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Car Rentals....Is this even LEGAL?

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Ever notice that car rental companies charge much different rates depending on what country you're from? I checked National, Hertz etc......plugging in "United Kingdom" or "Virgin Islands" as my place of residence and was amazed at the different rates. I really can't think of anything else in the U.S. where you get a deep discount just because of where you're from. or am I blind? Are they just REAMING us?

Example: with Alamo, booking a car at Boston Logan airport July 23 for a week.

U.S. Citizen is quoted $679.00 online
U.K. Citizen is quoted $240.00
....and the U.K. rate INCLUDES collision and liability insurance which would be extra to the U.S. Citizen.

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