Cash point

Holidaymakers hiring cars abroad are being warned they face costs up to seven times the original quote.

Excess insurance specialist icarhireinsurance.com found you can book a compact car in Faro, Portugal, this half term for £79, from May 27 to June 3. But that can shoot up to £588 as extras are added at the rental desk, made up of a combined excess/waiver insurance policy (£285), extra driver (£57), sat nav hire (£108) and child seat (£59).

Extras cost an average of £333 in Europe. Faro is the most expensive.

A car hire excess (waiver) protects drivers from the excess cost on standard policies, which can be up to £2,000. Rental firms charge huge sums for this at the desk. But you can buy comprehensive annual cover in the UK for around £40 from firms including icarhireinsurance. com and insurance4carhire.com.

With all car hire you will also need a credit card for pre-authorisation of the excess during your trip. The money will be refunded when you hand back the keys.