Just 30% of Brits happy with car rental experience
Car hire excess insurance costs more than hiring a car
Purchasing separate car hire excess insurance can be up to 96% cheaper
Research* from Gigasure, the car hire excess insurance specialists, found that 64% of Brits are scared to hire a car for fear of being charged for damage they didn’t cause. Gigasure’s research also found that just 30% of Brits were happy with their rental experience when hiring a car abroad.
The findings from the survey show that one in five (21%) of those who have hired a car abroad felt they were being pressured by the representative at the rental desk to make additional purchases while nearly 20% said they were scaremongered into paying for additional cover.
The research also found that 17% of those who had hired a car were given confusing terms they didn’t understand to get them to purchase more expensive insurance policies, 15% felt they were an easy target at the rental desk after a long day of travelling, and 15% reported being stung by unexpected car hire insurance fees at the desk when collecting their vehicle.
Despite widespread publicity around car hire companies ‘scamming’ customers with expensive excess insurance policies, Gigasure’s research shows that consumers still feel bullied into buying them through fear of being hit with unexpected charges should they have any issues with the car.
Ernesto Suarez, Gigasure’s CEO, said: “Our research found that individuals are frightened to hire a car abroad as they don’t want to be faced with a big bill when returning their hire car if they are accused of damage they didn’t cause. And they are right to be concerned. We know these charges can often amount to hundreds, if not thousands of pounds, worth of bills.
“Car hire companies are well known for using harsh tactics to frighten customers and make them buy additional cover or pay for extras they don’t need. After a long day of travelling, you just want to collect the car and hit the road. Car hire companies know this and many are taking advantage of the situation.”
Cost of Car Hire Excess Exceeding Car Rental Costs
Car hire comes with basic insurance as standard. The rental company will then normally offer the option to purchase a policy with higher cover, but these policies are often overpriced and offer inferior protection. Car hire excess is the amount a customer is liable to pay for damages to the rental vehicle, even if it’s not their fault. Excess amounts typically range from £500 to £2,000 and many rental companies offer excess waiver or collision damage waiver insurance to reduce or eliminate the excess liability.
The analysis from Gigasure shows that, in many cases, car rental companies are charging more for their car hire excess insurance than they are for the car hire itself. For example, 8 days of car hire rental for a standard compact vehicle in Spain with Europcar costs £291.41. The cost of Europcar’s Compact+ insurance purchased for the same duration is £348.43 – or 54% of the total hire car cost of £639.57.
For comparison, a European single trip standalone car hire excess policy with Gigasure for the same duration costs just £27.24. Purchasing a separate standalone policy offers a higher level of protection at a fraction of the cost. This not only saves money but also provides peace of mind that should the hire company accuse you of damage you didn’t do, the insurance will cover it.
Gigasure’s analysis of car hire excess costs charged by rental companies shows that this can be an expensive way of getting cover. Their research looked at the cost of car hire excess insurance across popular rental companies in Europe and found that purchasing a separate standalone policy from a specialist provider can be up to 96% cheaper, in some cases saving the hirer over £700 in insurance costs, and often offers more superior cover.
Suarez continues: “It’s sensible to have car hire excess insurance when hiring a vehicle but purchasing this directly through the rental company is extremely expensive, often costing more than the car hire itself. We fully encourage people to purchase this insurance and ensure they are protected should something happen, but as our research shows, buying a standalone policy from a separate provider is infinitely cheaper and provides a greater level of cover.
“To avoid being caught out, when collecting your car, take time to walk around the vehicle and note down any scratches or scrapes that are already on the car. If you can, take a video of the car so you have a record of this. On return, repeat the process with a representative from the car hire company before you sign it back in.”
As well as using confusing language to get you to buy the car hire excess insurance direct from them, many policies sold by major car hire companies often have gaps in the coverage, for example, stone chips on a windscreen, flat tyres etc. A standalone car hire excess policy will offer more extensive coverage, ranging from losing your car keys to accidentally using the wrong fuel.
Suarez adds: “Having car hire excess insurance offers financial cover for the excess amount you would be liable for in the event of damage, theft or loss of the rental vehicle. It helps mitigate the financial risks associated with hiring a car, reducing any out-of-pocket expenses you might incur and provides travellers with peace of mind during their holiday, leaving them free to enjoy their adventure.”
Case Study: Harvey
Harvey saw first-hand that he was having to pay more for insurance than the cost of hiring the car and felt this was wrong. After being caught out when hiring cars in the past, Harvey has been buying yearly CHE policies for himself and his wife for a few years now. He says this has not only saved hundreds of pounds in costs when hiring a car, but it also saves hassle should the car hire company want to charge him for anything.
*Methodology
Gigasure survey conducted with Censuswide in April 2025 amongst 2,000 individuals aged 18+ who have travelled abroad in the last two years.
**Car Hire Cost Comparisons
- Car hire price comparisons based on hiring the most basic car from each company starting from 1st August 2025. Choosing the most inclusive insurance policy.
- Car is VW Polo/compact car or equivalent
- Gigasure insurance policy quote is representative of: European single-trip cover with excess protection up to £6,000
- All figures correct as of 13 May 2025
About Gigasure
Gigasure is an innovative insurtech platform that elevates the insurance experience by putting customers at the heart of its service through a cutting-edge app. Offering travel, backpackers, and car hire excess insurance, Gigasure allows customers to tailor their cover by adding or removing benefits to match their specific needs and budgets.
With the Gigasure app, customers can easily manage, purchase, customise and boost their policies. Gigasure’s innovative feature, GigaShield, provides real-time support with cash payouts and VIP airport lounge access during flight and baggage delays. By combining flexibility, simplicity and cutting-edge technology, Gigasure is setting a new standard in personalised insurance solutions, fostering customer loyalty through continuous support and an enhanced user experience.
Gigasure is a member of Insurtech UK, a government trade association, the influential voice of insurtechs in the insurance sector.
Gigasure® is a registered trademark. Gigasure.com is a trading name of Gigasure Services Limited, Company No. 15019007. Its registered office address is 1st Floor, 239 Kensington High Street, London, W8 6SN. Gigasure Services Limited is authorised and regulated by the Financial Conduct Authority (FCA), Register No.1005421.
