Always book in advance rather than when you arrive at your destination. The sooner you book the more likely you’ll find discounts. If possible, try to book up to three months ahead.

Availability can be a problem at busy times, which is another reason to book as far ahead as you can, especially if you desire to rent a particular type of vehicle.

When doing the booking process, ensure you choose your dates carefully.  Make sure you are not renting for times that overlap into another day’s car hire charge.  Car hire rental fees are charged by the day, so if you go over by just half an hour, you will pay an extra days rental!

Always enter the correct start time for the rental, I suggest a couple of hours after your scheduled landing time, so that you have enoughtime to clear passport control, collect baggage and find your rental supplier.

Input your flight number if you know it, that way it helps the car rental company know when you are arriving if there is a delay. If you don’t add it to your booking and your flight is delayed by more than one hour at departure, you must let the rental office know otherwise your reservation may be cancelled, as cars are only held for two hours at busy times.

Whether you choose the budget approach to car rental and go via a car hire broker or happy to spend a bit more and go directly with a more reputable well-known international brand name, it’s always worth making the effort to choose your car hire firm carefully.

There are pros and cons of whichever option you choose.

The benefits of using the larger recognised rental companies are: they’re more likely to offer the latest car models, they operate a wider network of locations, prepare vehicles to a higher standard and offer emergency roadside assistance as standard; should have a UK based office or point of contact in the event of a complaint.

The downside is they’re normally a lot more expensive and you might encounter bigger queues at the pick up desk.

It is always best to book with one of the following: the UK website of a major car rental company, preferably a member of the BVRLA (British Vehicle Rental & Leasing Association), European Car Rental Conciliation Service (ECRCS), or with one of the better-known specialist brokers that should have a reasonably competent after-sales customer service team.

To start out, I recommend using the car hire broking sites to help cut the cost of car rental and make price comparisons easier. There are a lot of new players in this business, including airlines and European-based online travel agents.

Some examples include carrentals.com, easycar.com, economycarrentals.com, rentalcars.com, holidayautos.com, zestcarrental.com, but there are many others.

Be careful when doing your online search, because each quote may not be an exact like for like. Don’t necessarily go for the cheapest option, because rental companies are crafty, and will make hidden charges to get them ranked at the top of the price list, then clobber you later when you arrive. What each quote includes varies, so check closely before booking. For example, the cost of adding extra drivers, or hiring child seats can be high and varies hugely so shop around.

Be aware that brokers have different levels of control over what their suppliers sell you, and this may mean being offered extras when you thought you had paid for everything.

The majority of problems occur when a reservation has been made via a car hire broker choosing the lowest advertised price on their price comparison site. The broker is only a sales agent; the customer’s contract is always with the car rental company at the destination. When things go wrong many brokers wash their hands off the problem, and tell customers they must deal with the rental agent direct.

To mitigate against the risks of using a broker, use the review scores (out of 10) to guide you when comparing. I like it when a broker shows you the name of the rental car company you will be using: easycar.com do this, as shown below (Enterprise, in this example).

Next, a great tip – go direct to the rental company that you have chosen from the broker search and compare the prices, eg enterprise.co.uk. You may find that going direct is cheaper!

Also check directly with other big name companies that are not included in the broker’s list of companies used.

It’s always important to compare deals from both big and small players.

Some airlines have partnerships with car hire companies. EasyJet, for example, has a deal with Europcar. This can provide you a discount on the walk-up price, but as I recommend booking in advance, this is not much use.

Furthermore, if you book with a partner firm you are more likely to face queues at the airport thanks to the number of co-passengers chasing the same deal at the same time.

Watch out for
Amendment or cancellation fees – some car rental companies boast about free amendment or cancellation fees, but this can vary hugely. Check their terms and conditions to be certain what they mean about this.

If your plans change but you still need a hire car, one way to avoid a cancellation fee is to change your booking rather than cancel it entirely.

Reduce the likelihood of needing to amend or cancel the booking later by double and triple checking all the booking details are correct (especially car hire dates and times), before you click on the booking tab. In particular, make sure the car rental pick-up times are always written in local time, like flight departure times. So if you’re travelling abroad, don’t forget to take the time difference into account.

