Car hire firms’ mis-selling and rip-off tactics exposed…again

A Which? investigation in Spain found car hire companies used pushy sales pitches to sell us unnecessary, inferior insurance at the rental desk. We believe this approach was misleading.

Undercover journalists armed with secret cameras flew to Alicante and Malaga airports during the February half-term holiday to put car hire companies to the test after finding that 89% of Which? members who hired a car in the past two years were concerned that car hire companies would take advantage of them.

They were right to be worried. We believe Dollar, Goldcar, and OK Mobility used sneaky tactics to upsell insurance at the car rental desk despite us showing their desk staff our perfectly adequate excess reimbursement insurance (ERI) — that we’d purchased via a third party before we flew to Spain. 

Upselling isn’t illegal. However, under the Consumer Protection from Unfair Trading Regulations, it is illegal to use misleading or aggressive practices that are likely to lead customers to make a purchase they wouldn’t have otherwise made. Spain has similar consumer protection legislation to the UK, meaning holidaymakers should be free to hire a car without encountering pressure selling from pushy agents

We believe some of our interactions in Spain matched this description, so we  shared our video footage with the Competition and Markets Authority (CMA), reporting Goldcar and OK Mobility for what we believe are illegal practices. We also think Dollar’s practices observed in Malaga are likely illegal.

Watch our undercover car hire rental footage

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Pushy Goldcar staff strike again

It’s not the first time Which? has caught car rental staff upselling insurance to us that we didn't need.

In 2019, we caught Goldcar on camera misleading us into buying insurance. Following our investigation, the firm committed to a programme of large-scale change. But five years later, some staff still seem to be at it.

We received reports of pressure selling from Goldcar agents in our recent car hire survey. And it was no different for our undercover investigators in Spain. For instance, one Goldcar agent told us we’re liable for the entire vehicle cost should anything go wrong. It was untrue. Yet staff used this line to try and persuade us to buy extra insurance we didn’t need.

See our best and worst rated car hire brokers - including a Which? Recommended Provider - to ensure your next car hire is hassle-free.

Staff incentivised to upsell insurance?

Goldcar wasn't the only firm we caught up to no good. Desk staff at Spanish rental OK Mobility in Alicante told us our car wasn’t protected. And in Malaga, Dollar wasn’t much better – we felt under pressure to buy its expensive excess cover.

Staff across the industry employ these pressure tactics to improve their firm’s bottom line and to line their own pockets. An industry insider told us that most companies incentivise staff, paying commission for any extras they convince us to buy. Whether that’s the motive of the staff we encountered in Spain is unclear. 

Pushy hard sell caught on camera

Regardless of whether there was a motive, we felt that staff at all three firms lied and pressured us to buy their insurance.

A Goldcar agent in Malaga told us we had no cover: ‘No protection, nothing … in case of damages, you pay everything.’.

That’s not true. We had a collision damage waiver (CDW) included under Goldcar’s own T&Cs - preventing you from being liable for the full cost of the rental car. Yet being told you’re liable for the whole value of the vehicle would be enough to panic anyone into taking out extra insurance – but it shouldn’t.

In Alicante, Goldcar staff told us that our ERI only covered the other vehicle in case of an accident. Again, it was untrue. Even after we pointed out we could use our ERI to claim costs later, the agent didn’t relent. Apparently, we’d only be able to do so if there was an accident—another false statement.

We had a mixed experience with Dollar. The American car hire company is much less prominent in Spain than the US, and it didn’t have its own branded desk in either Alicante or  Malaga airports. Instead, Hertz staff handled our hire (Dollar is a subsidiary of Hertz Global Holdings). In Alicante, the pickup was smooth and pressure-free. But in Malaga, we felt misled. Agents claimed our ERI policy ‘isn’t valid’ and that ‘the thing that you bought on the internet is for nothing’. It isn’t for nothing. 

We’d expect the staff operating these counters to know exactly what their hire contracts cover and that CDW and ERI are all that’s needed. We felt that the desk staff we encountered in Spain were trying to mislead us on purpose. 

‘We must’ buy a car hire insurance policy direct

In Alicante airport, we were told by OK Mobility that we didn't have basic insurance with our booking. Even after prompting staff about our CDW, the rental agent told us, ‘Nothing is included’ because we’d booked through a third party, Rentalcars. None of it was true. Rentalcars told us that all European rentals come with CDW as standard.

