Top 10 Car Rental Tips
By Warren Clarke, Automotive Content Editor
Edmunds.com
Remember when people rented cars mainly for
the purpose of vacation transportation? These days, things have
changed. The car rental industry has grown by leaps and bounds; the
most current estimates available (for 2004) put annual car rental
revenue at a whopping $17.6 billion. Airport rentals have historically
been the main revenue driver, but that segment has remained virtually
flat over the past decade and a half; the industry's growth is due
almost entirely to the explosion of the "home-city" rental market
renting from a neighborhood location which has snowballed from $2.5
billion in 1991 to today's $9.5 billion. Auto Rental News, the
industry's leading trade publication, estimates that for the first time
in the history of the industry, home-city rental captured the lion's
share of the market in 2004, with 54 percent of total revenue.
Those renting from neighborhood locations do so for a host of reasons.
Some need an extra-large truck for that move across town. Some need a
comfy hauler for a cross-country family road trip or a weekend of
furniture shopping. And others crave a glamorous high-end cruiser for a
fun-filled night out.
Whether you're an airport renter or a home-city renter, we've got a
list of tips designed to help make your car-rental experience as
pain-free as possible for your bank account.
- Surf the Net. As is the case with many purchases,
you'll usually find the best rates on the Internet. Shop around. Buying
online will afford you the luxury of seeing what rates look like on any
vehicle your heart desires, without the inconvenience of having a
salesperson breathing down your neck. Also, many companies offer
special discounts to people who rent online. Rates will obviously vary
from company to company, depending on vehicle availability, location
and other factors. But rates aren't the only variable to consider.
Consider hours of operation, for example; some companies may close
earlier on weekends. Depending on your schedule, this might be a
crucial issue for you.
- Go weekdays. Rates are typically cheaper on
weekdays. At one company we surveyed, you could rent a subcompact on a
weekend for $70 - 99. When we opted for a weekday rental, the figure
plummeted to a far more reasonable $50 - 99. If you've got some
flexibility with your rental arrangements, opt for weekeday rental. Your
pocketbook will be eternally grateful.
- Weekly does it. Weekend rates are great, but
weekly rates are usually the best of all. At one company we surveyed, a
subcompact went for a weekday rate of $56.99. That same car could be
rented on a weekly basis for just $252.99, a savings of more than 30
percent if you used the vehicle for all seven days, and more than 10
percent if you returned it after five days. If you plan on using the
vehicle for five days or more, choose the weekly rate.
- Think twice about insurance. When renting a car,
you'll be offered a collision damage waiver (CDW) and a loss damage
waiver (LDW). The first covers you in the event of a collision, while
the second covers any loss to the rental company. Both kinds of
coverage are a good idea, but not if they duplicate coverage already
included in your own insurance policy. Most insurance policies offer
liability coverage to protect you if you injure someone in an accident;
some also cover rental-car damage via comprehensive and collision
coverage. Check your policy or call your insurance agent to verify
coverage before signing up for a vehicle. If you're renting the car
with a credit card, your card provider may pay for vehicle damages
associated with an accident. Check with your card company ahead of time
to make sure.
There's one caveat. The collision damage waiver covers "loss of use,"
the charge levied by the rental car company to cover its lost income
when the vehicle is out of service. In most states, auto insurance
policies don't cover this loss, so if you have an accident, you may
wind up having to pay this charge out of your own pocket. The states in
which loss of use is covered in car insurance policies are: Alaska,
Connecticut, Louisiana, Minnesota, New York, North Dakota, Rhode Island
and Texas. Unless you live in one of these states, the waiver may be a
good idea.
- Book early. It's not just a clich ; the early bird
really does get the worm, and he usually gets it much cheaper than
everyone else. Rates depend on how many vehicles the company has on the
lot at the time the rental is made, so sooner is better. Reserve your
car at least a week in advance.
- Think twice about prepaid gas. Typically, renters
have two choices when it comes to fuel: You can pay for a full tank of
gas in advance and bring the vehicle back empty (or less than full), or
you can opt to refuel it yourself just before returning it. Rental car
companies suggest that paying in advance will add convenience and that
the low rates offered will save you money. Well, they're right on the
first part but wrong on the second. Paying in advance is an added
convenience; if you want to save yourself the hassle of a trip to the
gas station or avoid a last-minute rush when you're trying to make a
plane, pay away. But unless you plan on using the entire tank of gas,
prepaying will cause you to pay for more fuel than you've actually
consumed. From a financial standpoint, prepaying is a bad idea unless
you're absolutely certain that you'll use the full tank.
- Be careful of upgrades to larger vehicles.
Sometimes, rental car companies will offer free upgrades to larger
vehicles. They do this mainly because compacts tend to be in high
demand. This sort of upgrade may seem like a great deal for you, the
renter. If having a larger vehicle will genuinely enhance your rental
experience, then take the upgrade. But if you have no real need for the
extra space, it's cheaper to decline. Larger vehicles burn more gas, so
that "free" upgrade isn't really free you'll wind up paying for it at
the pump.
- Steer clear of airport pickups. Picking up a
rental car at the airport can be more expensive due to taxes and fees.
Try looking at nearby neighborhood locations to save money. A recent
Travelocity study showed that renting at an airport costs more than
11.5 percent more on average than renting at a neighborhood location.
Texas airports were the chief offenders, but airports in states like
Arizona, Ohio, Maryland, Missouri and New Mexico also cost renters more
in taxes and fees.
- Got kids? Seat 'em yourself. If you're traveling
with a little one, you can save yourself some coin by bringing your own
child safety seat. One rental company we surveyed charged almost $10
per day for child safety seat rental. Obviously, this can tack a
significant amount onto your car rental expenses, so if you're able to,
bring your own child safety seat. If you're renting a minivan, though,
know that some rental minivans include integrated child safety seats at
no extra cost.
- Join the club. Many of the larger companies offer
club membership in which members pay a yearly fee in exchange for
certain perks and privileges. These clubs can save you money with
benefits like free rental days and airline miles, but you'll likely
only see savings if you're a frequent renter. If you fall into this
category and use rental vehicles more than occasionally, go clubbing.
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