Consumer rights expert Martyn James explains everything you need to know about the horrors of hiring a car
There are certain types of businesses that have very, very bad reputations. You know the ones!
You mention a problem to a friend or a relative and they say: “Yes! That happened to me too!” I’m looking at you, package delivery companies, social media shops… and car hire companies.
Every year, as tired travellers head off on their holidays, I’m flooded with complaints from readers about the horrors of hiring a car.
From ‘upgrades’ that end up costing a fortune, disputes of full or empty fuel tanks on return, extortionate insurance policies and – the biggie – thousands of pounds vanishing from credit cards for non-existent damage claims, the sector’s reputation is pretty poor.
I must add that in all fairness, not all companies are bad. But because of the reputation of the worst offenders, it makes sense to be prepared for the cons, so you can be pleasantly surprised if everything goes like a dream!
Here’s my guide on everything you need to watch for.
Do your research before you travel
Always research car hire prices at home before committing to a specific business. When you look on the comparison websites, you see that there’s a huge competitiveness among the hire firms to give the lowest quote. But this is often achieved by raising excess fees and adding on additional costs in other areas. So remember that the cheapest policies might actually be more expensive when you factor in all the catches.
Speak to friends and family about the good experiences they’ve had with specific brands. Bear in mind though that car hire companies often operate in different ways in different countries. So a good experience in Milton Keynes might not result in the same service in Malaga with the same firm.
Beware airport fatigue
Wherever possible, don’t book a car on arrival at an airport, station or ferry terminal. You’ll be tired, possibly a bit fed up, the kids might be playing up, and you all just want to get to your destination. Car hire firms know this and are aware that you might not scrutinise the contract too closely. Even when you’ve pre booked, you might suddenly find that you’re being charged extra for things that weren’t mentioned when you booked. Understanding all the costs associated with car hire contracts is essential, so take your time and don’t be rushed.
Avoid upgrades and confirm the booking the day before
A common complaint in the last few years relates to upgrades and unavailable vehicles. While getting a nicer vehicle for the same price might be a good thing, you may be expected to buy a new insurance policy to cover damage and repairs, which could set you back £200 to £300. You may also find that your excess fees have increased as the vehicle is worth more money.
At the other end of the scale is the downgrade due to a lack of available vehicles. When my good friends Aki and Tsukasa visited France last year, they had booked an automatic vehicle, but on arrival were given a manual car with a gearstick – which they’d never driven. This is not only a breach of contract but it’s fundamentally dangerous. So check 48 to 24 hours beforehand that the vehicle you have booked is available and will be retained for you. Make it clear that you will not accept an alternative and get it in writing.
Make sure you question the credit card payment
Countless people get caught out by the car hire credit card rule. In order to hire a vehicle the majority of firms will insist the driver must pay the fee and deposit on a credit card in their name .
But why do you have to have a credit card to book a hire car? Or why does it have to be in the driver’s name? It’s all down to liability if something goes wrong. The credit card you use will need to have a set amount of credit on it before the car hire company will even let you leave with the vehicle – and they’ll check you’ve got it too. Frustratingly, many firms ‘ring fence’ a deposit for excess fees for damage too, which will mean you can’t use that credit for the duration of your trip.
This is because the company will automatically debit your account for any damage or contract dispute costs as soon as it concludes you’re liable. The money comes off your credit card without you having the right to argue – though you should receive written notification of the debit – and then you’ll be forced to make a complaint to get your cash back.
Damage excess fees
When you are conducting your research, always look for the damage or collision ‘excess’ fee. This is what you have to pay if there’s a crash or minor damage to the vehicle that needs to be repaired. It’s not unusual for this to be £1,000 or over – despite the fact that the firm will have its own insurance.
Leaving aside the sheer size of these excess fees, the main source of frustration when it comes to car hire disputes is over allegations of damage. If the car hire firm decides that repairs are necessary to the vehicle as a result of your actions, they can conclude you are liable for the repairs and debit your credit card. It’s not unheard of for people to be charged £1,000 or more for a minor scratch on a bumper. Astoundingly, a representative for the industry once admitted during a radio interview I was taking part in that the repairs might not even be made!
