The car rental traps to watch out for when abroad

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Hiring a car when abroad can be a great way to see the sights at your own pace, but watch out for hidden fees.

A shortage of cars and rising demand means car hire prices have “sky-rocketed” since 2019 and stayed there after the pandemic, said MoneySavingExpert.

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So the “last thing you need” is poor customer service or “sneaky or unfair extra charges”, said Which?

Here is how to find the best car hire deals and the traps to watch out for.

Shop around

You will most likely be offered car hire with the airline or provider you book your holiday with but these are often “far more expensive”, explained The Money Edit.

Travellers can compare prices and the best car model for their needs on comparison websites such as Holiday Autos and Travel Supermarket.

“Booking early usually wins,” said MoneySavingExpert, as prices will be cheaper than just booking at the desk when you arrive.

Insurance costs

Insurance is usually included with a hire car but there can be “incredibly high” excess charges if you need to make a claim for an accident or damage, explained Travel Supermarket.

There are insurance policies to cover the excess, and it can be cheaper to buy this separately in advance rather than from the rental provider.

But Martyn James warned in The Times Money Mentor that many car hire firms are “insisting that you take out their own policies”, which can cost £200 or more compared with £20 to £40 in the UK. So check the policy before you book.

Fuel policies

Car hire companies will have different policies when it comes to petrol. Some will want the car returned with a full tank or you will be charged an “inflated price” to fill it back up, warned MoneyWeek.

Others will let you return a car with an empty fuel tank but check if there are any refunds for unused fuel or use up as much petrol as possible, said easyCar, “otherwise you’re just paying a higher price for fuel you didn’t use and giving it back to the rental supplier for free”.

Avoid the extras

You may need a satnav or car seats for children when driving abroad but “don’t fall into the trap” of hiring them through your car rental company, said TravelSupermarket, as it will be cheaper to bring your own.

Airlines will usually let you bring car seats for free plus you turn your phone into a “free worldwide sat-nav”, said MoneySavingExpert by downloading directions on apps such as Google Maps, Navmii or Maps.me. The maps will be stored offline on your phone so you won’t need to use data or Wi-Fi.

Forced upgrades

Many car hire firms sold their fleet during the pandemic, said MoneyWeek, meaning there is a shortage of vehicles.

You should receive a refund if you are downgraded to a smaller car and an upgrade should be free if you get a larger one instead, but “make sure this is agreed and on your paperwork before you accept a different car”.

Watch out for hidden and unexpected charges

Check the small print on your car hire agreement. Some “unscrupulous” companies may try to charge drivers for existing scratches and small dents, said The Money Edit, so make sure you check and take photos of the inside and outside of the car before driving off and when you return it.

There may also be a “bewildering range” of add-on charges, said The Times Money Mentor, such as out-of-hours fees if you collect or return the car late.

There may also be a young driver fee for those under-25 or extra charges for dropping the car in a different place to where you collected it, said SkyScanner, so make sure you check these with the provider.

Pay by credit card

Paying by credit card gives you protection under section 75 of the Consumer Credit Act.

This is “very valuable”, said MoneySavingExpert, if you end up having problems with an overseas car hire firm, as it makes your credit card company “equally liable” if something goes wrong.

So if there is a dispute over charges worth more than £100 with your car rental firm, added MoneyWeek, you can “take the matter to your credit-card company and ask for a refund”.