Car hire excess, deposit and fuel policy, explained
Three things decide what a hire car really costs in Spain and Portugal: the excess, the deposit and the fuel policy. Here is what each means and when to decide.
The excess
The price includes basic damage and theft cover with an excess. If the car comes back damaged, you pay up to that amount. You can remove or reduce it by buying the supplier's own cover, or full cover when you book. Standalone excess insurance bought before you travel usually works by refund: you pay the supplier for the damage and claim it back afterwards, and the deposit is still held. Whatever you choose, decide before you reach the desk, where buying cover usually costs the most.
The deposit
At pick-up the supplier places a hold on a credit card in the main driver's name, usually the size of the excess. It is released after you return the car without damage, which can take a few days to show on your statement. Many suppliers do not accept debit cards for the deposit unless you buy their full cover.
The fuel policy
Full to full: you collect a full tank and return it full, paying only for the fuel you use. Full to empty: you pay for a full tank at the start, often above pump prices, and get no refund for fuel left over. Full to full is almost always cheaper.
At the desk
- Credit card in the main driver's name. Most suppliers place a hold on the card at pick-up, and many do not accept debit cards for it. Check the voucher before you fly.
- Fuel policy. \"Full to full\" means you return it full and pay only for what you use. \"Full to empty\" charges you for a full tank up front, usually above pump prices.
- Excess. The basic price includes cover with an excess: the amount you pay if the car is damaged. The desk will offer to reduce it. Decide before you arrive, not at the counter.
- Take photos and a video of the car before you drive off, including the wheels, windscreen and fuel gauge. Do the same when you return it.
- Your UK photocard licence is all you need for a holiday in Spain or Portugal; you do not need an International Driving Permit.
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Questions
What is the excess on a hire car?
The most you pay towards damage or theft under the basic cover included in the price. It is often between a few hundred and a couple of thousand euros, depending on the car and supplier.
Why is the deposit so high?
The deposit usually matches the excess. If you take the supplier's own full cover, many suppliers lower the deposit or drop it.
What does \"full to full\" mean?
You collect the car with a full tank and return it full. It is normally the cheapest fuel policy.