Insurance Expert at ReduceMyExcess reveal Brits over-paying for holiday car hire by more than £450

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Sep 03, 2024, 06:54 ET

British consumers on average spend £450 more than they need to on car hire, whilst getting less for their money
On average, car hire company's excess insurance cost nearly eight times more than stand-alone cover and protects the customer from far fewer eventualities
Extras sold at the hire desk, including child seats and satnavs push up daily hire prices even further.

LONDON, Sept. 3, 2024 /PRNewswire/ -- A study by car hire insurance providers, ReduceMyExcess has revealed that whilst Brits enjoyed the sun abroad this summer, many will have been overcharged for their car hire, whilst not being given the level of protection they might think.

In fact, British holidaymakers will have spent as much as £450 more than they need to with car hire companies by giving in to pressure at the hire desk.

Many holidaymakers don't realise they can avoid this with a little pre-planning and by using independent insurance providers, especially when it comes to protecting their excess for as little as £24.

For a 7-day single European trip, the most common upgrades and average additional charges* pushed by hire companies are:

Excess waiver - £186
Glass, undercarriage & tyres - £17
Child booster seat - £87
Personal possessions - £16
Satnav - £74
Roadside Assistance - £55
Pay on the day - £18

Total = £453

However, it need not be the case and consumers can save this by prepping in advance.

Jon Rebuck, co-founder of ReduceMyExcess explains:

There are a number of ways car hire companies get more money out of customers at the hire desk.

However, savvy consumers can win back by following these tips.

1. Refuse the excess waiver. In the event of any accidental damage to the hire car, you'll be liable to pay a sizable excess which is often taking directly from your credit card. Hire companies charge a daily fee to waive the excess you are liable for in the event of damage to the vehicle. However this waiver is on average nearly eight times more expensive than the cost of a standalone car hire excess insurance policy, which will reimburse your excess fully in the event you're charged for accidental damage.

2. Damage to tyres, windows, lights and undercarriage often go unnoticed by the customer at the point of collection, so are easily charged for at the point of return even if they've not been caused by you. If you've taken out a standalone car hire excess insurance policy, then you may also be able to refuse the hire company's tyres, glass and undercarriage protection which typically costs another £17 per week on top of the hire company's excess waiver fee, and often is not available separately. Many standalone excess insurance policies include this cover as standard, and at no extra cost.

3. Take car seats with you. Most airlines won't charge you for taking car seats on the plane. Car hire companies abroad charge on average £87 per week, per booster or child seat, which are a legal requirement for many children abroad. To make their daily rental prices look better, hire companies might sign post stressed and tired families to airport shops where car seats can be purchased at above-market prices and make look hiring a car seat better value. Simply by taking your own child's car seat can save you more money.

4. Many hire companies charge extra to insure your personal effects, another extra you might not need. It's important to understand that personal cover often comes with an excess of its own and low level of cover. This means after the cost of the bolt-on (£16) and the excess (often hundreds of pounds), it might not be worth making a claim. Sometimes personal belongings cover is lumped in with personal injury cover, so be sure to understand exactly what the hire company are trying to sell you and compare to standalone excess insurance policies which typically cover personal possessions for no extra charge.

5. Use a smartphone navigation app rather than hire a sat nav. Most hire cars will have a USB socket for phone charging, and most smartphones will have a default maps/navigation app, as well as a number of free and paid options via the App Store / Google Play. Satnavs can cost as much as £74 to hire for a week and offer no advantages over a smartphone. Take advantage of bringing with you a mobile phone holder as well that fits to wither the windscreen or air vents.

6. Often, additional roadside assistance cover is also unnecessary. Typically, the upgraded roadside assistance offered by the hire company is only to cover you for "breakdowns" that are your fault (lost keys, misfuelling or locking the keys within the vehicle) and in cases where a breakdown occurs that isn't your fault, you may already only be liable to pay a towing fee back to the hire centre where the car will be swapped for another. In both cases, many standalone excess policies will cover lost keys, misfuelling and recovery costs – so there's no need to pay additional fees (£55 per week on average) to the hire company to cover these.

7. Pay online in advance. If you choose to pay on collection, on average the higher company will charge an additional £18 for a week's booking, although some hire companies charge as much as £26. Booking and paying for your hire vehicle online and in advance also means you can avoid being subjected to the "hard sell" when at the hire desk for the extra's you don't need. Don't forget to purchase a car hire excess insurance policy in advance too and check all policy documents carefully so you understand exactly what your cover extends to.

*Prices are average taken for a 7-trip collecting from and returning to Madrid Airport between 2^nd September and 9^th September 2024. Prices taken across 6 leading providers of car hire, rounded to the nearest £1 (GBP).

Company info

ReduceMyExcess provide car hire excess insurance policies, saving holiday makers money on costly excess waivers from car hire companies. ReduceMyExcess is a trading name of Eversure Limited

https://www.reducemyexcess.co.uk/

Contact info

Ian Holmes – [email protected]