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Last updated on March 20th, 2025 at 12:34 am
Wondering how you can stay on top of expenses when renting a car? We have some ideas. Keep reading to learn more.
Whether you’re renting a vehicle for work or taking a much-needed family vacation, rental cars are synonymous with additional fees and unexpected charges that can break a previously well-planned budget.
Why is renting a car from a supplier so pricey? Well, In the United States average car rental prices are rising, in part because of increased demand since the pandemic.
For instance, IBIS, a leading hotel chain, reports the car rental industry has grown by 27.2% in the US market in 2021. But this only tells half of the story. Skyrocketing prices are impacting professionals and families out on the open road every single day.
How to Keep on Top of Expenses When Renting a Car: Tips and Tricks
- Keeping control of fuel expenditure (and checking the fuel policy)
- Understanding car rental charges (and how to avoid them)
- Making smart decisions about rental insurance
- Comparing prices (third party versus booking direct)
- Looking for membership discounts and benefits
- Booking early to get the most value for your money
Staying on top of expenses when renting a car can prove tough, but certainly not impossible. Here’s what every budget-conscious traveler needs to know to get the most value for the money when renting a car for work or leisure.
Keeping control of fuel expenditures (and checking the fuel policy)
Fuel is expensive in the best of times, but depending on your rental company policy, the cost could turn out to be much more than expected. As a mom who is always number-crunching, I make sure to check the fuel policy — this can prove to be a big-budget saver, especially if the company in question expects full to full.
Full to full is a common policy requiring you to fill the tank with gas before returning it. If it has less fuel than when you departed, your chosen rental company will likely charge you to top it back up, which tends to be at a much higher rate than your average pump.
That said, refilling the tank before returning your vehicle only spares you from penalty charges and does not take into account the cost of fuel as your drive. With this in mind, there are plenty of other ways to keep control of fuel expenditures when renting a car.
If you’re travelling for work, for instance, you can request a fuel card that charges your company directly, thereby avoiding the need to pay out of pocket. And if you’re travelling for leisure, handy tools like GasBuddy or Waze help identify the most affordable nearby gas stations.
Understanding car rental charges (and how to avoid them)
Gas isn’t the only added charge you can expect when renting a car, particularly if you’re swayed by a sea of optional extras. To save on convenience fees and any other additional costs, you should familiarize yourself with the different charges, and know how to avoid them.
On top of these bigger charges, there are lots of optional extras that tend to add up, including:
- Extra days
- Admin and processing fees
- Additional drivers
When travelling with your children, we also recommend bringing your own booster seats and entertainment. This is because rental companies are happy to include these family necessities as upgrades, but at cost.
Making smart decisions about rental insurance
One of the biggest potential expenses when renting a car is insurance. Rental companies often present their insurance packages as essential, but this isn’t always the case. Before automatically accepting the rental company’s coverage, consider these money-saving alternatives:
Check your existing auto insurance policy. Many personal auto insurance policies extend coverage to rental cars. Call your insurance provider before your trip to confirm what’s covered and what’s not. This could save you $15 to $30 per day in unnecessary charges.
Review your credit card benefits. Many major credit cards offer rental car coverage when you use the card to pay for the rental. American Express, Chase, and Capital One often include this valuable perk, though coverage varies by card. Be sure to read the fine print about coverage limits and excluded vehicle types.
Compare third-party insurance options. You’ll often find rental car coverage as part of travel insurance packages at rates significantly lower than what rental companies charge.
Document existing damage. When you pick up your rental car, take time-stamped photos or videos of any scratches, dents, or interior damage. This documentation protects you from being charged for pre-existing damage when you return the vehicle.
For international rentals, be especially careful. Your regular insurance may not cover you abroad, making rental insurance more important in those cases. Research country-specific requirements before traveling.
By making informed decisions about rental insurance, you could potentially save hundreds on your next car rental without sacrificing protection.
Comparing prices: direct booking versus third-party sites
When booking a rental car, always compare prices between booking directly with the rental company and using third-party services. Direct bookings sometimes come with more flexibility for changes or cancellations, and rental companies may offer loyalty program benefits when you book directly.
However, third-party sites like Expedia, Hotwire, or Kayak may have special deals or packages that aren’t available through the rental company’s website.
Take a few minutes to check both options before finalizing your reservation. Remember that the lowest advertised price isn’t always the final price—watch for additional fees that might be added later in the booking process. Sometimes what seems like a great deal through a third party might end up costing more than booking directly once all fees are calculated.
Looking for discounts and membership benefits
Many organizations offer car rental discounts and additional perks to their members (like no charge for a second driver). Here’s where to look:
- AAA membership typically provides 10-20% discounts with major rental companies
- AARP members can access special rates and benefits
- Professional organizations, alumni associations, and credit card memberships often include rental car discounts
- Military personnel and government employees usually qualify for special rates
Booking early to get the most value for your money
As with train tickets, plane seats, and most other forms of transportation, there is one sure way to get the best value when renting a car: plan ahead, and book well in advance. This is particularly true for national holidays and peak travel times like summer holidays.
While there is no guarantee that booking early will guarantee you a bargain dream car, it does mean you’re more likely to check off all your requirements without much trouble. If you wait, however, there’s a good chance you’ll be left with a car that’s less than perfect for you at a premium price, given it’ll be one of the last vehicles out the door.
Although rental car companies are known for their hidden fees, you don’t have to pay for everything they try to sell you. You can save money by managing your fuel costs, saying no to unnecessary upgrades and insurance, and booking your car early. With these simple steps, you’ll get the best value and keep your expenses under control when renting a car.
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