I've searched on the net for cheap car hire deals, but to insure any excess costs about £12 a day. Is there a way round this? Bill Whittaker, Edinburgh

A Sunday Times travel expert responds: Hire car hidden costs are a continuing nightmare; and nothing is more than frustrating than paying for an ‘all inclusive’ hire, only to discover that you could be stung for a huge excess – anything up to £1,000 – if the car is damaged or stolen. And this, despite the fact that you have already paid the CDW (Collision Damage Waiver).

Insuring this excess costs up to £12 a day through hire car companies, which can easily double the cost of a week’s hire in many parts of Europe. But there is an alternative. You can pay a yearly premium, through Insurance 4 Car Hire (020 7012 6300, www.insurance4carhire.com), which means that you won’t have any excess to pay in the event of a crash, or theft. Yearly rates range from £49, which covers hires in Europe, to £119 a year, for worldwide hire (including the USA).

This will save having to shell out the extra £12 a day to insure the excess direct with the hire car companies, plus damage to items that aren’t usually covered through hire car insurance, like the windows, tyres, or underside, are covered to.