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Caught on camera: Undercover Which? investigators reveal holiday car hire companies are using ‘shocking pressure tactics’ to ‘rip off’ tourists renting cars in Spain

Car rental companies have been caught on hidden camera ‘using pressure to defraud customers’ by ‘making them think they need to take out unnecessary insurance’.

These ‘shocking practices’ were ‘exposed’ at three already reputable rental companies in Spain by undercover investigators from Which? posing as ‘regular customers’.

The research follows a survey by Consumer Champion which found that nine out of 10 tourists feel they have been ‘taken advantage of’ by car hire companies. One in six respondents said they felt ‘very’ pressured to take out extra car insurance, even if they ‘already had sufficient cover’.

As part of the investigation, undercover investigators travelled to Alicante and Malaga airports and filmed interactions with Goldcar, Dollar and OK Mobility – the companies Which? was “most concerned about based on reviews and complaints”.

The team claims they “captured on camera a range of press tactics”, including “false and misleading statements”.

An undercover CCTV investigation by the Which? team has revealed that car hire companies are 'using pressure tactics to rip off customers'

An undercover CCTV investigation by the Which? team has revealed that car hire companies are ‘using pressure tactics to rip off customers’

When tourists hire 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’, says Which?. The consumer team recommends customers buy an Excess Reimbursement Policy (ERI) to reclaim the excess paid, with ‘some of the best starting from as little as £16’.

Alternatively, car hire companies sell Super Collision Damage Waivers (SCDWs) to ‘waive the excess completely’, but according to Which? these often cost ‘hundreds of pounds more and generally provide poorer cover’.

Which? claims that car rental companies can ‘make huge profits by selling these SCDW policies to customers’ and that an ‘industry insider’ told the team that ‘car rental staff are often motivated to sell these extra insurances for a commission’.

To test this, Which? pre-booked a hire car, which includes basic insurance as standard, and pre-purchased a legitimate ERI policy. The team says the ERI was ‘disclosed to the companies during the exchanges’.

At OK Mobility at Alicante Airport, Which? says the undercover shopper was ‘incorrectly told they did not have basic insurance with their booking’. Even when the mystery shopper told the agent about the included insurance, the rental agent ‘doubled down’ and said ‘there is nothing included’ because the booking had been made through a third party, Rentalcars.

Which? says this is ‘untrue’ as ‘booking through a third party does not affect insurance’ and claims Rentalcars confirmed to Which? that ‘cover is included as standard with all European rental contracts’. Which? adds that the mystery shopper was ‘alarmingly told that any damage would cost a flat rate of €760 (£651)’, even if it was a ‘minor scratch’.

Even when the Which? investigator showed the agent their existing ERI policy, the agent reportedly claimed that ‘any insurance has to be with the car hire company’ and ‘pressed harder’ on the buyer to buy the Ok Mobility insurance. Which? says it was only when their buyer said they would ‘have to think about it’ that the agent ‘relented’ and said it was ‘their choice whether or not to buy a policy’.

When tourists rent a car in Europe, basic insurance - known as Collision Damage Waiver (CDW) - is always included in the rental price

When tourists rent a car in Europe, basic insurance – known as Collision Damage Waiver (CDW) – is always included in the rental price

At Goldcar, which has been ranked bottom of the Which? car hire rankings for the past six years, a Which? customer was told by an agent at Malaga airport that there was “no cover”. This claim was “completely untrue” as “basic insurance was already included in the rental”.

In Alicante, a Goldcar representative told Which? that the ERI policy would ‘only cover the other vehicle in the event of an accident’. This ‘incorrect statement’ was repeated even when the Which? investigator ‘rejected’ their response.

Dollar, which also scored poorly in Which?’s latest car rental survey, fared better at Alicante Airport, where the experience was “smooth and pressure-free”, according to Which?. The company is a subsidiary of Hertz and operates from Hertz counters at Alicante and Malaga airports.

However, at Malaga Airport, the undercover shopper felt ‘misled’. The shopper says he was told his ERI policy was ‘not valid’ and that ‘the thing you bought on the internet is for nothing’ – a ‘false statement that is likely to make any traveller afraid to take out extra insurance’, according to Which?.

The Which? mystery shopper was ‘also told they would be liable for up to €2,400 (£2,058/$2,628) if anything happened to the car, and that any scratch larger than 1cm would cost between €300 and €400 (£257-£343/$328-$438) to repair, plus a €50 (£42/$54) admin fee and tax on top of that.’ The Dollar agent also claimed that ‘full cover is always cheaper than minimal damage’ – a ‘false’ claim, according to Which?.

Upselling is not against the law, but it is ‘illegal to use misleading or aggressive practices that might induce customers to make a purchase they would not otherwise have made under the Consumer Protection From Unfair Trading Regulations’, says Which?. Its consumer team believes that many of its ‘interactions in Spain fit this description’.

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 hire desk, and our undercover filming has exposed some absolutely shocking practices by Goldcar, Dollar and OK Mobility staff.

‘Anyone renting a car this summer should make sure they book with a reputable company or a reliable agent. To avoid pressure from pushy agents, they should take out their own excess refund insurance before they set off.’

The team says they

The team says they “captured a range of pressure tactics on camera” – including “false and misleading statements”

Goldcar has been ranked last in Which?'s car rental survey for the past six years.

Goldcar has been ranked last in Which?’s car rental survey for the past six years.

A Goldcar spokesperson said: ‘Goldcar Spain is obviously disappointed that the alleged experiences have been identified by Which? Travel.

‘In terms of insurance cover, the company offers premium cover to provide a seamless process should any damage occur during a customer’s rental. A customer of course has the right to choose to purchase their cover separately, but if they do, they will be charged for any damage that occurs during the rental and will then have to reclaim the cost from their chosen provider.

‘While the company has not had the opportunity to see the footage referred to by Which? Travel, it is committed to investigating incidents where a customer believes they have received service that does not match expectations of 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 revised annually based on customer feedback on their sales experience. If an employee violates the Code of Ethics, he or she will be immediately warned and subject to economic penalties. If the violations are repeated, the contract may be terminated.’

A Dollar spokesperson said: ‘While we have not been able to review the footage, the actions described do not align with our company values ​​or policies. Providing excellent customer service is a top priority for Dollar and we take regular steps to ensure all employees adhere to our standards.’

OK Mobility told Which?: ‘OK Mobility staff will always provide information about the cover or extras the company offers that may be of interest to the user. In this sense, OK Mobility staff will offer customers the option of taking out cover that will limit their liability in the event of damage to the vehicle and will clearly explain the price of the cover and what it includes, so that customers can freely decide whether it is worth taking out such a limitation of liability. It is an optional product that the customer can decide for themselves whether or not they wish to purchase.

‘OK Mobility recommends taking out coverage directly with our company, as this is the company that owns the vehicle and is therefore the only one that can cover the property directly, in order to protect the customer from possible additional costs in the event of damage. In 100% of cases, customers are always informed about the coverage they are taking out 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 debit. Normally, a block is placed on the cardholder’s account, although the specific effect on the card depends 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 show will vary, although the average time is usually between 14 and 30 days. The rental companies have no influence on this process, as it depends on the financial entity that issues the card.

‘We actively strive to ensure fair competition in the market and to guarantee our customers’ free choice based on the information they receive during their interaction with OK Mobility via our agents or our online communication channels.’

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