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A covert investigation conducted by Which? has caught car hire companies attempting to rip people off by encouraging them to buy unneccessary insurance.
The investigation, which focused on popular holiday destinations in Spain, revealed widespread issues that travellers face when hiring cars, with a significant number of consumers feeling pressured and misled.
According to Which?’s recent survey, 89 per cent of travellers reported concerns about being exploited when hiring cars on holiday. Of the people questioned, 17 per cent felt under considerable pressure to buy additional car insurance at the rental desk, even when they already had adequate coverage.
To analyse the results of the survey further, Which? deployed undercover investigators to Spain’s Alicante and Malaga airports, targeting firms like Goldcar, Dollar, and OK Mobility, which had garnered numerous complaints.
The undercover investigators, posing as customers, captured a range of high-pressure sales tactics on camera. These included making misleading statements about existing insurance coverage and exaggerating potential liability costs.
In one case, an advisor was caught on camera telling a customer they could be charged €760 for a minor scratch if they did not purchase extra insurance.
In Europe, basic insurance, known as Collision Damage Waiver (CDW), is included in the rental price. However, the excess payable can be substantial.
To manage this risk, Which? recommends travellers buy an Excess Reimbursement Policy (ERI), which is more affordable and provides better coverage than the Super Collision Damage Waivers (SCDWs) sold by rental companies.
Car hire firms profit significantly from selling SCDWs, often incentivizing their staff to push these policies aggressively. In each interaction, Which? investigators had pre-booked car hire, which included basic insurance, and had purchased legitimate ERI policies in advance. Despite this, agents continued to use misleading statements to coerce them into buying additional insurance.
At Alicante Airport, OK Mobility told an undercover shopper that no basic insurance was included in their booking, which was false. Even after the shopper highlighted the included insurance, the agent insisted that “nothing is included” due to the booking being made through a third party, Rentalcars. This assertion was refuted by Rentalcars, confirming that insurance is always included with European rentals. The agent further exaggerated potential costs, claiming any damage would incur a fixed rate of €760.
Goldcar, ranked poorly in Which?’s surveys for six consecutive years, displayed similar tactics. In Malaga, a Goldcar agent falsely claimed that the customer had no insurance coverage, attempting to scare them into purchasing additional insurance.
In Alicante, Goldcar staff incorrectly stated that an ERI policy would only cover the other vehicle in an accident, pressing the customer to buy more insurance despite their existing coverage.
Dollar also exhibited questionable practices. At Malaga Airport, a Dollar agent dismissed the validity of the shopper’s ERI policy, claiming it was worthless and attempting to sell them additional insurance. The agent used inflated potential liability costs to pressure the customer, asserting that even minor damage would result in exorbitant charges.
Rory Boland, editor of Which? Travel said: “Every year we hear from countless travellers who have felt ripped off and pressured by their interactions with staff at the car rental desk, and our undercover filming has uncovered absolutely shocking practices by Goldcar, Dollar, and OK Mobility staff.
“Anyone hiring a car this summer should ensure they book with a reputable company or broker and buy their own excess reimbursement policy before they travel.”
A spokesperson for Goldcar said that the firm was “disappointed that the alleged experiences have been identified” and stressed it was “committed to investigating any incidences where a customer believes they have received service that does not match expectations”. Dollar said that ”although we have not been able to view the footage, the actions described do not align with our corporate values or policies”.
OK Mobility told Which?: “We work vigorously 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 through our agents or our online communication channels.”
