9 ways to put the brake on car-rental costs

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The Basics

9 ways to put the brake on car-rental costs

Renting a car should be simple, but you have to ask the right questions to get the best deals. Here are insiders' strategies to help keep your costs low -- plus 8 types of fees you should slam the door on.

By Jennifer Mulrean

If you think finding the best airfares is tricky, try pricing car rentals. The big car-rental companies are doing their darnedest to tack as many fees as possible onto your bill.

Driving from, say, Miami to Tampa? No problem. An extra $200, please, for a drop fee. Need a car seat for your 2-year-old? Maybe $8 a day. You're a few hours late dropping the car off? That's another day's rental.

Renting a car can be complicated and costly if you're not careful. Check out these ways to hit the road without leaving your bank account on fumes.

Go for weekend, weekly rates vs. daily
When it comes to the type of rate you pay, "daily" can be deadly to your travel budget. That's because daily rates tend to be higher and sometimes don't include mileage. If you're traveling for a weekend, you can usually qualify for a better "weekend rate" with unlimited mileage simply by picking up your car no earlier than noon on Thursday and returning it no later than noon on Monday. You can also qualify for a "weekly rate" by keeping the car more than four days.

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You can probably skip the insurance
According to online law site Nolo.com, people in the United States spend $1 billion a year on car-rental insurance -- unnecessarily in most cases. That's because you're likely covered by your regular car insurance in the event of an accident. This won't stop the rental companies from trying to sell you liability insurance, personal accident coverage and a collision damage waiver (CDW) or loss damage waiver (LDW). Even if your auto insurance doesn't cover you in rentals (you'll need to check your policy), the credit card you used to rent the car might cover collision costs. This came in handy when the tiny Geo Metro my husband and I were renting was rear-ended. When the other driver sped off without giving us any of his information, our Visa platinum card paid for the damages to the rental.

And finally, you may also be offered insurance against theft of your personal belongings should someone break into the car (called "Personal Effects Protection" at Avis). If you have a homeowners or renter's policy, you're probably already covered.

Note this exception to all of the above: traveling abroad. Your regular coverage may not apply if you're traveling in a foreign country. Check your insurance and credit-card policies carefully before making a reservation. You may actually need the coverage from the rental company.

Study the specialty sites
You needn't skip the major car-rental sites when looking for deals, but there are plenty of other sites with exceptional savings potential. Rentalcars.com does a good job of aggregating special rates from all over the Web, as does rentalcarguide.com. At sites such as Hotwire.com and Priceline.com, you trade having a choice in car-rental company for savings. An added bonus at Hotwire.com: All fees and taxes are included in the initial purchase so you won't have any ugly surprises at the rental counter (or when you get your credit-card bill). Travelocity's "TotalPrice" program similarly guarantees that your final bill will be within 1% of the rates you find at their site, excluding optional services such as insurance or mileage.

Keep your searches broad
Chances are, the smaller the car, the smaller the bill. That pricing model veers off course, however, when using sites like Hotwire.com that are hawking excess inventory. When searching these sites, it's best to keep your searches general, choosing a variety of car types. You'll similarly increase your chances of finding a good deal by selecting "no vendor preference" on sites like Expedia and Travelocity. (You're not given the option of picking a specific vendor on Hotwire anyway.)

Be a joiner
The major rental companies almost all have frequent renter clubs that are free to join. In the event that they try to charge you to join (National charges $50 for its Emerald Club), do some homework and find out what frequent-flier programs have deals with the car-rental programs to waive the membership fee. Even if you're not a member of the air miles program, OneTravel.com recommends asking to have the fee waived. The savings? Usually a minimum of 5%, but often more.

Also, your membership to groups such as the AARP and AAA -- even wholesale buying clubs such as Costco or Sam's Club -- are often worth some added savings. Just be sure to compare them to the deals you find on your own through general bargain hunting.
Pretend you're a joiner
The truly intrepid travelers among you can use specialty discount codes for membership groups you don't belong to. Most people posting on Biddingfortravel.com message boards claim they've never been asked for membership cards when using codes that require membership in frequent-flier programs and affiliation clubs like AAA. It's probably best to stick to the codes that other people are successfully using and posting on the Biddingfortravel and FlyerTalk sites.

Watch those 'discount' coupons
The best kind of coupons, according to OneTravel.com, are "walk-up coupons." They can be applied to any rate when you get to the counter. Otherwise, you may find that 20% off is only valid for their highest rates.

Go against the crowd
Rental prices vary widely according to demand. The more cars on the lot, the more likely you'll get a good deal. This isn't just about avoiding busy metro airports on holiday weekends, it's going against the normal ebb and flow of traffic. Think New York City during the week and Washington D.C. at Thanksgiving. As one co-worker puts it, "No one's really from Washington, so the city empties out at the holidays."

Speak up at the rental counter
You know, the squeaky wheel and all that. Speak up and you may find yourself with a larger, nicer car for the nicer, smaller price. The flip side of this is to beware upgrades that you haven't asked for -- too often they come with added costs.

Also, before pulling out of the lot, give your car a thorough check for dents and scratches and have a rental agent note any damage in writing.

8 fees to avoid
The fewer add-ons, the better your chances of actually being billed the quoted price. Here are some of the fees you may be facing and how to avoid them.

Rental car fees

Type of charge	Sample amounts*	How to avoid it
Mileage	6-10 cents per mile.	Try to get a weekly or a weekend rate where mileage is included.
Drop-off (at a different location than where you picked up the car)	Up to $1,000	When you reserve your car, ask the rental company if it charges a drop fee on a one-way trip. Company-owned offices may not charge it. Franchise operators may want a fee to ensure getting the car back. Otherwise, plan your trip to drop your car off where you picked it up.
Late drop-off	As much as a full day's rental charge	You often get a one-hour grace period, but, of course, the best way to avoid this is to be punctual.
Additional driver	$25 per rental	These fees should usually be waived for the renter's employees, spouses or life partners, but check with the company. Nevada and California often have no additional driver fees.
Young driver	$5-$25/day (Ouch! This can jump to almost $50 a day in New York.)	This typically affects renters under age 25. Check with your employer to see if it has any agreements with car companies to rent to underage employees.
Child safety-seat	$8 per day in the U.S.	Bring your own.
Airport	10% or more	Pick up your rental at the downtown office or an off-site lot that is near the airport and is serviced by free shuttle. Public transportation can sometimes provide a cheap ride to the downtown locations. Renting a car from the downtown Phoenix Avis office versus the airport concession would have saved me $72.05 for a 3-day compact rental. (Total costs were $113.58 downtown vs. $185.63 at the airport due in part to a daily $3.50 "customer facility charge" and an 11.11% "concession recovery fee.")
Refueling	As much as $3 a gallon, and often 20 cents to 50 cents more per gallon than you'd pay at a nearby pump.	Decline the chance to prepay for your fill-up -- you'll lose if you bring the car back with anything more than an empty tank. And the way most gas gauges work, even if you return it with the needle on E, youre probably still giving away close to $5 in gas. If, instead, you opt to return it full, youll find that it doesnt have to be absolutely full to put the needle on F. You can save yourself as much as $10 by choosing the fill-it-yourself option.

*Sources: Nolo.com, Fodor's, Avis, National, Hertz

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