Home Business NewsBusinessAutomotive NewsCost of hiring a car in Europe continues to fall

Cost of hiring a car in Europe continues to fall

by LLB staff reporter
2nd Apr 25 8:40 am

A new study of car hire costs in Europe this Easter reveals that the average price to hire a car has fallen to £283, down from £311 in 2024 and £373 in 2023, and £457 in 2022.

With costs now on average only 25% higher than in 2019, when the average was £226.

The study by iCarhireinsurance.com, a leading provider of stand-alone car hire excess insurance, looked at the cost of hiring a medium compact car (e.g., a VW Golf or Peugeot 308) for a week (19-26 April 2025) in five popular Easter destinations – Barcelona, Milan, Larnaca, Nice and Tenerife – from six rental companies: Avis, Budget, Enterprise, Europcar, Hertz & Sixt.

The findings were then compared (1) to the same week in 2024, 2023, 2022 and 2019.

Cheapest and most expensive destinations 

•    Tenerife offers the best deals (2), with weekly rates as low as £106.
•    While some destinations have become cheaper—Barcelona (down 8%), Nice (down 23%), and Tenerife (down 37%)—others have risen in price. Milan (up 9%) from £339 to £369, and Larnaca up 34% from an average £165 to £221.

Beware of hidden extras

Car hire costs can quickly spiral, however, when extras are purchased from the rental desk. For example, a compact car in Tenerife costs around £156 for the week’s hire, however add-ons – including car hire excess protection (£148), tyre and windscreen excess protection (£54), an extra driver (£84), sat nav hire (£83) and a child’s car seat (£67) – can push the total to £592, over three times the original quote.

The most expensive purchase from the rental company is usually car hire excess protection which protects a hirer from having to pay the excess amount if the hire car is damaged or stolen, which can be as high as £1,500. The rental companies charge, on average, £167 for a week’s car hire excess protection and £39 for a tyre and windscreen excess policy – a total of £206.

Buying a standalone car hire excess reimbursement policy from a specialist provider like iCarhireinsurance.com, before you travel, costs from £33.15 (3) for a week’s protection (or from £41.99 (3) for an annual policy) and includes damage, theft, and tyre and windscreen cover.

Ben Wooltorton, iCarhireinsurance.com, said: “There are still good deals to be had this Easter—particularly in destinations like Tenerife, where you can rent a car for around £100. However, it’s easy to get caught out by expensive extras at the rental desk. Bringing your own sat nav and child car seat, and buying car hire excess protection from a specialist insurer, like iCarhireinsurance.com before you travel, can help you avoid paying over the odds.”

Car Hire Costs Study – Average costs shown for a week over Easter hiring a medium compact car, not including any extras. NB. No European data for 2020 and 2021.

2019    2022    2023    2024    2025     % change of 2025 price
compared to 2024 price
Barcelona    £256    £530    £284    £312    £287    Down 8%
Nice              £271    £470    £519    £494    £381    Down 23%
Tenerife        £155    £345    £257    £247    £156    Down 37%
Larnaca        £146    £362    £227    £165    £221    Up 34%
Milan            £304    £571    £580    £339    £369     Up 9%
Average        £226    £456    £373    £311    £283    Down 9%

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