ConsumerValue: Transport and Travel
3. Car rental
With many people now organising “build your own” holidays and breaks away, renting a car can become an integral part of the process when we travel.
However, while modern technology and business practices have simplified many consumer transactions, the process of hiring a car remains problematic and complex and can result in unpleasant surprises for some consumers.
The key ConsumerValue issues with car hire relate to hidden or unexpected charges that can arise, so watch out for the issues below to ensure you know what you are signing up for when you put your name to the contract.
The basic price quoted for the hire of car is usually only a baseline and, depending on your needs, a range of additional costs can arise.
You will usually have to pay extra for:
- Child seats
- Including additional driver(s) on the insurance (be particularly careful about minimum driver age here also – it’s often 25 years and over only)
- Topping up the basic insurance to protect you against “excess” payments in the event of a claim – this top up insurance is usually called Super Collision Damage Waiver (Super CDW) cover
- Distances driven above a certain threshold
- Returning the car outside of business hours
- Refilling the tank if you don’t return it full
- Crossing international borders
- Returning the vehicle to a point other than the pick-up point or to an airport
Check out the additional charges for each of the above when comparing car hire offers so that you have a fuller and more realistic understanding of the “all inclusive” price before you set about making a final decision.
Remember that some of these “extra” costs do not have to be incurred. By thinking smartly, you may be able to avoid some of them…
Child seats
These are a safety issue so there is usually little room for working around this particular cost.
However, remember that for longer trips in particular, it may be cheaper to pay the airline to transport your own child seat as luggage than to pay the car hire company’s charges – compare the two and decide what works best for you.
Make sure, though, that your child seat will fit the car you plan to rent.
Additional Drivers
If it’s manageable in terms of how you plan to use the car during your trip, have only one nominated driver.
Top-up insurance
Consider your need for Super CDW - this is very much a case of weighing up the cost of the insurance against the likelihood of a problem and/or the absolute amount of any excess payable, in the event of a claim under the insurance.
Excess amounts usually run into several hundreds of euro and in some cases for larger cars can be in excess of €1,000, so it may be well worth the extra money.
Typically, however, the cost for Super CDW cover offered by the car hire companies is high.
Some insurers offer Super CDW policies that are personal to the insured person rather than to the vehicle.
If you plan to hire a car for more than a few days or if you frequently hire a car during the year, this form of Super CDW cover may be more cost effective for you than taking the hire company’s Super CDW insurance for the duration of an individual hire.
Limited mileage
This is a particularly tricky issue if you are hiring the car for a driving holiday.
Always check your insurer's terms and conditions, as not all hire companies apply a mileage restriction. But where they do, the additional cost per kilometre or mile can add up considerably if you are covering long distances.
Remember, you are paying both for the fuel and for the additional mileage you are clocking up.
If you think you are likely to cover large distances, it can be well worth checking out all the car hire companies offering services in the area you wish to visit, to find one that does not apply mileage limitations.
Returning the car outside of business hours
This is not a recommended practice at the best of times, as you are then relying on an inspection of the car that will take place after you have returned the keys and while you’re not there.
Many holiday-makers who are not present when their hire car is inspected after return are surprised to find themselves being charged for “damage” they feel they did not incur to the vehicle.
So it is always best to return to the vehicle during the opening hours of the hire firm and to be present when the examination is taking place.
Refilling the tank if you don’t return it full
This is a major money spinner for some car hire companies, as the litre charge for fuel when topped up by the hire company is typically far in excess of that at the nearby petrol station.
So, whenever possible, always ensure you fill up the tank prior to returning the vehicle.
Some car hire contracts specifically provide for return with an empty tank (where you have effectively “bought” the full tank of fuel along with the rental and you will receive no refund for any fuel remaining in the tank on return) but this is uncommon nowadays.
Read the small print in your contract and if you are not sure, ask for clarification.
Crossing international borders
Arising from insurance issues, there can be limitations on crossing borders with hire cars.
This is less common in mainland western Europe, but would be a particularly common feature of car hire contracts in central Europe, where hire companies will not allow you to cross into, for example, selected former Eastern Bloc countries with their cars or will require particular insurances be subscribed if you plan to do this.
Returning the vehicle to a different point
If you are collecting the car at the airport on arrival, it will usually be convenient for you to return it on the way home, but some journeys are one-way only and for others, a multi-destination holiday will mean you wish to arrive in one place and depart from another.
This almost always incurs additional charges, so be sure you ask in advance about these.
Collection from and return to an airport also invariably attracts extra charges, but these are usually included in the initial quote you are given for the rental.
If you have an alternative, for example, if you could pick the vehicle up from the nearest town centre etc, it will almost certainly be cheaper. However, you then have to consider the cost of transport to and from your point of arrival and departure on either side.
But no matter where you pick up the car, always examine it carefully before you take possession. Alert the car hire firm to any damage to the car and make sure this is recorded on any documentation you are given.
Learn more
Read more tips about renting a car
Visit the Car Rental Council of Ireland's website
For car rental companies in other EU member state, read how the European Consumer Centre is tackling the problem