KEY POINTS
- Purchasing insurance from a rental car company is usually not needed because the coverage provided by most credit cards and personal car insurance plans is adequate.
- Using travel websites can result in cost savings, but on the flip side, they might cause you to overlook potential discounts available elsewhere.
- Neglecting to record damages could have negative consequences, and opting to rent a car in the city rather than at an airport could result in cost savings.
Despite their political disagreements, it seems that most Americans can come together on one issue: Renting a car can be a challenging process. From long wait times at the rental counter to carefully reviewing the contract for undisclosed charges or terms, car rental companies continue to complicate what should be a straightforward experience. credit card Turning a simple exchange of money and driver’s license for keys into a horrifying and unsettling ordeal.
During times of uncertainty, many of us become less cautious and commit errors with our car rentals that can have negative consequences later on. Through my own experiences, I have identified five costly mistakes that should be prevented.
Contents
Purchasing insurance for a rental car
Purchasing rental car insurance is probably unnecessary if you already have personal car insurance and credit card rental car insurance benefits.
Many of the top travel credit cards Rental car damage waivers are available to provide coverage that releases you from the financial burden of paying for any damages to your rental car, such as vandalism, theft, environmental damage, and total losses. doesn’t It is important to have liability coverage for yourself, your passengers, and pedestrians to avoid being held responsible for any damages incurred while the rental car was under your possession.
Similarly, your individual auto insurance coverage You are probably responsible for any damages or injuries that occur while operating a rental vehicle. If you are uncertain whether your auto insurance includes this protection, review your policy before collecting the rental car. This will allow you to confidently decline any insurance offered by the rental company. no.
Avoiding the use of the travel portal provided by your credit card.
Numerous credit card companies offer travel portals where you can reserve rental cars. Although these portals may not consistently provide the most competitive prices (as explained in the following point), occasionally they do offer a discounted rate that is unmatched elsewhere.
Additionally, it is possible for your credit card to accumulate additional points or miles if you make use of its travel portal. This added benefit could potentially make the portal a more cost-effective option when the prices are similar between the portal and a travel website. Moreover, you may find that your points have a higher worth when exchanged for a rental car, although there is a possibility of receiving less value compared to redeeming them for flights or hotels.
Utilizing the travel portal offered by your credit card.
In contrast to what was mentioned earlier, credit card websites may not consistently provide the most affordable rates for renting cars. Despite the potential for earning bonus points or miles, booking a rental car through a discounted website could still offer better value. It is advisable to compare prices prior to making a reservation via a travel portal, as doing so might cause you to overlook attractive deals available on different platforms for your specific travel dates and destination.
Side note: Explore Costco Travel for competitive rates on rental cars and compare them with rates on your preferred credit card travel website to find the best deal.
Disregarding previous harm or injuries.
Always — always — Make sure to record any harm caused to the rental vehicle by a previous renter. Even if the harm appears minor (such as a small dent on the door), you should document it to avoid being held accountable for it by the rental company.
My friend Lyle Daly experienced a similar situation when he hired a car some years back. His spouse spotted a mark on the seat which he failed to record, resulting in a $250 charge from the rental company. While he eventually managed to dispute the fee successfully, he acknowledged that he should have been more vigilant in preventing it from happening in the first instance.
Hiring a vehicle from an airport
Booking rental cars at airports is convenient as it eliminates the need to rely on public transportation to reach the city or find transportation back to the airport for returning the car. However, this convenience comes with a higher cost and it can significantly surpass the additional work required to secure your rental in the city.
Paying a higher fee for renting a car at an airport is not only about the convenience factor. There could also be additional charges and taxes involved, which end up increasing the overall cost, even if the daily rate is similar to other nearby rental locations.
For instance, I recently compared the rental prices of a car from Enterprise at Newark Liberty International Airport and in Downtown Newark. Renting the car at the airport would amount to $330 for a three-day period, with $215 going towards the car rental and $114 for taxes and fees. On the other hand, renting the same car in downtown Newark would cost approximately $254, with $222 for the car rental and $32 for fees.
Certainly, it may be justifiable to spend $80 for the sake of convenience (which could be even lower if we consider the cost of ride-hailing or public transportation to and from the Enterprise location in Downtown Newark). Nonetheless, not Is it advisable to purchase rental car insurance if your credit card already provides it, or should you give up additional rewards points if booking the same rental car through your preferred travel website?
Remember these tips when you rent your next car to prevent making costly errors.
