Avoiding Hidden Car Rental Costs

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As the car rental industry is facing profit margins that are becoming increasingly slim, more and more car rental agencies are resorting to hidden fees to make ends meet.  Some are completely within their control and some aren’t.  Here’s your guide to avoiding the bogus charges.

The first enemy you’ll face are taxes.  Airport taxes, state taxes, federal taxes, travel taxes, taxes on top of taxes, you get the idea.  Traveling in the United States you’re bound to get taxed a minimum of 15% of the total bill.  In Europe?  Look to pay out at least 25% or more.  Unfortunately, there’s nothing you can do about them; just expect to pay them and try not to be so angry.

Next up, insurance.  You are guaranteed to ask if you want to purchase insurance; it’s a huge money maker for the car rental agency.  Unfortunately, unless you are insured, even a simple accident and you could be liable for thousands.  If you’re already insured for your personal vehicle, call them first and ask about their policy on rentals.  You will often already be covered.  Secondly, check with your credit cards; they will occasionally offer car rental insurance as a fringe benefit.  Of course, remember to use that card to get the benefit.

Gasoline charges are another car rental agency favorite.  When you pick up your car, you usually have to refueling options: return it the way you got it or pay upwards of $4 a gallon, or pay a nominal fee, usually $40, for a full tank of gas up front.  Of course, if you don’t use all the gas you still lose.  Your best bet is to just fuel up before going
back to the airport.

Car rental agencies are quick to promise you cheap rental rates, but always keep in mind the hidden costs.  They can quickly add up and might surprise you.

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admin @ February 18, 2010