What's the news?
Ever needed to hire a car? And have you always gone for the cheapest option? Well, you're not alone, as apparently one in three of us fall into this trap - but it could be a false economy, as there are often hidden costs that bump up the price of the lease.
A company called iCarhireinsurance.com, one of the leading providers of standalone excess car hire insurance, has conducted a survey and it claims 33 per cent of people hiring cars - whether at home or abroad - often book the cheapest vehicle available, but only 22 per cent check the fine print for 'extras' such as excess waiver insurance, an additional driver, a child's car seat, satnav and more.
The headline price of the loan often hides extra costs, with more than one in seven (15 per cent) who have hired a car admitting they have spent additional cash when picking up their vehicle, even when they thought they'd paid for everything; and 19 per cent of the survey's respondents were shocked to find out the hidden extras can often double or even triple the rental price.
As an example, iCarhireinsurance.com looked at five rental companies in Faro, a popular Portuguese holiday destination. The average price across these firms for a week's car hire this summer amounts to €182.50 - but then there are the following (average) costs which can tot up on the bill: €152 on car hire excess insurance (€112 for basic waiver policy and a further €40 for tyre/windscreen excess policy); child's car seat hire, €69; satnav, €68; and €50 for an extra driver. That amounts to €339 just on extras, so you could end up paying €521.50 instead of €182.50. Ouch.
Anything else?
"It's important that travellers are not taken in by a low headline price only to be stung at the rental desk," said Ernesto Suarez, founder and CEO of iCarhireinsurance.com. "However, it is possible not to spend a single penny if you bring your own satnav (or use an app on your mobile) and child's booster seat, and don't put an extra driver on the policy."