Watchdog: Hire car charges

If you’re heading away on holiday this summer, there’s a good chance you’ll hire a car. And if you do, keep an eye on the small print – and pay close attention at the rental desk when you pick up the keys. We’ve had a lot of complaints recently over extra charges imposed by firms.

The most common issue is with excess waivers. And no wonder: a recent YouGov survey revealed that only 29 per cent of customers actually know what car hire excess is. And it seems rental companies may be exploiting this ignorance.

For example, six per cent of respondents said they bought an excess waiver due to pressure put on them by staff at the rental desk.It’s not hard to see why. Our table shows the excess – the amount the customer is liable for if the vehicle is damaged or stolen – can come in at over £1,000. That’s enough to tempt many into taking out an excess waiver to cover or reduce that liability.

However, as our table shows, buying it at the desk could add up to 49 per cent to your bill. Cheaper excess waivers are available in advance or from third-party providers such as protectyourbubble.com and iCarhireinsurance.com.

If you buy in advance, don’t get talked into buying extra cover at the desk. In Issue 1,203, we told how Conor Mills of London was incorrectly told the excess waiver he’d bought had loopholes that meant he was still liable for the excess if he caused an accident.

Gina London, from Hove, East Sussex, claims she had a similar experience. She and her husband told the staff member at Budget in Dublin Airport they already had an excess waiver. “He became sarcastic and said we’d be lucky to get anything from it,” Gina told us. “He insisted we may not be insured for theft, so we felt we had to take the extra cover.”

When contacted about the case, Budget stated: “Renters can reduce their excess to zero with a Super Collision Damage Waiver (SCDW), which is charged at either 16 or 20 Euro per day in Ireland, depending on the car.

“Third-party excess insurance covers the customer, not Budget. The customer is still liable for the excess and would have to claim it back from the insurance firm.”

The best way to combat this is to read the small print. And if you buy an excess waiver in advance, ensure you know exactly what you’re covered for.

Costs for UK resident renting a Volkswagen Golf-sized car in Barcelona for three days starting on 6 April 2012.  Data provided by iCarhireinsurance.com.