The cost of hiring a car can vary dramatically depending on how and when travellers book, yet new research1 from iCarhireinsurance.com, reveals many holidaymakers are failing to shop around for the best deal.
An Opinium survey1 of more than 1,000 UK drivers, who have hired a car, found that only 42% use price comparison websites, while just 36% check prices again before departure to see if cheaper deals have become available.
The research also found that fewer than half (46%) check the cost of extras such as excess protection, additional drivers and sat navs before booking, despite these add-ons often significantly increasing the final bill.
Car Hire Cost Saving Tips From iCarhireinsurance.com
1. Book early, but keep checking prices
Book early and shop around to get the hire car you want at a competitive price but choose a company offering free cancellation so you can rebook if prices fall. Last summer, average European car hire prices3 fell by 16% between January and July 2025, making bookings around £100 cheaper in destinations such as Nice and Crete. Yet only one in four (25%)1 book with free cancellation and just 36%1 check prices again before departure.
Shopping around can also make a significant difference, as prices can vary widely between providers. For example, for a week’s peak summer hire2 in Crete this year, Sixt quoted £319 while Avis quoted £504.
2. Buy excess protection separately and you could save around £200
If a hire car is damaged or stolen, drivers remain liable for the excess, which can be as high as £1,600. Car hire companies typically offer excess protection at the rental desk, commonly known as super damage waiver and tyre and windscreen cover. An iCarhireinsurance.com costs survey4 found these add-ons costs an average of £232 per week in Europe (£168 for super damage waiver and £64 for tyre and windscreen waiver).
This compares with £33.155 for a standalone excess reimbursement policy from a specialist provider, such as iCarhireinsurance.com, covering damage, theft, tyres and windscreens. Annual European polices start from £41.995.
Drivers should note they will still need a credit card for the rental company to hold the excess deposit, as standalone policies reimburse the customer directly.
3. Avoid unnecessary extras at the rental desk
Only 46%1 of car hirers check the price of extras when booking their hire car. Research by iCarhireinsurance.com4 found holidaymakers could pay, on average, an additional £75 for an extra driver, £85 for a sat nav and £74 for a child’s car seat, and £232 for excess protection - adding £4664 to the final bill.
Travellers can often save money by buying excess protection in advance from a standalone provider, bringing child car seats from home, using smartphone maps instead of hiring a sat nav and considering whether they really need to add a second driver.
4. Take photos of existing damage on hire car before you drive away
More than one in three (36%)1 hire car drivers said they found damage on a hire car that had not been highlighted on the checkout sheet. To avoid unfair damage charges, check the vehicle thoroughly at pick-up and return, and take dated photos or video footage as evidence.
5. Compare airport prices with nearby locations
Hiring directly from airports and railway stations can sometimes cost significantly more. Compare prices with nearby branches from the same rental company, as the savings may outweigh the cost of a short taxi journey.
6. Use a credit card when booking
Use a credit card to gain Section 75 protection under the Consumer Credit Act. This means the credit card provider will protect purchases over £100 (and less than £30,000) and you could get your money back if there is a problem.
7. Read the small print carefully
Almost half (45%)1 of car hirers admitted signing the rental agreement without reading it properly. Always check the contract carefully to ensure you are not agreeing to unnecessary upgrades or additional insurance products you do not want.
8. Check the fuel policy
Before driving away, make sure you understand the fuel policy. If the car must be returned with a full tank, failing to do so could result in expensive refuelling charges. Keeping fuel receipts can help avoid disputes.
9. Watch for mileage restrictions
Only half (50%) checked whether their rental agreement includes mileage limits. Drivers planning longer road trips should check restrictions carefully to avoid unexpected charges.
10. Know how to complain if something goes wrong
If you experience problems, complain to the rental company as soon as possible and ideally within 14 days.
If the issue is not resolved, UK customers can escalate complaints to the British Vehicle Rental and Leasing Association (BVRLA), whose members include Avis, Budget, Enterprise, Europcar, Hertz and Sixt.
Drivers can also contact the European Car Rental Conciliation Service (ECRCS), a free dispute resolution service covering participating rental companies including Alamo, Avis, Budget, Dollar, Enterprise, Europcar, Hertz, National, Sixt and Thrifty.
Ben Wooltorton from iCarhireinsurance.com said: “There are good savings to be made on car hire this summer if travellers are willing to shop around and avoid unnecessary extras at the rental desk.
“Many drivers don’t realise that add-ons such as excess protection, sat navs and child seats can dramatically increase the final cost of hiring a car. Buying standalone excess cover from a specialist provider like iCarhireinsurance.com, before travelling can often work out far cheaper.”
Sources:
1Opinium online survey with 1,000 adults who have hired a car in the UK or abroad took place between 16 - 23 March 2026.
2iCarhireinsurance.com surveyed the costs for a week’s car hire and extras (such as excess protection, car seats, sat navs and extra drivers) from 25 July to 1 August 2026 in 12 countries. Prices were checked across six major rental companies - Avis, Budget, Enterprise, Europcar, Hertz and Sixt.
3The costs comparison study by iCarhireinsurance.com compared the cost of booking a medium compact car (e.g. VW Golf or Ford Focus) from 26 July - 2 August 2025 if booked back in January 2025 or if booked on 21 July 2025, a week before departure. Seven popular European destinations (Barcelona, Crete, Dalaman, Dubrovnik, Faro, Milan and Nice) and six major rental providers (Avis, Budget, Enterprise, Europcar, Hertz, and Sixt) were surveyed.
4iCarhireinsurance.com looked at the cost of hiring a medium compact car for a week, from 23 – 30 May 2026, in six European destinations (Barcelona, Faro, Larnaca, Nice, Malaga and Tenerife) with six rental companies, Avis, Budget, Enterprise, Europcar, Hertz & Sixt. iCarhireinsurance.com also looked at the cost of extras including excess protection, extra drivers, child seat and sat navs.
5£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.
