According to research, motorists who use rented cars, when their own motors have been involved in an accident, are likely to have on average £20 added to the price of their car insurance policies, according to the Swiss-based insurance firm, Zurich.

The company claims that car insurance firms, provide the cars but then claim the costs back from the person ‘at fault’, in the accident. This provides a lower amount of incentives to keep the costs lower, which leads to bigger payouts by the insurance provider of the person ‘at fault’, thus leading to the policy holder having to pay higher insurance premiums.

In some instances, insurers have refused to pay, for the drivers at fault, and this has led to court cases. Beverley Hope-Smith told the BBC’s Radio 4 Money Box programme, that she had been advised by a credit hire company that she would not need to pay for a replacement vehicle following an accident.

However, due to the repairs taking three months, the final bill for the replacement ended up at £16,000. This resulted in her insurance company not paying and Ms Hope-Smith having to go to court on the company's behalf.

Mark Adams, Zurich’ marketing director, said: "There is an agreed rate for the hire of a vehicle so there is no question of charging more than that rate. Were we to do so, the insurer would, rightly, not pay the bill."