How to Save When Renting a Car
Here’s what to know before you book your next trip
Rental car prices are up about 35 percent since before the pandemic, according to NerdWallet, making the cost a significant expense, especially if you overpay for the daily rate and add-ons.
Rental companies almost always push expensive insurance coverage (sometimes more than $30 a day). Most of us probably don’t need it, though. The Insurance Information Institute says personal auto policies usually include liability, collision, and comprehensive coverage on rental cars in the U.S. (But don’t assume: Always verify the coverage because credit card benefits can change over time.)
Cheaper Rental Cars Can Cost You
Cars with the lowest rates often come with strings attached. Many rental car companies and third-party sites like Priceline offer big savings in exchange for paying in advance and/or choosing a “mystery car.” We recently found we could save on the cost of a weeklong rental at Hertz in Los Angeles by choosing a Manager’s Special, also known as a mystery car option. The EV Manger Special was cheaper than most options. (If you rent an EV, you may need to find a place—and the time—to charge it.) Bear in mind that special deals might not include free cancellation, so if your plans change, you could lose your payment. No matter where you rent, take the time to read the small print and review the restrictions.
Third-party vendors such as AAA, Costco, and Priceline may offer the lowest rates, but if you need to extend your rental or make any other changes to your booking, you’ll probably have to do it through their websites. That could be more fraught than dealing directly with the rental car company.
Be Prepared When Renting an EV
Electric vehicles can be the least expensive type of rental car, making them a tempting choice (and you may get one anyway if that’s what’s available). But before you opt for electric, remember that charging takes a lot longer than gassing up. A DC fast charger will typically add about 150 miles of range in 30 minutes. Level 2 chargers are more common but will add only 10 to 20 miles in the same time frame. Many hotels offer EV charging, but if yours doesn’t, you can find charging stations on Google Maps or by using an app such as ChargeHub or PlugShare.
“If you rent an EV, your best bet is probably a Tesla, which has the biggest, easiest-to-use network of fast chargers,” says Alex Knizek, director of auto test development for CR and an EV expert. Don’t expect that adding juice to the battery before drop-off will take just 5 minutes. To save time, pay the fee companies charge to do that for you. At Hertz, you can prepay (estimated at $30) or pay later (estimated at $65) based on how much energy the battery needs.
Using Alternative Rental Cars
Short-term rental companies like Zipcar allow you to rent by the hour and have cars available throughout many cities. This might be a less expensive option if you need a car for only part of a day. To use Zipcar, you’ll need to become a member, which costs $5 to $19 a month, plus a $25 application fee. (AARP members can get $40 off the annual fee.) Be aware of the laundry list of extra charges you can rack up, for everything from returning the car late to leaving the tank low on gas.
Peer-to-peer car rental services, such as Turo, let you rent cars directly from car owners. You may find low prices on peer-to-peer rental platforms, but their biggest advantage is how easy they make it to rent a classic or exotic car. If you want the latest safety features, check the model year to avoid renting an older vehicle that may lack them.
More on Car Insurance
• CR’s Car Insurance Ratings and Buying Guide
• Best Car Insurance Companies
• Cheapest Car Insurance Companies
• How to Lower Your Car Insurance Rates
• Best Car Insurance Companies for Seniors
• Everything You Need to Know About Teen Car Insurance
• Proven Ways to Save on Car Insurance Even If You’re a Safe Driver
Editor’s Note: This article has been updated since it originally appeared in the July 2024 issue of Consumer Reports magazine.
