Cheap Car Hire £100s off hire & insurance costs

In the USA, most hire cars are automatic and so don't cost more. In Europe and much of the rest of the world the default is manual. If you have specific requirements, ask.

The majority of cars tend to have air conditioning as rental companies upgrade their fleets often. But don't assume the car will have aircon. If you're going in peak summer, you're likely to need it for any long journeys.

Most cheap bookings have fixed specifications, including only one driver. If two or more of you want to split the driving, don't leave this until you get there, it can add a fortune on top. Instead, specify in advance, or use one of the car hire firms that offer an extra driver for free.

These include Sixt*, but always double check as it can depend on the car and location. Then compare these to the cheapest using the techniques below.

Do also note you usually need to be at least 21. Under 25s usually pay surcharges, and will be excluded from certain hire classes. Charges for under 25s can vary massively, so check using the comparisons below.

Are you a flash Harry or economical Eric? The smaller and less sexy the vehicle, the cheaper it'll be in fuel costs and to hire. In summer, soft-tops or coupes command a huge premium.

If you're hiring in the USA, a small car in the States is often what's defined as a mid-sized family car in Europe.

When you hire, cars fit into classes, yet these are loosely defined. It varies from company to company, but here's a rough run-down:

	Mini: Usually a two-door car with a small 1.0 litre engine. It can fit four people at a squeeze, but you'll struggle with lots of luggage. Usually offered as a manual car without air conditioning.
	Economy: Two to four-door car which can fit a family of four (two adults, two kids) plus a standard amount of luggage. Again, unlikely to be an automatic or to have air conditioning.
	Compact: A four-door car which can fit five people and around two suitcases comfortably. Might be an automatic drive. If so, you'll pay extra.
	Standard: A four-door car with a 1.8-2.0 litre engine that can fit four to five adults comfortably plus a good amount of luggage. Will usually have air conditioning and be an automatic.
	Full-size: A four-door automatic car or people carrier with the full works including room for five or more and lots of luggage, power steering and air conditioning.
	Prestige: A sportier car (though don't expect a Lamborghini) with a big engine and everything a full size has.

Remember, if you're offered an upgrade, DON'T rely on the category, compare the features you're getting. A top range compact car may be better than a low-range standard car.

Also don't assume lower range cars are cheapest. Surprisingly, estate cars and people carriers can work out cheaper than smaller cars - it all depends on demand in that country.

If you're planning to cover a serious distance, check the booking has unlimited mileage or it can cost a fortune on top. Plus, if you're crossing borders, whether national (eg, Spain to Portugal) or a state in the US (eg, California to Nevada), ensure you're still covered by the insurance.

If you've already got maps for the country you're visiting, it's a no-brainer to take your own sat-nav as rental can cost around £5/day. For a long journey, if you have a smartphone then simply paying £50 - £70 to download the app may be cheaper than hiring a sat-nav for a week.

Beware free mobile phone sat-nav systems where you download maps of specific routes over mobile broadband. Using those abroad can lead to monster roaming bills.

If you haven't got the maps, check how much they'll cost. While it might work out slightly more expensive to buy them, at least you'll get further use on future trips.

Start by checking your Travel Insurance policy, as you may find some of the above events are covered anyway.

Always make sure you've checked exactly what's included and whether you need to pay extras, such as for child seats, sat-navs and taxes. If these extras have been added and you don't need them, see if you can ditch them.

With child seats, they're compulsory in Europe for under-3s, and some companies charge a whopping £70-a-week extra for these. So factor this in BEFORE you book to see which firm is cheapest overall. Plus, consider taking your own seat, or buy there, which could be cheaper than paying the extra.

If possible, pay on a credit card. Provided the total hire costs over £100, you get the additional protection provided by Section 75 of the Consumer Credit Act which, roughly speaking, means the credit card company is equally liable with the car hire company if things go wrong.

