Guide to Car Rental Basics

Know the basics before you shop online for a car rental

By Autumn Rivers

Action Steps
The best contacts and resources to help you get it done

Locate rental car companies near you for convenience

No matter where your company is located, there is sure to be at least one agency nearby. Most companies are nationwide, but a select few do not have locations everywhere. Go online and check out a list of car rental companies in your area before considering a specific company that may not serve your city.

I recommend: Find the nearest location of National Car Rental or Dollar Rent A Car easily online.

Figure out which type of car you need from the rental car company

The size and type of vehicle you need will depend on the purpose of your business trip. If you need to get across the country without spending much money on gas, choose a small economy car. If comfort is your goal during a long drive, a luxury car might suit you. If you need to transport clients or products, a larger car, like an SUV or van, might be best for you. A larger car will cost more, so take that into consideration when selecting.

I recommend: Avis Rent A Car has a large selection of vehicles for you to choose from. Each pick-up location typically has different cars. Hertz categorizes its cars according to specialty, such as whether they are fuel-efficient or not.

Take advantage of car rental services specifically for businesses

Many car rental companies offer special discounts and services for business travelers. Whether you or your employees are traveling and need a car, save money with companies that offer this special. Some of these companies require you to be a frequent traveler to get a discount, so be sure to check the requirements.

I recommend: Online car rental booking is inexpensive for business travelers at Enterprise Rent-A-Car, where you can enjoy low rates, cheap long-term rentals and a large selection of specialty vehicles. Thrifty offers discounts to frequent business travelers, such as preset rates and the elimination of underage or additional driver charges.

Helpful advice for making the most of this Guide

• •  Many rental car agencies suggest that companies rent cars to their employees rather than reimburse them for mileage in their own cars. Considering most agencies offer unlimited mileage on rental cars, it is often more cost effective to pay for a rental for your employees' trips.

Guide to Renting Cars for Business Travel

The key is to seek out the deals and read the fine print

By Betty W. Stark

Plus, fees and taxes can add as much as 50 percent to the cost of a daily rental. To make matters worse, onerous new liability clauses can result in you the renter being responsible for the cost of a new car if the rental company opts to sell rather than repair a damaged vehicle. It's more important than ever to know what you're getting into.

1. Decide if and when you should rent a car
2. Build benefits from frequent rentals
3. Avoid unexpected after-the-fact charges and claims

Action Steps
The best contacts and resources to help you get it done

Quickly search online for the best rental car rates

The internet is a great resource for comparing costs on car rentals.

I recommend: Look into Hotwire and SideStep for quick-and-easy search tools that will get you to the deals fast and reveal fees and taxes upfront. BreezeNet also offers one-stop-shopping for discount deals. Individual car rental Web sites can help in the search too.

Maximize benefits from your rental car programs

Choose one or two car rental companies that serve most of your locations and offer special programs for small businesses. Then decide what's most important: convenience and an on-airport location? (You'll pay more). Don't mind the ride to a remote lot? (Rates will probably be cheaper).

I recommend: Check out Budget Rental Car's Budget Business Program, the Hertz Business Account Program, the Avis Corporate Awards Program, Enterprise's Corporate Class Business Rental Program and Advantage Rent a Car's Easy Corporate.

Take advantage of car rental discounts through your credit card

If you don't already have one, apply for a credit card that lets you accrue airline miles or points, then check into how you can use those points for car rentals too.

I recommend: Check out these websites for card programs offered by airlines or broader cards like the Chase Travel Plus Platinum Visa Card and the Capital One No-Hassle Card for Small Business.

Consider whether you really need a car at all

Do you really need a rental car? Unless you require the vehicle to visit customers, make sales calls in out-of-the-way places, deliver products or transport service equipment or provide transportation for others, it's likely there's less expensive transportation that will get you where you need to go.

I recommend: Taxi or rental car? Use this guide for several US cities. Look into other ways to get from the airport to your hotel or conference center.

Helpful advice for making the most of this Guide

• •  Try to avoid paying 'daily' rates if possible; they're usually higher. If you'll keep the car for more than four days, the lower weekly rate should apply.
• •  Evaluate your present car insurance. Most likely, it will cover you when you rent a car in the US. International rentals are different; in general it's best to take all insurance coverage like CDW (collision damage waiver), LDW (loss damage waiver) and liability/personal accident coverage when renting outside the US.
• •  Look into AAA, AARP and even Sam's Club and Costco discounts if you're a member (if not, consider joining).
• •  Always (always!) check over a rental car before you drive it out of the lot AND when you return it. Take pictures if necessary to document previous damage to the vehicle.
• •  If you're using a discount coupon, make sure it's a true discount. Some are applied only against the highest rate.
• •  If you're underage (younger than 25) you'll usually either pay a high daily surcharge or be prohibited from renting altogether. Check this out ahead of time.
• •  If your driving record is sketchy, some companies might not rent to you at all. Know before you go.

