TL;DR: Holiday car rental prices for 2026 are proving to be a lottery, with some European hotspots like Barcelona seeing costs surge by nearly 40%. UK drivers can still find value, but the key is to look beyond the headline price and avoid expensive extras like desk-sold excess insurance.
Key Facts
- 40%: The approximate price increase for weekly car hire in Barcelona, one of Europe's most popular destinations.
- £223: The potential price gap for a week's rental, comparing a deal in Florida (£217) to a booking in Spain (over £440).
- £3.50: The typical daily cost of a standalone car hire excess insurance UK policy, a fraction of the £200+ weekly charge at rental desks.
- 1%: The minimal rise in global average car hire prices, which hides the dramatic price swings drivers face at a local level.
UK drivers planning a getaway should brace for a shock when checking car hire costs for 2026, as the latest data reveals a pricing lottery across popular destinations. While global average holiday car rental prices have risen by only 1%, local realities are vastly different.
Recent figures show that prices in Barcelona have skyrocketed by nearly 40%. In stark contrast, Geneva has become significantly more affordable. This creates a confusing landscape for holidaymakers trying to budget for their next trip.
What this means for your holiday budget
A rental car price comparison shows just how wild the gaps are. A week's rental in London could cost you £314, which is actually a price drop, while the same vehicle in Spain could set you back over £440.
But here’s the catch: the headline price rarely tells the whole story. The real budget-killer isn't the daily rental rate. It's the sneaky extras that firms upsell you on at the collection desk, often when you’re tired from a flight and just want to start your holiday.
How to save over £180 on car hire insurance
Take car hire excess insurance, for example. Rental companies are known to charge upwards of £200 for just a week of cover at the desk. For them, it’s a massive profit generator.
The good news for drivers is that there's a simple solution. We always recommend securing a standalone car hire excess insurance UK policy before you travel. These policies cost around £3.50 a day, about the price of a coffee, and can save you a fortune.
What's more, these independent policies often provide more comprehensive cover than the rental firm's own version, protecting you against things they often exclude, like damage to windscreens, tyres, or the underbody of the car.
Florida revealed as one of the best value holiday destinations
For families looking for value, the outlook is brighter in some locations. Florida remains one of the best value holiday destinations for car hire, with recent deals from providers like Budget starting at just £217 for a week.
This is a stark contrast to Mediterranean hotspots like Faro in Portugal or Milan in Italy, where car hire costs for 2026 are experiencing double-digit percentage increases, putting more pressure on holiday budgets.
AVERAGE COST TO HIRE A CAR THIS SUMMER IN POPULAR HOLIDAY HOTSPOTS
| Country (city) of hire | 2019 | 2022 | 2023 | 2024 | 2025 | 2026 | YOY increase |
|---|---|---|---|---|---|---|---|
| Germany (Munich) | £212 | £378 | £365 | £311 | £307 | £292 | –4.9% |
| USA (Florida) | £231 | £650 | £406 | £362 | £350 | £338 | –3.4% |
| Croatia (Dubrovnik) | £289 | £806 | £421 | £342 | £320 | £364 | +13.8% |
| Spain (Barcelona) | £258 | £609 | £433 | £306 | £316 | £440 | +39.2% |
| Turkey (Dalaman) | £292 | £299 | £444 | £360 | £325 | £388 | +19.4% |
| Portugal (Faro) | £428 | £784 | £517 | £375 | £254 | £321 | +26.4% |
| Australia (Sydney) | £229 | £500 | £550 | £297 | £365 | £309 | –15.3% |
| Greece (Crete) | £460 | £775 | £563 | £417 | £429 | £415 | –3.3% |
| UK (London) | £183 | £743 | £577 | £366 | £400 | £314 | –21.5% |
| France (Nice) | £417 | £731 | £599 | £523 | £399 | £390 | –2.3% |
| Italy (Milan) | £364 | £617 | £650 | £446 | £382 | £460 | +20.4% |
| Switzerland (Geneva) | £353 | £933 | £711 | £460 | £576 | £449 | –22.0% |
| Average Cost | £310 | £652 | £520 | £380 | £369 | £373 | 1.1% |
Our final piece of advice? Slash costs by bringing your own equipment. Pack your own sat nav or use your phone, and bring your own child seats. Most airlines will fly them for free, and avoiding these rental charges can easily keep an extra £140 in your pocket for tapas or theme park tickets. Your options just got better.