The cheapest way to rent a car: 12 tips

Dre Roelandt

written by
Dre Roelandt

updated 19.02.2024

Whether you're planning a road trip or just need a vehicle on your vacation, renting a car can become an expensive affair if not done wisely. To help you navigate the process, we reached out to our local travel experts for their top recommendations on securing the most affordable rental car. In this guide, we'll delve into some valuable tips and tricks to uncover the best deals on rental cars.

Rough Guide tip: book your car directly at Kayak

#1: Avoid the airport

Rental agencies based at airports often levy higher fees due to high overhead costs and convenience factors. While it might seem like the most convenient option to rent straight off your flight, you'll likely end up paying a significant premium for this convenience.

Instead of renting at the airport, consider other off-site locations in and around the city where rates are likely to be cheaper. An inexpensive Uber, Lyft, or local taxi ride might get you there, and the savings on the rental can more than offset the cost of the cab ride.

However, bear in mind there might be exceptions to this rule, such as when getting into the city for an off-site rental is impractical or the local driving conditions might be too challenging for visitors. You'll want to decide if the inconvenience is worth the extra cost.

miami-ocean-drive-vintage-car-shutterstock_17563846

Miami, Ocean Drive with vintage car © Shutterstock

#2: Rent online before departure

Before you set off on your travels, it's always a good idea to arrange your rental car online. Not only does this ensure that you'll have a vehicle once you arrive, but it also provides you the opportunity to hunt for the best deals and discounts.

By reserving a rental car in advance, you can compare prices from various rental companies. It also gives you time to thoroughly read through the rental policies of each company to avoid any hidden costs or unexpected terms.

Advance booking also allows you to take advantage of 'early-bird' discounts or lock in lower prices, as the cost of rental cars can fluctuate depending on the season or the availability of vehicles.

Another great benefit of booking online is that you'll be able to select your car ahead of time. This will ensure you get the right size and type of vehicle that suits your needs — which can help you avoid unsuitable or overly expensive options.

Rough Guide tip: rent your car at Kayak. Cheap and realiable!

A camelthorn tree with a sociable weaver community nest on the road from the N14-road to the Onseepkans border post on the border of Namibia © Shutterstock

A camelthorn tree with a sociable weaver community nest on the road from the N14-road  © Shutterstock

#3: Understand costs and make comparisons

Understanding what the costs of renting a car actually are, can really help when choosing what’s the best option for you.

Look beyond price per day

When investigating car rental prices, don't be fooled by the attractive 'per day' rates displayed prominently. Instead, dig deeper and look for the total price.

Rental agencies often advertise low daily rates to draw customers in but keep silent about taxes, fees, and other additional charges included in the total rental cost. This is a vital aspect to look into as these extra costs can inflate the overall rental bill significantly.

Moreover, these additional charges are not uniform across different companies or locations. Factors such as pick-up location, type of car, and even the time of booking can impact how much you end up paying in fees. An attractively low daily rate, therefore, can easily translate into a hefty total price bill.

Round trip versus one-way rentals

One-way rentals can be a practical choice if you're planning a trip that starts in one city and ends in another. Traditional round-trip rentals require you to return the vehicle to your initial pick-up location, which may not be convenient if your itinerary involves multiple cities or regions.

However, note that one-way rentals may carry additional charges, commonly known as 'drop-off fees.' These fees cover the costs of returning the vehicle to its original location, and their rates can vary wildly depending on the pick-up and drop-off locations and the rental company's policies.

Winding roads of Via Tremola, Gotthard Pass, Switzerland © Freedom_wanted/Shutterstock

Winding roads of Via Tremola, Gotthard Pass, Switzerland © Freedom_wanted/Shutterstock

Be aware of the extra fees

Beware of ever-present additional charges when renting a car. Understanding these fees can save you from some unpleasant surprises when it's time to settle the bill.

