REVEALED: Cost of car rental 227% more expensive than temporary insurance

CAR RENTAL RIP OFF: renting a car on average 227% more expensive than short-term insurance options

·    Short-term insurer reveals the soaring cost of car rental in UK cities this Bank Holiday weekend

·    Drivers in Edinburgh could make savings of over 500% (£135)

·    Borrowing a car and buying short-term cover could save drivers £104 on average

An investigation by the short-term insurance provider Veygo has revealed the soaring cost of car rental across the UK, with hiring a car on average 227% more expensive than borrowing a car and purchasing a short-term insurance policy.

The insurer collected 3 quotes for car rental for 4 days over the August bank holiday weekend in 6 cities across the UK, and found the average cost of renting a car was £157, with some quotes as high as £367.

By comparison, opting for short-term insurance and borrowing a car from friends or family would cost drivers just £53 on average. Young drivers in Edinburgh could pay as little as £26 – a staggering 519% saving compared to the average cost of renting a car for the same period.

Veygo researched quotes for a 25-year-old driver, as car rental is almost completely inaccessible to younger drivers, further limiting the options for some motorists.

Cost of Car Rental

Of the six cities Veygo researched, London came out as the most pricey at an average cost of £183 over the 4-day period, compared to just £54 for a short-term policy – a saving of 239%.

The cheapest city to rent a car was Cardiff with an average cost of £100, however drivers that opt to borrow a car and purchase short-term cover could still make savings of almost 90% (89%), with a temporary insurance policy likely to cost around £53.

On average, across the six cities researched, drivers could save £104 by opting for short-term cover and borrowing a car over renting one.

Along with the rental cost, drivers who hire a car are also likely to need to fork out more cash in order to ensure they’re fully covered, with many policies offering just third party as standard.

David Roberts, Principal Product Manager at Veygo said:

“We know that short-term cover doesn’t work for all drivers, however it’s clear that huge savings could be made by opting to borrow a car from friends and family instead of renting one.

“The cost of car rental is on the rise, and as well as being expensive and less convenient for some depending on pick up and drop off restrictions, it’s also very difficult for drivers under the age of 25 to hire a car. This is particularly problematic as this is an age group that are generally less likely to own their own car and would therefore benefit from more flexible options.

“Although it might not be something drivers have considered before, borrowing a car from a friend or family member and purchasing short-term cover is quick and easy, and undoubtedly a cost-effective option for many. Drivers can buy a policy online easily and will be fully covered within minutes, whereas many rental options only provide third-party cover, meaning you could be left out of pocket if you have an accident. You can also pay for what you need with policies offered for a period of hours, days or weeks.”