as much as you need to. I did some comparative research earlier this year. The costs of renting an economy car (such as a Ford Fiesta or Opel/Vauxhall Corsa) from six major providers for a week last May varied from £192 through the broker Zest to £457 with Hertz and £449 with Europcar.
However, when making comparisons beware: it is vital to compare like for like and make sure that all the extras you need are included in the price (see below). And make sure you check brokers (such as zestcarrental.com or holidayautos.com) which operate by negotiating with lots of different suppliers to find the most competitive price.
2. Booking too late
Typically people tend to book hire cars only a couple of weeks before departure. This is a big mistake. To get the best price you really need to plan six months in advance, especially at the moment when cars are in short supply and especially for peak time travel.
3. Paying too late
Some companies allow you to book without even paying a deposit – you pay the full amount on collection. It’s risky to do this. Last summer, some renters who had booked in this way had their bookings cancelled by cynical suppliers who were taking advantage of rising prices and were effectively selling to the highest bidder at the last minute. Paying at least a deposit means you will be able to guarantee that you will be able to get the car at the price you have booked.
4. Travelling at peak season
You may have no choice but to book during the school holidays. But if you do, you may have to pay three or four times more than those travelling in May, June or September. If you can possibly arrange to travel out of peak season, you will pay much less.
5. Getting caught out by cancellation charges
If you have paid upfront and are concerned about the possibility you may have to cancel, then beware possible charges. Some suppliers allow you to cancel without penalty and it is definitely worth looking for this provision, even if it means paying a slight premium.
7. Overpaying for excess waivers
One of the annoying quirks of car hire agreements is the way the insurance works. All cars come with some cover, but if you have an accident, you will get charged a huge excess – most are now €1,000 or more. Car hire companies then sell additional insurances to remove or reduce this excess. Such policies are rarely good value, however. You will do much better to buy your own cover from an independent insurer. According to Travel Which?, one of the best policies is sold by reducemyexcess.co.uk, but try also insurance4carhire.com or icarhireinsurance.com.
8. Maxing out your credit card
If you do buy your own insurance to cover the excess, you will almost certainly be required to pre-authorise the amount of that excess on a credit card before you will be allowed to take the car. This is because, in the event of an accident, you will probably have to pay the excess to the hire car company and then claim the amount back from your insurer. So, make sure you have a high enough limit on your card, or the supplier may refuse to release the car – or require you to buy its own insurance. And remember – the card you use must match the name of the person on the hire booking form. (Note too, that debit cards are not accepted).
9. Arriving too late
A particular problem this last summer was the combination of a large number of delayed flights and a shortage of cars. Since many contracts specify that cars will only be held for two hours after the booked time, lots were cancelled unilaterally by the suppliers if customers didn’t turn up – especially if it passed the point when the desk closed for the night. If your flight is delayed by more than one hour after the start time of the rental, it’s vital to call the rental office to prevent this from happening.
10. Not checking for scratches and dents
High charges for small dents or scratches discovered once the car is returned are one of the biggest causes of complaint among our readers. So when you pick up the car, make sure you inspect it carefully to check that every scratch or dent on the bodywork is recorded on the contract. As a safeguard, take photographs of all four sides of the car. And if the vehicle is not inspected when you return it, take a second set of photographs to record its condition.
11. Over-paying for petrol
Fuel policies are also an irritation which can cost you dearly. The most straightforward is one which allows you to collect a car with a full tank and return it in the same state. However, if you don’t find a convenient petrol station and return it half full, you will almost always pay a premium for the missing fuel and an additional charge on top. Empty to empty is annoying because you will probably end up leaving extra petrol in the tank to avoid the risk of running out. And the other common policy, full to empty (ie. paying for a full tank when you book), also makes it difficult to plan your return without wasting money on fuel you don’t use.