Not all of us are lucky enough to own cars but there will be many occasions when we need to hire one. It could, of course, be on holiday, either at home or abroad, or you might usually drive a small car but need something bigger as a one-off.

Whatever the circumstances, much of the advice that follows particularly applies to hiring a car abroad, but should also be considered when you hire a vehicle in this country.

It is worth taking photos of the vehicle when you first collect the car and when you return it to the car hire firm, in case there is any dispute about whether the car has been damaged in your care or the state of the vehicle when you hired it.

Similarly, you can make written notes about the condition of the car. Date and sign the notes and if there is someone else in your party, get them to sign it too. It could be something as simple as “crack on rear windscreen” or “missing wheel cover”.

If the car hire firm employee checks the condition of the car, ask them what they are reporting and make a written note of this yourself.

Most companies rent their vehicles with a full tank of fuel but you might find you are paying way over the market value for the fuel, so it is worth checking when you book. Also check the firm’s return fuel tank policy, do they want it full or empty?

Don’t sign blank credit/debit vouchers if you can possibly help it and if you do have to do this, make sure that you get it returned to you and torn up immediately.

If you book over the internet, keep a copy of your original booking which shows what you actually requested. Also keep copies of any e-mails from the car hire company.

Watch out for extra costs like taxes, insurance, child seats etc. Check what the extra costs and insurance in particular covers you for and what excesses there are. Some deals are for unlimited mileage, but others may put a cap on the distance you can travel before paying an excess.

Estimate

Take the time where possible to read the contract and ask for an explanation of anything that you don’t understand. In particular pay attention to the insurance coverage.

If you have had an accident or the car is damaged in your care, go to a garage and get a written estimate of the repair costs. But Do NOT ask the garage to actually undertake any work. The garage’s quote will be helpful if there is a dispute about the amount the car hire firm claims is needed to carry out any repairs.

Allow plenty of time to return the car and make sure the car hire firm completes a condition report. Check what they have said. If there are large spaces on the form, cross through them so that the company can’t add anything else later. Insist on having a copy of the form.

If you are planning to travel out of the country where you rented the vehicle, make sure the contract allows you to do this and check that the insurance policy covers the country/ies you are planning to visit.

As long as your own insurance policy was bought from any EU-based insurer – including those based in the UK – you will have third party motor insurance to drive in any European Union country. But third party cover is often inadequate and it is advisable to arrange extra cover.

Your policy may also give you third party cover to drive in some non-EU countries. If not, you will need to take out extra cover. Your insurer can issue you with a green card, which some countries abroad require you to have, to show that you have increased insurance cover.

If you hire a car in the USA, check the level of insurance cover you have been given. If it is only the basic minimum, it will almost certainly not be enough to cover the full costs of any claim.

In the US you should buy extra cover, including collision damage waiver insurance. If you do not have collision damage waiver insurance, you may have to pay for any damage to the hire vehicle, even if it is not your fault.