Whether you’re planning to visit your hometown for a weekend or are gearing up for a road trip along the Pacific Coast Highway, you need a rental car. Ideally, you want one that doesn't break the bank. But securing an affordable rental has become increasingly challenging because rental car prices have increased 35 percent since pre-pandemic. You’re now looking at weekly rates at around $350 to $550 per week and national daily averages of $50 to $80.
What works for one trip might not apply to another, so you’ll want to have multiple strategies in your pocket to secure competitive rates. Savvy travelers can use the right booking tactics, membership discounts and smart planning to avoid hidden charges. This comprehensive guide provides 13 proven rental car tips to stay within budget for your next trip.
#1 Book Early — But Not Too Early — for a Low Rate
Conventional wisdom says to book early to save money, but rental car pricing doesn’t always reward advanced planners. Research reveals that rental cars booked 91 days in advance cost an average of $555 per week, while those who booked just seven days ahead cost only $481 per week— a 13 percent discount for procrastinators.
Book three to six weeks in advance to get the best balance of competitive pricing and vehicle selection. Rental car prices usually rise significantly in the final two weeks before pickup as inventory drops and demand increases. Just prepare to have a much more limited selection of cars, and carefully monitor the prices of your reservation, which leads directly to our next strategy.
#2. Employ the “Book and Rebook” Price Tracking Strategy
Many people wonder when the best time to rent a car is. Unfortunately, the answer is not as straightforward as you might think.
One of the most efficient but underutilized rental car tips is to actively manage your reservation instead of treating it as a set-it-and-forget-it transaction. Most car rental companies allow free cancellation up until pickup time, which means you can continue to rebook at a lower cost throughout your planning period.
Do this by first reserving a car with a free cancellation policy. Then check the price every few days with the same travel dates. If the rate drops, cancel your existing reservation and rebook at a lower price, locking in those savings. Some travelers set calendar reminders to check prices weekly, while others use price tracking tools to automate monitoring.
#3. Compare Airport vs. Off-Site Locations
Airport car rentals usually cost significantly more. You’ll have to pay additional fees that off-site locations don’t charge. Studies have found that week-long car rentals from downtown locations were $86 cheaper than airport locations, which leaves you with an 18 percent airport convenience premium.
This price difference stems from Customer Facility Charges (CFCs) and concession fees that airports levy on rental companies, which then get passed onto customers. CFCs typically range from $2 to $10 per day. To maximize savings, search within a 5- to 10-mile radius of your destination instead of limiting your search to the airport.
#4. Take Advantage of One-Way Rentals
One-way rentals — picking up a car in one city and dropping it off in another — usually carry large drop fees that can add an additional 20 to 30 percent more to your total cost. Some companies waive this fee when they're moving surplus cars from low-demand locations to higher-demand ones.
These rebalancing periods usually occur during the summer. Look for these deals to eliminate one-way fees and compare them against round-trip fees. During rebalancing periods, you might discover renting a car for one way saves money compared to backtracking with a vehicle.
#5. Book an Economy or Compact Car
Vehicle size directly impacts rental costs, which is why smaller cars are much more budget-friendly. Cost-conscious tourists often compare economy vs. compact car rentals. Economy cars, like Chevrolet Spark or Nissan Versa’s small sedans, offer lower base rates at $51.33 per day, whereas compact cars like Toyota Corollas or Honda Civics are the next tier up at $52.
Smaller cars also have much better fuel efficiency. An economy car can get 35 miles per gallon, compared to a large SUV that might only get 18 miles per gallon, which can save you hundreds for a longer road trip. Booking a smaller car also comes with the possibility of a free upgrade to a larger vehicle.
#6. Compare Daily vs. Weekly Rates
Rental car pricing structures usually reward longer rental periods with weekly discounts that reduce the daily costs. A 7-day rental can often cost less than a 4- or 5-day rental for the same vehicle since per-day rates can drop as much as 30 to 40 percent for longer booking periods. If your schedule is flexible, check to see if you should extend your trip for better costs.
#7. Use Price Comparison Tools
Price comparison websites use aggregate rates from multiple companies so you can compare options side by side without manually trudging through individual sites. Popular comparison tools include Kayak, Priceline and Costco Travel, each with their own dedicated rental car search engine. These platforms can surface rates and discount codes you might not have otherwise found.
Just make sure to verify the final price on the rental company’s website before booking. Comparison sites sometimes only pull base rates, not including taxes, fees and mandatory charges, which can leave you with sticker shock if you go to pay without prior research.
#8. Join Loyalty and Points Programs
Free loyalty programs from major rental companies can net you more than just points for future rentals. Programs like Hertz Gold Plus Rewards allow members to skip the rental counter, select their own vehicle from a designated stock and expedite the return process — saving time and reducing stress.
Points can be useful, too, accumulating with each rental. You can redeem these for free rental days, upgrades or rewards. Most programs let you earn points based on rental spending, and you can redeem them once you reach a certain threshold.
