Public transportation options at tourist destinations such as New York and Paris make a car unnecessary and inconvenient. In some areas, however, public transportation is limited or inadequate. When vacationing in Los Angeles, visiting small towns in New England or traveling through many other places, renting a car is your best bet. Note: All costs listed below are for U.S. rentals as of May, 2009.
Base Costs
The rental cost depends on the car's size and the rental period. Renting a subcompact can cost $38 per day while a full-size van costs $140. It's generally cheaper to rent for a full week than it is to rent for five or more individual days. For example, a subcompact costs $190 for a five-day rental, while a one-week rental runs $152. Most websites automatically calculate the best rate depending on the days entered. However, you might need to ask a phone agent for a weekly rate.
Airport Rentals
Renting at the airport is convenient when flying, but it is also costly. That same $38-a-day rate for a subcompact jumps to $55 at an airport location. Additionally, you're socked with creatively named fees, such as a Facility Charge of $5 and Concession Recovery Fee of 11 percent, that can vary widely depending on the rental car company. To avoid those additional markups, shuttle to a downtown or suburban location and rent there.
Fuel Service Option
The cost of this option is impossible to calculate or compare beforehand. Choosing it means that the rental company charges you for a full tank of gas when you return the car. This is cost-effective only if you return with an empty tank because you don't receive a refund if the tank has fuel. Declining the option could cost you almost double the prevailing price of gas, but only for fuel needed to bring your tank to full. Avoid these unpredictable charges by filling up your tank just before returning the car.
Taxes
Government fees are unavoidable and the same no matter where you rent. Expect a License Fee and Energy Recover Fee totaling about $1 per day. Additionally, you're charged a rental tax of about 10 percent and any prevailing sales taxes. The insurance options below are not typically taxed.
Loss Damage Waiver
This insurance, which costs about $25, pays for any damage done to the car. You might already be covered for this by your personal auto insurance and/or credit card. Check with them before renting. If you aren't covered, choose this option for peace of mind. Be aware, however, that it only pays if you complied with the rules of the rental agreement.
Additional Insurance
Personal Accident Insurance ($3 per day) covers medical care and death benefits. Personal Effects Insurance ($2) covers items you bring into the car but is generally limited to a $500 payout. Additional Liability Insurance ($12 per day) provides up to an additional $1 million worth of coverage for property damage, injury or death. Check with your homeowner's, life, and health insurance companies to see if they cover these eventualities.
Final Costs
Using the aforementioned charges, a one-day subcompact rental at an off-airport location costs $46.40 with no optional fees but with all taxes. Renting the same subcompact at the airport with all the options nearly doubles the cost to $89.
