Holiday makers wanting to grab a November break in the sun need to watch out for car hire costs as the extras can add up to more than six times the cost of the original hire car, according to a study into the costs of five well-known car hire companies.
iCarhireinsurance.com, a leading provider of stand-alone car hire excess insurance, compared the car hire costs from 12 – 19 November 2016 with the five rental companies of Sixt, Hertz, Avis, Budget and Europcar in four popular winter sun destinations of Tenerife, Faro, Paphos and Florida.
The cost of hire cars varies considerably between locations, with the average price in Faro being only £94 for the week, but £201 for a week in Florida, but there is also a huge difference between hire car companies in the same locations. Budget in Faro charge only £67 for week’s car hire, but Europcar in Faro charge £150. Budget in Florida charge £147 for a week’s hire car, but Europcar in Florida charge £314, so it is worth shopping around.
But it is also important to take into account the cost of the extras, which also vary considerably, and can really add up.
- Sixt in Paphos charge only £21 for an extra driver, but Hertz in Florida charge £77.
- Avis in Tenerife charge £35 for a Sat Nav for a week, but Budget in Faro charge £115.
- Budget in Tenerife charge £25 for a child’s car seat, but Hertz in Florida charge £74.
- Sixt in Paphos charge £36 for a young driver, but Budget in Florida charge an additional £170.
Hiring a medium sized family car in Faro will cost on average only £94 for a week, but the average price of extras including a child’s car seat (£67), Sat Nav (£74), extra driver (£53), as well as Super Damage Waiver (£130), Super Theft Waiver (£121), and Tyre and Windscreen cover (£30), increase this to £566, more than six times the cost of the original hire car.
In Tenerife the car rental price averaged at £142, but adding a child's car seat (at £39), an extra driver (at £63), a Sat Nav (at £65), as well as the Super Damage Waiver of £124, Super Theft Waiver of £37 and Tyre and Windscreen cover £30, takes the total bill to £477, more than three times the original hire price.
In Paphos the car rental price averaged at £104, but adding a child's car seat (at £35), an extra driver (at £24), a Sat Nav (at £58) and paying for the rental company's Super Damage Excess £79, and the Tyre and Windscreen Excess at £30, takes the total bill to £336 - three times the original hire price.
In Florida, the car rental price averaged at £201, but adding a child's car seat (at £54), an extra driver (at £50), a Sat Nav (at £72) almost doubles this. Some companies in the USA don’t charge an excess with their insurance, but Europcar offer extra insurance at £71 for Super Damage Waiver, £148 for Super Theft Waiver, and £89 for Tyre and Windscreen cover. Hiring a car for a week with Europcar costs £314, but all the extras take the total bill to over £845 - almost three times the original hire price.
In Europe, and sometimes in the USA, drivers are liable for the excess if the hire car is damaged or stolen. The average excess for the destinations in this study was almost £1000 for damage and £1285 for theft. However damage excess can be as much as £1794 with Hertz in Faro, and £1944 with Europcar in Florida, and both companies have the same amount of excess on their theft policies.
Many rental companies offer waiver policies to protect drivers from this, which they have started to sell separately. Many Super Damage policies only cover drivers if the car is damaged, not if it is stolen, and exclude damage to tyres and windscreens, e.g., Sixt in Paphos charge £31 for its Super Damage policies, but Avis in Paphos charge £157.
Super Theft waiver policies only protect drivers if their car is stolen. Prices range from Budget in Tenerife charging £69 to Europcar in Florida charging £148. The average price for separate tyre and windscreen cover is £35, but can be as much as £89 with Europcar in Florida.
iCarhireinsurance.com's comprehensive excess policy includes cover for theft and damage, including tyres and windscreen, so there is no need to buy three separate policies. It costs from £2.99 a day in Europe, £23.92 for the week or £37.99 for an annual policy - this is almost seven times cheaper than buying the different policies from the rental desks.
Travellers can avoid paying the high costs at the rental desk by bringing their own child's seat and sat nav; avoiding putting any extra drivers on the policy; and purchasing car hire excess insurance from a specialist insurer, like iCarhireinsurance.com, before they travel.
"As the weather turns colder, many people want to head to warmer climes but sun seekers need to make sure they don’t get caught out at the rental desk. Buying extras in advance can save drivers hundreds of pounds. Also, rental desk excess insurance is increasingly expensive and confusing. Drivers can be confident with our policies that they are covered if the car is damaged, or stolen, and it also includes windows and tyres.” said Ernesto Suarez, CEO and founder of iCarhireinsurance.com.
The average costs to hire a medium sized, compact car from five rental companies (Sixt, Hertz, Avis, Budget and Europcar) from 12-19 November 2016
|Destination||Car Rental Price||Child Car Seat||Extra Driver||Sat Nav||Super Damage Waiver||Super Theft Waiver||Tyre and Windscreen Excess||Starting Excess Value||Total cost rental + extras||% Increase vs rental cost|
For more informations, please contact:
- Or Ben Wooltorton, Sales and Marketing Director, Halo Insurance Services Ltd
Notes to Editors
Halo Insurance Services Ltd is a ground-breaking online insurance broker which was founded in 2009 by Ernesto Suarez, a leading insurance expert specialising in non-standard motor insurance. Its products include car hire insurance, van hire insurance and car club excess insurance all of which have been designed to offer more cover for a better price than the excess waivers offered at the rental desk.
Halo operates the retail brands iCarhireinsurance.com in the UK, Leihwagenversicherung.de in Germany, Aseguramicochedealquiler.es in Spain, Huurautoverzekering.com in the Netherlands, Assurancelocationvoiture.fr in France and Insuremyrentalcar.com in the USA. Halo also provides insurance solutions to a number of commercial partners involved in the provision of software and booking services to car hire operators around the world.
In 2016 Halo launched InsuretheGap.com, which promises to save car buyers hundreds on GAP (Guaranteed Asset Protection) insurance policies, compared with those purchased through car dealerships.
- FINALIST - 2016 British Insurance Awards - Digital Innovation Award
- FINALIST – 2014 British Insurance Awards – Personal Lines Broker of the Year Award
- WINNER - 2013 British Insurance Awards – Insurance Start-Up Award
- FINALIST - 2012 British Insurance Awards – The E-Business Award
- WINNER - 2011 Insurance Times Awards – Broker Innovation of the Year
Halo Insurance Services Limited is registered in England number 6929208. Authorised and regulated by the Financial Conduct Authority. Register No. 504629 for the sale and administration of general insurance products in the United Kingdom and throughout the European Economic Area (EEA).