#9. Use Affiliation Discounts
Many employers, universities, alumni associations, professional organizations and membership groups offer car rental company discount codes which can reduce rates by 10 to 25 percent. AAA car rentals offer student discounts, which is one of the many reasons you should rent a car with AAA. Check your employee or university benefits page for car rental student discount or corporate discount programs.
The key to maximizing these affiliate discounts is knowing which codes you’re eligible to use and remembering to enter them when you book. Corporate Discount Program (CDP) numbers have to be included in the reservation at the time of booking, not added retroactively, so make sure to keep a list of all the discounts available to you.
#10. Take Advantage of Memberships
AAA membership offers some of the most valuable car rental benefits on the market. AAA offers car rental discounts through partners like Hertz, Dollar and Thrift, which offer significant savings and waived fees that quickly balance out any membership costs.
Hertz, for example, gives AAA members several benefits: up to 20 percent off base rates, free use of one child safety seat and waived young renter fees. The younger driver fee waiver alone can save hundreds of dollars for travelers under 25, who are often charged an additional $30 to even $50 per day.
#11. Avoid Double-Paying Insurance
Insurance charges at the rental counter are often a surprise that can double or triple your daily rate, but many travelers already have coverage with existing policies. Before declining or accepting rental car insurance, you need to understand what protections you already have. Most personal auto insurance policies extend coverage to rental vehicles.
Contact your insurance agent to confirm if your policy covers rental cars domestically and internationally. Ask about specific deductibles and any restrictions. Many credit cards, such as Chase Sapphire Preferred and Reserve, United Explorer and Capital One Venture X, offer primary or secondary collision damage.
Armed with this information, you can confidently decline the following add-ons at the rental counter:
- Coverage Damage Waiver/Loss of Damage Waiver (CDW/LDW)
- Personal Accident Insurance (PAI)
- Personal Effects Coverage (PEC)
Just be certain you already have adequate protection through your personal insurance or credit card benefits before declining these coverages.
#12. Be Smart With Fuel
Rental companies charge exorbitant per-gallon rates if customers return vehicles without refilling the tank. You’re looking at about $6 to $10 per gallon plus service fees.
The prepaid fuel option — where you pay upfront for a fuel tank and can return the car empty — may seem convenient, but it rarely saves you gas money. If you pay for a full tank and return the car with even a few gallons remaining, you’ve essentially paid the rental company’s premium fuel price for any gas you didn’t use. Calculate carefully or use gas discounts wisely.
#13. Bring Your Own Equipment
Rental companies charge premium rates for add-ons you likely already own or can access through your smartphone, including:
- GPS navigation: $15 per day
- Child car seats: $10 per day
- Toll transponder: $25 per day
If you’re traveling with a child and have room in your baggage, bring your own car seat to save $70 per week. You can also book through AAA rental car partners that waive child seat fees for members.
#14. Do a Final Check
The first thing you should do when you get your rental car keys is a thorough vehicle inspection. Take time-stamped photos and videos of all body panels, the roof, wheels and any pre-existing damage like scratches or dents. Make sure to record the gas gauge and odometer reader as well. This protects you against damage disputes when you return the car.
Review your rental agreement just as carefully before signing. Verify that the total price and all negotiated discounts are accurate. Also, confirm unwanted add-ons aren’t included. Look out for unnecessary extras like insurance products, GPS units, or prepaid fuel. If anything looks incorrect, address it immediately.
FAQ
Before you book, here are answers to some frequently asked questions about rental car savings.
Do rental car companies rent to drivers under 25?
Yes, most major rental car companies will rent to drivers 20 or 21 years old, though they will usually charge substantial young driver fees of $25 to $30 per day. Some companies will lower that age to 18 for military personnel or government employees on official travel. AAA members can rent from Hertz without paying young driver fees.
What is the cheapest day to book a rental car?
There’s no single cheapest day to book, but research shows booking closer to your pickup date, usually one or two weeks in advance, yields better rates than booking months in advance. Prices fluctuate constantly based on supply and demand instead of following weekly patterns, which is why it’s best to follow a “book and rebook” strategy to grab price drops.
Does my existing car insurance cover my rental?
Most personal auto insurance policies extend liability coverage to rental vehicles, and many also include comprehensive and collision coverage. Coverage does vary by policy, so contact your insurance agency to verify. Many premium credit cards also cover rental collision damage.
Why are car rental costs unpredictable?
Rental car pricing reflects real-time supply and demand, not fixed prices. Fleet availability, seasonal travel prices, local events, airport location surcharges and even weather can influence pricing.
Drive Away With AAA
Getting the best rental car deals turns rental car expenses from an unpredictable budget burden into a manageable, optimized travel cost. Use these 13 strategies — from strategic booking and location selection to leveraging membership benefits — to get the best car deals.
AAA members enjoy exclusive advantages when renting cars, especially through partners like Hertz, Dollar and Thrift. The combination of percentage discounts, waived fees for young drivers and additional drivers, free child safety seats and loss damage limitations creates significant value that extends well past basic pricing.
Ready to unlock these benefits? Become a AAA member today to access exclusive rental car discounts, roadside assistance, travel planning services and hundreds of other partner benefits.