Guide to car hire fees, charges and payment options

How do you avoid hidden fees with a hire car? What if you’re in an accident? Let’s get to the bottom of common questions about car hire fees, from insurance to hiring with a debit card.

Making sense of hire car costs

Car hire prices vary widely depending on many factors. Insurance, additional fees, and hidden charges can add up to a significantly higher final price. If you’re not familiar with your hire terms and insurance needs, a hire car can wind up costing thousands of pounds more.

Follow these tips to keep hire costs down:

Hire with a credit card to take advantage of a lower deposit hold and fewer restrictions while avoiding the hire company’s excess cover.
If booking with a debit card, budget for a larger deposit and a delayed refund. Confirm restrictions and required documentation.
Minimum hire age and fees vary by location. Memberships or loyalty programmes may reduce fees, but young drivers often face restrictions on the types of cars they can drive.
Purchase third-party excess insurance to avoid the hire firm’s more expensive Super CDW. Be aware of common exclusions for glass, tyres, and undercarriage.
In the event of a collision, follow normal accident procedure. Contact the police and the hire company promptly. Keep a careful record of everything.
Document the car’s condition before driving it and after returning it to dispute any excessive cleaning or repair charges.

Get the deep dive on car hire fees

Learn everything you need to know about hiring a car with our in-depth guides.

How to hire a car without a credit card

Can you hire a car with a debit card? What about cash? This guide explains what additional paperwork is required and what restrictions come with hiring a car without a credit card. Learn what to expect with deposits, insurance, and documentation.

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Car hire for drivers under 25

The minimum age to hire a car varies by company and location. You can hire a car if you’re under 25, but there are some extra considerations. Learn about young driver fees, how to avoid them, and what restrictions might apply to your hire.

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What to do if your hire car is damaged, stolen, or in an accident

What happens if you damage a hire car? This step-by-step guide explains what to do in the event of an accident or theft. Learn how to protect yourself from paying too much—from pre-hire inspection and insurance options to filing claims.

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Car hire insurance explained

Hire car insurance can be confusing and expensive. Should you purchase the hire company’s excess cover? What about when travelling abroad? From deductibles to coverage gaps, we break down how to minimize your financial liability while saving money.

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How much does it cost to hire a car​ in the UK and Europe?

The price of a hire car can vary widely depending on the type of car, where you book, and the time of year. We provide a car hire cost comparison​ guide to help you plan your trip. Follow these tips to find the right hire car for the best price.

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Understanding car hire fees

Hidden fees and add-ons can substantially raise the price of a car hire. We explain how to avoid unnecessary charges, waive fees, and accurately budget for your hire car. Read this guide to prevent surprise charges on your next hire car.

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Explore more car hire advice

Guide to car hire excess insurance

It’s one of those tough questions at the counter: Do you want excess insurance for your car hire? Find out what this coverage is and whether you need it for your next hire.

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Advice for hiring a wheelchair-accessible vehicle

Get our top tips for hiring a WAV or vehicle with other adaptations, including what you need to know to hire in the UK and take it abroad on your next holiday.

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Car seat rules around the world

A map for families

Find out how to comply with local car seat laws, no matter where you’re driving with your little ones. Laws can differ when it comes to the minimum weight children can be out of booster seats or to be front-facing in car seats.

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FAQs

Find the answer to common questions about car hire.

Car hire rates can vary widely depending on demand, where you hire, and the type of car. Economy cars can range from £21–£25 per day. Booking at an airport location, on the weekend, or during peak travel times will likely increase the price. Purchasing the hire company’s excess insurance, authorising additional drivers, or including add-ons like GPS will also affect the cost.

Getting the best rate on your hire car requires planning and understanding the factors that can drive up the price. 

  • Book 3–4 weeks in advance in the off-season and 2–3 months ahead during busy travel periods.

  • If driving moderate distances, book the smallest car that you can comfortably fit in. 

  • Purchase third-party excess cover rather than buying the hire company’s Super CDW.

  • Avoid airport hire locations.

  • Decline add-ons like GPS, and stick to one driver.

  • Document the car’s condition at pickup and return to dispute unwarranted damage or cleaning charges.

You do not need personal auto insurance to hire a car. The hire includes liability insurance and a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). Hire companies’ basic CDW comes with a high excess, but you can upgrade to a Super CDW or Zero-Excess Cover. Excess insurance can also be purchased from third-party insurers, such as ReduceMyExcess, Bettersafe, iCarhireinsurance, RentalCover.com, CarHireExcess.co.uk and RAC. This cover is almost always cheaper and often covers gaps in basic CDWs.

When you hire a car, the hire company will place a preauthorisation hold on your credit card—usually the estimated cost of the hire plus a security deposit of £200–£300. If you purchase the hire company’s Super CDW, the deposit will likely be lower or eliminated. The hold is in case of damage, theft, cleaning fees, late return or other potential charges. If you book with a debit card, the deposit is typically debited upfront and refunded after return (sometimes over a week later). The deposit may also be higher (up to £500), or you may be required to purchase the Super CDW.

Many hire companies allow you to book with a debit card. However, this usually requires more paperwork and may come with restrictions on the hire. Deposits are often higher when booking with a debit card, and funds will be debited from your current account, rather than just held. That means you will have to wait for a refund to be processed, possibly for a week or more.

An additional driver fee is a fee that hire companies charge to authorise a second person to drive the car. This is usually a daily fee (often £10–£15 per driver per day). Some companies allow spouses and domestic partners to drive for free. In other cases, you might be able to use loyalty programme benefits to waive the fee. If the second driver is under 25, you will also have to pay a young driver fee.