Don't get ripped off on car hire: 10 ways to avoid hidden costs on holiday

Landing at the airport should be the start of your holiday, not the start of a frustrating and expensive argument at the car hire desk.

Unfortunately, it’s not uncommon to end up paying far more than the price originally booked for hiring a car. From pricey insurance and fuel charges to unexpected upgrade fees, the final bill can quickly spiral.

In fact, as many as 58% of motorists worry they'll be taken for a ride when hiring a car, according to consumer champion Which?

But, a little preparation could save you hundreds of pounds. Here are some simple ways you can keep your car hire costs under control.

Book early and pay upfront

Booking your hire car four to six months in advance can save you up to 60% compared with booking at the last minute or at the airport.

Which? also recommends choosing the 'pay now' option where possible. The best providers still offer free cancellation, allowing you to cancel and rebook if prices fall before your trip.

Don't fall for expensive insurance

One of the biggest money-makers for rental companies is selling extra insurance at the desk.

Instead, consider buying a separate excess reimbursement policy from a specialist provider before you travel. These policies are often much cheaper than the cover offered when you collect the car.

If you're offered additional insurance, don't feel pressured into buying it. Simply explain that you've arranged your own cover and understand you'll pay the excess if you damage the car before claiming it back through your policy.

Avoid unnecessary extras

Little extras can soon add up.

If you can, avoid paying extra for:

• GPS navigation, your smartphone and offline maps work just as well
• child seats, taking your own can often save a substantial fee
• additional drivers, only add one if it's genuinely needed

Before you travel, check exactly what's included in your booking so there aren't any surprises when you collect the keys.

Choose a full-to-full fuel policy

A full-to-full fuel policy is usually the fairest option.

Some companies charge inflated prices for fuel if you return the car without a full tank, and may even add a hefty refuelling fee on top.

Which? highlights cases where drivers have paid penalties simply because the fuel gauge wasn't completely full.

Before setting off, ask where the nearest petrol station is to the return desk. It could save you money and stress on your final day.

Be careful booking through airlines and third parties 

Which? advises being cautious about booking car hire through airline websites.

It's not always clear which third-party company is providing the vehicle or who is responsible if something goes wrong.

Booking directly with a reputable rental company can make it easier to understand the terms and conditions and resolve any issues.

Know what happens if your flight is delayed

Many rental companies include a clause allowing them to release your car if you're more than an hour late collecting it.

If your flight is delayed, you could arrive to find your car has been given to someone else, leaving you to pay for a more expensive replacement.

If you know you'll be late, contact the rental company as soon as possible and give them your updated arrival time. Providing your flight number when booking can also help the company monitor delays.

Don't pay for an unnecessary upgrade

You might be told the car you booked is no longer available and the only option is to pay for a more expensive vehicle.

Remember, if the rental company has overbooked, that's generally not your responsibility.

If the upgrade is due to their lack of availability, politely ask for the better vehicle at the original price.

Photograph everything

Before you drive away, spend a few minutes checking the car inside and out.

Take clear, time-stamped photos or video of:

• scratches
• dents
• alloy wheels
• windscreen
• interior
• fuel gauge and mileage

Report every mark, no matter how small, and make sure it's recorded on the paperwork before you leave.

When you return the car, ask for it to be inspected while you're there and keep a copy of the signed return report.

Challenge unfair damage charges

Unexpected repair bills are one of the biggest complaints about car hire.

Which? has previously reported that some companies have admitted they don't always carry out the repairs customers are charged for.

If you're billed for damage you don't believe you caused:

• ask for dated photographs of the damage
• request an itemised repair invoice
• ask how the repair costs were calculated
• use your own photos as evidence if you dispute the claim

Don't simply accept the charge if something doesn't seem right.

Read the small print before you travel

It isn't the most exciting holiday preparation, but checking the terms and conditions could save you a lot of money.

Pay particular attention to:

• mileage limits
• fuel policy
• late return fees
• cross-border travel restrictions
• additional driver charges
• deposit amounts
• what your insurance does and doesn't cover

Knowing the rules before you arrive makes it much harder for unexpected charges to catch you out.