We know car hire can be confusing. It’s not usually something you organise regularly. A once a year booking means that you often forget what things are or how they work. Here we’ve created a bit of an insider’s guide to car hire. The sort of things we treat as standard but our customers aren’t aware of, forget, or are mis-informed about. So follow us through this guide to car hire and fill up the gaps in your knowledge.
Who’s who?
When it comes to car hire, you can either hire direct through a supplier or through a broker who will find you the best deals.
Supplier
Hertz, Alamo, Sixt, Centauro etc. are suppliers. These are the guys who give you the car and with whom you sign the contract. Suppliers work with brokers to ensure as many of their cars are hired out as possible.
Broker
Economy Car Hire is a broker and we work with over 150 different suppliers to find you the best deal. You do not sign a contract with the broker.
How they work together
A broker negotiates exclusive deals with the suppliers to provide customers with certain benefits. For example, we have negotiated a free additional driver as well as collision damage and theft protection with no insurance excess with most of the suppliers that we work with. Other benefits include unlimited mileage, fair fuel policies and excess amounts (more on the last two later).
Comparing prices between brokers and even with the supplier themselves is often unfair. This is because it’s not a like for like comparison. Always check exactly what is included in the price.
When should I book my car hire?
Generally, prices are cheaper the earlier you book. Ok, this may change if suppliers have a number of cars available the week before your holiday but you’re usually best off booking your hire car A.S.A.P.
You’ll also find prices tend to be lower if you collect from a city location rather than the airport if this is suitable.
Car hire insurance explained
We’ll be looking at car hire insurance in more detail in a few weeks so I’ll keep this brief. Car hire insurance is a bit of a nightmare because there is no industry standard phrasebook. The word “excess” appears a lot and can mean a couple of different things.
What is an “excess”?”
The excess is the amount that you pay the supplier upon return if your hire car is damaged or stolen. NB it’s sometimes called the ‘Deductible’ instead.
Your hire car obviously comes insured to a certain standard. Usually, collision damage waiver (CDW) and theft waiver (TW) are included. This can collectively be referred to as Loss Waiver (LW). But what exactly does this mean?
Well, if you have a crash or the vehicle is stolen, you will not be liable for the entire value of the vehicle, but limited to a pre-determined excess amount. The amount of this excess is determined by the supplier and can be up to €3,000 in some cases.
If you’re not hiring through Economy Car Hire make sure you check what is included in the price that you are considering. Just because it says CDW and TW are included, it doesn’t mean there won’t be a huge excess.
The standard policy (CDW) is designed to cover damage caused in a collision with another vehicle and not single-vehicle damage. It does not cover damage caused by driving into a wall or negligence. Think of it as a very basic 3rd party policy.
However, damage to parts such as wheels, tyres, and glass parts aren’t normally covered. This is partly because not everyone wants a fully comprehensive insurance policy or they like to live on the wild side. This is why you can purchase additional Top Up Insurance when you book a car with Economy Car Hire.
When you hire with us, some deals include collision damage waiver and theft waiver with no insurance excess. Where we cannot negotiate this with the supplier, we offer excess reimbursement insurance, which brings us onto the next point!
Excess Insurance (Excess Reimbursement Insurance – ERI)
Excess reimbursement insurance (ERI) (also known as excess protection or excess waiver) protects the excess amount should your hire car be damaged or stolen.
In the event of a claim, you simply pay the excess amount to the supplier, then claim it back through the insurance policy upon your return home.
“It’s not valid”
Suppliers will occasionally say they don’t recognise 3rd party insurance policies and that they’re not valid (they are). This is because the policy isn’t provided by their underwriter and therefore doesn’t cover them directly.
For this reason, upon collection you will need a credit card upon which a security deposit will be pre-authorised. This may be frustrating, but it will save you money in the long run.
The security deposit (sometime confusingly called an excess) is there to cover damage to parts of the vehicle not covered by the standard insurance. If you take out the supplier’s insurance (often at an inflated cost) the amount of the security deposit will be reduced or removed completely.
