Top Tips to Save Money on Rental Cars When Traveling

Renting a car can make traveling so much more comfortable and convenient. It can also eat into your budget, with so many extra costs and hidden fees that the final cost ends up being way higher than you ever expected.

But it doesn’t have to be that way. After years on the road as full-time international travelers, we’ve learned enough tricks to create this guide on how to save money on rental cars. We know the traps to avoid, the costs worth taking, and the key to making a rental vehicle fit into even the lowest budget trips.

10 Tips to Save Money on Rental Cars

1. Book Your Rental Car at the Right Time

Ready to learn something surprising? We all know that the standard money-saving advice for travel bookings is to book early…but with rental cars, we actually recommend the opposite. According to both Forbes and NerdWallet, the average price of rental cars actually goes down the closer it gets to your booking date.

That’s great news for us digital nomads who often don’t even know where we’re going until a few weeks before.

Obviously, booking last-minute also comes with risks. E.g., certain models (or even entire fleets) can get booked out in advance for peak travel seasons. So, to avoid being left stranded and get the lowest deal, our strategy is to book a car as soon as you book your flights…but choose a company with free cancellation. Then, check again the week before, and if the price is lower, you can simply cancel and rebook the same car at a lower rate.

2. Always Check a Car Rental Comparison Site

Speaking of finding the best deals, we have to make sure you’re checking car rental comparison sites before booking. Our go-to is DiscoverCars.com, as it keeps the search as simple as possible, while also checking all the details that could actively save you hundreds.

We don’t always recommend these types of comparison sites, but when it comes to rental cars, they genuinely save you so much time and money. There are just so many car rental companies to choose from, with so many different car types, costs, and payment options for each one.

Take DiscoverCars.com, for instance. It has 1,000+ car rental brands for destinations all over the world, presenting you with the best options for your trip in an instant. Plus, since we’re talking about saving money specifically, we should mention that DiscoverCars.com negotiates rates directly with the rental companies, meaning you get a lower price than going direct.

3. Check Real Customer Reviews

Just because a car rental company has the best rates on paper doesn’t mean it’ll save you the most in the end. You can easily get caught up with hidden fees, dodgy cars, or (worst of all) blame for damage that you did not cause.

We recommend you check real off-website reviews of a company before booking anything. You can look on Google, check the ratings on your car rental comparison site, or use tools like TrustPilot to see what previous customers actually have to say.

If you are researching through DiscoverCars.com, they actually feature reviews from real customers for each rental company. This is incredibly practical because it lets you compare authentic feedback and ratings for everyone, all in one place.

4. The Pickup/Drop-off Spot Matters

Probably the easiest way to immediately drop the cost of your rental car is to avoid picking it up at the airport. We know it's convenient…but so do the airport and rental car companies. That means hidden fees and hiked-up prices.

To save money on your rental car, we definitely suggest looking up the neighbouring pick-up location to see the price difference. Don’t forget, you’ll need to factor in the cost of getting to this other location, but a lot of cities will have cheap public transport, or even shuttle buses directly to the car pickup spot.

5. Go For an Economy Car

We love this tip for two reasons. One, it should go without saying that a smaller car almost always costs less. If you’re on a tight travel budget, a fancy car probably isn’t the best use of your money, and honestly? So long as it can fit your luggage and is appropriate to drive around wherever you’re going (a Toyota Yaris is great in the city, but less so on an icy mountain road), you really don’t need anything more.

Secondly, the economy cars tend to be the most popular. Why is this a good thing? Because it means they’re more likely to sell out, and leave you with a free upgraded vehicle. And who doesn’t love that? Seriously, this is how we ended up driving a Ford Mustang around Palm Springs a few years ago.

6. Don’t Get Tripped Up By Hidden Costs

There are lots of extra costs that you can avoid to immediately save money on your rental car. For instance, you don’t need to pay extra for a navigation system add-on. A lot of cars already come with this built in, or if they don’t, you can buy a cheap phone dock for less than $10 and use Google Maps to navigate.

