Car rental companies have played an important role in increasing the ease of travel, be it for business or pleasure. The ability to rent a vehicle of almost any style, make, and size at a reasonable price has been a boon to travelers around the world. However, the process of renting a car can be just as troublesome as buying one.
Here are some hints and tips to help you avoid “contract shock.” First, you should know that car rental agencies have four basic, but very different, ways of charging for their vehicles: daily rates with mileage billed as an extra; daily rates with a limited number of free miles per day; daily rates with unlimited mileage; and a variable rate that has free mileage for an extended period of time.
Another important consideration when renting a car is the amount of time you will need the vehicle. If it’s less than a week, you’ll probably find better rates with a national carrier like Avis, Alamo, Budget, Dollar, Enterprise, Thrifty, or Hertz. However, if you need a rental car for more than a week, you can get lower rates from local companies, specifically car dealerships.
Third, keep in mind that the base rate you see advertised in bold print in magazines and TV ads is often just the tip of the iceberg when it comes to the actual cost of renting a car. Additional fees, usually in the form of taxes, can add up to the total bill fairly quickly. Sales taxes, airport taxes, concession fees, vehicle lease fees, and drop-off fees generally do not appear when you are given a base rental rate.
Also be aware of the fact that another major cost of renting a car is the insurance that the company will try to sell you. The term “insurance”, by the way, is not entirely accurate since car rental agencies are not licensed to sell insurance. What they are really selling you are waivers, so you don’t have to pay for any damages caused by an accident. Your personal auto insurance may cover any damage, but it may not! Call your auto insurer before you rent and ask about insurance coverage on rental vehicles.
There are also a variety of options regarding fueling plans. You can prepay for a full tank of gas at the time of rental (but you can’t use a full tank). The most expensive option is to return the car on an empty tank because you will be charged about $5 per gallon on top of the refill fee. Your most economical option: pay only for the gas you actually use. Make sure the tank is full when you take possession of the car, and then take plenty of time to fill up with reasonably priced gas near the airport or drop-off location when you’re done with your trip.
Always compare prices, even on the Web. Ask about special discounts for membership in national organizations like AAA or AARP. Special rates may apply for frequent flyer card members or certain credit card holders.
Finally, be careful to plan your pickup and drop-off times so that you are not charged for an extra day. Best wishes for a safe trip!