Great news, car hire prices in Europe continue to fall, with summer 2025 bookings now almost 10% cheaper than last year, and 34% lower than in 2023, according to a new costs survey we conducted!
The survey, conducted in early January 2025, analysed the cost of hiring a medium-sized car, such as a Ford Focus or VW Golf, for a week from 26 July to 2 August 2025 across seven popular European destinations. The findings show the average weekly summer price, when booked at the beginning of the year, has fallen to £384, compared to £422 in 2024 and £578 in 2023. Six car hire companies’ costs were researched, i.e., Avis, Budget, Enterprise, Europcar, Hertz & Sixt.
Biggest Price Drops in Nice and Dalaman
Nice and Dalaman saw the most significant savings. Early-bird bookings for a week in Nice now average £412, compared to £518 in 2024. Similarly, a week’s hire in Dalaman has dropped from £467 in 2024 to just £315 in 2025.
NB. Cost surveys conducted in first week of January each year.
| Destination | 2025 Cost | 2024 Cost | 2023 Cost |
|---|---|---|---|
| Barcelona | £345 | £287 | £590 |
| Crete | £481 | £463 | £553 |
| Dubrovnik | £383 | £400 | £489 |
| Faro | £354 | £333 | £657 |
| Nice | £412 | £518 | £638 |
| Dalaman | £315 | £467 | £461 |
| Milan | £400 | £488 | £658 |
| Average | £384 | £422 | £578 |
While car hire prices are dropping, savings can also be made on extras bought at the rental desk. Excess protection, which protects a hirer from having to pay the excess amount if the hire car is damaged or stolen, costs an average of £183* per week, while extras like sat navs (£68), child car seats (£65), and additional drivers (£59) can quickly add up.
iCarhireinsurance.com, sells a weeks’ car hire excess protection from £33.15**, for damage, theft and tyres and windscreen cover, with annual policies starting from £41.99***.
Book Early with Free Cancellation
Booking car hire early ensures you get the car you want but gives you the flexibility to find a better deal closer to your travel dates, with most rental companies offering free cancellation (usually 72 or 48 hours before cancellation).
Ben Wooltorton at iCarhireinsurance.com said: "It’s great to see car hire prices becoming more affordable across Europe. Early booking is the best way to secure the car you want but always choose a provider with free cancellation so you can take advantage of last-minute deals.
“Avoid unnecessary costs by checking the price of extras before you travel. Bringing your own sat nav or car seat can save a lot and only add an extra driver if absolutely necessary. For real savings, consider buying car hire excess protection from a specialist provider like iCarhireinsurance.com instead of paying the often expensive prices at the rental desk.”
*iCarhireinsurance.com surveyed the costs for a week’s car hire and extras (such as excess protection, car seats, sat navs and extra drivers) from 26 July to 2 August 2024 in 7 European countries. It found that on average the weekly cost for car hire excess protection cost was £158 and average cost Tyre and windscreen excess cover was £25, making a total of £183 average cost.
**£33.15 based on a 30-year-old UK resident buying an 8-day single trip car hire excess policy from iCarhireinsurance.com for use in Europe.
*** £41.99 annual price is based on a UK resident aged between 30-80 purchasing an excess Europe annual policy excluding in-country (UK) cover.
