Rental car companies are experts at finding little ways to charge you more. So how can you avoid the most common car rental rip-offs?
On top of the daily rate, you’ve got taxes, fees and surcharges for any extra perk or slight infringement that may happen. Here are the top five ways rental cars are ripping you off and how to protect yourself.
Why Pre-Paid Gas is a Big Rip-off
Pre-paying for gas in your rental car is one of the biggest car rental rip-offs. Rental companies typically offer two options on gas.
- You pre-pay for a full tank of gas and the rental company refills the tank for you. This is usually presented as a fairly normal per-gallon rate but—here’s the kicker—it’s for an entire tank. If you don’t use the entire tank or you’re not able perfectly time your trip so that you return the car with an empty tank, you are overpaying. In addition, high rental-car taxes get added on, which might add 30 percent to the cost.
- You decline pre-paid gas and refill the tank when you return the car. Use GasBuddy to find the cheapest station closest to the rental car location before returning the car. (Get a receipt in case the rental car company tries to charge you later.) The giant caveat with this option is that if you forget to refill the tank, they will charge you a huge per-gallon fee. Rental companies often charge up to three times the local price for every gallon needed to fill the returned rental. It’s imperative that you don’t forget to refill the tank. Set a reminder on your phone, put a sign on your dashboard, whatever it takes.
Why You Should Watch Out for Phantom Damages
Rental car companies keep careful track of any damages to their fleet, but sometimes hard-to-see damages don’t get reported immediately. If you sign an agreement upon pickup saying that that the car didn’t have damage, you can be held responsible if the damage is discovered later when you return the car. There are countless horror stories of renters who get saddled with huge damage bills and claims on their primary insurance with little recourse.
To avoid this, take the time to carefully inspect the vehicle before you sign the paperwork. Even if there isn’t paperwork to sign, it’s your responsibility to inspect the car and alert the agent to any damage. We suggest taking 360-degree photos of the car or using a free app like Record360 to document the condition of the car when you pick it up. Don’t forget to bend down and get anything that might not be at eye level, and pay attention to the tires. Repeat this process when you return the car so that you have a record that no damage occurred on your watch. Save your images or video for a few months after the rental to make sure you’re in the clear.
Why Car Rental Insurance is a Rip-off
Rental car companies make millions of dollars each year off their customers’ anxiety and uncertainty at the counter. If you purchase all the various insurance options from the rental car company, it can add up to a daily charge of up to $50 per day.
Know before you go:
- Your personal car insurance is likely to cover rental cars. Check with your primary auto insurance provider to see what your current policy covers. You are likely to be already covered for collision damage up to the value of your own car.
- Your credit card is likely to provide rental car insurance. Be sure to read the fine print on your credit card policy. Sometimes the collision coverage is inadequate (up to $25,000) and in all cases, it only covers the car. This means that if you injure yourself or someone else, or if you damage any property, you won’t be covered. Your credit card does not provide liability coverage and it may only provide secondary insurance, meaning you’d have to file a claim with your auto insurance provider first.
- A cheaper alternative is available. If you don’t have primary car insurance or a credit card that provides adequate coverage, you may decide that you want to buy rental car insurance. Sure is a third-party insurance provider that charges less than what you will pay at the rental car counter. Still, remember that this coverage is only for the car you are driving. You may still want to consider buying liability coverage from the rental car company.
Why You Should Avoid Unnecessary Add-Ons
Rental companies just love add-ons, but they are car rental rip-offs. These fees rake in extra revenue that is practically all margin. Two major add-on culprits? GPS devices and toll transponders.
Remember GPS devices—those clunky contraptions that sat on the car dashboard until they skidded off into your lap during a speedy turn? Rental car companies still rent GPS systems to customers who still haven’t figured out that smartphone apps will let them navigate for free.
Car rental companies will offer toll transponders for electronic toll billing programs such as E-ZPass or FasTrak—at a healthy mark-up for themselves. The good news is that you can easily avoid paying rental car toll surcharges with a little bit of advance planning. If you’ve got a transponder that is valid where you’ll be driving, you can pack it and use it on your trip.
Why Frequent Car Rental Price Changes are a Rip-off
You’ve booked a car and you’ve locked in a $25-off coupon. You’re all set, right? Think again. Rental car companies typically use dynamic pricing, meaning that rates are constantly changing. It’s one of our most hated car rental rip-offs.
Fill out our booking form above and we’ll automatically search for and apply all publicly available coupon codes plus any other available discounts based on memberships you hold in programs such as Costco or AAA.
Frequently Asked Questions
Can you rent a car in Portugal and drop it off in Spain?
It is possible. It’s called “car hire”. This service is offered by many online companies.
Only check to make sure they are licensed by Spanish and Portuguese authorities.
Contact them on their websites for the best way to get this information. They should have all the information you need.
Are there automatic transmissions in Europe for rental cars?
