10 Rental Car Hacks That Can Save You a Fortune

Willett was on to something when he brought his own transponder for his car rental. Had he followed the final step listed on the E-ZPass site on how to use the device in a rental vehicle, he would have saved $5 per day. Because he didn’t, he ended up paying the tolls for other customers.  

It’s smart to skip the car rental company’s transponder. Most states provide free devices that can be ordered online or obtained at rest areas along toll roads. You will need an internet connection and a credit card to create an account to activate the transponder.

But don’t make the same mistake Willett did. Always ensure that you’ve included a clear begin and end date for the vehicle you’re placing the transponder in.

Also, it’s a good idea to do a little planning before you show up at the rental car counter. Some locations will offer you a daily transponder, even when your trip may not involve any toll roads. However, if you accept the device, you’ll be paying the daily fee whether or not you use it. That is the very definition of a junk fee.

Conversely, if you don’t accept the transponder and don’t bring your own, you must make certain you don’t end up passing through any tolls. If you do, you’ll be charged the toll, plus the car rental company’s administrative fee for each violation. This can quickly add hundreds of unexpected dollars to your rental.

My case files are overflowing with complaints from car rental customers who were broadsided by giant repair bills after returning a vehicle. Many are certain that they didn’t damage the car, but have no way to prove their innocence.

Before you take the wheel of a rental car and drive away, you must thoroughly document its condition. When you return it, it’s critical to do the same. That includes photographing and filming the inside, outside, top, and bottom of the vehicle. I’ve had customers charged for damage under the hood, on the roof, and inside. I’ve even had drivers charged for repairs of vehicles they never rented.

You should never expect a car rental company to help you defend yourself after you’ve been accused of causing damage. You must have your own documentation. Because of the volume of complaints I receive each week, I’ve created free pre- and post-car rental inspection forms for travelers to use. You can print these and use them as a guide before and after your rental to make certain you’ve documented everything you should cover.

There is almost no benefit to paying in advance for your rental car. These rates are often not much less than regular rates and are typically nonrefundable. If you do choose to prepay for your rental car, don’t forget to protect yourself with travel insurance. Should your plans change for a covered reason, you won’t end up losing it all.

Car rental branches at airports nearly always have hefty fees and “convenience charges” that their off-site counterparts do not. Travelers can save significantly if they’re willing to take a cab to the closest off-airport location.

Car rental customers should not overlook the benefits that AAA members receive. Not only does membership provide discounts at Hertz and all its brands, but the (under 25) young-driver fee (usually between $20 and $25 per day) is waived for AAA members. That makes having a AAA membership a no-brainer for the under-25 crowd.  Hertz also allows no-fee additional drivers and a free car seat if needed for customers who hold an AAA card.

I often hear from travelers who have booked a discount car rental rate and then returned the vehicle early or late. This is a mistake that often results in the entire contract being voided and rewritten at a higher rate. Remember, when you sign the rental car contract, you agree to abide by its terms. The discount applies to those specific terms. If you deviate from the dates and times on your contract, you can easily end up with a bill that far exceeds the original plan.

Most car rental locations today are franchised. That means that the banner on the marquee will display a company you might trust, but that doesn’t necessarily mean you can assume the location shares the same business ethics. It is unwise to book a rental car before researching some basic facts about the branch. Search for “Name-of-Car-Rental” company plus the location and the words “reviews” or “complaints.” You want to know if that particular outlet is known for surprising customers with damage charges or other fees.

Although it is common for rental car contracts to come with unlimited mileage, don’t be caught off guard. Some discounted rates include a fixed number of cents per mile. Before booking a great deal, especially a nonrefundable one, make sure the rental car reservation includes unlimited mileage.

If you’re a messy person, you’ll want to pay close attention to this one. Car rental cleaning fees are hefty. In fact, I’ve seen rental car customers being charged up to $500 in surprise fees after they returned a vehicle with small amounts of garbage, dirt, sand, and other debris. Don’t give a car rental company an excuse to tack on a jumbo charge at the end of your rental. Before returning your vehicle, it’s a good idea to go to a local gas station, fill it up and pay $1.00 to vacuum it and remove all trash. That extra five minutes can save you hundreds of dollars. 

Driving away from a car rental lot without making certain you have proper insurance on the vehicle can be devastating. In the United States, car rental companies generally don’t ask for proof of insurance, though they do offer insurance-like products at the counter. If you decline all of those protections and do not have third-party car insurance coverage, you are responsible for the entire cost of any damage up to the full cost of the vehicle.

The Comprehensive Damage Waiver (CDW), sometimes called LDW (Loss Damage Waiver), is a product sold by the rental car company that can be pricey. However, if you’re in an accident and don’t have independent coverage, it is well worth the cost.

A lower-cost option is to wrap your car rental (CDW) coverage into your travel insurance policy. Companies like Allianz offer CDW for about half of what you’ll pay at the car rental counter.

Your premium credit card may also provide complimentary CDW as part of your membership. However, it is important to review the terms of that coverage because there are specific steps you must take to validate it.

Finally, my last tip for you is not to pre-pay for gas. The rate the rental car company will offer for a prepaid tank of gas may be competitive. However, for this deal to be good for you, you’ll need to return the car empty. That may not be possible. The better choice is to give yourself plenty of time at the end of your rental, fill up the tank, clean up the interior, and maybe even take it through the car wash, which many gas stations offer for free or discounted after a fill-up.