Undercover Which? investigation catches car hire firms on camera using pressure tactics to rip off customers
In its most recent survey*, the consumer champion found travellers facing a deluge of issues when hiring cars on holiday, with as many as nine in ten (89%) reporting concerns about being taken advantage of. Insurance pressure selling was a particular concern, with one in six (17%) saying that they felt under ‘a lot’ of pressure to buy additional insurance at the desk, even if they already had adequate cover.
In response to these concerns, Which? sent undercover investigators to Spain, the most popular holiday destination for UK holidaymakers, to get a better understanding of travellers’ experiences on the ground. Investigators visited Alicante and Malaga airports, and posing as regular customers, filmed their interactions with the companies Which? was most concerned about based on reviews and complaints - Goldcar, Dollar and OK Mobility.
Which? caught a range of pressure tactics on camera, including making untrue and, in Which?’s view, misleading statements about existing cover, as well as telling travellers that they could be liable for hundreds of euros worth of damage - in one case €760 just for a scratch - if they did not purchase additional insurance.
When hiring a car in Europe, basic insurance - known as a Collision Damage Waiver (CDW) - is always included in the rental price, but the excess payable can be huge. To combat this, Which? recommends travellers buy an Excess Reimbursement Policy (ERI) to claim back the excess paid - some of the best start from just £16. Alternatively, car hire firms sell Super Collision Damage Waivers (SCDWs) to waive the excess altogether, but these can cost hundreds of pounds more, and generally offer inferior cover.
As a pricey extra, car hire companies stand to make huge profits from successfully upselling these SCDW policies to customers – as often do their staff. An industry insider told Which? that across the industry, car hire staff are often incentivised to sell this extra insurance for a commission.
In each case Which? had pre-booked car hire (which always included basic insurance as standard) and also purchased a legitimate ERI policy in advance which was flagged to the firms during the exchanges.
Which? saw repeated complaints about OK Mobility online. At Alicante Airport, Which?’s undercover shopper was told – incorrectly – that they did not have basic insurance with their booking.
Even when the mystery shopper prompted the agent about the insurance they knew to be included, the rental agent doubled down, saying “nothing is included” because the booking was made through a third party, Rentalcars. That is untrue - booking through a third party has no impact on the insurance – and Rentalcars confirmed to Which? that cover is included with all European rentals as standard. Alarmingly, Which? was told that any damage would cost a fixed rate of €760 – even if it was a tiny scratch, hundreds of euros more than the going rate.
When the Which? investigator showed the agent their ERI policy, they were told again “the insurance has to be with the car hire company”, and that “only the other car is covered”, both of which are untrue. As the conversation went on, the agent pushed harder, saying Which?’s investigator “must buy one of the two insurance policies” they were offering. Only when the secret shopper said they had to go away and think about it, did the agent relent, and say it was their choice whether or not to purchase a policy.
Goldcar meanwhile has come bottom in Which?’s annual car hire survey for the last six years, and was caught on camera by Which? pressure selling in 2019. At the time it committed to making changes, but Which? has continued to see complaints. This time, in Malaga, a Goldcar agent told Which?’s secret shopper that they had no cover, “no protection, nothing…in case of damages, you pay everything”, a statement likely to provoke panic in anyone trying to collect their car. The statement was completely untrue, as basic insurance was already included in the rental. In Alicante, Goldcar staff were not much better. Staff told Which? that the ERI policy they had would only cover the other vehicle in case of an accident – an inaccurate statement. When Which?’s investigator rebuffed this, the agent still would not relent, informing them that they would only be able to use the ERI in the event of an accident.
Dollar also scored poorly in Which?’s latest car hire survey – coming second from bottom - and one respondent even claimed they were charged for insurance they turned down. The US firm is much less prominent in Spain than it is in America, and at both Alicante and Malaga airport bookings were handled at the Hertz desk (Dollar is a Hertz subsidiary).
When Which? rented with Dollar, its experience in Alicante was smooth and pressure free, but at Malaga Airport Which?’s undercover shopper felt misled.
Which?’s mystery shopper was told their ERI policy “isn’t valid” and that “the thing you bought on the internet is for nothing” – a statement likely to worry any traveller into purchasing additional insurance. Yet again though, this statement was untrue – the ERI was perfectly valid.
The mystery shopper was also told they’d be liable for up to €2,400 if anything happened to the car, and that any scratch bigger than 1cm would cost between €300-€400 to fix, plus a €50 admin fee and tax on top. “The full cover is always cheaper than minimum damage”, they told Which?. “It’s only €162 for the total of the period” – yet that would have been more than the cost of hiring the car itself (£132). When Which?’s investigator pointed this out, they were told “this is the broker’s price that you paid. The real price isn’t this price” - again, untrue.
Though upselling is not against the law, under the Consumer Protection From Unfair Trading Regulations it is illegal to use misleading or aggressive practices that are likely to lead customers to make a purchase they would not otherwise have made, and Which? believes many of its interactions in Spain match this description. Spain has similar consumer protection legislation to the UK, meaning holidaymakers should be free to hire a car without undue pressure from agents.
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 to avoid the pressure from pushy agents they should buy their own excess reimbursement policy before they travel.”
-ENDS-
Notes to editors:
Research and investigation notes
- In February 2024, Which? sent undercover investigators to Malaga and Alicante airports to film their interactions with Goldcar, Dollar and OK Mobility Staff. In each case basic insurance was included in the rental, and the undercover investigators had also purchased ERIs online before travelling. You can find a video of their interactions here.
