Due to hidden car rental fees, nearly 30% of travelers pay more than expected when hiring a vehicle. Whether you're planning a road trip or need a rental car for business travel, unexpected charges can quickly ruin your budget.
From rental insurance add-ons to fuel surcharges, these fees can add up, leaving you frustrated and wondering where your money went.
This guide will uncover the most common hidden fees and show you how to avoid them smartly.
What Are Car Rental Hidden Fees?
Car rental companies often advertise a low daily rate to attract customers, but that price usually doesn’t reflect the final amount you’ll be charged. Hidden fees are additional charges that aren’t always clear when booking rental cars. These fees can come in many forms: extra costs for services you may not have asked for, insurance charges, late return penalties, or even mileage charges.
Most Common Hidden Fees of Car Rentals
Insurance Add-Ons: Do You Need It?
One of the most significant car rental hidden fees is insurance charges. When picking up your rental, the agent might offer additional coverage like Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). This coverage is often presented as essential, leaving many travelers feeling pressured to buy it.
However, if you already have car insurance or paid for the rental with a credit card offering car rental insurance, this additional coverage may be unnecessary. Double-check your personnel auto policy or credit card benefits to avoid paying extra. On average, adding these waivers can increase your rental bill by $10 to $30 per day, quickly adding up on longer trips.
Tip: Always verify your car rental insurance coverage before arriving at the rental counter. If you’re already covered, kindly decline the offer to avoid extra costs.
Fuel Fees: Full Tank vs. Prepaid Gas
Another sneaky car rental fee travelers often encounter is related to fuel. Most rental companies offer two fueling options: you can either return the car with a full gas tank or opt for a prepaid fuel plan, where the rental company fills the tank for you at a "discounted" rate. While prepaid fuel may seem convenient, it’s usually more expensive per gallon than local gas stations. Plus, unless you return the car with an empty tank (which is hard to time perfectly), you’ll pay for the gas you didn’t use.
Returning the car without refueling can result in even higher fees. Some companies charge as much as $9 per gallon for refueling, compared to the national average of around $3.50 per gallon.
Tip: Fill up the tank yourself before returning the car. Find the nearest and cheapest gas stations, and always keep the receipt in case there’s a dispute.
Late Return Fees: Plan Your Drop-Off Time Carefully
Returning the rental car late—sometimes even by just an hour—can result in significant late return fees. Some companies charge for an extra day if you return the vehicle even a little past the agreed time. To avoid this, make sure you return the car on time, or better yet, schedule your drop-off at a convenient time when you know you’ll be free.
Tip: Double-check the return time and set reminders on your phone to avoid being late. If you think you might be delayed, call the rental company ahead of time to see if they’ll waive the fee. Sometimes, they offer a grace period of 30 minutes to an hour.
Mileage Fees: Unlimited Isn’t Always Unlimited
For road trippers, it is crucial to watch out for rental car mileage limitations. Some rentals come with "unlimited mileage" promises, but there can be restrictions, especially when driving across state lines or outside certain areas.
You could be charged extra for every additional mile if you exceed these limits. These charges typically range from $0.25 to $0.50 per mile, and if you're not careful, they can pile up quickly. For example, if you exceed the mileage limit on a 200-mile road trip, your bill could be an extra $50 to $100.
Tip: Read the fine print to understand the mileage terms fully. If you’re planning a long road trip, ensure the rental company’s mileage policy won’t surprise you at the end of your journey.
Toll Fees: The Convenience Charge Trap
Toll roads are familiar in many destinations, and while car rental companies offer toll payment programs for convenience, these often come with extra daily fees on top of the toll charges. What’s worse, some rental companies automatically enroll you in these programs, even if you didn’t ask for them.
For instance, a company might charge you $4 to $6 per day to use their toll transponder, plus the cost of the tolls themselves. These fees can be a waste if you’re only driving on toll roads occasionally.
Tip: If your toll transponder is compatible with the region, consider using it or paying cash for tolls if possible. If you know you won’t use many toll roads, decline the toll program altogether.
Additional Driver Fees: Sharing the Driving Can Cost You
Planning to share driving duties with a friend or family member? Many car rental companies charge extra for additional drivers, sometimes up to $15 per day per driver. This can significantly dent your budget, especially if you’re renting for a more extended period.
Some companies waive this fee for spouses or domestic partners, while others may have promotions where the additional driver fee is free, but it's essential to check in advance.
Tip: To avoid this charge, limit the number of drivers. Check with the rental company beforehand to see if they offer promotions or waivers for additional drivers.
Airport Surcharges: Picking Up at the Airport Can Be Costly
While picking up your rental car at the airport is undoubtedly convenient, it often comes with airport surcharges or "concession fees." These fees are meant to cover the airport's operating cost and can be as high as 10% to 15% of the total rental price. Airport rental car fees can add $50 or more to a week-long rental.
Tip: If possible, consider renting from an off-airport location. Many rental companies offer free shuttles from the airport to their nearby branches, which can help you avoid these high fees. Alternatively, use public transport to get into the city, then rent from a local office.
Car Seat and GPS Rental: Bring Your Own
Many families traveling with kids are surprised by the high cost of renting car seats. Rental companies can charge $10 to $15 per day for a car seat, which can quickly become expensive, especially for longer trips. The same applies to GPS units, with daily rental fees adding up to $15 per day.
Tip: Bring your car seat or GPS whenever possible. Not only will it save you money, but you'll also be assured of using equipment you’re familiar with. If you need to rent a car seat, some companies like Finalrentals offer this service at a discounted rate, making it more affordable for families.
Cleaning Fees: Return the Car in Good Condition
One of the less common but still costly hidden fees is for cleaning. Some companies charge a cleaning fee if the car is returned excessively dirty. Depending on the severity, this fee can range from $50 to $200.
Tip: Before returning your car, remove trash, wipe surfaces, and shake out floor mats. A few minutes to clean up can save you from a hefty charge.
FAQs About Car Rental Hidden Fees
How do I get around rental car fees?
To avoid extra car rental fees, carefully read the rental terms, bring your own GPS, fill the tank before returning, and decline unnecessary insurance if you're already covered. Book through a reputable company and opt for rentals without hidden charges like extra drivers or mileage fees.
What are the excess charges on a car rental?
Excess charges are the maximum amount you're liable for in case of damage or theft, usually covered by the rental company’s insurance. You'll be charged up to the excess limit if the vehicle is damaged. You can reduce or eliminate this by purchasing additional coverage or excess insurance.
What is the surcharge for car rental?
A surcharge is an extra fee added to the rental cost, often for picking up a car at an airport, using toll services, or driving in certain areas. These charges can increase your rental bill significantly. It’s important to clarify any potential surcharges with the rental company before finalizing your booking.
Why do car rental companies charge a security deposit?
Rental companies charge a security deposit to cover potential rental vehicle damages, fuel shortages, or unpaid fees. The deposit is held on your credit card and refunded if the car is returned in good condition. The amount varies but is usually between $200 to $500 depending on the company and car type.
Do rental cars charge before or after?
Rental car companies typically place a hold on your credit card when you pick up the vehicle, but the final charge is processed after you return the car. The initial hold covers the estimated rental cost and a security deposit. Once the rental is completed, any additional fees are deducted, and the remaining deposit is released.
Wrapping-Up
Hidden fees can be frustrating when renting a car, but they don’t have to be inevitable. By understanding the common fees outlined in this guide, you can proactively avoid them and save money.
What Next?
At Finalrentals, we believe in hassle-free car rental process. With us, you get exactly what you see—no hidden charges for insurance, fuel, cancellation fees, or extra drivers.
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