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Car Rentals (Complete Guide)

Car Rentals (Complete Guide)

Car rentals can be a bit intimidating because there is a lot of fine print, which none of us like reading. In this guide, I will give you the keys to becoming a car rental expert, even if this is your first time.

Perhaps you’ve rented a vehicle before, only to find the final cost was much higher than expected. Read on to avoid it happening again.

The topic of car rentals is a vast subject that deserves an entire post dedicated to it.

If you search online for reviews of any car rental company, you will find numerous complaints and negative reviews, many of which could have been avoided by simply reading all the terms and conditions.

So, to avoid unpleasant surprises and save money, I will provide you with essential points to pay attention to.

My Knowledge of the Car Rentals

Car rental knowledge

I’ve rented many cars over the years, but what I will share here is based on more than just my experience as a customer.

I possess excellent knowledge of the car rental industry, having worked for two years at Rentalcars.com. In case you are unfamiliar with it, Rentalcars.com is a renowned online car rental booking service that belongs to the same group as Booking.com (which you may be more familiar with). Rentalcars.com serves as an intermediary by comparing prices among approximately 900 suppliers across over 60,000 destinations worldwide.

I insist that it is an intermediary because you will find several comments on the internet “blaming” this company (as well as many others) for the issues they have faced with the vehicle supplier (Goldcar, Firefly, Record Go, Avis, Europcar, Thrifty, Herz, etc). And similarly to other intermediaries such as Autoeurope, DoYouSpain, and Skyscanner, they don’t have physical customer service offices. In other words, when you pick up your vehicle, you must locate the supplier’s office, not the intermediary.

General Tips

  • ✳️ Use comparison sites that compare the rental rates from different companies. Yes, these are intermediaries, but it will save you time and money because each of them has agreements with the final supplier. They can offer different prices and promotions, such as a free additional driver.

If you’re wondering how it can be cheaper to use an intermediary instead of contracting directly with the supplier, here’s the answer: intermediaries obtain better rates due to the volume of reservations they generate. Additionally, intermediaries take care of all client management (except delivery and vehicle return), making life easier for clients and reducing their personnel needs.

  • ✳️ Schedule the pick-up and drop-off at the same time, as rentals count for 24-hour periods. 

For example, if you select the pick-up on a Monday at 2:00 p.m. and the return on Tuesday at 3:00 p.m., you will be charged the rent for two days instead of one due to the hour difference.

  • ✳️ Rentals are usually cheaper at airports due to availability. They have more vehicles, so the price is lower. So, if you don’t mind where to pick it up, or if it doesn’t bother you, choose airport pick-up.

⚠️ But ensure you don’t have to pay the premium localisation fee (which I explain later in this article) because it’ll take away the savings.

Fuel Policy

It’s common for people who don’t read the terms and conditions to complain about the fuel policy. That is why knowing which one you agree to when booking is essential, as it cannot be modified later.

Fuel Policy Types

These are the most common options:

  • Full-full: Whenever possible, I recommend booking this option. It means that you will receive the vehicle with a full tank of gas, and you are expected to return it in the same condition. Failure to do so will result in a penalty.

It is worth noting that some companies may block the entire amount of the fuel tank on your card at the time of delivery, even with this fuel policy. It’s a common practice and nothing to worry about. Once you return the car and verify the fuel level, they will unlock the amount on your card.

Additional Advice: Keep the refuelling receipt from a nearby service station with the date visible when returning the vehicle. This can be useful in case of any issues.

  • Same to same (fair fuel policy): The car rental policy is similar to “full to full” but slightly different. They may give you a tank that’s only half full, and you must return it in the same condition. The challenge is that it can be difficult to determine the exact amount of fuel needed to refill the tank to its initial level without overpaying.
  • Full – Empty: you’ll receive the car with a full gas tank and must return it empty. Although it doesn’t sound so bad, this option is the most expensive due to two reasons:
  1. They will charge you in advance the amount of the whole tank at a higher price than the actual cost, plus a non-refundable “refuelling fee.”
  2. Depending on your mileage, you may only use part of the tank. Some companies refund the difference, others don’t, but in any case, this may still be pricier than filling up the tank yourself.

This option is commonly used by companies that offer extremely low prices, so be careful!

Insurance

It is a fact that insurance generates high controversy when it comes to renting a vehicle. Insurance can sometimes represent a significant percentage of the total rental cost, even more than the rent itself!

