Consumer rights expert Martyn James has seen it all when it comes to car hire. Every year, he says, travellers complain about "upgrades" that end up costing a fortune, disputes over whether the tank was full or empty, overpriced insurance policies and, worst of all, thousands of pounds being taken from credit cards for damage claims that may never have happened. Not every company is a bad one, he adds, but the reputation of the worst offenders means you should be ready for the tricks.
Do your research before you travel
Always compare car hire prices from home before committing to a firm. Comparison sites show how fiercely competitive the market is, but that low quote often comes with higher excess fees and extra charges. The cheapest policy could end up costing more once all the catches are added up.
Ask friends and family about their positive experiences, but remember that the same brand can operate very differently from country to country. A good experience in Milton Keynes does not guarantee the same service in Malaga.
Beware airport fatigue
Wherever possible, avoid booking a car on arrival at an airport, station or ferry terminal. You are likely to be tired and eager to get to your destination, which is exactly what the hire firms rely on. Even with a pre-booking, you may suddenly face extra charges that were never mentioned when you booked. Take your time and read the contract carefully.
Avoid upgrades and confirm the booking the day before
Upgrades and unavailable vehicles are a common source of complaints. A nicer car might look like a treat, but you could be required to buy a new insurance policy for it, costing £200 to £300, and your excess fees may rise because the vehicle is worth more.
The opposite problem is a downgrade. Martyn's friends Aki and Tsukasa were given a manual car in France despite having booked an automatic, even though they had never driven a manual. That was a breach of contract and fundamentally dangerous. To avoid this, check 48 to 24 hours before you travel that your booked vehicle will be available, make clear you will not accept an alternative, and get that in writing.
Question the credit card payment
Most car hire firms insist the driver pays the fee and deposit on a credit card in their own name. This is about liability. The card needs a set amount of available credit, and the firm will check it. Many companies "ring fence" a deposit for excess fees, so that credit is unavailable for the rest of your trip. If the firm decides you are liable for damage, it will debit your card automatically, and you will have to complain to get the money back.
Damage excess fees
Always check the damage or collision excess fee before booking. This is what you pay if the car is damaged, and it is often £1,000 or more, even though the firm has its own insurance. Disputes usually start with allegations of damage, and you could be charged £1,000 or more for a minor scratch on a bumper. Astonishingly, an industry representative once admitted on a radio interview that the repairs might not even be carried out.
Before you drive off, photograph and video the car from all sides, including the boot, glove compartment and interior. Make sure the hire firm marks down all existing damage on its diagram and give you a copy. Photograph that too.
Insurance overcharging
You need an insurance policy to cover the excess, but you do not have to buy the hire firm's own policy, which can cost £300 or more. A separate UK policy can cost just £30 to £40 and still cover the vehicle you are renting. In the UK and EU, selling insurance is regulated, so you can complain to the Financial Ombudsman if you were misled into taking out the firm's policy. Laws differ around the world, however.
Petrol, mileage and endless extras
Car hire contracts can have complicated rules about petrol and returning the car. Some firms want a full tank, others a half-full one, and getting it wrong leads to extra charges. Many contracts also charge for mileage over a certain amount, so extensive touring can become expensive. Then there are add-ons such as out-of-hours pickup, late arrival fees, administration charges, roof racks and child seats.
Making a complaint
If you have a complaint, start by writing to the hire company in the country where the business is based. Put your complaint in writing and explain what went wrong and what you want. If that fails, the European Car Rental Conciliation Service (ECRCS) can help with cross-border complaints within the EU. The European Consumer Centres Network can also help for free. In the UK, the British Vehicle Rental and Leasing Association (BVRLA) is the body to contact.
For complaints about an insurance policy sold by the hire firm, there are ombudsman schemes for banking and insurance abroad, listed at FIN-NET. You may also be able to "charge back" money taken in breach of contract, though this can be difficult because the contracts allow immediate debits. A Section 75 claim under the Consumer Credit Act could also be made to your card provider.
Your car hire checklist
- Book in advance, compare prices and read all the documents before you travel.
- Check the excess fees – the higher they are, the more you’ll pay if the firm claims there is damage.
- Take out a damage/collision insurance policy (sometimes called 'zero excess'). Don't buy the car hire policy – online options are much cheaper.
- Ask about the deposit. If the firm 'ring-fences' a deposit, you can't spend that money. If they debit your card and refund you on return, find out how long it takes and whether you can pay in local currency to avoid exchange rate losses.
- Video the car from all angles. Make sure a representative notes every mark or scuff on their documents and photo the car from all sides, including the boot. Do the same on return.
- Keep all paperwork and receipts, including for petrol.
- If you have an accident, call the police, get copies of all documentation, and check the hire firm's procedures.
