‘Rip off’ car hire firms charge motorists £190 for insurance worth just £30, study finds
- Car firms charging drivers as much as seven times the basic rate of insurance
- Some greedy companies even made motorists pay for three separate policies
- Study finds that Hertz at Barcelona El Prat charged almost £200 for £250 rental
Car hire firms have been accused of ripping off motorists by charging as much as seven times the amount of insurance they need.
Some car companies were demanding up to £190 for a week’s excess waiver cover against damage and theft in spite of that figure being double the cost of a car rental.
On the eve of school half term, greedy car firms have pushed it to new limits by forcing drivers to take out three different protections on tyres and windscreens, car damage and theft.
On the eve of school half term, greedy car firms have pushed it to new limits by forcing drivers to take out three different protections on tyres and windscreens, car damage and theft
According to TravelSupermarket, some companies even made drivers pay for excess waiver cover on arrival.
While this may not seem particularly egregious, it ties the hands of customers by offering them scant chance of buying insurance elsewhere.
Emma Coulthurst, consumer adviser at the website, told The Times: ‘It is a scandal that car hire companies are charging these excessive amounts at the desk.’
The unluckiest drivers can pay as much as 579% more on one car hire site compared to another.
Drivers will usually pay an excess towards the cost of any damage to the car and those hiring are advised to withdraw excess waiver insurance which can reduce excess to zero.
The Seat Leon, a popular car choice for holidaymakers, was at the centre of another outrage when the same study found that Avis at Alicante airport charged £175.88 for eight days’ cover
A European study of hiring costs at car rental companies in European airports found that the highest charge for damage and theft excess was from Hertz at Barcelona El Prat airport.
Researchers were told that it would cost £189.93 to insure a Seat Leon, even though the cost of renting the car was only £253.47.
The Seat Leon, a popular car choice for holidaymakers, featured again when the same study found that Avis at Alicante airport charged £175.88 for eight days’ cover on the car.
Drivers will usually pay an excess towards the cost of any damage to the car and those hiring are advised to withdraw excess waiver insurance which can reduce excess to zero
This was more than six times the online charge and virtually double the £183 cost of renting the car.
Researchers lampooned other car firms for their excessive fees. Retail company Budget was singled out by the group for imposing a £66 charge on any claim, even when it included excess waiver cover.
A spokesman for Avis Budget UK, parent company of both car rental firms, told The Times: ‘Transparency of fees is of paramount importance to us.
We provide standard cover with all rentals, as well as the optional choice of additional cover. Customers are always welcome to use their own providers.’