That is really cheap! Just to confirm, that’s with using your US licence? Which insurer is that with?

Yes, that's with our US license, although our two daughters are also on the policy - who have UK licenses. I think (don't quote me on this!) it's with esure - there aren't too many who will take it on. Of course, any insurance is only as good as when you have to claim... .

You problem here is not rental, but Insurance. It is very difficult to get Insurance in the UK without a legal UK address.

Yes, understood. I didn’t make clear we would have a UK address

From what I understand, it has to be your permanent and legal address. If you live most of your time in France, the address there will be your legal address. Which driving licence to you have? If resident in France, you should have swapped it for French one. Believe me, we tried.

I thought your OP was quite clear on that point. I'm pretty sure that while we simultaneously had a car in the USA and a car in the UK, tax residence was not an issue to get them insured. We did have a UK driving licence for our UK car. We did have a US, Texas DL as well as a UK DL.

So it depends on country of ordinary residence where you spend the majority of your time. If EU or Switzerland, you have to exchange your licence for a local one, and your UK licence is sent back to DVLA as long as you live abroad. You can't have both EU and UK licence at the same time- hence issues with insurance.

Ok, i’ll look into this. Seems odd that they are so reluctant to accept driving licences from 2 different countries when it is straightforward to have passports from two countries

Never give up your UK DL. No one cares and there is zero benefit.

No, your UK license is still around and if you move back all you need to do is to inform the DVLA, unless, of course, you have 'aged out' and it seems as though driving after 70 is going to be more difficult, with more requirements to renew probably not a bad idea either.