Just 11% of respondents knew that if their hire car was damaged they could be liable for up to £2000, even if it’s not their fault.

If a hire car is stolen or damaged in any way the hirer has to pay for the first part of the cost, i.e., up to the excess amount for the repair, unless they take out additional excess protection cover.

The YouGov survey commissioned by iCarhireinsurance.com found that only one in five people realised that some excess policies also do not include possible damage to the tyres and windscreen – among the most vulnerable parts of a vehicle.

Ernesto Suarez, CEO and founder of iCarhireinsurance.com, said: “Excess insurance for car hire is confusing for many travellers.

“Our research shows a worrying lack of knowledge about this form of protection. Car hire repairs are not cheap and when just a small scratch can cost hundreds to fix, it’s important to get excess insurance so you’re not suddenly out of pocket.”

Consumers are advised to make sure that the insurance policy they take out for their hire car is comprehensive and bought in advance to get a cheaper policy without cutting the level of cover.

Travellers should also be aware that 60% of the rental company excess policies researched do not include damage to the hire car’s tyres or windscreen.

If additional policies for this cover are available from the rental desk they can add more than £100 to the cost of a week’s car hire. Many companies do not promote the price of this policy until a customer reaches the rental desk.