When choosing your vehicle, the smallest or cheapest car may not be the most appropriate. Consider the number of people and luggage to be carried. Comfort and safety are important considerations.

You may also be extremely appreciative for having chosen an air-conditioned car in a hot country.

I’m sure you’ve heard about it, if you haven’t experienced it directly; the service assistant explaining all the virtues of spending a small fortune on excess waiver or collision-loss-damage waiver insurance at the collection desk. You will come across unfathomable terminology such as excess waiver, CDW, SCDW, PAI or TP. To add further complexity, different companies may use different terms to describe the same product.

Get to know the most important terminology
Collision Damage Waiver (CDW or LDW in the US) is principally designed to cover damage caused in a collision with another vehicle and not single-vehicle damage. Over time, as budget car rental firms look for savings, the scope of CDW cover has shrunk and new exclusions hide in the small print. Basic CDW cover usually excludes damage to tyres, wheels, wing-mirrors, windows, hubcaps, the undercarriage and roof of car. It also excludes towing costs in the case of breakdown and clutch failure – even if you have only driven a few miles.

Super Collision Damage Waiver (SCDW) is a top-up insurance cover. It fills in the gaps that a standard CDW leaves. It will cover many of the exclusions of CDW and it reduces the excess (sometimes down to zero excess).

It certainly makes sense to have certain types of extra insurance cover since the excess levied after an accident, or if your car is damaged, can run into hundreds or even thousands of pounds. Taking out additional cover gives you added peace of mind from the financial risk if or when things go wrong.

These top-up policies are designed to refund excess CDW and theft protection (TP) charges levied by the car rental company.

This extra cover can add hundreds to the hire cost if you buy at the rental collection point. The good news is that you should be able to buy much cheaper standalone excess insurance from a separate insurer before you go.

If you are renting a car for a week or more normally it is cheaper to buy a separate annual excess recovery policy from an insurance broker: moneymaxim.co.uk offers a comparison chart of cover limits.

When it comes to taking out the extra cover, there are three options to choose.

ONE: ignore SCDW cover and buy (as already mentioned) a standalone insurance policy from a third party (Excess Reimbursement) insurer. This is my recommended option.

Advantage: Normally much cheaper. A stand-alone excess recovery policy costs around £40 a year for rentals in Europe which compares very favourably with top-up cover bought from the supplier’s rental counter, which can be as high as £15 a day.

Disadvantage: Need to resist the potential hard sale to buy extra insurance upon collection of the car; if there is damage, you will have to pay for it first and then claim the money back; to be reimbursed you must obtain an estimate of the cost of repair from the supplier – often difficult to extract – and lodge a claim with the insurer in the usual way.

TWO: Buy the extra insurance cover from the broker when you book. My advice – never choose this option.

Advantage: Other than it might be cheaper than being upsold when you arrive, and it’s more convenient when booking, there isn’t a clear advantage of this option. A standalone separate insurance invariably works out the cheapest.

Disadvantage: Normally a lot more expensive than buying standalone cover; likely to still face pressure to upgrade by the rental agency when you arrive at the destination; cover bought at the time of reserving the car is often provided by an insurer in the UK and not by the car rental agency in the destination – so the supplier will still need a deposit on a credit card (if you buy its own top-up waiver no deposit should be necessary); if you incur damage to the car you have to pay first and claim after.

THREE: buy extra cover from the agency renting you the car during collection. This is often referred to as a Super Collision Damage Waiver (SCDW) and can be very expensive if you want to be sure you will not have to pay for any damage.

Advantage: You have peace of mind knowing that you are covered for damages without having to pay first and go through the process of claiming back through your standalone or broker insurance company; you don’t get hassled from the service assistants because you’ve already upgraded with them.

Disadvantage: It will (most likely) cost quite a bit more.

Note of warning: You will be forced to take this option if you (a) don’t have a credit card, or enough credit on your credit card to pay their deposit “lock-in” fee to cover any potential damages, (b) they might claim your credit card has been declined and if you don’t have another one or two other backup credit cards at your disposal (this can be a broker scam at work).