Guide to Pricing and Costs of Car Rental

Know what to expect before your business car rental

By Autumn Rivers

Action Steps
The best contacts and resources to help you get it done

Know how much money you can spend on car rental service before you choose your car

Renting a convertible for the weekend may sound nice, as does borrowing a large SUV, but be prepared to pay for such fun and convenience. A convertible typically costs at least $60 per day, before taxes. An SUV rental tends to range from $40 to more than $100. Save yourself some money, not to mention gas, with a compact car. Such a vehicle costs about $20 to $40 per day before taxes.

I recommend: Alamo has a base price of about $20 for an economy car, with most SUV prices ranging from $40 to more than $100, depending on features. Budget Rent A Car offers similar prices.

Budget for any insurance required from car rental companies

Some rental car agencies require certain types of additional insurance, and those that do not require it still strongly recommend it. Insurance companies offer a collision damage waiver for about $20 per day, liability for about $10 per day, and personal accident coverage for about $5 per day. However, most people are already covered for these under their auto and health insurance. Check the company's rules and your own insurance policy before purchasing insurance from any rental car agency.

I recommend: Hertz has several types of optional insurance available, as does Avis Rent A Car.

Know upfront about any extra charges from rental car companies

While going down your list of car rental companies and checking their websites, be sure to add any hidden fees to your total. Most agencies have rules when it comes to certain situations. For example, if you want someone else to drive your rental car, you usually need to pay a fee starting at $10 extra per day. If you are under the age of 25, you can expect to pay an extra charge of about $25 per day, depending on the company and your state. Don't forget to include any state surcharges, which can average around $15 extra per day. Add your state's tax to the rental each day, as well. If you check your chosen company's online car rental booking page, you will see that you will typically pay much more than the base price for a car once you have factored in surcharges and taxes.

I recommend: The fees and taxes add about $20 to an economy car's base fee at Thrifty. Dollar Rent A Car has similar fees and taxes.

Helpful advice for making the most of this Guide

• •  Fees and taxes vary by state, so be sure to check the rules of the specific rental car company from which you intend to rent a car before determining your budget.

Action Steps
The best contacts and resources to help you get it done

Car class

Car rental companies offer several car classes to renters. Car class refers to the types of vehicles available from a car rental company. Car class covers different makes of vehicles as well as extra features.

I recommend: Budget Rent A Car System defines car classes, explains each class and gives a few examples of extra features available.

Supplemental liability insurance (SLI)

Most car rental companies offer optional Supplemental Liability Insurance (SLI). This protects renters against liabilities in case of an accident. This coverage is above and beyond what the driver's own insurance covers.

I recommend: National Car Rental thoroughly explains SLI, why it might be purchased, what it covers and also includes a FAQs section.

Collision damage waiver

All car rental companies will offer what is called a collision damage waiver (CDW). This waiver frees a renter from most of the responsibility for any damage to the rental vehicle that might be incurred while the renter is in possession of the car.

I recommend: Insurance4carhire gives a detailed explanation of collision damage waiver.

Extra-day charge

Daily car rentals are charged on a 24-hour basis. If a renter keeps a rental car for longer than that 24-hour period, additional charges are incurred. An extra-day charge takes effect when a renter turns in a vehicle after a certain number of hours past the 24-hour mark.

I recommend: Find a brief definition of extra-day charge at Triangle Rent A Car.

Personal accident insurance and personal effects coverage

While a renter's own insurance typically is enough to adequately cover a rental car, some renters might want additional coverage supplied by the rental company. Personal accident insurance (PAI) protects the renter for bodily injury or death, while personal effects coverage (PEC)covers theft of personal property from the rental car.

I recommend: National Car Rental explains both PAI and PEC, what they cover and what they don't, as well as charges.

Airport concession recovery fee

Many car rental companies have offices located at airports for convenience to travelers. However, rental companies will often charge an additional fee, called an airport recovery fee, to cover the cost they incur from renting the office space at the airport.

I recommend: Alamo Rent A Car supplies a detailed description of how the airport concession recovery fee works.