  • Additional driver fees: Some rental companies charge a per-day fee for every driver added to the agreement. If it's not crucial, consider sticking to one designated driver.
  • Underage driver fees: Renters under the age of 25 may have to pay a young driver surcharge.
  • Late/Early return fees: Returning the vehicle later or earlier than agreed might incur a fee. Always aim to return the car at the specified time.
  • Fuel charges: Rental companies may charge you for refueling if you don't return the car with a full tank.
  • Cross-border fees: If you're planning to drive the car out of state or country, be sure to check the company's policy about this to avoid paying any unexpected fees.
  • Insurance costs: The cost of the rental company's insurance can inflate your bill. Consider utilizing your own insurance if it covers car rentals.

Study the contract closely and confirm the presence of these charges before signing. Don't assume the advertised rate matches what ends up on your credit card. Paying attention to these details can save you significant amounts and ensure a smoother rental experience.

Driving from Las Vegas to New York City, USA

Famous sign of Las Vegas, Nevada reminds you to drive carefully © Shutterstock

#4: Be over 25 years old

Age is an essential factor in car rental pricing. Drivers under 25 often fall into what rental companies classify as the "young driver" category. Unfortunately, being under 25 translates to higher rental costs due to the perceived increased risk and higher insurance rates associated with this age group.

For younger drivers, a "young driver surcharge" or "underage fee" is typically added to the rental cost. While this fee varies across different locations and companies, it's usually a substantial addition to the bill.

However, there's light at the end of the tunnel - this fee drops off once you turn 25. So, if you're over 25, you'll often find it significantly cheaper to rent a car. Therefore, if you've crossed this milestone, enjoy hassle-free and cheaper car rentals!

Ready to hit the road? See our guide to the best road trips in Iceland.

#5: Know the best time to rent a car

The cost of renting a car will vary depending on on the time of year.

Avoid peak season

Just like flight and hotel prices, car rental rates are subject to fluctuations based on demand. High demand during peak travel seasons means limited availability of vehicles, which in turn leads to surge pricing. Peak seasons include holidays, spring break, and summer vacations when travel activities typically skyrocket.

Car rental inventory ebbs and flows with travel patterns throughout the year, and you're likely to secure better prices and more options if you book during an offseason, even if you'll be traveling during peak times.

Start your search as early as possible

When it comes to scoring a good deal on car rentals, the early bird gets the worm! The best advice is to start looking for a rental vehicle as soon as you can. The earlier you begin your search, the more likely you are to secure a favorable rate.

Just like finding the best hotels at the best rates, car rental prices tend to be more affordable when booked well in advance. Many travelers attest that the best time to book is anywhere from 3 to 6 months before the trip. However, it doesn't hurt to start looking as soon as you begin planning your trip—even if it's a year away.

Car in the distance

Start early - an important car rental tip © Shutterstock

#6: Use your own insurance

Insurance is a crucial element of car rentals, but getting it from the rental company can significantly blow up your total rental cost.

Before you nod to the rental company's insurance, it's worth checking whether your existing car insurance policy covers rental cars. Many standard policies do, and even if it's only liability coverage, it can still save you a chunk of money. It's always best to contact your insurance provider directly to ensure you fully understand your coverage when it comes to rentals.

Also, many credit cards offer rental car insurance as a perk. By paying for the rental with that particular card, you'll be automatically covered. Just remember to decline the rental agency's collision damage waiver (CDW) or loss damage waiver (LDW) for your credit card coverage to kick in.

Remember to check the specifics of these insurance perks. They may not cover certain types of cars or longer rentals, and international coverage can vary.

Just be sure not to skip the insurance altogether—driving without enough coverage could end up costing you much more in the long run.

#7: Rent a car for 1 driver

Most rental companies charge extra for multiple drivers. It's commonly known as an 'Additional Driver Fee’ and it can easily drive up your rental cost. This fee is applied per additional driver and per day, typically ranging from $5 to $15 per day. 

To save money on your car rental, consider designating just one person as the driver for the journey. It might mean longer drive times for that person, but it could also save you a significant amount on your final rental car bill.

