Europe’s Ubiquitous Car Rental Scam

Scams throughout Europe vary widely, ranging from fraudulent Airbnbs to pickpocketing incidents.

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I consider myself fairly understanding when it comes to scams, as many scammers operate out of necessity.

However, there’s one scam that consistently resurfaces, becoming increasingly costly for travelers. I’ve encountered it each time I rent a car. (This is not an exaggeration.)

Which scam am I referring to?

Car rental companies that inflate insurance costs.

Two months ago, my partner made a car rental reservation for our trip to Sicily in the capital, Palermo. As the travel date approached, the company reached out for the final payment. In the updated invoice, he found an added $300 charge for insurance—which was not specified as optional and was automatically included in the final amount.

In reality, that extra insurance fee was entirely optional.

Yet, the car rental company’s online payment interface provided no means to bypass this charge… even though the additional insurance was not mandatory.

And I know this because I write about car rental policies for tourists visiting Europe.

Here’s what you need to be aware of regarding scams by car rental companies in Europe that compel you to pay for insurance.

Car rental scam in Europe: excessive charges for insurance

The great news is that the European Commission’s Car Rental Rights report provides clear insights into what is and isn’t automatically covered when renting a car in the EU.

It’s important to note that while there’s no specific legislation governing car rental rights in the EU, renters are protected under the Commission’s comprehensive consumer rights laws.

According to EU regulations aimed at consumers, everyone renting a car has the right to clear pre-hire information and a fair contract. That’s the first piece of information you need.

Additionally, every rental vehicle in the EU is required to be covered by a third-party insurance provider. (Get ready, here come the italics.) This insurance must be included in the rental’s final quote.

This coverage, which the car rental company is obligated to provide, is quite basic. Always verify what it entails, but be aware that deductibles usually cap at $2,500, with some being as low as $500.

So, here it is: you never need to pay for additional car insurance when renting a vehicle in the EU, as a basic, automatic policy is included that, at most, would cost you $2,500.

Should you consider better insurance from a car rental company in the EU?

As previously mentioned, that automatic coverage is minimal. If you have concerns about other risks, take a close look at the details of the car rental’s insurance policy.

Keep in mind: it’s your right to access clear pre-hire information.

Beyond the rental company’s standard third-party insurance, you can also opt for coverage for driver injuries, vehicle damage, theft, vandalism, and more. Again, ensure you obtain firm pricing for these options before finalizing your reservation.

How can you ensure you’re not being overcharged for insurance as part of a car rental scam?

To avoid being overcharged, I recommend making a basic deposit to reserve the vehicle, then addressing the actual contract later. This gives you time to decide whether to opt for additional insurance or keep the basic policy.

Signing the contract in person also allows you to confirm that you’re signing the correct document—with the right charges included.