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Monday, 14 October 2013 11:26

Hire cars cost around 100% more again with extras at the rental desk

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Five out of seven family-favourite destinations this October half-term will require travellers to pay over 100% again for their car hire once added extras are bought at the rental desk.      

According to research by iCarhireinsurance.com, the leading stand alone provider of car hire excess insurance, the headline price only represents about half of the total cost that is needed by families for a week’s car hire.

iCarhireinsurance.com compared the prices of five rental companies for a week’s hire, 26 Oct to 2 Nov, of a compact family car, e.g., a VW Golf, in the seven popular get-aways of Cyprus, Tenerife, Faro, Nice, Dubrovnik, Milan and Barcelona, together with the costs for added extras including a child’s car seat, an extra driver, excess waiver insurance and a sat nav.  

In Tenerife, for example a family hiring a VW Golf, or similar, will pay on average £151 for the week’s hire but will pay out £262 at the rental desk when they pick their car up - an extra  174%.  

This is paying £53 for a child’s car seat, £54 for an extra driver costing, £56 for a sat nav and car hire excess insurance, to protect them against the first part of any insurance claim (which can be up to £1500), costing £99 for the week, making  a grand total of £262.

“Car hire companies are making their profit on charging an initial low fee for car hire and making up their profit margins at the rental desk,” said Ernesto Suarez, founder and CEO of iCarhireinsurance.com.  “Take your own sat nav, your own child’s seat, don’t pay for an extra driver but above all don’t pay for car hire excess insurance at the rental desk.  There is no need to buy anything when you pick up your hire car.”

Car hire insurance is the biggest single outlay at the rental desk, and families could be paying up to £310 for a week’s cover in Milan with Europcar, £240 with Budget in Dubrovnik and around £200 in Faro also with Europcar.  

When an iCarhireinsurance.com daily cover is only £2.99 (from £39.99 for an annual policy), this is a hefty price to pay.  An iCarhireinsurance.com policy also protects vulnerable parts of the vehicle, including the tyres and windscreen, which are frequently excluded from rental desk companies’ policies.  In Nice, for instance, Europcar charges £129.67 for an additional excess policy for tyres and windscreen, while Sixt charges a more reasonable £30.19 – these are on top of their standard excess policies. 

How the destinations compared overall:

Barcelona and Milan are the most expensive place for hidden extras (i.e., a child seat, an extra driver, a sat nav and car hire excess insurance) and families can expect to pay over 185% on top of the original cost on arrival

Barcelona, Milan, Faro, Tenerife and Nice all require families to pay over 100% more again for these extras

Dubrovnik and Cyprus are the most reasonable places for families to pay for those added extras, but families can still expect to pay an additional 90% more

In full the destinations charged on average the below prices:

- Barcelona:  The average price to rent a car was £168, while the cost of the extras of car hire excess insurance (at £114), an extra driver (at £57), a child’s car seat (at £66) and a sat nav (at £74), totals £311. Therefore a consumer is paying an additional 185% more!  

- Faro: The average price to rent a car was £240, while the cost of the extras of car hire excess insurance (at £121), an extra driver (at £32), a child’s car seat (at £57) and a sat nav (at £58), totals £268. Therefore a consumer is paying an additional 112% more!  

- Dubrovnik: The average price to rent a car was £314, while the cost of the extras of car hire excess insurance (at £128), an extra driver (at £26), a child’s car seat (at £44) and a sat nav (at £80), totals £278. Therefore a consumer is paying an additional 89% more!  

- Tenerife: The average price to rent a car was £151, while the cost of the extras of car hire excess insurance (at £99), an extra driver (at £54), a child’s car seat (at £53) and a sat nav (at £56), totals £262. Therefore a consumer is paying an additional 174% more!

- Milan: The average price to rent a car was £217, while the cost of the extras of car hire excess insurance (at £168), an extra driver (at £48), a child’s car seat (at £94) and a sat nav (at £94), totals £404. Therefore a consumer is paying an additional 186% more!  

- Cyprus : The average price to rent a car was £179, while the cost of the extras of car hire excess insurance (at £59), an extra driver (at £24), a child’s car seat (at £29) and a sat nav (at £53), totals £165. Therefore a consumer is paying an additional 92% more! 

- Nice: The average price to rent a car was £194, while the cost of the extras of car hire excess insurance (at £72), an extra driver (at £37), a child’s car seat (at £37) and a sat nav (at £72), totals £218. Therefore a consumer is paying an additional 112% more!

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