Why do car hire suppliers sell insurance?
With car rental prices as low as they are, often the only way for the suppliers to make money is by selling extras such as insurance. Imagine the monthly cost of the lease on a car is £350, they have to rent that car out at £87.50 per week to break even. And that’s not factoring in the winter months when there’s a drop in business. This is why some reps occasionally become pushy over selling insurance to try and cover staff costs, running costs, insurance costs, and more.
Hire cars & fuel policies
Fuel is always a tricky one when it comes to car hire. The full-empty policy left many customers feeling ripped off, but this is slowly changing. Around 98% of the suppliers we work with offer a Fair Fuel Policy which means you won’t be left out of pocket.
Fair fuel policies
We currently offer 3 fair fuel policies:
- Full-Full – What it says on the tin. Return the car full and you’ll be fine.
- Return with same amount – Doesn’t need much explanation. Take a photo at the start of the rental in case there’s confusion over the exact amount.
- Quarter to empty – This is rare. It’s mainly seen in smaller locations where you’d never use a full tank of fuel and therefore allows you to use what you need.
But it’s not just the policy that created these misgivings, we still suffer from the misconception that fuel is much cheaper abroad and car hire companies are overcharging (or scamming/ripping off/robbing depending on who you ask) in a way to make money. This isn’t true when it comes to unleaded – it is expensive but hiring a diesel abroad can save money.
Prices
In the UK (at time of writing), the average price for unleaded was 116.39ppl whilst diesel cost 121.30ppl on average. That’s €1.61 for unleaded and €1.67 for diesel. The table below shows a comparison for some of the most popular European destinations.
| Country | Unleaded price per litre (€) | Cost to fill a Ford Fiesta (€)* | Diesel price per litre (€) | Cost to fill a Ford Fiesta (€)* |
| UK | 1.61 | 67.62 | 1.67 | 67.64 |
| France | 1.45 | 60.90 | 1.23 | 49.82 |
| Spain | 1.31 | 55.02 | 1.18 | 47.79 |
| Portugal | 1.56 | 65.52 | 1.29 | 52.25 |
| Italy | 1.71 | 71.82 | 1.58 | 63.99 |
| Greece | 1.56 | 65.52 | 1.25 | 50.63 |
| Average | 1.53 | 64.40 | 1.36 | 55.35 |
*A Ford Fiesta fuel tank holds 42ltrs of unleaded or 40.5ltrs of diesel
With the exception of Spain, unleaded prices are relatively similar to the UK. Diesel on the other hand is cheaper – although Italy wasn’t far off. However, if you hire an economy car you’re much more likely to be given an unleaded vehicle. If you hire an estate or larger vehicle, you’ll probably get a diesel.
Returning a hire car full
Make sure you fill up at the airport fuel station and keep filling until the pump cuts out. It’s no good filling until the needle brushes the FULL line and then driving 20 miles. When you arrive, the car won’t be full and you’ll be charged.
Also, don’t worry about the higher prices at the airport. It will only make a couple of Euro’s difference and works out much cheaper than a refuelling charge.
What is a Rental Day?
Cars are usually hired out for 24 hour periods commencing at time of pickup called a rental day. Suppliers usually have a short grace period so if you’re a little late, you won’t be affected. If you return the vehicle really late, you may be charged an extra day as the car was unavailable for the next customer.
If you need some more information or have any questions, get in touch with us below or follow us on Twitter and Facebook for tips and news. If you’d like some more tips on car hire or travel, why not have a flick through these helpful articles?
Hi
I want to hire a car for roughly a month. But will be staying in the UK . Can i still use your company.?
Also i still have old paper licence that is quite damaged .do you except code from dvla so my driving history can be seen by hire car company? instead of producing driving licence?
Hi Sue,
We work with a number of UK suppliers, if you call us on 01362 852299, our reservations team will be able to assist you. With regards to your licence, the old style paper licence is exempt from the DVLA code so you would not need this. However, you ALWAYS need to provide your driving licence.
