How to Save Money When Hiring a Car on Holiday: 6 Key Tips
Published 11th of July 2012·Updated 17 April 2026
Reviewed by: Reviewed for accuracy April 2026
Hiring a car on holiday can cost far more than the headline price suggests. Hidden charges for insurance excess, sat nav hire, fuel policies, and damage claims catch out many UK travellers each year. Understanding what to look for before you pick up the keys can save you £100 to £300 on a typical holiday rental.
Short Summary
Hire car excess insurance is one of the most profitable add-ons for rental companies, sometimes costing £15 to £25 per day. Buying standalone excess cover from a UK provider before you travel typically costs £3 to £6 per day and provides equivalent or better protection.
Sat nav hire from rental companies can cost £8 to £12 per day. Buying an up-to-date sat nav with European maps costs around £60 to £80 outright, and most smartphones provide free navigation via Google Maps or Waze with a downloaded offline map.
Fuel policies vary significantly between companies. A full-to-full policy is the fairest; avoid pre-purchase fuel policies where you pay for a full tank upfront and must return the car empty, as you almost always overpay.
Photographing the car thoroughly at collection and return is essential. Dispute any damage claim that was not noted on the condition report when you collected the vehicle.
How do I avoid overpaying for car hire excess insurance?
All hire cars come with a basic level of insurance, but the excess (the amount you pay in the event of damage) is typically £500 to £2,000. Rental companies offer a Collision Damage Waiver (CDW) or Super CDW to reduce or eliminate this excess, but the daily rate can be very high.
The cheaper alternative is standalone hire car excess insurance, available from UK providers such as iCarhireinsurance, Questor, and insurance4carhire. A single-trip policy covering a two-week European rental typically costs £20 to £40 in total, compared to £100 to £200 or more from the rental company's desk. An annual worldwide policy from these providers costs around £40 to £60, making it cost-effective if you hire more than once a year.
| Insurance route | Typical cost (2-week rental) |
|---|---|
| Rental company CDW/Super CDW | £100-£200 |
| Standalone excess insurance (single trip) | £20-£40 |
| Standalone excess insurance (annual) | £40-£60 |
Do I need to hire a sat nav from the car hire company?
No. Rental company sat nav hire typically costs £8 to £12 per day, adding £56 to £84 over a one-week holiday. This is poor value when alternatives cost far less.
Downloading Google Maps or Waze with an offline map of your destination country before you leave costs nothing. Using offline maps avoids roaming data charges. If you prefer a dedicated device, a portable sat nav with European maps from Garmin or TomTom costs £60 to £100 to buy outright and can be used on multiple trips.
What fuel policy should I look for when hiring a car?
The fuel policy is one of the most important terms to check before booking. There are three common policies:
- Full-to-full: you collect the car with a full tank and return it full. This is the fairest policy; you only pay for the fuel you use.
- Full-to-empty (prepay): you pay upfront for a full tank and must return the car empty. You almost always overpay because returning a completely empty tank is impractical.
- Full-to-full with a deposit: similar to full-to-full but the company takes a security deposit on your credit card for the fuel, which is released on return.
Always opt for full-to-full if it is available. If the company insists on a prepay policy, factor the cost into your comparison when booking.
Why should I photograph the hire car at collection and return?
Damage disputes are one of the most common complaints about hire car companies. Companies sometimes attempt to charge for pre-existing scratches, dents, or tyre wear that were present when you collected the vehicle.
At collection, photograph every panel, the roof, the windscreen, all four tyres, and the interior, including any existing damage. Do this in good light before driving away. At return, repeat the process. If the company attempts to charge for damage you did not cause, your photographs provide clear evidence. Share them with your card issuer if you need to dispute a charge via a Section 75 claim or chargeback.
What other hidden charges should I watch for?
Beyond excess insurance and sat navs, common additional charges include:
- Additional driver fees: most companies charge £5 to £10 per day per extra driver. Some credit card holders get one free additional driver as a perk.
- Young or senior driver surcharges: drivers under 25 or over 70 often pay a daily surcharge of £10 to £20.
- One-way fees: returning the car to a different location can cost £50 to £300.
- Airport surcharges: collecting and returning at an airport terminal rather than an off-airport location often attracts a surcharge of 10 to 15 per cent. Off-airport locations require a short transfer but can save significantly.
- Late return fees: most companies charge a full extra day if you return more than 30 to 60 minutes late.
Frequently Asked Questions
Can I use my debit card to hire a car abroad?
Many rental companies require a credit card, not a debit card, for the security deposit. This is because the company places an authorisation hold (sometimes called a "block") of £500 to £2,000 on your card to cover potential damage or fuel costs. If you only have a debit card, contact the rental company in advance; some accept debit cards for specific car categories or if you have purchased full excess cover.
Does my credit card include car hire insurance?
Some premium credit cards, including certain Amex, Barclays, and HSBC products, include car hire collision damage waiver as a perk. Check the specific terms carefully, as the level of cover, the excess, and the geographical limits vary significantly between cards.
What happens if the hire car breaks down?
Reputable hire car companies provide a 24-hour breakdown number. Keep this number saved on your phone before driving away. Most include roadside assistance; if you are abroad and need to be towed, contact the company immediately. Do not pay for repairs yourself without authorisation from the rental company, as reimbursement is not guaranteed.
Should I book a hire car in advance or at the desk?
Booking in advance online is almost always cheaper than walk-up rates at the rental desk. Comparison sites such as Kayak, rentalcars.com, and AutoEurope allow you to compare prices across multiple companies. Booking at least two to four weeks ahead typically yields the best rates, particularly in peak summer months.
What if the hire car is damaged and I disagree with the charge?
If you have photographic evidence showing the damage was pre-existing, dispute the charge with your credit card provider under Section 75 of the Consumer Credit Act (for purchases over £100) or via chargeback. ABTA and the European Consumer Centre can also assist with disputes involving EU-based rental companies.