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| The Basics | 9 ways to put the brake on car-rental costs
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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.
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.
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MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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