Planning to hire a car this summer? New research - tracking car hire costs across 12 destinations since 2014 - reveals that destination choice, shopping around car hire companies and a little advance planning can make a significant difference to what you pay.

The annual study, now in its twelfth year¹, by leading car hire excess reimbursement insurance provider, iCarhireinsurance.com, analysed the cost of hiring a compact car (such as a VW Golf) for one peak summer week (25 July to 1 August 2026) across Australia, Croatia, France, Germany, Greece, Italy, Portugal, Spain, Switzerland, Turkey, the UK and the USA, comparing prices from six major rental companies: Avis, Budget, Enterprise, Europcar, Hertz and Sixt.

The average weekly car rental price across all 12 destinations is £373, compared to £369 in 2025 and £380 in 2024.

The Best Value Destinations for Summer 2026

Germany (Munich) - At £292 per week on average - Sixt offered hire from £216 - Munich is the most affordable destination in the study. For those considering a European road trip, Germany offers a central location and competitive pricing.

Australia (Sydney) - Weekly car hire has fallen to £309 on average in Sydney in 2026, down significantly from its peak price of £550 in 2023 and is not too dissimilar to its pre-pandemic price of £229 in 2019.

UK (London) - London has seen one of the sharpest year-on-year drops in the study, falling from £400 in 2025 to £314 - good news for those considering a domestic road trip this summer, with Europcar offering weekly hire from as little as £257 and Hertz at £291.

Portugal (Faro) - Faro is the only destination in the study where car hire is now cheaper than it was before the pandemic at £321 per week on average in 2026. Budget offered the lowest price at just £271 per week, as well as Enterprise at £295. For value-conscious travellers planning a driving holiday, Faro is a good starting point.

USA (Florida) - Florida remains excellent value for a long-haul driving holiday, averaging £338 per week in 2026. Shopping around pays dividends here: Budget comes in at just £217 per week and Avis at £231, both significantly below the destination average, but make sure you check the cost of any extras you will need.

Where to Keep an Eye on Prices

Some Mediterranean hotspots are showing slight price increases compared to 2025, making early booking with a company offering free cancellation - and regular price checking -worthwhile:

Spain (Barcelona): Up 39% to £440 on average for weekly car hire in 2026 from £316 in 2025, but there are wide price variations between companies (from £282 at Europcar to £648 at Budget) so shopping around is essential.

Turkey (Dalaman): up 11% to £388 in 2026 from £350 in 2025.

Italy (Milan): up 20% to £460 in 2026 from £382 in 2025.

Croatia (Dubrovnik): up 14% to £364 in 2026 from £320 in 2025.

The Savvy Car Hirer's Checklist: How to Keep Costs Down

Wherever you hire, the real opportunity for savings lies in what you buy and don’t buy at the rental desk. Customers who accept the full range of add-ons can pay an extra £455² on top of the headline hire price of £373, taking total costs to over £800 on average for the week. Here's how to avoid this:

Sort your excess protection cover before you travel. The biggest rental desk cost is car hire excess protection - averaging £208 per week in this study, with a further £34 for windscreen and tyre excess cover. This protects against the damage and theft excesses liabilities, which average £1,700, if the car is damaged or stolen. But a standalone reimbursement policy from a specialist provider like iCarhireinsurance.com costs from just £3.49 per day³ - or £41.99³ for annual European cover - and often provides more comprehensive protection, including tyres, windscreen, undercarriage and roof, which rental companies frequently exclude. The saving can be over £200 on a single trip.

Please note you will still need a credit card at the rental desk for the company to hold the excess as a deposit. A standalone excess policy reimburses you directly if you need to make a claim.

Shop around between car hire companies - prices vary widely and check they offer free cancellation. Within the same destination, prices between rental companies can differ substantially. In Barcelona, for example, the gap between the most and least expensive company in this study is over £360 for the same week. Checking multiple providers before booking takes only a few minutes and can make a significant difference, especially if they offer free cancellation which means you can secure the car you want, and check prices before you travel to see if you can get a better deal

Bring your own extras where you can. A sat nav (charged at around £74 for a week by rental companies in this study) and a child seat (£70) are both areas where planning ahead pays off. Many families already own portable sat navs or can use their smartphone, and bringing your own child seat is worth considering, particularly when most airlines allow them in the hold for free.

Ben Wooltorton at iCarhireinsurance.com said: "Hiring a car unlocks a holiday in a way that nothing else quite does - the freedom to explore at your own pace, discover places off the tourist trail and travel on your own timetable. The good news is that prices have come down a long way from the painful highs of 2022, and in many destinations, especially Portugal and Germany, there are some great value options to be found.
"The key is going in with your eyes open. Know what the headline price covers, sort your excess protection reimbursement insurance before you travel, and don't feel pressured at the rental desk. A little preparation can save you hundreds.”

Table of average rental company costs to hire a medium, compact car for the same summer week in 2019, 2022, 2023, 2024, 2025 and 2026. Six rental companies' costs were compared – Avis, Budget, Enterprise, Europcar, Hertz & Sixt.

Sources

¹ 2014 – 2026 is 13 years, but no research was completed in 2020 due to Covid

² The iCarhireinsurance.com 12 country costs study in 2026 found the average weekly price of extras if bought from the rental company/rental desk was £455. This is car hire excess protection costing £208 per week, with a further £34 for windscreen and tyre excess cover, a sat nav costing £74, a child seat costing £70 and additional driver costing £69. The total cost is £455, which if added to the headline car hire cost of £373, comes to a total amount of £828.

³ £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.