Renting a car can be a smart way to explore new destinations this summer, but it’s easy to get snagged by hidden costs if you focus only on the advertised rate. While rental agencies may market low daily rates, mandatory fees and optional add-ons can add 40–45% more to your total bill. Here are some things to consider prior to booking your next car rental.

Added fees on a car rental might include:

• Airport or location fees: These can add up and are often not shown in the initial rate.
• Taxes and regulatory charges: The government tacks these onto your rental bill.
• Young driver fees: Drivers under age 25 often pay steep daily charges. Some agencies in certain states may also not even rent to a driver under age 25.
• Additional drivers: Some companies charge for each extra name on the rental agreement.
• Mileage limits or toll fees: Know ahead of time if there are daily limits or toll surcharges.
• Refueling charges: Filling up off-site before you return the car will save you money compared to agency refueling fees.
• Late pick-up fees: Did you reserve your car rental for a certain pick-up time, but your flight got delayed and you picked your car up a few hours later than initially planned? Be aware that some rental agencies may charge additional fees for this. Or if your return flight gets delayed, and you bring the rental car back later than initially planned.

Do you need rental insurance?

Your personal auto insurance or credit card may already provide coverage, so check before you accept the rental company’s typically costly insurance offers. Many credit cards will offer coverage for car rentals, but specifics vary. Check your credit card agreement for details on what you may already have as a credit cardholder.

Optional coverages include:

• Loss Damage Waiver / Collision Damage Waiver
• Supplemental Liability Insurance
• Personal Accident Insurance
• Personal Effects Coverage

Tips to trim car rental costs:

1. Book carefully: Surprisingly, booking about one month out can be cheaper than booking way ahead. Expert sources note that last-minute rentals can save you ~13% compared to booking 90+ days ahead.
2. Rent outside of the airport when possible: Avoid hefty airport surcharges by renting downtown or at nearby off-site lots.
3. Bring your own extras: Skip rental gadgets like GPS, child seats, or in-car radios —bring them instead.
4. Inspect the car carefully: Document any damage at pick-up and drop-off with photos or videos to avoid false damage claims.

Renting a car doesn’t have to be complicated, but it does require a closer look at the fine print. By factoring in hidden fees, reviewing your existing insurance coverage, and planning ahead –  you can avoid surprise charges and stay on budget. Wherever your summer travels take you, being informed is the key to hitting the road with confidence. Subscribe to our First Scoop Blog for more tips and information on how to be a mindful consumer.