Mastering Car Rental Fees

We all love finding an incredible bargain on a rental car, don’t we? That feeling of satisfaction, only to have it evaporate at the counter when you’re hit with unexpected car rental fees. 

I know, it feels like a scam when suddenly the daily cost comes at double or more of the price you originally booked on the website. That is why I have decided to organise this guide, so that you are ready with all the knowledge and practical tips you need to avoid or significantly minimise these fishy fees.

By the way, I rented my first car in the 90s for a drive around Bali. An incredible experience where I started my learning curve, but let’s jump into the first, probably most hated, trap.

The Insurance Upsell – Be prepared

You’ve booked your car, but then comes the “incredible car insurance fee” at the counter, and you feel like you can’t say no. What’s going on here?

When you rent a car, third-party liability insurance is usually mandatory in most countries (Europe, North America, Australia and I could keep going). This covers damages or injuries you might cause to another person or their property. 

Most rentals also include a Collision Damage Waiver (CDW), sometimes called a Loss Damage Waiver (LDW). While technically not insurance, it limits your financial responsibility for damages to the rental car itself.

Here’s the kicker: this CDW often comes with an excess (also called liability), which can be anywhere from €500 to a whopping €5,000 (roughly USD 5,000, I will keep using Euros blindly assuming €1=US$1). 

This means if there’s an accident, you’re out of pocket for that amount before the CDW kicks in. That’s when rental companies will try to upsell you full insurance, charging you between €20 and €50 a day, which, let’s be honest, can easily exceed the cost of the car rental itself.

Moreover, It may not even cover the full excess but only limit it down to €300-€500, which is a joke in my opinion.

My tip? Never buy full insurance at the desk; it’s the most expensive way to do it!. Besides, you will feel under pressure and you may not read all the small print that may limit coverage, for example, to the tyres or the windscreen.

Check your credit card first! Many travel insurance policies included with credit cards offer full rental car insurance that covers your excess. Just be aware, some credit card insurances might have their own excess (typically €300-€500), which can defeat the purpose a bit.

What I have been doing for the last 5 years is to add full insurance for €7 to €8 per day, on my favourite comparative website called DiscoverCars .

I love this website because it works as an Airbnb for car rental companies, where every provider is ranked by customer feedback. I always filter above 8-star ratings to get the most trusted companies. I then usually book from that short-list, and so far, I’ve never been disappointed. Besides, with the full insurance, in case of any accident or damage, I won’t have any extra cost (great peace of mind for me).

Fuel Charges – Be smart

Fuel policies can be a sneaky way to add costs if you’re not careful. There are usually 4 fuel policies

• Full to Full (The Best!): Most companies operate on this policy. You pick up the car with a full tank and return it full. It’s easily done, as most airports have a petrol station just outside.
• Same to Same (still good): You will have to return the car with the same level of petrol. It’s not as easy as the previous policy, but still plan carefully, and it will work.
• Empty to Empty: Some companies might give you the car empty and expect it back empty. Any petrol left in the tank when you return it will be lost, so you’ll need to plan your fuel stops carefully. It’s also kind of annoying to go to the petrol station just as the first stop of your trip.
• Full to Empty (The Worst!): A small number of companies will give you a full tank but charge you an initial, usually higher-than-market price for it. Any leftover petrol is lost. This is definitely the policy to avoid.

My tip: Always aim for a “full to full” policy, or at least “same to same”. Always check your policy in the rental conditions before booking. My honest remark here is that companies with full-to-empty are usually the ones that may scam you also for other things.

My Italian fuel tip: In Italy, you can save around 10% on petrol costs by using the self-service pumps compared to the servito (full service) ones. 

Another tip: When returning the car, refuel just before drop-off, keep your receipts, and even take a photo of the fuel gauge to avoid disputes. 

Excess Mileage Fee – Limited or unlimited

With most car rentals nowadays, you’ll get unlimited mileage. However, this isn’t always the case, especially with luxury cars, where a bonus of 100-150 kilometres per day might be applied. Limits can also apply to long-term rentals or leases.

My tip: Always check the mileage policy before booking your car, as going over the limit can result in significant charges. Budget usually 15c-20c/km

Example: Let’s assume you are renting a car for 2 weeks at €20/day (total cost of €280) with a 100km/day mileage limit, or 1,400km/trip. Once you return the car, you have actually driven 2,000km. You have 600km extra mileage, which, at €0.20/km, makes an extra charge of €120 or roughly 45% more than you originally estimated.

Late or Early Return Fee – Timing is Everything!

Life happens, but car rental companies aren’t always forgiving when it comes to return times.