Kind regards,
Mark
Economy Car Hire
What is the situation with the DVLA licence code when hiring a car in Florida?
Hi Roy,
As it stands, the suppliers we work with abroad have confirmed they don’t require a DVLA code. It may be worth taking it anyway to put your mind at rest but none of our customers have been asked for it yet.
Kind regards,
Mark
Economy Car Hire
Hi
If I hire from you am I covered for single vehicle damage,
Also scratches and dents
pete
Hi Peter,
This is a tricky one to answer as it depends on if you’re considered to have been negligent when the damage was caused.
If you’re negligent, you’re not covered. Usually, single vehicle damage is considered to be negligence as it would be argued you only have yourself to blame as nobody else was involved.
With regards to scratches and dents, it depends whether you have the standard cover or purchase the Top Up insurance. The standard policy doesn’t cover damage to wheels, the underside, glass parts, mirrors, roof etc. whereas the Top Up insurance covers these. Again, if the damage was caused by negligence, you aren’t covered.
All our quotes include either no insurance excess or excess reimbursement insurance so you shouldn’t have a nasty shock if you do have to pay for damage.
We will be covering car hire insurance in detail in a few weeks so keep checking back. If you need more information, please feel free to call us on 01362 852299 or email info@economycarhire.com and a member of staff will gladly assist you.
Kind regards,
Mark
Economy Car Hire
Hi I just have a question! Every year my self & hubby and kiddies go to Majorca for 2 weeks and every year I book the car on line to pick up at Palma airport the the problem I have is why if the car is already fully paid why do they ask for your credit card and why do you always end up paying more money the minute you get to the hire desk I can never understand this ?
Dear Marie,
You have to provide a credit card upon collection to allow the supplier to authorise a security deposit. This covers damage caused to the uninsured parts of the car such as the wheels, glass parts, underside and roof, along with speeding and parking fines. Generally speaking, all rentals with most suppliers include collision damage and theft waiver with an excess (unless through ourselves of course!) This means that in the event of a crash or theft of the vehicle, you only have to pay an excess. If you hire with us, we have either negotiated the excess for this to zero, or provide complimentary excess reimbursement insurance. Damage to the aforementioned parts of the car (wheels/ glass parts etc) are excluded from this. You can purchase insurance to cover damage to these items, usually available from the broker at a much lower cost. Our top-up insurrabce costs £2.50 per rental day and covers damage to the uninsured parts of the car. Usually these are reimbursement policies, so if you need to claim, simply pay the supplier then claim it back upon your return home. The supplier themselves also offer additional insurance to cover damage to these items, but at a much higher cost per day. If you have bought additional insurance before you collect your car, you do not need to purchase it from the supplier as well. Because you have purchased insurance through a third party, the supplier will usually offer the extra insurance. This does not mean that you are not covered.
In terms of extras being charged upon collection, if you are collecting a car when the office is closed, or returning the car to a different location there may be a local fee payable for this. If you are hiring child seats, booster seats or sat nav, there may also be a local fee for this too. That said, this should be made clear before you book a vehicle. We display this information in the “show rental conditions” link displayed underneath each vehicle, and during the booking process. It is also displayed on your pre-paid car hire voucher.
I hope that this helps to outline why you have to provide a credit card upon collection, apologies for the long explanation! If you have any further questions, please let me know.
Kind regards
Gemma
Economy Car Hire
Brilliant explanation of what can be quite confusing. We have hired via yourselves for car hire in Spain so I guess we don’t need the code but probably will get one just in case things change
Hi,
We have hired a car through you in Murcia in 2 weeks time.
So there is no need for a code, just the driving card licence?
Thanks
Hi Mair,
As it stands, the suppliers we work with abroad have confirmed they DO NOT need the DVLA code. If you’re concerned, take it anyway as it only takes 2 minutes to get and is valid for 3 weeks. I hope you have a great time in Murcia.