It can be so easy to be taken advantage of when you are tired, it’s late, dark, and you just want to get your vehicle and drive to your destination as quickly as possible, so be prepared.

Further note of warning: The assistant may suggest a number of possible additional insurances to add, so only choose those you really need.

If you choose my recommended option, here is a list of companies that you can get standalone insurance quotes from.

   Leisure Guard Insurance (including a MMS special 10% discount when you quote Money10 using this link)

   icarhireinsurance.com

Note when buying standalone cover:

Exclusions can hide in the small print, so check the policy carefully – insurance4carhire.com, worldwideinsure.com and icarhireinsurance.com are among specialists with a good reputation.

When taking out extra insurance cover, check that it includes tyres and windscreen. These are the most common reasons for an insurance claims so are worth being covered for.

Make sure it is in the same name as the lead driver on the rental voucher otherwise it may not pay out.

If you’re only hiring for a short period, a daily excess insurance policy should be the cheapest option. For longer car hire, or if you rent more than once a year it should be cheaper with an annual policy.

What if you choose not to take out any extra insurance cover?

If you do this, you are taking on the risk of paying out in the event of an accident, theft or damage made to the vehicle.  As mentioned earlier, as a consumer you will be liable to pay a costly “excess”, that can be up to £1,500 and more.

You need to have enough capacity on your credit card to stand a hefty deposit, and maybe another back-up credit card.  Debit cards are not usually accepted because they have no pre-authorisation facility to ring-fence funds to cover damage.

Somewhat foolishly I’ve taken this high risk “no extra insurance” approach many times, but I only did it because I regularly rented at the same destination to visit my son and knew the process, where I was driving, and felt confident and happy to take the risk. Knowing what I know now, I won’t be doing it again!

If you do take the risk and damage occurs, the rental company deducts the estimated cost from the deposit held against you when you collected the vehicle (£1000 plus is quite normal). There is usually a standard charge per scratch or ding.

Make sure you manage your booking information efficiently, that way you can find it easily when you need it prior to your holiday.

I like to create a temporary email folder to place all email relating to my holiday bookings into. It means easy access to all my holiday documentation and it doesn’t get lost amongst the many other emails that fill my inbox.

This might seem obvious, but don’t forget to take your driving licence, passport and credit card when you leave home.  Also, have them easy to hand when you arrive at the rental desk.

Make sure you don’t forget other important documentation such as the car rental voucher, which could mean you are refused the car on collection. Check the hire company’s policies and procedures regarding what to bring.

Be organised and print off the necessary documents, or have digital evidence of them on your phone before you leave on holiday.

This is really important – make sure to take the credit card that is in the name of the lead driver on the rental voucher, otherwise you will have to pay again.

If travelling in a group, it can be a good idea to send one person ahead to collect the car while the others wait to collect baggage. This is one way to avoid queues at the car hire desk.

Pick-up desks often try to sell you an upgrade to a bigger car. In the United States, in particular, agents will try to persuade you to upgrade saying the trunk (boot) is too small for your luggage. Refuse attempts like this to accept an upgrade.

Generally the offer will be made because the size of car you booked is no longer available. This is the car hire company’s problem not yours – they have a legal obligation to give you what you paid for. If they don’t they are in breach of contract.

So if they give you a bigger car it has to be at the same price. If you get a smaller car than the one you paid for, you should get a refund for the difference.

No reputable rental company should ask you to pay for an upgrade if it can’t provide the vehicle model you have booked.

Make sure an upgrade charge isn’t sneaked on to the paperwork you sign, as it could double the cost of your rental.

If you plan to drop the car off at a different location to where you collected it, check the fees for doing this.

Most rentals have unlimited mileage but some do apply a limit, so double check.

Including a Sat Nav or GPS device with the rental might help with getting to your destination but it can cost £80 or more for a week’s hire. That’s terrible value for money. So plan ahead and think of other creative ways around this problem. For example, bring your own Sat Nav, or buy a new one (it could work out cheaper than renting).