- Additional clips available - email ella.boldron@which.co.uk
-Data from Which? Recommended Provider Zest Car Rental on damage costs (compiled from 15 rental companies) estimates a scratch would cost approximately €250 to repair - significantly lower than the prices quoted to Which? in the course of its investigation. Full data here.
-Rights of reply can be found below
How car hire insurance works
When travellers hire a car in Europe, they don’t need to buy any additional insurance, as basic insurance is always included in the rental price. However, that insurance is subject to an ‘excess’, so if the car is damaged it can be necessary to pay a contribution towards repair costs, regardless of who is at fault. Data from Zest Car Rental suggests that typically holidaymakers could be charged hundreds of euros depending on the issue - common issues like a puncture could cost as much as €300 to rectify, while a replacement windscreen can cost around €750.To mitigate that, there are two options - purchase an SCDW policy from your rental firm, which removes or reduces the excess, or buy an ERI from a third party (either directly from an insurer, or via your car hire broker) which allows you to claim the excess back.
On average, Which? found for a week’s cover in Malaga this summer, holidaymakers would pay £177 for a SCDW from their car hire firm, compared to £38 for an ERI from a broker, and just £23 if purchasing directly from an insurer.
Not only are SCDWs massively more expensive, but they are inferior too. Which? analysed six car hire companies SCDW to find out how comprehensive the cover was. All were rated poorly.
Previous Which? car hire investigations and advice
*Goldcar has taken last place in Which?’s annual car hire survey for the last six years, including 2024, while Dollar took second to last place. You can see the full results of the 2024 car hire survey here.
Which? previously filmed Goldcar engaging in pressure selling tactics in 2019, after which Goldacr committed to reforming its practices. However, Which? received reports about pressure selling again in its most recent survey (above).
Which? concerns about car hire deposits
Many car hire companies will also block sizable deposits on your card to cover potential damages if you choose not to buy their extra insurance - and in one instance in his investigation the amount was so high Which?’s card declined the transaction. Any customer in this situation might be left with little option but to buy the extra insurance if they didn't have an alternative payment method.. Which? believes customers may be pressured into buying insurance through fear of having deposits blocked on their card for overly lengthy periods. Both Goldcar and OK Mobility say it could take up to thirty days for a deposit to be returned even if the car is handed back with no issues - a length of time likely to cause many travellers problems. Mastercard confirmed to Which? that once a vendor initiates a reversal of funds, it is usually released within 24 hours and at worst, should take no longer than a week.
How to avoid the car hire insurance hard sell
You don’t have to buy insurance in Europe as Basic insurance is always included in the rental. But that doesn't stop some car hire companies from pressure selling their policies.
To withstand the pressure from pushy agents Which? recommends that you buy your own excess reimbursement policy from a third-party insurance provider, then just say no at the rental desk. Explain that you don't want any extra cover and that you understand the need to pay up to the excess limit if you damage the car (safe in the knowledge that you can claim it back).
Some people like to print out their own ERI policy to show the rental company. But the consumer champion has found that this can open you up to the hard sell - as agents can (very convincingly) pick holes in your policy that don't really exist.
Right of Replies:
A spokesperson for Goldcar said: “Goldcar Spain is, of course, disappointed that the alleged experiences have been identified by Which? Travel.
“With regard to insurance cover, the company offers premium cover to provide a seamless process should damage occur during a customer’s rental. A customer, of course, has the right to choose to buy their cover separately, however, if this is the case they will be charged for any damages that occur during the rental and will then need to claim the costs back from the chosen provider.
“Whilst the company has not been given the opportunity to see the footage referred to by Which? Travel it is committed to investigating any incidences where a customer believes they have received service that does not match expectations for a low-cost brand.
“The company introduced a Code of Ethics for counter sales and a Guide of Good Sales Practices in 2021, both of which are reviewed annually based on customer feedback about their sales experience. If an employee breaches the Code of Ethics, they are immediately warned and penalised economically and if breaches are repeated they can be subject to termination of their contract.”
A spokesperson for Dollar said: “Although we have not been able to view the footage, the actions described do not align with our corporate values or policies. Providing outstanding customer service is a top priority for Dollar and we regularly take steps to ensure all staff adhere to our standards.”
OK Mobility told Which?: “OK Mobility employees always provide information about the coverage or extras that the company offers that may be of interest to the user. In this sense, OK Mobility employees offer customers the possibility of hiring coverage that allows them to limit their liability in case of damage to the vehicle and clearly explain both the price of the coverage and what exactly it consists of so that customers can freely decide whether or not it is worthwhile for them to hire such limitation of liability. It is an optional product that the customer can decide whether or not to purchase.
“OK Mobility recommends taking out coverage directly with our company, as the enterprise that owns the vehicle and therefore the only one capable of directly covering the property, to protect the client from possible extra charges in the event of damage. In 100% of cases, customers are always informed of the cover they are contracting with OK Mobility.
“The amount per damage category and vehicle group is shown in a price matrix that the company provides to its customers.
“The deposit is a pre-authorization, not a direct charge. Normally, a hold is placed on the cardholder’s account, although the specific effect on the card will depend on each issuing institution. Once the rental is completed, the pre-authorization will be unblocked. Depending on the operation of the card issuer, the time it takes for the unblocking to be reflected will vary, though the average time is usually between 14 to 30 days. The rental companies do not influence this process, since it depends on the financial entity issuing the card.
“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.”
About Which?
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