How To Avoid Extra Car Rental Charges


Are you planning to rent a car on your next holiday? Beware car rental companies are famous for adding extras to your bill which sometimes add up to be more than the basic use of the car. Here are some tips to avoid the added charges on your next car rental.

Collision / Loss:


car rental insurance

In case you happen to get into an accident while driving the rental car, you are obliged to pay the company for the costs of repairs as well as reimburse the loss of revenue for the time the car has gone for service.

The car rental company’s collision / loss damage waiver (CDW) is the most common and the most expensive extra charge. The company charges an extra $20 – $30 which is usually more than the actual car hire for any damages to their vehicle. However, the add-on has an advantage. If the rental car is damaged, all you have to do is return the car to the company without having to worry about getting it repaired. Sometimes only a minimum charge is applicable if the CDW doesn’t cover the minor damage.

In case you don’t purchase the CDW, the rental car company is eligible to hold your credit card and you are required to pay the rental company straight away for the damages and cost of repairs. But you can get out of paying the extra charges by trying the following options.

car rental insurance chart

Sometimes, private car insurance companies cover the damages of a rental car in the United States. Although, a claim on your insurance policy might not cost you anything but the cost of repairs and the black mark will be added to your records thus increasing your insurance premiums.

Some credit cards also offer “free” collision coverage. However, it is only applicable if you collect from your own insurance first. By availing this offer, you don’t have to pay any extra or hidden fee and you can use it anywhere around the globe.

Third party insurers can also be approached if you don’t want to use your insurance policy or your credit card doesn’t cover you. Several companies such as charges around $30 for a solitary trip and $93.99 annually. Another company charges $7.99 per day.

Online travel agencies also provide car rental insurance for a charge of $10 – $11 per day but sometimes these companies also have hidden charges which results in you spending more than you intended.

Extra Driver:


extra driver on car insurance policy

Adding more than one driver to the agreement also comes with surcharges. Most companies charge $5 – $10 per day for each additional driver and more if the driver is under the age of 25. The good thing is that some car rental companies including AAA, AARP, etc allows the renter’s spouse or colleagues to drive the car without any extra charge. Some rental car company’s also has a loyalty program where members can benefit from many offers including adding an extra driver without any extra cost.



GPS for rental car

GPS Navigation system is common these days and many drivers rely on it for their driving adventures in a new city/country. The car rental companies include GPS as an extra option and charge somewhere between $40 and $100 per week. However, some car rental companies waive off these charges for their loyalty program members as well as specific organizations. On the other hand, you can use the GPS apps on your phones, tablets or laptops to avoid the extra charge completely.

Child car seat:

child car seat

A child car seat is compulsory in most USA states and several international destinations. Many airlines provide you with a car seat at no extra or hidden cost but buying a new car seat is also a good option if you are planning to rent a car for more than a week.


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