Summer holiday warning as cost of car hire, accommodation and travel insurance rockets – how to avoid it

HOLIDAYMAKERS may need to factor in extra expenses this summer as the cost of care hire, accommodation and insurance soars.

The average cost of driving abroad for a week has more than doubled according to data by Ice Travel Group and the BBC.

Cost of car hire, accommodation and travel insurance rockets


Cost of car hire, accommodation and travel insurance rocketsCredit: Getty

Prices for accommodation, airport parking and insurance have also reached much higher levels than before the coronavirus pandemic.

It comes as families look to tighten their belts as the cost of living crisis continues to bite.

The research shows that the cost of hiring a car has risen from around £220 to almost £500 – with Italy and Ireland seeing the biggest increase.

All-inclusive package holidays are also more expensive on average – the data shows – rising to £1,000 for a family of four.

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Bed and breakfast prices have also rocketed, up from £608 to £755, on average.

How to keep car hire costs down

One reason that car hire costs are creeping up is that there is shortage of available vehicles in some destinations, such as Spain.

Holidaymakers should book in advance to make sure they can get a car – and lock in a good deal.

Comparison sites can help you find the best deals, but be careful to check the small print.

Watch out for things such as whether the hire includes a full tank or petrol, which could add to your expenses if you only plan to do a few miles.

Check prices for different sized cars too – don’t just assume the smallest one will be the cheapest.

Buying your own insurance in advance can also help cut costs, rather than being sold pricey policies at the hire kiosk.

It might also be worth checking whether there are cheaper alternatives to hiring a car, particularly if you don’t plan on driving much.

Guy Hobbs, editor of Which? Travel said: “Car hire prices for every destination and with every company have risen significantly and people will be shocked at the cost.

“We’ve found that choosing a broker that works with local, trustworthy rental firms will be cheaper, with better customer service, than many of the best known brands.

How to save on travel insurance

People are paying almost a third more for travel cover than they did before the pandemic — not only due to premium costs rising, but also because families want higher levels of protection.

Which’s Hobbs said: “When shopping around for travel insurance, using price comparison sites may help you find the best value option for your requirements.

“Different insurers use different sites, so widen your search by using more than one.”

He added that it’s always important to check your policy wording carefully to ensure you have a full understanding of what you’re buying, what you’re covered for, and any limitations to the cover.

He said: “The cheapest policy may not necessarily be the best value. It’s also important to check claim limits to make sure they meet your needs.”

The Sun has put together a handy guide on how to buy the best cover for your holiday.

Buying your insurance as soon as you book your holiday, knowing your rights and reading the small print can all help you save in the long run.

Saving money on accommodation

Booking your accommodation directly instead of through a third party can help you to save money.

Accommodation is often the biggest cost but if you are willing to put in the graft, you can knock prices down. 

If you’re looking to save money to go on holiday this year, The Sun has a guide to ways you can save money for a getaway.

We’ve also put together a list of ways to help you cut your holiday costs, from the best currency exchange rate to the top travel credit cards.