However, always check the rental agreement. If you decide on only one driver, don't let unauthorized persons drive! If an accident happens while someone not listed on the agreement is driving, the rental company's insurance may not cover the damage, which can result in expensive out-of-pocket costs.

In some cases, additional driver fees can be waived. Some rental companies exempt spouses or domestic partners from additional driver fees. AAA or Costco memberships can also score you a free additional driver at some rental companies.

Cape Breton Canada © Pixabay

The beautiful roads of Cape Breton Canada © Pixabay

#8: Maximize discounts and rewards

Being keen on coupons and discounts available through various memberships or affiliations can be the key to big savings on your car rental.

Many rental car companies offer discounts and promotional offers through coupon codes. These codes can be found on the car rental company's website, or on other websites that collect and share coupon codes. 

Membership discounts

Membership discounts are often an underestimated money saver. Several clubs and organizations offer membership benefits that include discounts on car rentals. For instance — Costco, AAA, AARP, and USAA are known for providing their members with impressive discounts at many major rental companies.

Some airline programs also offer discounts on car rentals for their members. Being a mileage member can entitle you to exclusive discounts and lets you earn miles on your car rental.

Join relevant loyalty rewards programs

Joining a car rental company's loyalty rewards program can be a game-changer when it comes to renting a car on the cheap. And the best part? These programs are typically free to join.

Being a member of these programs opens doors to an array of benefits. For starters, you'll likely be granted access to members-only discounts or receive exclusive deals via email. You could get preferential treatment during pick-up and drop-off, which can save you precious time.

Loyalty programs also offer rewards based on your rental history. After renting a certain number of times or spending a certain amount of money, you can earn free rental days or vehicle upgrades. Even if you rent cars infrequently, these points can accumulate over time and score you free rentals or upgrades.

Looking for road trip inspiration? Here's 7 reasons why Namibia may be your best trip yet.

The drive to Snowdonia, pictures of Wales

Car rental tips for hitting the open road © Shutterstock

#9: Choose the right car and equipment

Picking the right car and equipment is by far the most important factor when renting a car. 

Opt for economy cars whenever possible

Opting for an economy car is an incredibly effective way to keep your car rental costs down. Economy vehicles are the smallest in the fleet — and usually the cheapest too. They offer enough space for two adults and two children, making them an excellent choice for small families or solo travelers.

Economy cars typically boast fantastic fuel efficiency. Excellent gas mileage coupled with relatively low cost-per-gallon means you'll spend less on fuel. 

Another perk is that reserving the smallest, most affordable vehicle possible can often lead to an upgrade if the car isn't available at the lot. This tactic, though somewhat dependent on luck, could get you a better car at no extra cost.

However, do be aware that each rental car company defines "economy" differently, and be sure to check the exact size of the car before booking.

Manual vs automatic

If you're comfortable driving a manual transmission vehicle, renting a 'stick shift' can save you a considerable amount of money, especially in Europe. In many countries, manual cars are the norm, and they're usually cheaper to rent than their automatic counterparts. 

Always research the driving conditions and traffic laws of your destination. Some places might have hilly roads or busy traffic, which could make driving a manual car more challenging. You’ll also want to check with the rental agency and your car insurance agency to make sure a manual car is covered under your insurance policy.

If you're not comfortable driving a manual car, or if you've never driven one before, it's best to stick with an automatic. In the long run, the potential stress, safety hazards, and costs related to potential car damage (especially the clutch) would outweigh any savings made on the rental price.

Skip in-car GPS systems and other add-ons

While they're marketed as conveniences, in-car rental add-ons can add significant costs to your rental bill. One of the most common extras that you'll be offered is a GPS navigation system.

Many rental companies charge between $10 and $15 extra per day for a GPS. However, in this era of smartphones with terrific navigational apps, you can easily avoid this unnecessary expense.

If you're traveling internationally and worried about data charges, there are several offline GPS apps available, such as Here WeGo Maps, Mapfactor, Sygic, and Polaris GPS Navigation. Ensure to bring a suitable phone mount with you or rent one from the car rental company for a small fee. 