• Late Return: Returning your car even one hour late could result in an extra day’s charge.
• Early Return: Surprisingly, returning the car one or two days in advance can also incur a fee. Don’t be caught off guard if your plans change.

My tip: I always add a small buffer to my return time. Returning the car an hour early is usually fine. If you absolutely must return the car significantly earlier, call the rental company in advance. They might be able to rent the car to another customer, potentially saving you a fee.

Car rental fees under 25 and Senior Drivers

These fees can quickly add up, especially on longer trips.

• Young Driver Fee: If you’re 25 years old or younger, you’ll likely face a young driver fee, typically between €10 and €25 per day. Some companies won’t even rent to those 21 or younger.
• Senior Driver Fee: This fee can also apply to drivers over 75 years old.
• Additional Driver Fee: Planning to share the driving? Expect to pay around €10 per day for each additional driver. Agree on a single driver in advance to avoid this fee.

My tip: If you are a young/senior driver, when checking prices on comparative websites, don’t just look at the car cost; check for any young/senior driver fees and how much they are. You usually find these fees in the rental conditions.

Airport Surcharge Fee – Rent Off-Site for Savings!

It’s super convenient to pick up your car right at the airport, a few metres from the gate. But this convenience often comes with an “airport surcharge fee”.

My tip: To avoid this fee, rent your car from an off-site rental company. These companies are typically only 5-7 minutes from the airport and offer free shuttles to pick you up and drop you off. These off-site companies are also usually up to 20-30% cheaper. 

GPS System – Not worthy

The idea of having a map in front of you giving you directions may sound like a great idea, especially in a new country.

Well, more often than not, these car GPS systems are outdated and not connected to the internet, which means no traffic updates, and this can make a massive difference in your route and help you avoid accidents or delays.

My tip: Use Google Maps or Waze on your mobile phone as your GPS system during your holiday. It’s free, usually more up-to-date, and provides real-time traffic information. Just make sure you have a charging cable, as a mobile GPS can drain your battery quickly.

Toll Charges and Vignettes – Planning Your Route

Depending on the country you’re visiting, you might encounter various toll charges.

• Some countries don’t charge tolls, others have a reasonable fee, and some require a “mortgage to pay” for them. Italy and France are two of the most expensive countries for tolls, averaging about €0.15 per kilometre. For example, a trip from Paris to the south of France can cost €70-€80 in tolls. You can usually pay tolls with cash or a credit card. 
• If you’re staying in a country for a long time or driving across multiple countries, for example in Europe, a transponder can be a good idea, as it charges directly to your credit card. However, some rental companies may add processing fees for Telepass systems.
• Countries like Australia use an AI system to recognise the number plate and charge accordingly (to the rental company or to you, if you have set it up for that)
• Some countries, like Austria, Switzerland, and Hungary, don’t have traditional tolls but require you to buy a vignette (a sticker or digital sticker for your car) for the duration of your stay. These aren’t as expensive as tolls but are still a fee to remember.

My tip: The only way to avoid most tolls is to take secondary roads. Often, these are the most picturesque routes and truly the best way to enjoy the country. Use navigation apps like Google Maps, which include an “avoid tolls” filter when calculating the route.

Cleaning Fee – A Quick Clean Can Save You Some Money

If you return a car that’s “too dirty,” you could be charged a cleaning fee of €50 to €70.

My tip: Before returning the car, I always give it a quick clean at one of the automatic washes. It typically costs me only €10 and takes about 10-15 minutes, easily avoiding that much more expensive fee.

You can also try to quickly clean it with water, and most importantly, with a brush, clean the car interior. The first impression will count, so it doesn’t need to look new, just not overdue for a wash

One-Way Fee: Sometimes It’s Better to Fly!

This fee applies when you return the car to a different location than where you picked it up. The one-way fee can be quite expensive, as the rental company needs to pay someone to drive the car back to its original destination. This cost can become massive if you’re planning to return the car to a different country.

My tip: If you’re considering a one-way rental, especially across borders, it might be cheaper to return the car where you picked it up and take a train or even a flight to your next destination instead. Always check the specific one-way costs with the rental company beforehand.

Wrapping It Up

There might seem to be plenty of possible fees when renting a car, but if you’re prepared with these tips, you’re going to minimise or even avoid most of them. Being informed and knowing what to look out for is your best defence against unexpected costs. 

Remember, booking online with a reputable aggregator like DiscoverCars, opting for their inexpensive full insurance, and familiarising yourself with the rental terms are key steps to a hassle-free experience.

And most importantly, if the car rental company starts sending messages before pickup with new fees or increased prices, well, this is not a good sign. My final tip here is to just cancel (usually free of charge up to 24 hours from the rental period) and go with another provider.