The Hidden Costs of Car Hire

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What are the hidden costs of car hire?

Whether you’re chasing the sun, heading off the beaten path, or just want the flexibility of access to a vehicle, hiring a car on holiday is a fantastic way to explore at your own pace and in your own time. Although bear in mind that while it seems like a fairly simple and straightforward venture, car hire comes with a whole range of sneaky extras which can quickly lead to a lighter wallet.

1. Insurance Excess Charges

Let’s start with the big one. While it’s handy that your rental usually comes with basic insurance, it’s not so great that you’re responsible for the hefty excess associated with it. Sometimes this can be up to £2,000, which isn’t exactly the nicest holiday surprise!

Now, rental desks will push their own excess waiver insurance, but these are typically quite expensive and not the most comprehensive. The better option is to get a dedicated car hire excess insurance policy before you travel - it often works out at just a few quid a day and gives you peace of mind for a fraction of the cost.

2. Fuel Policy Traps

There are two types of fuel policies: full-to-empty and full-to-full. Most car hire companies favour the former, meaning you pay in advance for a full tank and return the car empty. It’s useful, yeah, but they can charge over the odds for that full tank - and you won’t get a refund if there’s fuel left when you drop the car back.

However, a full-to-full fuel policy means that you’ll only pay for the fuel you use. Say you only use half a tank - you only have to refill that half a tank at a local petrol station before drop-off.

3. Additional Driver Fees

Generally it’s assumed that only one person will be driving your hire car, so if you plan to share the driving be prepared to pay extra. Many companies charge per person, per day for additional drivers.

Occasionally, rental providers include a second driver for free, especially if you’re part of a loyalty programme or take advantage of a special offer. Just make sure to check the T&Cs when booking to see if you can avoid this charge altogether.

4. Premium Location Charges

It’s that age-old tale of charging for convenience. Picking up your hire car from the train station or airport is naturally going to cost you more thanks to premium location fees.

The solution? Go somewhere with lower demand. Sometimes it’s worth taking a short bus or taxi ride to a branch just outside the airport to save significantly on your rental.

5. Out-of-Hours Pick-Up and Drop-Off

If you land late or return early, you could be charged an ‘out-of-hours’ fee of up to £100 for collecting or dropping off your car outside of standard business hours. Yes, really!

Sometimes this is an unavoidable expense, and it’s possible that fees can be as low as £20, but if you can find a provider that offers 24/7 services you’ll get away with no extra costs.

6. Extra Equipment Fees

The most important thing to remember for this one, is just to plan ahead. Bring a satnav, bring a phone mount (not a sticky one), bring a charger, bring a car seat if you need one. Some car hire companies will charge up to £15 a day for little extras like these, while most airlines will let you bring child car seats at no extra cost and your phone will double up as a satnav most of the time.

7. Border Crossing & Mileage Charges

If you’re using your rental for a road trip, make sure you know whether you’re covered to cross borders. Some car hire companies have restrictions in place for this, including charges for doing so. They might also require extra paperwork from you, so always inform your hire car provider of your travel plans to avoid breaking your rental agreement.

Bear in mind too, that unlimited mileage isn’t always a given. Check whether there’s a cap on mileage, as extra miles can come with hefty per-mile fees.

8. Cleaning Fees

This one’s really easy to avoid! Most rentals expect the car to be returned in a reasonable state, so this is basically your reminder to give it a quick hoover or wipe-down before you return it. It’s also a good point at which to compare and contrast those photos you took when you picked it up.

9. Forced Upgrades

Say it with me - unless you’ve agreed to it, an upgrade should be free. If you arrive at the rental desk and are told your booked car “isn’t available”, you should be eligible for a free upgrade or a partially-refunded downgrade.

Get any and all changes in writing before accepting any sort of swap.

10. Unnoticed Damage Charges

Ahh, that old chestnut - charging you for scratches and dents which were already there when you picked up the car. As we mentioned earlier, this is why it’s important to take photos of existing damage and thoroughly inspect the car before leaving the forecourt. Do the same when you return the car, and keep hold of all your paperwork.

Even better? Having a car hire excess insurance policy in place can help to cover any disputes.

11. Young Driver & Admin Fees

If you’re under 25, or have been driving for less than four years, you’re probably going to get hit with a ‘young driver surcharge’. This means a fee per day on top of the cost of rental, and will probably result in a restricted choice of vehicles. Make sure you read the terms of the hire carefully and know exactly what’s included before signing anything.

12. Unexpected Charges After You Get Home

You’ve handed the keys back, flown home, maybe even unpacked, and the next thing you know your credit card gets a random charge. Frustratingly, it’s not uncommon for car hire companies to add fees for fuel discrepancies or perceived damage after the fact.

Keep a copy of the signed return form, your photos, and all receipts so you can dispute any unexpected charges. If you paid by credit card, you might also be protected under Section 75 of the Consumer Credit Act.

How to Avoid the Unexpected

  • Book early and compare prices: use trusted comparison sites and book in advance for the best deals
  • Read the small print: understand the terms before you agree to anything
  • Bring your own extras: satnav, car seats, phone chargers - you’ll save a fortune
  • Inspect the car: take photos and report any damage before and after your rental
  • Use a credit card: this gives you added protection if anything goes wrong
  • Buy third-party excess insurance: it’s cheaper, more comprehensive, and gives you peace of mind

Hiring a car is a wonderful way to explore, but it’s all too easy to get caught out by hidden fees and sneaky add-ons. By planning ahead, reading the fine print, and getting the right additional insurance, you can avoid common car hire traps and keep your cash.