Therefore, it is crucial to know what the rental contract covers and doesn’t, as well as our available options.

Don’t be fooled by the term “insurance included”. It’s not a lie, but it’s only a half-truth.

With rare exceptions, the usual included insurance (without paying anything additional) is only the basic compulsory coverage that applies to:

  • Robbery
  • Third-party liability
  • C.D.W. (Collision Damage Waiver), which covers accident damage, but not all! The car rental company is responsible for the repair charges, except for the agreed excess.

Excess

The excess or deductible is the amount you’re responsible for paying in case of damage, as agreed upon with the company when booking.

For example, suppose the contract specifies that the excess is 800 euros. If you get into an accident that costs 1,500 euros to repair, you will have to pay the first 800 euros, and the insurance company will cover the remaining 700 euros. 

It is important to note that a certain amount will be blocked on your credit card as a deductible when you pick up your rental car. The amount can vary depending on the type of car rented and the rental company. It is worth paying attention to the excess amount, as it can be high.

Careful! When talking about an accident, they refer to any damage the vehicle may suffer, including minor scratches or parking scrapes. However, they do not usually cover:

  1. Tires
  2. Wheel rims
  3. Glass (windshield, windows, and mirrors)
  4. Vehicle underbody

But don’t be scared; I explain the options to secure the excess in the next section.

Breaking a myth: Some people believe that their car insurance will cover damages to the rental car, but this is rarely the case.

Secure the Excess

Some individuals assume the risk of paying the vehicle excess in case of an incident. Although it seems risky, the choice is yours if you want to take it; they cannot force you to buy anything.

Getting into a car accident can be a terrible experience, and having to pay for the damages can turn a holiday into a nightmare. That’s why I always opt for additional insurance covering potential costs. This way, I can relax and enjoy my trip, knowing that I am financially protected in case of an accident 🙂

If that is also your case, I’ll explain the available options.

Available Options

  • 1️⃣ Get the additional insurance with the provider when you pick up the vehicle.
    • Advantages: It’s the easiest option because you won’t have to leave a deposit for the excess, and they won’t even inspect the vehicle upon return.
    • Disadvantage: Opting for this choice can be exceedingly pricey. A few days of use can cost more than your car’s annual insurance in certain situations.
  • 2️⃣ Get the coverage with the intermediary. If you book a car rental through a comparison site, they will likely offer excess coverage for an additional fee. You can cancel these insurances until just before the rental start date.
    • Advantage: The cost is typically much lower than the supplier’s price.
    • Disadvantages: The supplier will hold the excess amount on your card and inspect the car when you return it, which may take some time. If the car sustains any damage, the supplier will deduct the cost from your deposit, and you will need to claim it from the insurance company.

It may seem like a hassle, but comparing the cost of this coverage with what the rental company offers, it may be worth it.

  • 3️⃣ Get insured by a third party: Non-rental companies now offer this type of coverage.
    • Advantages: You can hire it directly online at a reasonable price by sending photos of the vehicle.
    • Disadvantages: They are the same as when you get it with the intermediary (previous point), but you must purchase it before moving the vehicle. Usually, it only takes a few minutes to complete, but it may not be the best option if you are in a hurry.

It is worth noting that some companies offer “Comprehensive insurance without excess”, eliminating the need for additional purchasing. While rare, these options do exist!

One Way Fee

Please note that if you drop off the car at a different location than where you picked it up, you will be charged an additional “one-way” fee. This fee covers the cost of returning the vehicle to its original location.

This fee varies from company to company; some even include it in the price, but if not, it can be pricey. Always check the cost before booking, because you’ll need to pay the fee at the counter when you collect the car, so it is better to avoid any unnecessary hassle.

Mileage

Don’t assume that mileage is unlimited, meaning there may be a limit on the number of kilometres you can drive. If the company’s policy is not clear, it is best to assume that there is a limit.

Also, note that most car rental companies have limited and unlimited km rates, so check which one you select.

If you intend to drive a lot, estimate how many kilometres you will travel. If you exceed the limit, you will be charged an additional fee for each extra kilometre/mile.

The cost of your ride will depend on the company and vehicle type, ranging from €0.10 to €0.80 per km. If you travel frequently, this can add up quickly.

If you rent a car with limited mileage, taking a photo of the odometer when you pick up the car and again when you return it is recommended.