The answer is yes. Renting vehicles without automatic transmissions is not allowed by rental agencies because they are costly to replace if they are damaged while being driven around. It would be expensive to replace all those parts every time you cause damage to the vehicle’s bodywork.
You can rent a car with an automatic transmission in Europe if you wish to.
Does my car insurance cover rental cars in foreign countries?
Insurance companies are increasingly covering rentals in other countries as their overall policy coverage. Renting a car from Hertz Europe may provide protection against damage to the vehicle. Mexico offers the same protections if you rent your car. Some policies include additional protections like waivers for liability or collision damages. Ask your agent about these types of policies.
Can you rent a car in Europe with a US license?
It all depends on where you’re visiting. It is possible to rent cars if traveling to France. You cannot do so if travelling to Italy.
Do I need separate auto insurance to drive around Europe?
If your current insurance doesn’t provide cover, consider buying additional coverage for foreign drivers.
This is because the rules for who is responsible in an accident involving two vehicles from different countries may be different.
Make sure to read all terms and conditions before signing up for the extra coverage.
Also, make sure to check if your existing policy covers overseas trip. This is what’s commonly known as an “extended Warranty” and you may find it more cost-effective to purchase it individually.
What is needed to rent a car in Europe?
To find an affordable rental car in Europe, you must check several websites such as Alamo, Sixt, Europcar, Hertz, or Avis. Book online to save money.
Before renting a vehicle from us, you need to ensure that you have all information.
- Your full name and any middle names, if applicable
- The address you are staying
- Date, time & location of pickup
- Rent a vehicle by making & model
- Policy number and insurance company
- Special requests for equipment
- Details about the rental agreement (e.g. rate, duration, deposit, balance due after trip, excess charges and limits of liability. Cancellation penalties.
- Payment method(s), credit card, debit card cash, personal cheque or cash
After you have obtained all the necessary information, you are able to book your vehicle with the company listed above.
Which countries are willing to accept US drivers licenses?
The United States does NOT recognize driver’s licenses from other countries as valid on its roads. They are accepted by Canada, Mexico, the District of Columbia, and other countries.
Canada recognizes American driver’s licenses issued by all 50 states and the District of Columbia.
Mexico recognizes American driver’s licences. At this time they are only recognized by the state of Chihuahua.
The District of Columbia accepts American drivers’ licenses from all 50 States, with the exception of Alabama, Mississippi and Texas.
Statistics
- Save up to 30% on your rental car in Europe when you book with us today. (autoeurope.com)
- For example, the Blue Cash Preferred® Card from American Express earns 3 percent cash back on purchases at U.S. gas stations (terms apply), and the Citi Premier® Card earns three points per dollar at gas stations, too. (afar.com)
- The perks vary from partner to partner, but you can expect discounts of up to 35 percent on some rentals and the ability to earn anywhere from 50 bonus American AAdvantage miles per day or 500 per rental. (afar.com)
- If you’re a member of AAA, you might also be able to snag discounts of 10 percent at Thrifty, and 8 percent at Dollar. (afar.com)
- You can rent an automatic but these cars can cost as much as 50% more than a manual vehicle. (earthtrekkers.com)
External Links
jdpower.com
autoslash.com
enterprise.com
avis.com
How To
Here are 12 things you need to know about renting a car in Europe
What should I know when renting a car in Europe?
There are many things to know before you drive off when you rent a car Europe. The type of rental car that you choose will have a huge impact on your experience. This list contains essential tips to make sure your trip runs smoothly.
- Your insurance policy. Check that your auto insurance covers you for travel to other countries before you hit the road. Find cheap car insurance abroad with our guide.
- You need the right documents. You will need a driver’s permit from your home country as well as several identification cards (passports and visas). to prove where you’re going and why. These documents should be obtained well in advance to avoid missing deadlines.
- Road Rules. Pay attention to signage indicating speed limits, one way streets and pedestrian crossings. Driving in an unfamiliar country could result is fines or even accidents.
- Parking rules. Parking regulations vary from one city to the next. Before you arrive in town, make sure to check out the parking regulations.
- Gasoline. Gasoline. While gas prices may vary by country and location, the average price of gasoline is three times that back home.
- Insurance requirements. Rentals older than 3 years may require additional liability insurance. Check with your rental company about specifics.
- GPS navigation systems. These GPS navigation systems are growing in popularity among travelers. You should bring a map along and ask for directions if you aren’t familiar with the use of these GPS navigation systems.
- Radio stations. Radio stations may play music you don’t recognize. To change the frequency from English, press “0”.
- Seatbelts. In most European countries, seat belts are required.
- Road tolls All over Europe, there are many road tolls. Most are payable at meters located at major intersections.
- Speeding tickets. Speeding is strictly prohibited in large parts Europe, including Germany Austria, Switzerland Italy France, Spain, Switzerland and Italy.
- Tipping. Tipping isn’t the same in Europe and North America as it used to be. Tipping is not a common practice in any part of the world. Try giving a round number, such as 10% or 15%.
