Recent reports reveal troubling practices in Spain’s car rental industry, which may affect other European destinations. Some companies use pressure tactics and misleading claims to extract extra fees from tourists.
These revelations come at a time when travelers are increasingly wary of rental car scams. A recent incident in Georgia, where tourists found their rental car remotely deactivated followed by an attempted extortion, underscores the global nature of this issue. Such experiences highlight the critical need for vigilance when selecting a rental car company, regardless of the destination.
Deception at the Desk
We’re mainly focusing on three popular car rental companies at Alicante and Malaga Airports in Spain, all with questionable reputations. It seems there’s a consistent pattern of misleading statements and high-pressure sales tactics designed to push customers into purchasing additional insurance.
In one instance at Alicante Airport, an agent falsely claimed that a customer had no basic insurance included in their booking, insisting, “Nothing is included,” even when presented with evidence to the contrary. However, when tourists rent a car in Europe, basic insurance, known as a Collision Damage Waiver (CDW), is always included in the rental price.
The agent went on to warn that any damage, even a minor scratch, would incur a fixed cost of €760. At another company in Malaga, a representative bluntly told a renter they had “no cover,” a statement that was entirely false as basic insurance was already included in the rental agreement.
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Car Rental Europe – Scare Tactics
When renting a car in Europe, rental companies often discredit third-party Excess Reimbursement Insurance (ERI) policies to promote their own CDWs. These CDWs typically come with a higher price tag and offer inferior coverage.
An ERI, on the other hand, covers the excess amount (exceeds the deductible or excess specified) you are responsible for if you make a claim on your rental car’s insurance – however, we typically don’t recommend purchasing third-party ERI or CDW through the rental company. Generally, we use the free ERI included with our credit card.
Credit Cards Frequently Cover ERI
When renting a car abroad, basic insurance covers theft and damage but includes an excess fee up to €2,500. To avoid this, you can buy excess insurance from the rental company (CDW, damage waiver, or excess waiver) or a third-party insurer. The third-party option is often cheaper and offers broader coverage. Many credit cards provide free ERI if the entire rental is paid with the card, usually requiring you to decline the rental agency’s insurance.
Note: Be aware that coverage may not extend to all car types, such as trucks, luxury, or recreational vehicles. Additionally, there is often a limit on the duration of coverage, typically up to 31 days. To understand exactly what your credit card covers and whether it provides primary or secondary coverage, check the fine print in your credit card terms.
Instilling Fear
At Malaga Airport, an agent falsely claimed that a pre-purchased ERI policy was invalid, saying, “The thing you bought on the internet is for nothing.” This statement aimed to scare the customer into buying additional insurance.
The same agent also misled the renter about potential costs, saying they could be liable for up to €2,400 for any damage. They claimed repairs for scratches over 1cm could cost €300-€400, plus a €50 admin fee and tax. They inaccurately stated that “full cover is always cheaper than minimum damage,” while in reality, minimum damage or CDW is often included for free.
💡 Don’t Forget: Be sure to double-check with your travel health insurance plan to see if it covers any aspects of car rental insurance, such as damage or liability, to ensure you’re fully protected during your trip—we use Patriot International Lite!
Industry Insights and Legal Grey Areas
Upselling isn’t illegal, but misleading or aggressive tactics that push customers into unintended purchases often violate consumer protection laws. Many interactions in Spain seem to cross this line. Industry insiders say car hire staff are often incentivized by commissions, which explains the aggressive push at many counters.
Navigating the Rental Maze – Tips for Budget-Savvy Travelers
Renting a car in Europe highlights the need for vigilance globally. To avoid pressure tactics, travelers should first book with reputable companies or brokers with strong reviews. We recommend travelers compare prices and reviews on Discover Cars and Skyscanner to find the best car rental options.
Other important tips include:
- Paying for the entire rental car before you arrive ensures that your reservation is fully secured.
- This way, the rental agency can’t refuse to give you the car or pressure you into buying additional insurance at the counter. It gives you more control and helps avoid any last-minute issues or high-pressure sales tactics.
- Be prepared to firmly refuse unnecessary add-ons at the counter.
- Understand the basic insurance included in the rental agreement.
- Be willing to walk away if feeling pressured or uncomfortable.
For example, after arriving from the USA, we faced a tricky situation with a car rental agency at Split Airport. Since we hadn’t paid for the rental upfront, the agency tried to pressure us into buying their expensive insurance.
They claimed the deposit would be around €12,000. Hoping to intimidate us, but our high credit card limit wasn’t an issue. They then pretended our credit card was declining to force us into purchasing additional insurance.
We declined their offer and canceled the reservation. Instead, we immediately booked the same car through Discover Cars with another company, which didn’t hassle us at all. Although it was a 45-minute inconvenience, we saved hundreds of dollars by avoiding their costly insurance.
What About Liability Coverage?
Liability coverage is usually not included in most credit card or rental car CDWs, which only cover damage to or theft of the rental vehicle, not injuries to others or damage to personal property. If you cause injury to someone else, you might not be covered—though there could be exceptions.
Full liability protection is available through the rental company’s insurance. Typically, it needs to be added at the counter or when you book the car.
If you have extended coverage through your personal auto insurance, it might cover rental cars as well. Furthermore, in most EU countries, third-party liability insurance is required by law and is typically included in the rental price.
Nevertheless, always review the specific benefits guide for your credit card to understand the exact coverage and any limitations.
Protect Yourself
By staying informed and resisting high-pressure sales tactics, travelers can avoid extra costs and enjoy a smoother rental car in Europe experience. Also, these insights stress the importance of scrutinizing car rental practices and enforcing consumer protection regulations in Europe. Finally, with this knowledge, travelers can navigate rental pitfalls more effectively and focus on enjoying their trips.
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