Out of Hours Fee

This fee is applicable only when collecting or delivering the vehicle outside of office hours.

Example: Let’s say your plane arrives at 11 p.m. and you’ve scheduled a pickup at 11:30 p.m., but the rental office’s hours are only from 7 a.m. to 10 p.m. If the company agrees to wait for you to pick up the vehicle, you must pay a fee for this service.

At the destination, a one-time fee ranges from €20 to €80 based on the specific case.

If your flight or train arrives at night, check the opening hours of different rental companies carefully. It might be cheaper to rent from a company with longer hours to avoid paying extra in case of delays.

Young and Senior Driver Fees

A young driver fee may apply if the driver is under 25 when renting a vehicle. This extra charge accounts for the higher risk of accidents due to their lack of experience, which is supported by statistical data.

Usually, it applies to individuals between the ages of 21 and 24, but it could go up to 26 years old. Very few companies allow minors under 21 to rent a car.

The daily charge can vary from €5 to €38, depending on the rental company, country, and vehicle category. Additionally, there is typically a maximum limit per rental.

The fee for senior drivers (over 69 years old) is due to the increased risk of accidents supported by statistics, similar to young drivers.

The amount and exact age required for the fee depend on the car rental company, country, and category. However, they are typically similar to those for young drivers.

Additional Driver Fee

You must pay a daily fee to insure each additional driver to the main one, which is recommended for high-mileage trips.

The cost varies by rental company and country, typically ranging from €5 to €15 per day, with a maximum charge limit.

Although, occasionally, you may come across deals where companies offer an extra driver at no additional cost. 

You can indicate how many additional drivers you want to include at the time of booking (usually up to 3), paying the fee only upon vehicle pickup.

Additional drivers must meet the same age and licence requirements as the main driver.

Remember that each additional driver will be subject to the same rates as young or senior drivers, as explained in the previous section.

Other Additional Charges

Apart from the charges mentioned previously, there might be additional charges that you’ll need to pay. When you collect the vehicle, you must pay these fees directly to the supplier. Therefore, I’d recommend that you do your research in advance to avoid any surprises.

The following are examples of charges that may be applicable:

  • Premium location charges are fees that rental companies add for renting at airports or stations. These fees cover rental companies’ additional expenses from operating at these locations.
  • Winter tires are mandatory for part of the year in certain countries, particularly in central and Northern Europe. While some car rental companies include the cost of these tires in their rental price, others may consider it an extra charge, which you must pay when you pick up the vehicle.
  • Cross-border fee: If you plan to drive the car in a different country than where it was rented, you must inform the company because this requires additional insurance.

If you decide to do so without communicating, you will be driving illegally, and any insurance won’t cover you.

Depending on the rental company and country, this fee can range between €10 and €90. Keep this in mind when comparing prices.

  • Special equipment such as GPS, child seats, ski racks, or chains are subject to availability and payment upon arrival.

The cost can vary significantly depending on the rental company you choose.

Pick-up Conditions

You must carefully review the specific rental company’s vehicle collection conditions. Make sure you fully understand their requirements before proceeding with the collection process.

You should pay attention to the following as they are the most commonly occurring ones:

  • You must provide a credit card in the main driver’s name with a sufficient limit to cover the excess and fuel charges.
  • Ensure that the card you present is a credit card, as most rental companies do not accept debit cards. Usually, if they allow it, you are required to take out extra insurance.
  • International licence: Depending on the country you rent and where your driving licence is issued, you may be required to present an international driving permit along with your original one to collect the car.

This is compulsory if your driving licence is written in a non-Roman alphabet (Arabic, Chinese, Japanese, Cyrillic, etc.).

  • In addition to your driving licence and credit card, you must provide a photo identification document such as a passport or ID card within the EU.

Some companies, often called “low cost,” offer low prices to attract clients. However, low cost doesn’t necessarily mean poor quality. You just need to pay extra attention to the reservation conditions.

Remember! 

Finally, and as a summary, remember to pay close attention to the following aspects of car rentals:

I hope you liked the article and found it helpful.

If you have any questions or queries you would like to ask, do not hesitate to contact me by leaving a comment below or through the contact form. I will be happy to help 😊

Once you have followed the Step-by-step process to organise your trip and have familiarised yourself with all the advice I have given you to save money on transportation, accommodation, transfers, and money, it’s time to look at Travel Logistics to finish your travel plan.

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