Business travellers hit by hidden car hire charges, study finds

A fifth of UK business travellers have faced unexpected charges when hiring a car, according to new research from car hire excess reimbursement specialist iCarhireinsurance.com.

An Opinium survey of UK business travellers who have hired vehicles found that 22% had been hit with surprise costs, while 41% believe rental companies often charge for pre-existing damage. Trust levels remain low, with just 22% of respondents confident that rental firms provide an accurate assessment of a vehicle’s condition at check-out.

Unrecorded damage continues to be a significant issue at both pick-up and drop-off. More than half of respondents (51%) said they discovered damage at collection that was not recorded on the check-out sheet. Meanwhile, 15% reported being unfairly charged for damage, and 48% returned vehicles without any inspection from rental staff, leaving them potentially exposed to later claims.

The research also found that 18% of business travellers have experienced a hire car being damaged or stolen during the rental period through no fault of their own, highlighting the financial risk associated with car hire excess policies.

Costly add-ons at rental desks remain a concern. Almost two-thirds (63%) said they felt pressured to buy extras such as excess protection waivers, additional drivers or satellite navigation. Seven in 10 believe desk-sold extras are overpriced, while 57% described rental excess protection waivers as poor value for money. Despite this, 58% still believe excess protection must be purchased directly from the rental company.

Only 24% of respondents said they had bought excess protection from an independent provider, despite significant potential savings. According to iCarhireinsurance.com, business travellers who decline rental desk excess waivers could face excess charges of up to £1,800 if a vehicle is damaged or stolen.

Rental desk excess protection waivers typically cost an average of £232 per week, compared with excess reimbursement insurance from specialist providers starting from around £33 per trip or £42 annually for European cover.

World Travel Protection recently revealed new insights into the impact of business travel on employee mental health and wellbeing.