The Crafty Traveller: How to steer clear of hidden car hire costs

By FRED MAWER
Updated: 12:52 EST, 12 June 2011

Airlines get the lion's share of negative publicity for hitting travellers with extra charges, but in many ways car hire companies are just as guilty.

Last week on the Hertz website, the price quoted for renting a small car for a week in June from Pisa airport was £157.69. Sounds reasonable enough, doesn't it? But if you want to avoid the risk of paying up to €1,600 (more than £1,400) if the car is stolen, or up to €900 (£800) if you damage the vehicle, the rental cost would almost double to £304.87.

Opting to have an additional driver will put a further £45 on the bi ll. Fancy having satnav? That's another £68.34. Suddenly, the price has shot up to nearly £420 - more than two-and-a-half times the original quote.

It costs between £6 and £13 a day to hire a satnav - and they are not normally covered under rental companies' car insurance - so take your own

Hertz is far from the only offender - most other car hire companies make a significant amount from additional fees, which they separate from their basic rental rates to keep their headline figures low.

This means when you are shopping for the best deals, it's vital to compare the total cost of bookings rather than just going with the firm at the top of a price comparison site.

It's also vital to work out which extras you need long before you arrive at the rental desk. You do not want to be in a position where you're having to make decisions about complex insurance with a pushy sales agent when you are tired after your flight and just want to get on your way.

Here is a list of extra car hire costs to look out for - and how to keep them to a minimum.

EXCESS WAIVER COVER

The charges of £1,400 and £800 I quoted for Hertz represent the excesses on the company's Collision Damage Waiver (CDW) and Theft Protection insurance for an economy-size car in Italy. Excess amounts vary depending on which firm you use, the size of the car and the country you are in.

While excesses in Italy are some of the highest, they are still substantial in other European countries, and in Australia and New Zealand. You shouldn't find excesses on car rental in the Caribbean and Central and South America, and they are not common in the United States.

Rental companies offer policies that waive these excesses, but all too often they are astronomically expensive: with Hertz on the Pisa rental, it's £147.18 a week or £21.02 a day for its 'Super Cover'. At least Hertz said how much the fee would be - I could find nothing on the Avis website spelling out what its excess reduction charge would be.

You'll be glad to hear there are far cheaper alternatives. For example, you can add a 'total damage excess waiver' to a booking with Holiday Autos (0871 472 5229, www.holidayautos.co.uk) for about £4.70 a day for a small vehicle rented from Pisa. Economy Car Hire (0845 450 0877, www.economycarhire.com) has competitive rental rates that include no insurance excess.

Better still are excess-waiver policies offered by specialist insurers - www.moneymaxim.co.uk offers a price-comparison service of the ten or so firms that have sprung up in recent years, and the cheapest cover comes out at under £2 a day.

Specialist insurers also offer an annual cover, which means even better value if you rent a car several times a year. And their policies normally include damage to tyres and windscreen - common exclusions on car rental companies' own excess waiver policies.

OTHER INSURANCE

Various forms of insurance are vital when renting a car. As well as CDW and theft protection, you need adequate third-party liability cover, which comes in the form of 'supplementary liability insurance' or 'extended protection' in North America. Rentals pre-booked in Britain normally include these, but do check.

However, it's all too easy to end up paying for insurance you don't need, or don't want, simply by not checking the forms properly. A reader recently unwittingly paid $300 (about £187) to the hire firm Dollar for personal accident cover (which isn't necessary if you have personal travel insurance) and RoadSafe Road Assistance, which provides an upgraded breakdown cover many people might not regard as essential.

ADDITIONAL DRIVER

While charging extra for a second driver is standard practice across the industry, Economy Car Hire already includes an additional driver in its rates. Alamo (0871 384 1086, www.alamo.co.uk) includes up to three additional drivers in its Gold packages for the US and Canada.

PETROL

Some rental firms insist you pay up-front for a full tank of petrol and say you can return the car empty, which is impossible, so you lose out. If you're expected to return the car with a full tank but fail to do so, you'll be hit with a hefty 'refuelling' charge.

SATNAV

Given that it typically costs between £6 and £13 a day to hire a satnav device, and the fact that they are not normally covered under rental companies' car insurance, I suggest taking your own.

MONEY-SAVING TIPS

Hire rates rise during the peak summer periods, so it is a good idea to book as soon as possible for July and August.

At the moment, rates for these months in popular destinations including Spain and the Balearics appear to be more reasonable compared with the previous two summers. In 2009 and 2010, prices rocketed due to vehicle shortages.

Resist pressure to pay to upgrade to a larger car at the rental desk. As small cars are the most in demand, you may find you're upgraded for free.

To reduce the likelihood of false charges appearing on your credit card statement after your rental, where possible get a member of staff to check the car over and sign it off when you return it.