So if you remember one thing from this article, make it this: Before you drive off you need to photograph and/or video the car from all sides , check the boot and glove compartment along with the interior. The hire firm will mark up existing damage on the car on a diagram and give you a copy (photo that too). Make them mark down everything that you’ve spotted too.
Insurance overcharging
Car hire firms will tell you that you will need to take out an insurance policy to cover the excess fee. This is vital, so don’t drive off without a policy covering you for the excess. Many firms are insisting that you have to take out their own policies. Yet an excess fee policy bought from the car hire firm can cost £300 or more! However, you can buy cheaper better policies in the UK for just £30 to £40. You will need to make sure that the policy covers the make and model of the vehicle you are hiring.
I’ve heard from many readers who have told me that the car hire firm stated they had to take out the car hire firm’s own policy. This is absolutely not the case. In the UK and EU, selling insurance is a regulated activity, which means you can go to the Financial Ombudsman if you feel you have been misled by the business in to taking out their policy. Laws vary around the world though.
Petrol, mileage and endless extras
Some car hire firms have ludicrously complicated rules about petrol and returning the car. Some will insist on a full tank, others on a half-filled tank, which doesn’t make much sense. Failure to follow the requirements can result in extra charges.
Many of the contracts I’ve reviewed bill you for mileage over a certain amount. So if you’re driving around a foreign country talking in the sites as you go, then you could find it’s more expensive than you expected.
Finally, there are a bewildering range of additional ‘add-on’ charges levied by some car hire firms. These can include an ‘out of hours’ pick up of the car, late arrival fees if your plane is late and extra administration charges. You will also usually have to pay more for everything from roof racks to child seats.
Making a complaint
If you’ve got a complaint about a car hire company, make a complaint to the business first in the country it’s based. This can be frustrating if you booked a car abroad because all the big brand names have branches in the UK too. Put your complaint in writing (email it if you can) explaining what went wrong and what you want them to do to sort it out.
If that doesn’t work the European Car Rental Conciliation Service (ECRCS) can help with cross border car hire complaints – but only in the EU. The European Consumer Centres Network (ECRCS) can help you for free if you’re struggling.
In the UK, The British Vehicle Rental and Leasing Association (BVRLA) can help with complaints.
If the complaint is about an insurance policy sold by the car hire firm, there are ombudsman schemes for banking and insurance abroad and you can find a list at FIN-NET.
You may be able to ‘charge back’ or claim for any money back that’s been taken in breach of the contract. This can be a problem because car hire contracts are written to allow the firms to debit you straight away for any ‘damage’ or ‘costs’ you’ve incurred even if you dispute this. It’s definitely worth attempting this though. Payments taken on a credit card could also be disputed through making a section 75 claim under the Consumer Credit Act to your card provider too.
Your car hire checklist to avoid being ripped off when hiring a car abroad
- Book in advance, compare prices and read all the documents before you travel.
- Check the excess fees – the higher they are, the more you’ll pay if the firm claims there is damage.
- Take out a damage/collision insurance policy (sometimes called ‘zero excess’). Don’t buy the car hire policy – online options are much cheaper.
- Ask about the deposit. If the firm ‘ring-fences’ a deposit, you can’t spend that money. If they debit your card and refund you on returning the vehicle, find out how long it takes for the credit to come back and if you can pay in the local currency, so you don’t lose out on exchange rates.
- Video the car from all angles. A representative from the firm will sign the car out with you. Make sure they write down every mark or scuff on their documents and photo the car from all angles too (check the boot). Do the same when you return the car.
- Keep all the paperwork and receipts for things like petrol.
- If you are in an accident, call the police and get copies of all documentation. Make sure you’ve checked with the hire firm what their procedures are too.
- Martyn James is a leading consumer rights campaigner, TV and radio presenter and journalist
