Leaving car hire until the last-minute can either deliver a welcome saving or add almost £200 to the cost of a holiday, according to new research by iCarhireinsurance.com, a leading provider of car hire excess reimbursement insurance, covering seven popular European destinations¹.

In Faro, the average cost of a week’s car hire from 25 July to 1 August 2026 rose from £353 when checked in January to £544 when checked five days before departure, an increase of £191, or 54%.

Last-minute prices were also higher in Dubrovnik, rising by an average of £46, from £386 to £432, or 12%. Prices increased by £52 in Dalaman, from £355 to £407, or 15%, and by £29 in Barcelona, from £247 to £276, or 12%.

By contrast, last-minute prices were cheaper in Crete, Nice and Milan. Travellers hiring a car in Crete could pay an average of £370 when booking five days before departure, £85, or 19%, less than the £455 average quoted in January. Prices also fell in Nice, from £415 to £339, or 18%, and in Milan, from £443 to £415, or 6%.

For holidaymakers who booked their hire car earlier in the year, it is worth checking prices again. If they find a cheaper option and can cancel their existing booking without charge, they should secure the replacement car before cancelling their original reservation.

Ben Wooltorton at iCarhireinsurance.com said: “Our research shows that leaving car hire until the last-minute can pay off, but it’s a gamble. Holidaymakers travelling to Crete or Nice could make a good saving this summer, while someone hiring in Faro could pay more than 50% more than they would have done in January. Prices can also vary significantly between rental companies in the same destination, so it’s important to shop around rather than accepting the first quote you find.”

He added: “At the start of the year, we recommended that holidaymakers book their car hire early with flexible cancellation terms, allowing them to check prices again closer to departure and switch if a better deal became available. As this latest analysis shows, there are worthwhile savings to be made in some destinations. Anyone who finds a cheaper option should always secure and confirm the new booking before cancelling the original one.”

Table 1: Average Weekly Car Hire Costs for Summer 2026 When Checked in January and July 2026

There is another significant potential saving that many car hirers overlook: the cost of protecting themselves against the excess. The excess is the amount drivers could be liable to pay if the hire car is damaged or stolen, even if it is not their fault, and averaged more than £1,600 in this study¹.

When bought from the rental desk, excess protection costs an average of £196 for a week for a super damage waiver, plus £51 for tyre and windscreen cover, a combined cost of £247. However, a stand-alone excess reimbursement policy from a specialist provider such as iCarhireinsurance.com costs from £33.15² for a week, or £41.99² for an annual European policy, offering a potential saving of up to £214.

Standalone car hire excess reimbursement policies not only offer significant savings but usually include cover for damage to vulnerable parts of the vehicle such as tyres, windscreen, undercarriage and roof – areas often excluded when excess protection is purchased from the rental company. Renters should note that they will still need a credit card for the rental company to hold the excess as a deposit, as standalone excess insurance reimburses the hirer directly.

“With the cost of holidays adding up, it pays to look for savings wherever you can,” said Ben Wooltorton. “One easy win is buying a standalone excess reimbursement policy in advance, from a specialist provider like iCarhireinsurance.com, which can potentially save you over £200.”

¹ The study by iCarhireinsurance.com compared the cost of hiring a medium compact car (and extras such as excess protection, car seats, extra driver & satnavs), such as a VW Golf or Ford Focus, from 25 July to 1 August 2026. Prices were first checked in January 2026 and checked again on 20 July 2026, five days before departure. Quotes from Avis, Budget, Enterprise, Europcar, Hertz and Sixt were surveyed across Barcelona, Crete, Dubrovnik, Faro, Nice, Dalaman and Milan.

² £33.15 based on a 30-year-old UK resident buying an 8-day single trip car hire excess policy from iCarhireinsurance.com for use in Europe. £41.99 annual price is based on a UK resident aged between 30-80 purchasing an excess Europe annual policy excluding in-country (UK) cover.