UK holidaymakers are being caught out by common car hire pitfalls that can add hundreds of pounds in avoidable costs, according to new research1 from iCarhireinsurance.com, a leading car hire excess insurance provider.
The Opinium survey1 of 1,000 adults, who have hired a car in the UK or abroad, found common pitfalls such as unrecorded damage, expensive add-ons and last-minute excess protection purchase can drive up costs.
iCarhireinsurance.com has identified the key pitfalls drivers should watch out for, and how to avoid them:
Buying extras at the rental desk. Potential saving: £200+ a week.
According to a recent cost survey2, adding a sat nav (£85), an extra driver (£73) and renting a child car seat (£76) adds up to more than £200 per week.
Avoid this by using your smartphone for navigation, only add extra drivers if needed and bring your own child seat, as most airlines carry them free in the hold.
Leaving excess protection cover until the last minute. Potential saving: £150+ a week
More than three quarters (70%) say they feel pressured to buy excess protection at the rental desk, where it can cost around £352 a day - or up to £245 for a week.
Avoid this by arranging excess protection cover in advance from a specialist provider. iCarhireinsurance.com, for instance, offers an Annual European excess reimbursement policy from £41.993 or from £33.153 for a week.
Customers who choose not to take the rental company's excess waiver, including those with independent excess insurance, should be aware that a deposit is typically held on their credit card. This can be around £1,5002, or more, depending on the vehicle and the provider.
It is therefore important to ensure you have a credit card with sufficient credit for the deposit to be held. The amount is released when the car is returned undamaged. If damage occurs, the driver pays the excess and then reclaims through their specialist car hire excess reimbursement policy.
Not checking for existing damage: Risk: being charged for damage you didn’t cause.
More than a third (36%)1 say they discovered damage on their vehicle that had not been recorded at pick-up, leaving them at risk of being wrongly charged.
Avoid this by taking time-stamped photos and videos at pick-up and drop-off, and ensure all damage is recorded before leaving. Check the tyres too, as these can often be overlooked.
Not booking car with free cancellation. Potential saving: up to £100.
In 2025, average European car hire prices4 fell by 16% between January and July, making it £100 cheaper in Nice and Crete for instance, yet just one in four (25%)1 book car hire with free cancellation and only a third (36%)1 check prices again before departure.
Avoid this by booking with a rental company that offers free cancellation and checking for a better deal closer to departure.
Ignoring mileage limits. Risk: costly per-mile charges.
Only half (50%) of car hirers1 check whether their rental includes mileage caps.
Avoid it by checking for daily or total mileage limits, especially for longer trips or road holidays.
Getting caught out by fuel policies. Potential cost: €50+ in fees plus fuel.
Many rentals operate a “full to full” policy. Failing to return the car full can trigger refuelling service charges of €505 or more - and that's before the cost of fuel.
Avoid this by checking the fuel policy and, if you need to return it full, find a petrol station near drop-off to refuel before returning the vehicle.
Returning the car dirty. Risk: cleaning charges.
Some companies now charge cleaning fees for cars returned in poor condition.
Avoid this by removing rubbish and giving the interior a quick clean before drop-off.
Not telling the company if you’re running late. Risk: losing your booking.
Fewer than one in five (17%)1 inform the rental company if they are delayed.
Avoid this by providing flight details and contacting the rental company if you’re running late to reduce the risk of cancellation without a refund.
Ben Wooltorton at iCarhireinsurance.com said: “Car hire is often treated as an afterthought when booking a holiday, but costs can quick spiral if you’re not prepared.
It’s easy for drivers to avoid common car hire pitfalls and keep costs under control with a few simple steps, from checking for existing damage before you drive away, to avoiding unnecessary extras and arranging excess protection cover in advance from a specialist provider like iCarhireinsurance.com.”
Sources:
1 Opinium online survey with 1,000 adults who have hired a car in the UK or abroad took place between 16 - 23 March 2026.
2 iCarhireinsurance.com surveyed the costs for a week’s car hire and extras (such as excess protection, car seats, sat navs and extra drivers) from 4 - 11 April 2026. Prices were checked across six major rental companies - Avis, Budget, Enterprise, Europcar, Hertz and Sixt - in seven popular Easter destinations: Barcelona, Crete, Dubrovnik, Faro, Milan, Nice and Tenerife.
It found to hire a sat nav for a week cost on average £85, an extra driver (£73) and child car seat (£76). While the average the weekly cost for car hire excess protection cost was £208 and average cost Tyre and windscreen excess cover was £38, making a total of £246 average cost.
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.
4 The 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.
5 Goldcar, for example, charges €50 if its agent determines the car is not completely full of fuel – plus its own price per litre for the missing fuel (from Which? article).