Even after presenting our ERI, the agent told us: ‘The insurance has to be with the car hire company’ and that ‘only the other car is covered’. We think this was misleading. ERI was enough cover, provided we were happy to pay the excess for any damage and reclaim it later.

When we dithered, it felt like the hard sell got pushier. ‘We must ‘buy one of the two insurance policies’, we were told. In fact, we weren't obliged to purchase anything.

Only later, when we said we needed to go away and think about it, did the agent backpedal, telling us it was our choice. 

In response, OK Mobility told us: ‘We work … to protect fair competition in the marketplace and the free choice of our customers based on the information presented during their interaction with OK Mobility.’

See our best-rated hird-party car hire excess insurance for your next rental 

The cost of damages and breakdowns

The Goldcar agent in Malaga told us we’d have to pay for a tow truck and a replacement vehicle if our car broke down. While the basic package didn't cover us if we got into an accident, it would if the car broke down through no fault of our own — it even said so in the leaflet the agent handed our undercover investigator at the desk.

The Dollar representative in Malaga told us we’d be liable for up to €2,400 if anything happened.

The agent also told us that any scratch bigger than 1cm would cost €300-€400, plus €50 administration fee, plus tax. They added: ‘The full cover is always cheaper than minimum damage.’

They continued, ‘It’s only €162 for the total of the period.’ But this is more than what we paid for the car hire itself (€136). When we pointed this out, we were told, ‘This is the broker’s price that you paid. The real price isn’t this price.’ It is the real price, and it includes CDW; anything extra is optional.

OK Mobility told us that any damage costs €760 — even a tiny scratch. Yet the cost to fix a scratch is estimated at €250, according to Which? Recommended Provider broker Zest, which compiled data from 15 car rental providers.

Whether repairing a scratch costs €250 or €760, the cost of damage is why some car rental companies block hefty deposit sums on your credit card if you don’t take their insurance. 

Regarding these findings, OK Mobility told us it ‘clearly explains both the price of the coverage and what exactly it consists of so that customers can freely decide whether or not it is worthwhile for them to hire such limitation of liability’. It added: ‘In 100% of cases, customers are always informed of the cover they are contracting.’

Dollar said: ‘The actions described do not align with our corporate values or policies. Providing outstanding customer service is a top priority for Dollar, and we regularly take steps to ensure all staff adhere to our standards.’

When we put these allegations to Goldcar, it said: ‘The company offers premium cover to provide a seamless process should damage occur.’

It said it introduced a ‘Code of Ethics’ for counter sales and a ‘Guide of Good Sales Practices’ in 2021 and will investigate any instances where a customer believes the service received does not match expectations for a low-cost brand. It added: ‘Employees who breach the code of ethics will be warned and penalised economically.’

Car hire insurance explained

Basic insurance (CDW) is included as standard when you hire a car in Europe. It stops you from being liable for the total cost of the rental car. Instead, you pay towards repairs up to an agreed excess.

To avoid paying the excess, you can either buy a reimbursement policy online or obtain an excess/super collision damage waiver from the car rental company.

You’ll leave a hefty deposit with ERI - usually around £1,200. If you have a bump, the rental company will retain some, or all, of the money, but your insurers should pay you back - provided you report the damage to the car hire company, get a police report, details of involved parties, and, ideally, witnesses, if you get into a scrape. 

If you’re unwilling to do the above or let the firm block £1,200 on your credit card, you’ll need to buy an excess waiver policy directly from the car rental company. But Which? consistently finds that cover offered by car hire companies is riddled with holes, and in a recent analysis, costs up to £183 more per week than specialist insurance bought online. 

Don’t get taken for a ride when you next hire a car

• Book your car hire with a car hire provider that we recommend or alternatively via a recommended car hire broker
• Buy ERI online from a top-rated provider
• Don’t be pushed into buying additional excess waivers at the desk if you already have ERI
• If you feel forced to buy insurance, the CMA advises that you write on the contract that you object and reserve the right to ask for your money back. Jot down the staff member’s name and immediately raise a complaint with the rental company’s head office.