Holidaymakers heading overseas this summer are being urged to take extra care when hiring a car, as hidden fees and unclear policies can quickly turn a holiday into an expensive headache.
Hiring a car abroad is often the easiest and most flexible way to explore a destination, but unfamiliar rules and language barriers can easily catch drivers out.
Less reputable operators may also attempt to take advantage of unsuspecting tourists by charging for pre-existing damage, pressuring drivers to get unnecessary insurance upgrades or applying hidden fees, which often aren’t made clear when booking.
It comes after the best and worst-rated car hire firms were revealed by consumer group Which?.
Hidden charges and poor pricing transparency are rife in the car hire industry, Which? found, as new research from the consumer champion shows choosing the right provider is key to avoiding ‘bill shock’.
The Daily Mail has asked a range of experts in the field to outline the biggest challenges – and traps travellers should be cautious not to fall into…
Hiring a car on holiday is full of challenges – and these are some of the biggest traps
Motoring experts at LeaseLoco.com have shared eight tips on what drivers should look out for when hiring a car, and how they can protect themselves from unexpected charges and disputes.
Drivers should look out for details such as fuel policy, daily mileage limit and any potential extra charges for things like child seats, sat navs, or additional drivers.
John Wilmot, CEO and founder of car leasing deals comparison site LeaseLoco.com, said: ‘Hiring a car abroad can make a holiday much easier, especially if you want the freedom to explore beyond the main tourist areas.
‘But it’s surprisingly easy for drivers to get caught out if they’re not familiar with how rental companies operate in different countries.
‘A lot of problems can be avoided by taking the time to check the car properly, read through the agreement and take photos of any existing damage.
‘It’s also important not to feel pressured at the rental desk.
‘If something doesn’t seem right, it’s worth slowing things down and making sure you’re comfortable before accepting the car keys.’
The team at LeaseLoco.com have revealed eight key rules for hiring cars abroad – and a range of experts have shared their views.
1. Check what documents are required
Make sure you know exactly what documents the rental company requires.
This generally includes your driving licence, passport and a credit card in the driver’s name, but some countries may also require an International Driving Permit.
2. Check for damage
It is essential you check your hire vehicle for any damages before you drive off
Before driving off, it’s crucial to inspect the car and check for any pre-existing damage.
Drivers need to ensure that every scratch and dent is photographed and recorded on the agreement to prove they weren’t responsible for the damage.
More than a third (36 per cent) of hire car drivers have discovered damage on a rental vehicle that was not marked on the check-out sheet, according to new research from iCarhireinsurance.com.
This is concerning because drivers are liable for the excess if a hire car is damaged or stolen, even if the incident is not their fault. Excess charges can exceed £1,500.
Anam Barkan, a car hire expert and founder at HireGo Minibuses, told the Daily Mail this is the ‘most egregious’ mistake, adding: ‘Any damage to the vehicle, no matter how slight (e.g. scratch(es), stone chip(s), scuff(s) to the wheel(s), windscreen mark(s); etc.) that were not documented on the vehicle check-in report could become the basis of a damage claim upon return of the vehicle.
‘I highly recommend taking multiple photographs of all sides of the vehicle, including the roof (if possible), inside of the vehicle (interior), wheels, fuel level and odometer reading prior to departing the rental facility.’
3. Beware of extras
Read the small print to check whether you’re charged for optional extras, such as child seats, sat navs or additional drivers.
Anam Barkan, a car hire expert and founder at HireGo Minibuses, added her tips
Rental companies may also try to sell excess waiver insurance at the desk, but this is often much cheaper to arrange separately before your trip.
Anam said: ‘Probably the most commonly experienced “pitfalls” occur when customers agree to purchase optional add-ons immediately after arriving at the rental facility with little opportunity to determine whether they are really needed.
‘Rental employees are likely to suggest purchasing upgraded insurance, a GPS unit, child seat(s), or prepaid fuel package(s).
‘While each product can potentially be beneficial, they do not necessarily represent the least expensive options.’
4. Check fuel policy
Make sure you understand the company’s fuel policy.
Some require you to return the car with the same fuel level, while others charge for a full tank upfront, which may not be refunded if the car is returned with fuel still left.
Simon Grannville, founder and CEO at luxury travel rental company Nero Line, said: ‘The fuel policy is the first trap. Full-to-empty means you pay for a full tank at the start; you return the car at any level, and whatever’s left belongs to the rental company.
‘Unless you genuinely drive until the gauge hits empty, you’re paying for petrol you never used. Full-to-full, where you return at the same level you collected, nearly always works out cheaper.
5. Check if it’s an off-airport car hire
Some cheaper deals involve collecting the car from a depot located outside the airport rather than at the terminal.
This can be inconvenient if you’re travelling with lots of luggage or with kids.
6. Extra fees for older or younger drivers
There are often additional costs – for instance, you may need to pay more for younger drivers
Drivers under 25 often face additional charges when renting a car abroad, and in some cases, older drivers may also be subject to extra fees.
This information can often be found hidden in the small print.
Anam added: ‘A traveller’s greatest potential problem will likely stem from the assumption that the advertised per-day rental charge represents the entire cost of their rental.
‘Travellers may find themselves paying more for their rental due to airport pickup/drop off (if not pre-paid), young/senior driver surcharges, additional driver surcharge, one way fee(s) to cross country/state lines, toll device costs or premium location fees.’
7. Check if there’s a daily mileage limit
When signing any documents, it is imperative you read the small print
Some rental agreements include a daily mileage cap.
If it’s exceeded, you may be charged extra for every additional mile.
8. Don’t ignore red flags
If staff rush through the inspection, push aggressively for extras, or the vehicle appears dirty enough to hide damage, it could be a sign to proceed with caution.
It’s worth being aware of some of the most common red flags that may indicate that the rental company is using dubious methods, such as staff asking for unusually large security deposits without clearly explaining the conditions.
An Opinium survey of 1,000 UK adults who have hired a car in the UK or abroad found that more than a quarter (28 per cent) had been told by rental companies that minor damage did not need to be recorded, despite drivers potentially being charged for scratches, dents or scuffs.
Avoid being charged for damage you didn’t cause by taking time-stamped photos and videos at pick-up and drop-off, and ensure all damage is recorded before leaving.
Check the tyres too, as these can often be overlooked.
… and don’t forget insurance!
Joshua Morrison, president of US car insurance agency Bad Driving Record, said: ‘When renting a car most consumers fall into two easily avoidable traps. The first rental trap that consumers fall into is with rental car insurance.
‘While the presumption at the counter is declining the collision damage waiver saves money, that math is only true if you already have coverage that applies to a rental vehicle. Many personal auto policies differ significantly on whether a rental vehicle is covered.
‘Credit card rental protection is notoriously lacking when it comes to coverage for loss of use fees and depreciation charges that rental companies can add to your repair bill. Figuring that out when you’re filing a claim is far more costly than what the daily waiver would have been.’
Joshua added: ‘The second biggest rental trap is assuming the insurance offered by the rental company is providing coverage that it is not. The basic coverage offered at the counter is typically limited to damage to the vehicle.
‘Contents, medical payments and liability are typically the responsibility of the renter unless you purchase additional coverage.
‘The five-minute phone call most renters skip is calling their insurance carrier and credit card company before renting the vehicle.
‘Having a clear understanding of what is covered, under what circumstances and for how much before you need the coverage allows you to make an informed decision at the counter instead of one made from pressure of a growing line behind you.’
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