Guide to Avoiding Rental Car Fees

It’s like being pecked at by a gaggle of geese. Approach the rental car counter and it begins: “Want to upgrade? Want collision insurance? Want theft and vandalism insurance? Want us to refill the tank? Want a GPS? Want a convertible? Want to add an extra driver? (That’ll cost more). What, you’re under 25? (More yet). Read everything and sign here—here---here—and here!”

Business travelers simply don’t have time to read all that fine print! But even if you say “No!” to most or all of the extras, you’ll still face a surprising collection of taxes and fees that can increase the daily rate by an average 30% and as much as 100%, depending on where you rent the car. Currently, there are 86 taxes unrelated to rental car operations that are being levied on customers nationwide, and another 48 pending approval by state and local officials.

By knowing what fees you might face you can:

1. Consider flying in to an alternate airport and renting there.
2. Rent from an off-airport location.
3. Avoid paying exorbitant prices for gas.
4. Avoid paying for insurance coverage you don’t need.
5. Think twice about whether you need a rental car.

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

Know what’s under construction at your destination city

If there’s a new sports arena, convention center, performing arts hall or other large municipal project under construction in the city you’re traveling to, you can almost bet that the daily cost of your rental car will include your unwitting contribution to the building fund. Many municipalities are opting to include the tax among the plethora of fees tacked on to rental cars.

I recommend: If you’re unfamiliar with local building projects, peruse current and past issues of the area newspapers and other publications. If you book your car rental at Travelocity, you will see a summary of all charges before you “purchase.” To avoid these fees altogether, consider flying into a nearby alternate airport and renting a car there.

Head to the suburbs to avoid airport “facilities” charges

It’s oh-so-handy to get off the airplane and head to the car rental counter right next to the baggage claim area, a real time-saver for the harried business traveler. But like most conveniences, it’ll cost you more. Sometimes you can avoid airport facilities charges if you rent from a location that’s just off the airport, but not always. Your best bet is to rent from a location in the city or suburbs, away from the airport entirely.

I recommend: Travelocity lets you search for a rental by zip code, address or local attraction. At Orbitz you can search for rentals in the city and close to a specific address. To quickly scan rental car options from several companies, check out BreezeNet.

Beware of “gas options”

You’ll be offered a number of fuel options when you rent the car. Be sure to select the option that will cost you the least because if you bring it back with an empty tank and ask them to fill-‘er-up, the per-gallon refill charge can be staggering.

I recommend: You’ll want to return the car with a full tank so plan extra time for the fill-up on the way to the airport. Check out Gas Buddy for the gas station nearest the airport.

Know what all those insurance options mean

You’ll be offered an alphabet soup of insurance coverage: CDW (collision damage waiver) and LDW (loss damage waiver) and PAI (personal accident insurance) and PEC (personal effects coverage) and ALI (additional liability insurance). BEFORE you get to the rental counter, review the coverage on your own auto policy as well as coverage offered by your credit card company and coverage available from your company’s auto policy. Special caveat: if you are renting in a foreign country, your personal or corporate auto policy probably will not cover your rental car. And your credit card coverage might not apply either. Know before you go!

I recommend: Review the Federal Trade Commission’s “Facts for Consumers Renting a Car” for an explanation of various insurance terms.

Decide if you really need a rental car

Think outside the box: chances are you really don’t need to rent a car every time you travel. 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: Undecided about renting a car? Use this guide to compare taxi-versus-rental-car for several U.S. cities. Look into other ways to get from the airport to your hotel or conference center.

Tips & Tactics
Helpful advice for making the most of this Guide

• Flying into an alternate airport can also save you money on hotel rooms. Those big city building projects are funded by room taxes too.
• Try to avoid paying “daily” car rental rates if possible; they’re usually higher. If you’ll keep the car for more than four days, the lower weekly rate should apply.
• Return the car too early and you might lose the benefit of a lower “weekly” rental rate.
• 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.
• Some credit card companies will not provide rental car insurance coverage for international rentals. Contact your credit card provider before you go.
• Some rental companies will charge you an extra fee if you drive the car an additional 75 miles or more after filling the tank before returning it to the airport.
• 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 you’re using a discount coupon, make sure it’s a true discount. Some are applied only against the highest rate.