How to Save on Rental Cars: 11 Expert Tips to Cut Costs

It’s no surprise that car rental prices have been rising in recent years, with demand often outpacing supply as car rental companies aim to keep fleet sizes lean and vehicle model years new. But renting a car doesn’t have to break the bank. You can cut costs significantly with expert-backed rental car tips—before, during, and after your trip.

Book early—but not too early

One of the biggest mistakes travelers make? Waiting too long to book.

“We always recommend booking as early as possible for the widest selection and availability of car classes,” says Tania Clasen, vice president of strategic alliances and partnerships for Hertz.

Waiting until the last minute could mean limited availability and inflated prices. While rental car prices fluctuate based on a number of factors—from vehicle type to location to time of year—the general rule of thumb is to book about one month in advance for the best combination of selection and savings for US rentals; international rentals may require earlier booking—about two to three months in advance. If you’re booking around high-peak times or interested in a niche vehicle, even earlier is better at home and abroad.

Prepay for your rental car—with some caveats

Prepaying for your rental car can offer major savings. Many rental companies provide their best rates to customers who pay in full upfront. At Hertz, for example, you can save up to 25 percent less than paying at pickup.

While this option offers less flexibility to change or cancel your reservation, using a credit card with travel protections can safeguard your budget if plans change. The biggest downside to prepaying? If you don’t end up needing the car, the rental company may charge a fee for cancelling within a specified window—and that fee could jump the longer you wait. Some rental companies do have more flexible cancellation policies on prepaids than others, so be sure to do your homework before you book.

Sign up for the rental car company’s loyalty program

Signing up for the company’s loyalty program can unlock perks such as faster service, upgrades, and exclusive discounts—and most are free to join.

“The Hertz Gold Plus Rewards loyalty program is free to join and provides travelers with a variety of perks like faster pick up and returns by skipping the counter at most airports and member-only rates when booking on Hertz.com,” says Clasen.

Loyalty programs can also offer ongoing value, as some allow you to redeem points for free rentals.

Make the most of your credit card

Certain credit cards offer great discounts or cashback on rental cars. For instance, individuals who book a Hertz rental car with the AAA Travel Advantage Visa Signature Credit Card can earn 4 percent back. Check with the credit card company about eligibility for elite status, discount codes, and even partial insurance coverage.

Choose the economy car

It might seem obvious, but opting for the smallest car or most fuel-efficient vehicle can mean big savings. Economy cars typically have lower daily rates—and you’ll save on fuel, too. Some rental companies also offer discounts on electric vehicles.

Bonus: If the economy class is overbooked, you might score a free upgrade.

Consider off-airport rental locations

While airport pickups are convenient, they often come with added fees and higher demand. Renting from a neighborhood branch instead can boost car rental savings—especially during peak travel periods.

“If travelers need to book last-minute and have flexibility, they may find better rental availability outside high-volume areas,” says Clasen, adding that this can be especially helpful during peak travel periods.

Fill up before you return

Be sure to budget enough time to get gas ahead of dropping off your rental car. Rental companies charge a premium if you return the car without a full tank—sometimes double the going rate.

Stick with a single driver over the age of 25

In most states, rental car companies often charge extra for additional drivers or for renters under age 25. To avoid these fees, stick with one driver who’s at least 25 years old.

There are welcome exceptions to this rule, however: AAA members who book with Hertz can add a second driver for free, and young driver fees are also waived through the AAA–Hertz partnership. 

Leverage memberships and employer discounts

Don’t overlook the car rental savings that come with memberships or workplace benefits.

Organizations such as AAA, AARP, frequent flyer programs, credit card rewards programs, and warehouse clubs such as Costco often partner with rental car companies to offer reduced rates, free upgrades, or other perks. For example, AAA members can access exclusive benefits with Hertz—as much as 20 percent off base rates.

In addition, many employers—especially larger companies—have negotiated corporate discount codes that employees can use for personal travel. These discounts aren’t always widely advertised, so it’s worth checking with your travel or human resources department before you book.

Check for airline promotions

Many airlines partner with rental car companies to offer exclusive discounts, bonus miles, or bundled travel deals. After booking your flight, keep an eye on follow-up emails, or check the airline’s website for special offers tied to your reservation. These promotions can lead to meaningful car rental savings—especially if you’re loyal to a particular carrier or enrolled in its frequent flyer program.

Think twice about car insurance and extras

When you book online, you’ll likely be presented with a slew of upsell offers—things such as GPS navigation, satellite radio, toll packages, or prepaid fuel. While nice to have, these features can add up quickly, so consider if you truly need them.

Also consider if the car insurance offered by the rental car company is necessary. Some car insurance companies and credit card companies provide their customers with insurance that extends to rental cars. Check with your insurer or card company to ensure you’re fully covered.

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A rental car may not be the first thing you book when you’re trip planning, but giving your reservation its proper due will help you save on your rental every time.