[punky]

Insurance plays a big part in the price. There are many different levels of insurances, and it can depend on the price the underwriter gives the company.

I work for a tour op company, that only deals with America, and the prices of the car hire packages, from the basic (minimum amount of insurance legally required - basically a reduced 3rd party) to the gold package (top level of insurance - basically fully comp, with unlimited liability) vary by £100 upto about £300, depending on the vehicle. Also, if you are under 25, you are heavily surcharged - again because of the insurance. Some underwriters can waive this, some can't, it all depends. Also, factors like crime, statistical likelyhood for an accident. In rural Spain it is probably going to be pretty slim. In London, it is going to be pretty high.