How to get the lowest prices for a holiday hire car
The good news is that it seems car hire prices are getting closer to pre-pandemic levels, according to a new 12-country study by iCarhireinsurance.com.
The research reveals that the average cost of a week's car hire in summer 2025 is £369, 43% lower than the 2022 high of £652, but still 19% more than in 2019 (£310). Prices have fallen steadily since the 2022 peak, by 43% compared to 2022 (£652), 29% compared to 2023 (£520) and 3% since last summer (£380).
'There are some good deals to be had this summer when hiring a car if drivers take the time to shop around for the best prices, and don't waste money on extras from the rental desk which could have been brought from home such as sat navs and child car seats," says Ben Wooltorton, from iCarhireinsurance.com.
"It's also worth considering buying excess reimbursement insurance before you travel from a specialist insurance provider.'
And, there's still chance to shave more off your costs, say the experts.
1. Book early but look for last minute deals
Book early and shop around to get the hire car you want at a good price. For example, for a week's summer hire in Barcelona, Sixt quoted £288, while Budget quoted £129.
2. Look for free cancellation, so you can cancel if a better deal becomes available
Last summer, savvy travellers could have saved over £100 on car hire by booking closer to their departure. Prices for a week's hire fell by an average of £116 between January and July 2024 – with potential savings of up to £266 in Milan.
3. Shop around for excess protection – you could save around £190
If a hire car is damaged or stolen, the hirer is responsible for the excess amount, which can be as high as £2,000. A week's standalone excess reimbursement policy from iCarhireinsurance.com costs from £33.15 and includes damage, theft, and tyre and windscreen cover. This is a sixth of the cost compared to buying excess protection from rental companies which costs, on average, £167 for a week's theft and collision damage excess waiver and £57 for tyre and windscreen waiver - a total of £224 according to a European survey of car rental prices.
4. Avoid buying extras from the rental desk – and save around £230
Only two in five (41%) check the price of extras when booking their hire car. Expect to pay, on average, £73 for an extra driver, £85 for a sat nav and £71 for a child's car seat – a total of £229. Bring car seats from home, use a smartphone for maps and think carefully about the need of adding a second driver.
5. Take photographic evidence of existing damage
Almost two in five (39%) hire car drivers found damage on a hire car that was not highlighted on the checkout sheet. To avoid unfair damage charges, check the vehicle thoroughly at pick-up and return, and take dated photos or video proof.
6. Don't hire from the main airport or railway station
Compare the cost of hiring from the main transport hubs, i.e., the airport or railway station with the same company a short distance away, as the savings might be worth the taxi fare.
7. Use a credit card for booking and to cover the excess
Use a credit card to gain Section 75 protection under the Consumer Credit Act. This means the credit card provider will protect purchases over £100 (and less than £30,000) and you could get your money back if there is a problem.
8. Read the small print to avoid unpleasant surprises
Always read the agreement document thoroughly to make sure you are not agreeing to an upgrade or paying for the rental company's excess protection cover if you don't want it.
Recommended reading:
9. Check the fuel policy
Know the fuel policy before you drive away. If you need to return the car with a full tank, make sure you do, as the penalties can be expensive. Keep the receipt from the petrol company as evidence.
10. Mileage restrictions
Similarly, if you are planning a driving holiday check for mileage restrictions to avoid getting caught out.
11. Know how to complain
Go to the rental company within 14 days with the complaint. If a satisfactory outcome is not reached, complaints can be directed to the BVRLA in the UK whose members, including AVIS, Budget, Enterprise, Europcar, Hertz and Sixt, are expected to adhere to its mandatory Codes of Conduct. An alternative is to contact the European Car Rental Conciliation Service (ECRCS), which offers a free service to help with unresolved complaints, but the rental must be with a company that has signed up, i.e., Alamo, AVIS, Budget, Dollar, Enterprise, Europcar, Firefly, Hertz, Maggiore, National, Sixt and Thrifty.
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