Put the brakes on car rental costs

by Center for Personal Finance editors

WASHINGTON (6/15/06)--Regardless of whether you're renting a car for summer vacation or for business, compensate for higher gasoline prices by finding other ways to save money (Kiplinger's July 2006).

Beat the overbooked blues. If you get to the counter and the car you reserved isn't available, stand your ground. Most companies will offer the next-largest size at no extra charge. If the agent tries to tack on a fee for special features, insist on the price you reserved. Or, accept the extra fee or high-cost gas-guzzler substitute and complain later; write a letter to the company and send a copy to the Federal Trade Commission and the state consumer protection office.

Stray from the airport. Off-airport locations tend to cost nearly $8 per day less because of airport fees. It may pay off to take a cab to a downtown car rental office.

Search online. Visit major Internet travel sites such as Expedia and Travelocity. Then compare those rates to the rental companies' own sites. Use search engines such as Kayak, Mobissimo and SideStep to check many travel sites and providers at once. Or, search for a low rate at Hotwire. Then try bidding at Priceline to see if you can get a lower rate than the Hotwire rate. You won't know until you pay the bill which company you're renting from, but both websites use national rental chains.

Compare total costs. Look beyond the daily rate. Fees and taxes add considerably to the final cost.

Book early. Lock in a rate and avoid getting shut out because of peak travel times. If you find a better deal closer to the date of your trip, cancel the first reservation. Some companies may offer great deals at the last minute to get rid of excess inventory.

Check liability limits. If you decide not to purchase the collision-damage waiver (CDW), make sure your own policy covers rental-car damage. Most gold and platinum credit cards cover the deductible, but not all. Ask about limits and exclusions on both your auto insurance policy and your credit card. However, some renters purchase CDW to keep from having a claim on their record.