10 top tips to save money on your car hire

Car rental prices have fluctuated a lot over the past five years, as firms struggled to match their fleet to ever-changing demand.

But if you’re looking to hit the open road this year, there are plenty of ways to stick to your budget. Here, we round up ten easy ways to score a cheap deal on your car hire.

1. Compare car hire deals online

With so many car hire companies vying for your money, using a comparison site such as TravelSupermarket will allow you see the best of what’s out there – from brokers and direct providers alike.

By putting your options side by side, you can easily compare your car hire needs, from transmission type to fuel policy to pick-up location, all in one place.

Keep in mind that the cheapest price won’t always be your best option in the long run, especially if you’re dealing with unhelpful service or need add-ons such as an additional driver. Try to strike a balance between price and provider rating – you’ll see a snapshot of Trustpilot reviews on our site to help you decide – and tot up the costs of anything else you might need as part of your rental.

2. Book your car hire early

Sorting your rental car early has two benefits: it can help you to nab a cheaper price and you’re more likely to secure the type of car you really want.

If you can, sort out your car hire when you book your holiday, and choose a deal with free cancellation – just in case a better price comes along.

It may also be worth checking the cost of car hire as an add-on when you book your break, as many holiday companies will offer it as you move through the booking process. But as always, remember to compare the cost with a standalone booking to ensure you’re getting a good deal.

3. Avoid peak travel times (if you can)

Prices tend to rise over the school holidays, so if you can avoid travelling during these weeks, you’re more likely to save on your rental.

If you do need to travel when school’s out, make sure to book early to stand the best chance of finding a deal. You may also have some luck finding a cheaper price in the first and last weeks of the summer school break.

4. Consider a smaller car

If you’re going all-out to live your life-on-the-road fantasies, you might want to prioritise comfort over cost. But a car to just get you from A to B on a laidback holiday won’t need the whizz-bang features of a luxury vehicle.

Mini, economy and compact car categories (think Fiat Pandas, Ford Fiestas and Toyota Corollas) tend to be cheaper options than standard and full-size vehicles. You might need to get cosy but it could be a good compromise if you plan to only drive short distances.

5. Understand car hire insurance

At-the-desk upsells can blow out your car hire budget before you’ve even gotten behind the wheel. That’s why it’s important to understand the legalese behind your car hire insurance documents.

In many places (the US and Canada are big exceptions), your car rental will come with a basic level of insurance – usually called a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). But even with this built-in insurance, you’ll still be liable for what’s known as the ‘excess’ in the event of an accident. It’s usually between €500 and €2,000.

Rental companies will generally push for you to purchase a separate insurance policy – known as car hire excess insurance – to mitigate these costs. While we recommend taking out a policy as it could save you money in the long run, it’s almost always cheaper to choose a standalone provider such as iCarhireinsurance.com or ReduceMyExcess. Policies start from as little as £2.15 per day, compared with up to £20 at the desk.

6. Check the car at pick up

Before you drive off, take the time to check for any damage to the car. Look at everything from the hubcaps and the bumpers to the wing mirrors and panelling. Take photos as you go and ensure the representative from the car hire company notes it all down.

Many major car hire companies will walk you through the damages report before you drive off. If your provider doesn’t, insist they do. And don’t be shy to speak up if you spot other scrapes and bumps. Otherwise, you risk footing the bill for damage you didn’t do.

7. Say no to add-ons

A sat nav can be a handy addition to any road trip, but with prices from around £15 per day, it can also be a pricey one (that’s £75 for just 5 days).

Instead, avoid the upsell and stick to using your phone. You won’t even have to fork out for roaming charges – just download the map data for your area on a free app like Navmii or Google Maps and you can see it all offline.

The same goes for children’s car seats. Many airlines, such as easyJet and Ryanair, allow you to travel with a car seat for free alongside your pram or pushchair, so contact your airline before renting one abroad. You may even find your destination has standalone equipment rental services, such as Tots Store in Malaga and The Stork Exchange in Majorca. However, be aware that you’ll probably have to install the car seat yourself.

Finally, if you're dividing up the driving, add any extra drivers at the time of your booking – it can cost more to add them at the rental desk.

8. Choose the right fuel policy

Fuel prices are rising, meaning a cost-effective fuel policy on your car hire is essential. Full-to-full or same-to-same policies are broadly considered the best value for money – they just require you to return the car with the same amount of petrol as when you picked it up.

Avoid full-to-empty policies. While they can be convenient as you don’t need to find a petrol station before you drop off the car, you’ll be pre-charged for the fuel, often at a grossly inflated price.

At TravelSupermarket, we only show you hire rentals with fair fuel policies (ie full-to-full or same-to-same) so you’ll have one less thing to think about when comparing deals.

9. Plan your drop-off

Dropping off your car hire is fairly simple. You’ll often only need to do two things: refuel the car and check again for damages.

When it comes to filling up the car, be sure to research local petrol stations before you set off. You’ll often find one right by the airport but prices can be expensive. Instead, look for petrol stations a couple miles out – you may find a better rate.

At the drop-off location itself, recheck the car with a company representative and get a copy of the signed document that says the car was in an acceptable condition. You shouldn’t be hit with any charges after this, but it pays to have a copy in case you need to dispute any fees.

Returning after hours? If there’s no representative present, make sure to take your own photos of the car as you’ve left it. On the off chance something happens before morning, you’ll have time-stamped evidence that it wasn’t your fault.

10. Pre-pay for your booking

When you hire a car online, you can usually select to pay on the day or pre-pay at the time of booking. Choose the latter. Not only is it cheaper to lock-in the price early, but it’s also a more secure guarantee that your car will be available to pick up.

While it’s uncommon, there have been instances of unscrupulous companies cancelling car hire reservations, leaving customers to pay a higher rate for a new on-the-day booking.

As always, check the terms and conditions of your car hire provider before you pay. Generally, you’ll have 48 hours before your pick-up time to cancel without a fee. You won’t face any fees – no matter when you cancel – if you haven't pre-paid for the car.