This is very valuable if you end up having problems with an overseas car hire firm but do make sure you pay the credit card off in full. Yet there may be a cost impact:

• Credit card booking fees

  Some places will add an additional cost for booking with a credit card, so beware. However, if you have a decent Cashback Credit Card, this should balance it out.

• If you're booking from an overseas site, always pay in their currency

  If you're booking from an overseas site be careful how you pay. In most cases, you're better off paying in the overseas currency, rather than letting it convert the cost to pounds for you, as you'll get a poor rate. Better still, ensure you're using one of the Cheap Travel Money Cards.

  Also be aware you may be asked to hand over a credit card, and a holding deposit of up to £2,000 may be taken. This can be debited if anything goes wrong with the car, but even if it doesn't, you'll need to have a credit limit that will cover it.

Sadly, international car hire can be tricky. If something goes wrong, finding recourse isn't easy. There are a few techniques to prevent problems.

• Inspect and take a quick photo of the car's condition

  Reports of overcharging and claiming damages are rife. So briefly snap some pictures of the car and make notes of its condition on the hire company's form, especially any scratches or dents as these can be the prime source of disputes.

• Low mileage? Check the petrol policy

  Check what the fuel policy is. Some companies charge you up with a full tank of petrol at high prices and ask you to return it empty. If you're not planning on many miles, avoid these companies.
  
  Plus, if it says it doesn't matter whether you refill it or not, beware. This most likely means it'll then fill it up itself and charge you for the fuel at a much higher rate than you'd pay doing it yourself.

• Check the type of fuel the car takes

  Always make sure you check if the car requires petrol or diesel. If you damage the car by using the wrong type, it's unlikely you'll be covered.

• Off-road travelling

  If you plan on being adventurous on your hols, check what's covered. If you have an accident while racing through the Sahara desert, you may have to cough up for damages. Check the spare tyre is fully operational. There's nothing worse than being stuck somewhere unfamiliar with a flat tyre.

• Local legalities

  Some countries have legal requirements such as in-car first aid kits, high visibility jackets, breakdown and spare bulb kits which, if you don't have them, invalidates the insurance. The car hire company should be well aware of this, but do check.

• Make sure you know its emergency number

  Most car hire companies have a 24-hour contact number in case the car breaks down or in event of accident. Make sure you've got it before you go anywhere.

• Can you turn right on a red?

  Some countries allow you to turn right at traffic lights on red provided there's no oncoming traffic (this is countries where you drive on the right hand side, eg, USA, but not in New York state or Canada). If you don't do this, you may get abuse from other drivers. So check with the car hire company what the local laws are first.

At the end of the hire period, you need to carefully obey the rules or you could have more problems.

• Check the fuel policy
  
  Before you leave with your car check the fuel policy. Companies can give you a full tank which you must pay for, but say ‘return empty’. So if you won’t drive too far, watch for this or you’ll be paying for lots of unused fuel.
  
  Conversely if the policy is for you to return a tank full and you don't, you can end up paying for the hire firm's costly petrol.

• Make sure you're present when the inspection is done

  Don't just drop the car off. If possible, be there when the car is being inspected, so you can't have bumps and scratches unfairly assigned to you. If you can't be there, again take photos and notes to prove there were no problems, and record the mileage.

• Don't be late!

  Return your car on time, otherwise you might face an extra day's car hire charge.

• If you have an accident, keep repair bills

  Put bills in a safe place. You may not be able to claim without them at home.

• Ask for all paperwork to be completed on the spot

  Keep your deposit credit card slip so they can't apply any charges at a later date.

• Keep all the paperwork

  Don't throw any of it away or you have no way to argue disputes.

This is the final bit of vigilance needed. Check your credit card or bank statement when you get back to make sure no extra charges have been added to your bill without your knowledge and ensure you've had your full deposit back.

After that, you can delete the photos and get rid of the paperwork. But not before, otherwise you have no way to dispute the process. If there is a problem and contacting the company to sort it out doesn't work, and you paid on a credit card, remember you have the Section 75 protection as a secondary back-up.