Brits hiring a car international could face £2,000 hold charges on their credit cards; even if they’ve paid for insurance upfront when hiring the car.
That’s according to Cherie Carter, founder of Indigo Car Hire, based in Leeds but operating internationally with over 5,000 5* reviews on TrustPilot.
Here’s some key notes from Cherie:
- Always check who your insurance is with; you’ll generally be offered insurance options away from the company you book with. This will usually only cover your refunds, rather than zero excess.
- Taking third-party insurance options when booking will generally cover things like misfuelling, roadside assistance or locking yourself out of the vehicle.
- Make sure you check your terms and conditions when taking out insurance, and see what you’re covered for. It might be that you already have a premium package and don’t want to purchase extra per day insurance options on collection.
“The insurance process can be a lot to take in when hiring a car, and many who hire for the first time face a common question on arrival to pick up their vehicle.”
Cherie continued: “More often than not, customers will choose a third-party option to ‘insure’ the car, as these are often much cheaper than going with the original supplier.
“However, it’s worth noting that this often only handles your refund cover. For example, let’s say you’re in an accident that wasn’t your fault; you have to pay £2,000 excess, but then you provide the documentation/evidence and get the money back.
“These packages don’t cover your overall excess, in most cases. This is how many customers get caught out when collecting their car, often at the airport.
“You may be asked to pay upwards of £25 per day you have the car, or an overall hold fee of up to £2,000 on your credit card, in case of any accidents or damage to the car that are your fault.”
When asked what steps customers should take to make life as easy as possible, Cherie offered the following three-step advice:
- Budget accordingly and expect to pay a bit more upon collection of the car; this is standard practice in most cases
- Take the hit upon arranging your hire car and book directly with the provider; this way you can politely decline any extras at the airport
- Contact your provider; if you’re unsure about any questions asked when collecting your car, it’s worth contacting Indigo Car Hire or whoever you’ve booked with, to work out exactly what you need (if anything)