Car Hire Myths Busted: Save Money on Half-Term Road Trips

With the Halloween half-term approaching, many families are keen for a holiday closer to home that costs less this year. 

Over the last couple of years, the staycation boom has created a wealth of investment in local attractions and accommodation, with thousands of local travellers taking short flights within the UK.

In just one month last year, almost 500 million available seat miles were scheduled, all going from a UK airport to another UK airport. That’s over 18,000 flights.

However, the recent new car shortage is dampening domestic holidaymakers as they struggle to find a suitable rental car at an affordable price.

Affected by the war in Ukraine and even Brexit, new car production has been reduced, struggling with logistics and a lack of car parts such as semiconductor chips, all having a knock-on effect within the car rental market – creating a low and slow supply of rental vehicles, reducing availability and pushing up prices.

The issues are predicted to escalate as car rental users are forecast to continuously increase between 2023 and 2027 by 0.2 million – estimated to reach a new peak of 6.48 million users by 2027.

CEO and Founder of price comparison site Quotezone.co.uk, Greg Wilson, says: “The car industry has had a turbulent couple of years, affecting all aspects of motoring from repairs to fuel – all hitting drivers in the pocket. With families now gearing up for half-term, reuniting with family and exploring tourist spots around the UK, there is a surge in demand for hire cars, driving up prices.

“To help keep costs down, travellers need to book as early as possible. Most rental providers have free cancellations up to 48 hours before, so if you find a better deal nearer the time, you can cancel and save the difference.

“It’s important to do your research before you arrive at the rental desk, look at their fuel policies and insurance packages and see if cheaper options exist – drivers can feel under pressure at the desk and make last-minute purchases, often at escalated prices.

“Hiring a car is often shrouded in mystery. Am I too young to hire a car? Do I need a credit card? We created a watch-out list to help holidaymakers avoid falling into the common misconceptions associated with hiring a car, to help people explore ways to create savings and enjoy a UK mini-break for less.” 

A recent Quotezone.co.uk survey showed that the most significant reason stopping more people from hiring a car was price, with nearly a third, 27%, saying it was too expensive.

Here’s Quotezone.co.uk’s top eight tips and myths debunked to help families hit the road and save some cash this half-term:

Is It a Myth You Need a Credit Card With £1,000 to Hire a Car?

Yes, you usually need a £1000 security deposit. Individual car suppliers differ; some take credit and debit cards, but be careful. Some only accept credit cards. Refunds will be returned to the card immediately after the car is safely returned with no damage, but note the bank may take a few days for it all to go through). Also, be wary of who is driving – the credit/debit card must be in the driver’s name.

I Have a Driving License, but Am I Still Too Young?

Most firms tend not to rent a car to anyone under 25 and even under 30 years old for some premium vehicles, so always check the terms and conditions of that particular provider before booking. Note new drivers usually need to have held their licence for at least 12 months.

You Don’t Have to Refuel Before Handing the Car Back, Do You?

You must refill the car with the same fuel you received if your hire terms were based on a ‘full to full’ policy. Failure to do this means the hiring company will charge for refilling, generally at a higher rate than you would find yourself locally, and some even add an admin charge of approximately £10. Some providers offer a fuel policy before you set off, with various pre-paid options, so it is worth chatting with the individual supplier to see if that would work out cheaper for your journey.

Airport Hires Are All at the Airport, Right?

If you’re flying in to collect a car, look carefully at airport hires. Some hire firms can be nearby rather than in the airport terminal, meaning you’ll need to use the additional shuttle bus to and from collection points. Note the collection and drop-off times affect the daily cost – you might find you’re close to paying for a day less, so it’s worth considering when planning your journey.

Do I Have to Take Out Insurance With the Rental Firm?

The hire car has insurance included in the rental price as standard, tending to be third-party protection, theft and collision damage –  with an expensive excess cost. Most companies will ask you if you want to upgrade to their premium insurance package, which usually includes a refund for any incurred excess charges plus sometimes a whole range of extras such as breakdown assistance, misfuelling and cover for any flight delays. Not all rental companies have a varying cost for this additional excess insurance, so it’s best to shop around.

What if I Already Have Insurance on My Car? Does That Cover Me?

Afraid not, you’ll need to check your policy terms and conditions. However, almost all policies, even fully comprehensive cover, exclude cover for driving a hire car, either at home or abroad. You could take out a specialist car hire excess insurance policy to cover you sometimes; these might even be included with higher-end travel insurance policies, so it’s good to check.

Do I Need to Watch Out for Extras?

Be careful of extras. They cost more – child seats, additional drivers, and even GPS could be approximately £30-£50 each. Some providers mention it before payment. Others will only make you aware at the desk, which is often more expensive. Some providers offer child booster seats for free, so it is worth researching. Also, note the mileage allowance and tweak to suit your journey. It can be costly if you exceed your allocation.

Can I Add Additional Drivers?

Additional drivers need to be declared and paid for at the desk or when booking, so if you intend on sharing the journey, you need to decide before you set off. The additional driver will also need a valid and in-date driving licence they’ve held for over 12 months.

As a price comparison site, Quotezone.co.uk helps millions of people in the UK save millions of pounds every year on home, car and personal finance products. It’s never been more important to compare and save.