Kind regards,
Mark
Economy Car Hire
Let me get this absolutely right – I hire a car in Spain, I do NOT need a code??? TIA.
Dear Geoffrey,
Yes that is correct, unless you are hiring in the UK or Ireland you do not need a DVLA code if you hire with us.
Kind regards
Gemma
Economy Car Hire
About 10 years ago my wife and I planned a 2-week break in Iberia, spending the first week in Portugal and the second week staying with friends in Gibraltar. The plan was to fly to Faro and hire a car for the two weeks, driving from Portugal to Gibraltar at the end of the first week then driving back to Faro to board our return flight to Gatwick.
I rented our car from Avis before leaving the UK and all seemed well until we told the chap on the Avis desk at Faro airport what we intended to do. His reply was that no car hire company based in Portugal would allow their car to enter Gibraltar. I asked at several hire desks if this was correct and they all agreed it was.
Nevertheless we made the decision to drive to Gibraltar as planned. Cars hired in Spain can generally be driven in Gibraltar so we left our Avis car in a back street in La Linnea and hired a second car at the border for 88 Euros if I remember correctly.
Upon our return to the UK I contacted Avis and they admitted that they had made a mistake and gave me a full refund for the cost of the car we hired in La Linnea. I would be interested to know if this problem still exists. If it does then surely it should be stated in the Terms and Conditions that cars hired in Portugal cannot be taken into Gibraltar?
Dear Peter,
Having checked this with the Supplier/ Product Team they have informed me that generally speaking, with the suppliers that we work with, travel into Gibraltar from Portugal is prohibited. This is usually because the supplier’s insurance excludes it, therefore customers are not covered for travel there. We will however have a look at making it clear as the rental conditions state that travel to Spain is permitted but does not specify that travel to Gibraltar is not.
Kind regards
Gemma
Economy Car Hire
What about a Northern Ireland Driving licence. We still have the paper bit and cannot get a code?
Dear John,
My understanding is that the new rules relating to the DVLA code only apply to licences issued in England, Scotland and Wales. As your licence was issued in Northern Ireland, you remain unaffected and it is advisable to take both parts of your licence when collecting a hire car.
Kind regards
Gemma
Economy Car Hire
Yep very useful. I find it really beneficial to take out annual car hire excess insurance for about £40 covering the world. It helps avoid lots of hassle and pressure selling. Just google car hire excess insurance and the main suppliers appear on page 1.
Hi Andrew,
That’s a good point and works for people who hire cars regularly. However if you only rent a car for a week or two every year you could end up paying well over the odds for the cover.
Kind regards,
Mark
Economy Car Hire
Hi,
Im planning to hire a car in Spain will I be insured to drive in into Portugal for a few days.
Best Regards
Noel
Hello Noel,
As a car hire broker, we work with a few different suppliers that will permit you to collect in Spain, then travel to Portugal. Centauro will allow this if the rental duration is longer than 3 days. There will be an additional obligatory insurance of 9 EUR per rental day, with a minimum charge of 27 EUR and a maximum charge of 90 EUR, payable locally for this. Alamo, Helle Hollis and Marbenjo will allow you to travel into Portugal free of charge. Some other suppliers allow this, but also require you to purchase additional insurance and others forbid it completely. When getting a quote, if you click on the “show rental conditions” link underneath each vehicle and look under the heading ‘border exits’, it will show you all of the information you need. Alternatively, if you would like us to help any further, or send you a quote, please contact us at info@economycarhire.com.
Kind regards
Gemma
Economy Car Hire
Very informative article, Really helpful.
Thank you.
A good summary, even I was able to understand it!
What is the situation with the paper licence?
Thanks
Hi Mike,
The paper counterpart is no longer valid and therefore unnecessary. This has been replaced by the DVLA code. You only need the code when hiring a car in the UK and not if you’re going abroad. The code is valid for 21 days and allows suppliers to check your endorsements online.
Hope that answers your question?
Kind regards,
Mark
Economy Car Hire