Other alternative options might include:  buy a roadmap of the area; print-off online maps before you leave home; take Google map pictures on your phone; download Google maps offline on your phone; or use live Google maps/Sat Nav apps with roaming on your phone – be careful about roaming phone charges if you do this of course.

If you have young children who require car seats, take yours with you rather than hiring them along with your car (most airlines will carry them for free).

Not only will you save yourself a lot of cash – some companies charge up to £10 a day per seat. Your children will also probably be safer and more comfortable in their own seats.

Turn up just one hour late to the rental desk and your pre-booked, pre-paid hire car may no longer be available. Not only might you have lost the car and the money that you paid online, but you also now face finding an alternative car at inflated ‘walk-up’ prices.

This is why it’s important to enter your flight details at the time of booking – the rental company staff are then alerted automatically of delays and should not rent your car to another customer.

If you’re not collecting from an airport, make sure you allow plenty of time to arrive and inform the office of any delays.

When you are planning your holiday and car rental, it might be worth thinking about choosing an appropriate flight arrival time that works best for picking up a rental care – I realise that might not be possible depending on where you fly to. The point is, picking up a rental car in the dark is far from ideal, not only making inspection of the car difficult, but driving in an unfamiliar car in an unfamiliar place in the dark and on the opposite side of the road can be a challenging experience. It’s probably not the greatest way to begin your holiday.

If it’s too dark to inspect the car, go over it with a fine-tooth comb the following morning and report any further scratches, noises or mechanical concerns immediately. Note the name of the person you speak to.

Note that many car hire companies will charge extra for collection or delivery that’s out of normal working hours.

Allow plenty of time for the vehicle to be thoroughly inspected when you collect, and when you drop it off (especially during busy holiday periods). Be prepared for long queues.

Once the contract is issued read it carefully before leaving the office, especially items that have been ticked as “accepted” or “declined”. If there are unexpected charges ask about them. If the total shown is more than that printed on your voucher you may, unwittingly, have signed up for unnecessary optional insurances. Dispute them immediately otherwise you’ll have to pay for them.

Before you drive off, make sure that any damage, even a small dent or scratch, is noted on the pre-rental inspection form. As well as bodywork, you should check the windscreen, wheel hubs, the underside of bumpers and the edges of wing mirrors. Check for safety equipment and spare tyres. This too can take time but check that all the safety equipment required locally is present and that the spare tyre is not punctured or overly worn.

Open the boot and check that it has a warning triangle, high-visibility jacket, spare bulbs and any other items legally required in that country (the AA’s website will tell you what these are) otherwise you may be charged for their loss.

It is very important to check that tyres are in good condition, have sufficient tread depth and appear properly inflated. Some customers breach the standard terms and conditions and drive their rental vehicles off-road. This can result in a cut or bulge in the side wall.

It is also worth checking windscreen washers and wipers to ensure that they are not worn and the washers have water in them. Point out any damage that is not recorded and make sure you get an employee’s signature agreeing to the record.

I’ve read incidences of customers being charged for damaged door locks. This is a tricky one, because most cars have remote locking systems, and few people are likely to try the key in its lock before driving away. This can make it challenging to dispute when you return the vehicle.

Car hire companies will often make you pay well over the odds for repairs should you damage one of their vehicles.

I highly recommend you take digital photos of the vehicle on collection to protect you against any accusations of damage later and avoid unexpected charges.  Take photographs of all four sides of the car including all damage – this can be time consuming but will be worth it if there are problems later. This is another reason for not arriving in the dark!

Ensure you keep all photos until you are confident that the rental company will not charge you for any unwarranted damages or cleaning after the rental period. It’s always good to have proof to demonstrate you are not liable. Keep them at least until you have reconciled all rental charges on your next months bank or credit card statement.

When you get in the car, take time to become familiar with the switches and environment before you set off. The important ones include: wing mirror adjustment switches, hazard lights, heater/cooler, and radio.  Also check fluid and oil levels and carry out a static brake check.

I’ve made this mistake and been guilty of not doing this properly in the past: trying to fathom out how to change radio stations, adjust volume, or put on the air-conditioning in an unfamiliar car whilst driving is careless and dangerous.