Driving the Amalfi Coast © Shutterstock

Driving the Amalfi Coast © Shutterstock

#10: Fill up the gas yourself

When it comes to refueling a rental car, it's cheaper to do it yourself. Renting companies usually add a convenience charge if they have to refuel the car on its return.

Rental car companies often offer a “fuel purchase option” where you prepay for a full tank of gas. While this approach may seem convenient — especially when you're in a hurry to return the car — it's often more expensive than refueling the vehicle yourself. The rental company typically charges a higher price per gallon compared to local gas stations.

Moreover, you pay for a full tank regardless of how much fuel is still in the car. So, if you don't return the car running on fumes, you're essentially giving the rental company free gasoline.

At some lower-tier rental companies, you may have to provide a receipt proving you recently filled the gas tank to avoid their refueling fee.

 

#11: Go for a weekly rental for better rates

One surprising secret to saving on car rentals is going for weekly rentals even if your requirement is less than seven days.

Often, renting a car for a full week can be cheaper than booking for four or five days. This unusual savings strategy works because many car rental companies offer "discounted weekly rates" that apply when you book the car for seven consecutive days.

However, bear in mind that fees could be applied if you return the vehicle early, offsetting the savings. It's important to verify the rate difference and the terms and conditions before selecting the weekly option.

Ready to explore the open road? See our guide to the best road trips in the UK for inspiration.

Summer road trip

Road trips are a fantastic way to travel © Shutterstock

#12: Monitor for price drops

Just like plane tickets and hotel rooms, car rental rates can fluctuate over time. The price you pay is determined by various factors like demand, vehicle availability, and the length of the rental. Therefore, another effective strategy is to monitor prices and rebook your rental if rates drop. 

After you've reserved your rental car, continue to check prices regularly, especially as the pick-up date gets closer. If you see a lower rate for the same type of car at the same location, you can cancel your initial booking and rebook at the cheaper rate.

This strategy can be a goldmine of savings, but it does require a little bit of work — checking rates on a regular basis and being willing to go through the cancellation and rebooking process.

Keep in mind that cancellation policies vary. Always check with your provider for a penalty-free cancellation timeframe, usually at least 24 to 48 hours before pick-up.

Have you decided where you are taking your next road trip? See our guide to exploring Switzerland by car.

Road Trip

Check that your car rental company allows travel companions © Shutterstock

FAQ: all your car rental questions answered

Keep in mind that specific policies may vary between car rental companies. Always check the terms and conditions of the rental company you choose. Here are answers to some common questions:

Can I cancel a rental car after booking?

Yes, in most cases, you can cancel a rental car after booking. However, whether you receive a full or partial refund depends on the company's cancellation policy and the timing of your cancellation. Many rental companies offer free cancellation if you do it within a certain time frame before the pickup time, while others may charge a cancellation fee.

Do I need to pay a deposit to rent a car?

Yes, most car rental companies require a deposit or hold on your credit card at the time of rental. The amount varies by company and is intended to cover potential additional charges, such as fuel, tolls, or damage to the vehicle. The deposit is typically refunded after you return the car without any issues.

Can I take my rental car across the border?

Whether you can take a rental car across the border depends on the rental company's policy and the specific borders involved. Some companies allow cross-border travel, while others restrict it. 

Certain borders may have restrictions or require additional documentation. Always inform the rental company of your travel plans and check their policies regarding cross-border rentals. Be aware that there may be additional fees or restrictions associated with taking a rental car across borders.

Planning your perfect road trip

With our tailor-made trip service, you can go on the trip of your dreams without the tedious hours of researching or planning. We offer many self-drive trips that are as easy as picking up your car and hitting the road. Our trips are designed by local travel experts and are completely customizable to your preferences. Get in touch with us today to learn more.  Here are some existing itineraries for inspiration:

 

 

Dre Roelandt

written by
Dre Roelandt

updated 19.02.2024

Dre Roelandt is originally from the United States but lives and works in Berlin, Germany. Dre is a freelance writer and artist with a passion for travelling. They are an in-house Senior Content Editor at Rough Guides.

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