Things to Know Before Renting a Car: Essential Tips to Save Money & Avoid Hidden Fees

Renting a car can be incredibly useful, whether you're traveling for vacation, business, or you simply need temporary transportation. However, many travelers get caught off-guard by hidden fees, unclear insurance policies, and unexpected rental conditions. To help you avoid surprises and save money, we’ve created this complete guide on things to know before renting a car.

Covered Topics: Things to know before renting a car, Car rental tips, Rent a car guide, Car rental insurance, Save money on car rentals

Check Car Rental Requirements Before Booking

Before choosing a car, make sure you meet the rental company’s requirements:-

Valid Driver’s License: Rental agencies require a valid driver's license. If traveling internationally, you may need an International Driver’s Permit (IDP). Always confirm local driving regulations before your trip.

Age Restrictions: Many rental companies only rent to people 21+, and those under 25 may face a “young driver surcharge.” If traveling with someone younger, consider adding only one primary driver to reduce costs.

Credit or Debit Card for Deposit: Most “hold” a security deposit on a credit card. Some allow debit cards, but with extra identity checks. Plan ahead so the deposit doesn’t impact your travel funds.

Compare Rental Companies to Get the Best Deal

Prices vary widely between companies. Instead of booking the first offer you see, use a car rental comparison tool (anchor text placeholder) to compare:

• Daily rental rates
• Customer reviews
• Mileage limits
• Fuel policies
• Insurance offers

Pro Tip: Avoid last-minute rentals at airports if possible. Off-airport locations are often cheaper.

Choose the Right Vehicle Type for Your Trip

The right car depends on your destination and travel style:

Car Type	Best For	Key Benefit
Compact Cars -	Solo travelers / city trips -	Fuel-efficient & budget-friendly
Sedans -	Small families or business travel -	Comfortable and practical
SUVs & 4x4s -	Road trips / rural areas -	More space and better road capability
Luxury Cars -	Special events / comfort -	Premium driving experience
Hybrid / Electric Cars -	Eco-conscious travelers -	Saves fuel cost (check charging availability)

Understand Car Rental Insurance Before Saying Yes

Insurance decisions at the rental desk can feel overwhelming. Here’s what you need to know:

Collision Damage Waiver (CDW/LDW) : Covers damage or theft of the rental car. Not technically insurance—it's a liability waiver.

Liability Insurance: Covers damage you cause to other people or property. Often required by law.

Personal Accident Insurance: Covers medical expenses for you and passengers (often unnecessary if you have health or travel insurance).

Check If You’re Already Covered

Before paying extra:

• Some credit cards automatically include rental car insurance.
• Your existing auto insurance may extend coverage to rentals.

Note : Learn more about car rental insurance options here. This can save you a lot of money.

Policy	What It Means	Cost Implication
Full-to-Full	Return car with a full tank	Best & cheapest option
Prepaid Fuel	Pay in advance for fuel	Often more expensive
Full-to-Empty	Return empty	Usually overpriced fuel + no refund

Be Aware of Mileage Limits & Driving Boundaries

Some rentals include unlimited mileage, while others charge per mile. If planning a road trip, always pick unlimited mileage to avoid surprise fees.

Also check:

• Are you allowed to cross state or country borders?
• Are there road restrictions (for example, no gravel roads)?

Breaking rules can void insurance.

Inspect the Car Before You Leave the Lot

This step is critical.

Before driving away:

• Check for scratches, dents, windshield chips
• Check tires and interior condition
• Take time-stamped photos or video

Ask rental staff to note any existing damage in writing. This protects you from false damage claims later.

Additional Fees to Watch Out For

• Additional driver fee
• GPS rental fees (use your phone instead)
• Child seat rental
• Airport pickup fees
• Late return charges

Bringing your own accessories can save money.

Return the Car Properly to Avoid Penalties

• Return on time (even one-hour late can trigger a full extra day charge)
• Refuel to the agreed level
• Clean up trash or sand if you drove near beaches
• Request a final written inspection receipt

Best Tips to Save Money When Renting a Car

✅ Book early and avoid peak travel dates
✅ Compare rental companies before paying
✅ Use your credit card’s rental insurance when available
✅ Choose off-airport pickup locations
✅ Always choose full-to-full fuel policy
✅ Stick to one authorized driver if possible

Conclusion

Knowing these key things to know before renting a car will help you avoid unexpected fees, choose the right vehicle, and enjoy a smooth rental experience. With the right preparation, renting a car can give you freedom, flexibility, and peace of mind during your travels.