Hidden costs can quadruple car hire bill

Holidaymakers planning to hire a car in Europe have been urged to watch out for costly hidden extras that could more than quadruple the original booking price.

The car hire industry in Europe is booming, with the market projected to grow from £9.25 billion in 2023 to £14.35 billion by 2030.* This trend has been fuelled in part by the shift towards self-drive tourism.

As Europe grapples with an over-tourism crisis, families are increasingly enticed by the flexibility and freedom of a road trip, allowing them to venture off the beaten path and explore diverse destinations at their own pace.

However, there are issues to be wary of, car insurance experts at Tiger.co.uk are warning travellers to watch out for some of the pitfalls that come with hiring a car, as unexpected fees could see costs quickly spiral.

Customers often feel pressured into buying extras at the car rental desk, and there can be penalties for returning a car late or dirty, failing to return it with a full tank of fuel or going over a certain mileage.

To help drivers navigate this minefield, the experts at Tiger.co.uk have compared the prices of hidden extras across three major rental companies in some of Europe’s most popular destinations – Paris, Barcelona and Rome.

Tiger found that hiring a standard economy car in Rome with Hertz, for example, would cost £144 for the car – but an additional £680 if motorists wanted an additional driver, a car seat, a sat nav and paid for excess insurance to take their waiver down to zero.

The research also found that identical add-ons with the same car hire company have vastly different prices, depending on the location. Europcar charge £40 for a car seat in Rome, but £107 in Barcelona.

One of the most consistently expensive hidden extras to watch out for is GPS navigation. Incredibly, a sat nav with Hertz will set drivers in Rome back £182 – almost £40 more than the cost of hiring the car.

While some companies include unlimited mileage as standard, others charge drivers for going beyond an agreed-upon limit. Sixt offer an allowance of 2250 km in Barcelona, with 18p charged for every additional kilometre – but drivers seeking unlimited mileage will have to fork out an extra £35.

Ian Wilson, car insurance expert and Managing Director at Tiger.co.uk said: “Renting a car and setting out on a road trip can be an exciting and liberating experience, allowing you to explore quieter spots off the beaten track and discover hidden gems but the actual process of hiring the car can be a stressful one. 

“There is nothing worse than arriving at the rental desk, tired after travelling, only to be presented with costly and confusing extras.

“Car hire providers will often try the hard sell to persuade you to buy optional add-ons such as excess waiver insurance, GPS navigation or a collision damage waiver – which could see you paying a lot more than you had initially budgeted for. 

“However, if you are well-prepared before you travel and know what to expect when hiring a car, it can help keep costs down. Hopefully our car hire tips come in handy and help you find extra savings for your holiday.” 

To help take the stress out of holiday car hire, the experts at Tiger.co.uk have put together some tips to help you steer clear of any unwanted surprises.

Tiger’s top tips to avoid car hire hidden costs

1. Shop around: Car hire firms may try to sell insurance cover when travellers come to pick up the vehicle, instead, consider purchasing standalone excess insurance beforehand from a third-party provider in the UK, as these will usually be significantly cheaper and often more comprehensive than the policies offered at the rental desk.
2. Ditch the add-ons: Avoid overpriced extras such as car seats and sat navs by bringing them from home. Many airlines will allow car seats to be checked in for free as part of a child’s baggage allowance, while built-in sat navs can be replaced by using a smartphone app.
3. Take photographs: Upon collection, inspect the car and take photos of its condition, both inside and out, taking note of any scratches, dents or other damage. This will help drivers avoid disputes over pre-existing damage when the car is returned.
4. Be on time: While most companies offer a grace period (often around 29 mins) before charging a late fee, these can be substantial. Even if drivers are only a few minutes past the agree-upon return time, some firms will charge an extra day’s rental, so always allow plenty of time to get to the drop-off point.

Tiger.co.uk can help drivers hunt for savings on all sorts of car insurance products, including breakdown and car hire insurance plus travel insurance with additional car hire options.

References:

*https://www.fortunebusinessinsights.com/europe-vehicle-rental-market-107852

Cost of hire car extras:

Prices quoted are from Europcar, Hertz and Sixt websites, based on hiring an economy car (such as an Opel Corsa or similar) for a week in mid/late August 2025.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.