As Americans hit the road this summer, many will drive rental cars in other parts of the country or the world. While rental cars can be convenient, the associated costs are often confusing. Here’s a look at car rental mistakes that could cost you money – and how to avoid them.
1. Buying extra insurance you don’t need. If you have your own auto insurance policy, it may cover collision damage and personal liability for temporary use of a rental car (but likely not a moving truck). And if you use a credit card to book and pay for the rental car, it may provide secondary collision coverage. “The credit card coverage will kick in for anything your personal policy doesn’t cover, and you don’t need to pay your deductible,” says Brian Karimzad, the director of MileCards.com, a travel rewards card comparison website. “Check on that before you rent a car, and you may be able to decline that coverage at the rental car counter.”
On the other hand, if you don’t have your own auto policy or you’re concerned about potential premium increases should you need to file a claim with your auto policy, the car rental company’s insurance may make sense.
2. Renting from an airport. Renting from an airport often means airport surcharges. To avoid these fees and possibly bag additional savings, Teri Gault, CEO of TheGroceryGame.com and author of “Shop Smart, Save More,” suggests choosing a car rental service away from the airport. “Many off-airport rental offices provide transportation to and from the airport,” she says. “And it can be more convenient than booking at the airport and having to take a rental car shuttle and dealing with huge crowds.”
3. Not shopping around. Car rental rates can vary depending on the company or the amount of lead time, so it pays to shop around instead of taking a “one-and-done” approach.
If you’re planning to drive long distances, check for mileage caps. “Many rental companies offer unlimited miles for the car rental period, allowing you to drive the car as much as you want without facing extra fees,” says Angie Hicks, founder of AngiesList.com. “But others may assess extra fees for surpassing a daily mileage maximum. If you rent a vehicle, especially for a period more than a few days, make sure you have unlimited miles or sufficient miles to cover your travels.” When choosing between a rental with unlimited miles and a cheaper rental with a mileage cap, you may come out ahead with the former.
4. Prepaying for gas. Prepaying for gas may seem convenient (who wants to plan extra time for a pit stop on the way to an early morning flight?) but it means you’ll pay for a full tank of gas, even if you return with the tank half full. “It’s better to fill up yourself since you can usually find cheaper gas prices at a nearby station anyway,” says consumer and money-saving expert Andrea Woroch. “But don’t forget to fill it up because the cost to do so after drop-off can be a total rip-off.” Be sure to top off the gas, because some companies will charge you even if the gas gauge is just a hair away from where it should be.
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