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HIDDEN COSTS OF CAR HIRE OVERSEAS

There can be hidden charges when you hire a car

Wednesday May 28,2008

IF you are hiring a car overseas, rather than taking your own, watch out for hidden charges.

When comparing prices, make sure to compare like with like. The initial cost may look competitive but it can mount up once you add extras such as additional driver fees, surcharges for a driver under 25, child seats, mileage charges and insurance.

One of the biggest shocks comes when staff at the car rental desk explain that you are responsible for the first £500 or so of any loss if the vehicle is damaged or stolen — even if it is not your fault. The actual amount will vary according to the company and car size.

They will say you can protect yourself with additional cover, typical called “collision damage waiver”. With a queue of impatient holidaymakers behind you, you might feel hassled into shelling out, but watch out, this can add £10 or £15 a day to the bill. For two weeks that could add up to more than £200 — a costly way to spare you a £500 loss.

You can say no and keep your fingers crossed — or protect yourself with a new form of cover from a specialist insurer.

For a single premium of £49 a year in Europe or £59 worldwide, this will pay that first £500 on your behalf, says Dan Smith at Insurance4carhire.co.uk.

“The policy covers up to seven drivers and will also pay for any damage to windows, tyres, roof or undercarriage, also excluded from many hire car policies,” he says. Make sure you don’t return home to unexpected charges on your credit card, warns Bob Atkinson, travel expert at Travelsupermarket.com.

“Most people arrive at the car-hire desk weary from the flight and don’t look too carefully at the documents they are signing,” he says.

Sometimes the car is expected back with an empty fuel tank and, with prices sky-high, filling up is a costly mistake.

Others forget to check the car for damage.

“If you see any scratches or marks that haven’t been documented, tell the hire company before driving away, otherwise your credit card could be billed after you come home,” Atkinson says.