It may sound daft, but starting a car you do not know can be tricky in this modern world of keyless vehicles, so don’t be afraid to ask the car hire assistant to explain how it starts and operates. If appropriate, request a copy of the handbook.

Check you have the necessary cover and a contact telephone number in case of accident or emergency. It is wise to also check that the glove compartment contains all relevant breakdown assistance information.

The other benefit of doing all this before you drive away is if you find any problems you can report them to the rental company straight away.

Driving in a foreign country can be very stressful – especially when you don’t know where you are going!  So check and plan your route carefully before setting off. Put it into the Sat Nav if you have one, and be sure to have an up-to-date map with you if you don’t.

If you have a long journey to your destination, or kids in the car, you will probably have to stop en-route at least once. Make sure you have enough snacks and supplies of water in case of a breakdown, especially when travelling in hot weather.

You may well encounter toll roads on your drive, so make sure you are prepared to pay the necessary amount.

Many toll barriers take cash or cards, but some only take coins so you don’t want to be caught out.

France and Italy in particular have many toll roads.

It’s important to know the local driving rules and laws for the country you are driving in, including what to do in the event of an accident.

Go online and do some research before you leave home. The AA is a good place to start for advice on local driving regulations.

In most of the countries you are likely to hire a car this summer, you’ll be driving on the right.

This can make things such as junctions and roundabouts tricky, at least until you adjust to the conditions, so take extra care and stay focused. Ask your passengers to give you some peace and quiet while you settle.

While many companies give you a ‘grace period’ for returning the car, it can be as little as 29 minutes. Thereafter, a daily rental charge applies, plus a processing fee in some cases.

As already mentioned, car hire companies calculate charges in 24 hour blocks, so if you rent a car at 1pm on one day, but intend to return it at 10am a few days later, still give a return time of 1pm. This gives you some leeway at no extra cost.

Always try to get the vehicle signed back in and retain a copy of the receipt to confirm there is nothing extra to pay.

Keep the receipt from the petrol station where you filled up the car on the final day.

If you drop your car off out-of-hours take photos of its condition, as you may be held responsible for any damage that occurs. Make sure you also include a picture of the fuel gauge if the agreement is to return it as you collected it.

Some car hire companies apply an ‘exceptional’ cleaning charge of up to €250. Always demand photographic evidence of the stain or damage in question.

Retain all documents and paperwork relating to your car hire that will be needed later when you do your monthly statement reconciliation process. This forms part of the “Organised Paperwork” section of the MMS Journey Planner. If you’re not familiar with the Journey Planner process, visit the masterMONEYsimply.com homepage and download your free copy and report.

During your monthly financial reconciliation process, check that all rental charges match with what you expect them to be; cross reference with your paperwork and if everything is as it should be, you can then shred or destroy your rental documents.

If you find any unexpected charges are taken from your card, ask for an explanation and supporting documents from the company. If you are not happy with the explanation tell the company the money has been taken ‘under protest’ and inform your card company about the dispute. If you paid by credit card you could make a claim against the card provider under section 75 of the Consumer Credit Act. If you paid by debit card you can ask your card company to use the chargeback system to reverse the payment and give you your money back.

The European Car Rental Conciliation Service (ECRCS) has a free service to help with unresolved complaints concerning cross border vehicle rentals within Europe. The ECRS can get refunds for incorrect charges, but will only deal with complaints about its member companies and you must have booked directly and not through a broker.

The European Consumer Centres Network has a free service to help resolve disputes.

Always pay with a credit card, as your rights under Section 75 of the Consumer Credit Act mean you can hold the credit card company jointly liable if anything goes wrong, as long as the value of what you spend is over £100 and not more than £30,000.

If you hired a faulty car as part of a holiday package you have the right to claim compensation from the package holiday company.

Around 500 car hire firms are members of the British Vehicle Rental and Leasing Association (BVRLA), which has a code of conduct and a complaints procedure.

If you cannot resolve a dispute with a car rental company in the UK use the British Vehicle Rental and Leasing Association’s conciliation service (bvrla.co.uk). For disputes over rentals in the EU contact the European Car Rental Conciliation Service (ecrcs.eu).