Pricing and Costs of Car Rental

Know what to expect before your business car rental

If you plan to travel for business, you will probably be checking out car rental prices beforehand. If you have never rented a car for a business trip before, you need to be aware of the costs involved. Although there are often discounts available, you will find that they are typically offset by the hidden fees that sneak up on unsuspecting car renters. As long as you know ahead of time about the pricing and costs of car rental, you will be prepared to rent a car.

Business car rental does not have to be expensive. As long as you know about the hidden costs of car rentals, you can do your best to get a good deal. Be aware of the following:

1. Consider the costs before renting a particular class of car.

2. Save room in your car rental budget for any necessary or recommended insurance.

3. Stay aware of the unexpected charges that often appear when you get to the counter.

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.

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.

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.

• 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.

Copyright © 2013 Business.com, Inc. All Rights Reserved.

---