Getting the best deal on car rentals

Renting a car can be quite a chore, especially when you get to the rental counter and a fast-talking agent is trying to sell you four different kinds of insurance. Here's a few simple steps to wading through the rental car quagmire:

Do you need to drive it a lot or a little? If you are going to be driving just a few miles everyday, it might make sense to check out a limited mileage option through Enterprise. In most situations however, you're going to want unlimited mileage and typically it isn't much more, if any more to go this route.
Do you need extra insurance? If you carry collision and comprehensive on your own vehicle, most auto insurances will cover you on a rental car. However, make a quick call to your agent or company to be certain and to find out any exceptions (most companies will not cover you in Mexico for instance). Car rental agencies almost always will charge you for loss of use if repairs need to be made to the vehicle. Many credit card companies have coverage for this automatically when you rent. Check with your credit card companies to be sure you're covered. If not, it is a good idea to get the coverage. If you are going to need to purchase any coverage through the car rental agencies, they can vary from company to company so factor that it into to your total cost. Or purchase outside insurance from a vendor like Travel Guard.
Does anyone else need to drive? Fees for additional drivers vary greatly from company to company. Be sure to factor that into your cost. Even better, get AAA and most companies will waive the additional driver's fee. Some companies will also waive under 25 charges if you have AAA. If you rent often, and own a small business where other employees need to drive the vehicle, look into a corporate account. Corporate accounts waive additional driver's fees for employees on company business.
Now that you've answered the big questions, shop for the best price. My favorite is: CarRentals.com, an aggregate that checks nearly all companies and shows you the best deals. Car rental charges fluctuate wildly so I sometimes will check back a few times to make sure I have the best deal. Canceling and rebooking is easy. If you are very flexible and aren't going to need insurance or to add an additional driver, consider looking on Hotwire or Priceline. I prefer Hotwire for these reasons: they are very clear about what companies they use and they are all ones with solid reputations and the descriptions include whether you will have to take a shuttle to the rental company or if it is onsite at the airport. You don't bid like you can choose to do with Priceline, but Hotwire is still steeply discounted.

One last tip: Don't get the prepaid gas unless you know you are going to have a really tight connection on your return to the airport. It is nearly always cheaper to fill up yourself before you return it.

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