Consumer test: Car hire
Emma Lunn and Patrick Collinson look at how to get the best deal this summer
Saturday August 12, 2006
The GuardianIt's a miserable way to end a holiday. You hand the rental car back at the airport - only to find a few weeks later that your credit card has been stung with hundreds of pounds in extra charges. But there are plenty of steps you can take to avoid a car hire rip-off. Just follow our guide to finding the best deal.
The excess charge
You think you found a great deal which includes a "CDW" - collision damage waiver - and all insurances. But on arrival at the airport, the counter staff tell you the "excess" - the amount you'll pay if there is an accident - is £1,000 or even more. Then they'll try selling you a policy to reduce the excess to zero (called a "super CDW") - and it'll cost €15-€20 a day. Over two weeks, that's £140 or more, and the so-called "cheap deal" turns into a pricey one indeed. It's a particularly popular trick in Ireland. For example, Budget has an "excess" of €900-€1,500 (£605-£1,010); Hertz, €900-€1,600; Avis, €965-€1,700 and Alamo, €900-€3,000.
This will come as a shock to most British drivers, used to an excess of £250 or so at home. Many feel obliged to pay up to avoid a possible £1,000 or £2,000 bill for a dent or ding.
Tip 1: Don't hire online without checking the terms and conditions to see the excess and the charge made to reduce it. Normally well hidden.
Tip 2: Look out for "zero excess waiver" deals - not initially the cheapest, but they avoid the nasty sting.
Tip 3: Buy an independent insurance policy to cover the excess. Insurance4carhire.com offers annual policies for the excess amount you are liable for each time you rent a car. For a policy covering Europe, and a maximum rental period of 31 days, insurance4carhire charges £49 a year. Alternatively, brokers such as Holiday Autos sell a super CDW for £2.50 a day.
The post-hire charge
A report by the AA Motoring Trust earlier this year found the big danger for car renters abroad is unexpected charges swiped on to their credit cards after returning the car. The signature on the rental agreement usually includes an authorisation to charge the card for additional items.
"Hiring a car anywhere in Europe should be relatively easy and transparent. Very often it is not, and becomes an exercise in risk that can cost you dear when you get home," says Paul Watters, EuroTest project manager for the AA Motoring Trust. "The bad news for hirers is that confusing insurance and dubious post-hire charges can mean hirers being ripped off, with little or no protection, or ways of getting their money back."
Tip 1: Inspect the car thoroughly when you collect it, and ensure any damage, however minor, is marked on the vehicle condition report.
Tip 2: On returning the car, wait while staff inspect it, then ask for a copy of the final report. If nobody inspects it, write: "Staff declined to inspect vehicle" on the rental agreement.
Tip 3: Take a digital snapshot of the car when you return, with the time and date displayed. This can help clear up any misunderstandings later on.
Airport and location surcharges
A particularly annoying add-on, and frequently left out of the initial online quote. Many only discover it after they've made the reservation (usually in the email confirmation) that there will be an additional local surcharge. For example, Budget imposes €25, payable on arrival, for all airport pick-ups in Ireland. Quotes for Alamo (at carhire.ie) fail to include the €25 "location" fee, no matter where you pick up the car. Congratulations to Hertz for putting its fee (€22.91) in the original quote. In other countries, the airport surcharge can be even higher. In South Africa it can be 9% of the time and kilometre charge for hiring the car.
Tip 1: Don't be fooled by the hire quote which comes top of internet search engines. Check if the real cost is hidden.
Tip 2: You can sometimes avoid the surcharge by picking up the car in a downtown location, but that may be a miserable way to start a holiday.
Unnecessary insurance
Car hire firms will be keen to sell you personal accident insurance. In the US, typically $5 a day, in Europe €6. Staff will tell you it gives "extensive benefits in case of injury or death".
True - but you've probably already got cover in your travel insurance policy, and may even be covered under your home insurance policy.
Tip 1: Before you go, know what your travel insurance policy covers.
Tip 2: Just say "no". €6 a day on unnecessary insurance adds up to £57 thrown away during a fortnight's break.
Exclusions, extras and 'upselling'
The exclusions: Almost unbelievably, the super CDW which the staff try to sell you to reduce the excess to zero is often peppered with exclusions. It is likely to exclude theft, vandalism, damaged tyres, lost keys and use of incorrect fuels. So the "peace of mind" - so beloved of insurance sellers - is far from complete.
The extras: Nearly all hire firms expect you to return the car with the same amount of petrol it had when you left. If not, they hit you with a "refuelling charge", normally substantially above market rates. Always check how much petrol the car should have on its return.
The upselling: Travellers to the US report how staff almost harass weary travellers into upgrading to a higher-cost car or one with extra features for a few extra dollars per day. But once the extras are added, the figure rises to $50-$100 extra on the bill. Say "no".
Have you suffered a car hire rip-off? We can't promise we'll be able to help - but your story may serve as a warning to other travellers. Let us know by emailing money@guardian.co.uk. Please put the words "car hire" in the subject line.