It's also important to check for any mileage restrictions on your rental car. Some companies advertise a low daily rate, but are actually capping how far you can drive at that rate. If you go over the limit, you’ll be charged per mile, and those fees add up fast.

We also tend to ignore toll pass add-ons unless you’re planning to drive long distances on toll roads daily. Yes, there are times when these toll passes can be money savers, but in general, it’s cheaper to just pay the tolls as you go.

7. Check the Deposit Requirements

The majority of rental car places will require you to put down a deposit, and you might not get that money back until a few days after you return the car…or longer. This could be anywhere from $200 to $1,000+, depending on the car and location, which is a big lump of cash that you might not have accounted for, and won’t have during your trip to spend on activities.

Even if you put the deposit down on a credit card, you have to remember that your credit limit is still reduced by that amount, too. E.g., a $500 rental car deposit suddenly cuts a $1,000 credit limit directly in half.

8. Adding a Second Driver for Free

First of all, you need to know that in the majority of cases, adding a second driver means paying an extra fee. Of course, the easiest way to avoid this is to only have a single driver, but if you’re facing long drives and road trips, a second driver is the best way to avoid fatigue and increased crash risks.

Luckily, there are workarounds to add a second driver for free. Some rental companies waive the fee if the second driver is your spouse, or for employers/employees if you can prove you’re on a business trip. You can also get this perk through certain memberships (like AAA) or as a credit card perk with some cards.

9. How to Choose the Right Insurance

Did you know that if you’re renting domestically, there’s a chance you don’t need to buy rental car insurance at all? So long as you already own a car, your primary car insurance probably also covers you for rental vehicles. Otherwise, you should check if the credit card you’re paying with includes basic rental insurance.

Not getting insurance at all might seem like a good idea at first, but we promise you there’s nothing budget-friendly about being liable should something bad happen. If you’re in a new country, driving on the other side of the road for the first time, and in difficult weather conditions, then choosing the most comprehensive insurance option might just end up being the best money-saving decision you make all trip.

10. Understanding Fuel Policies

Let’s talk fuel. When you rent a car, you’re typically going to have a full-to-full fuel policy. This means you pick the car up with a full tank, and need to return it with the same. The problem? The nearby gas stations tend to have way-inflated prices.

To avoid this, the best thing to do is fill up your car away from the rental drop-off point, then just top up as needed at the nearest premium rate places.

Sometimes, car rental companies will also have a pre-paid fuel option. This means you can return the car with an empty tank as you’ve “prepaid” for them to fill it up. This is pretty much the worst-case scenario budget-wise. They’ll up-charge you for the fuel, plus you might not even have a fully empty tank when you return the car.

Car Rental Comparison Platforms: What to Look For

Now that you know we always recommend checking a rental car comparison platform, it’s time to tell you how we compare the comparison sites themselves. It might sound silly, but they’re definitely not all made equal.

To find one that’s actually going to save you money, here are a few things to keep an eye out for:

Transparent Pricing: All mandatory fees should be included upfront so you know exactly how much things are going to cost
A Large Suppliers List: You want to be able to compare local rental places alongside the big names
Supplier Ratings: Based on real customer reviews to give you an immediate idea of trustworthiness and value for money
Lots of Filter Options: Search by fuel policies, insurance, deposit payment type, etc
24/7 Customer Service: In case of last-minute changes or issues
Price Match Guarantee: The best comparison sites should get you the best deal every time

As we mentioned, our favourite car rental comparison site is definitely DiscoverCars.com. It meets all of the criteria above, operates in 150+ countries, and has a 4.6/5 TrustScore from 200,000+ Trustpilot reviews.

Saving Money When Renting a Car: FAQs

How to save money on car rental?

Check prices the week before booking, use a car rental comparison site, skip unnecessary add-ons, and choose a smaller car with unlimited mileage whenever possible.

Do rental car prices go down closer to the date?

The statistics show that rental car prices tend to go down closer to your booking date. To save money, book early with a free cancellation clause, then check the price again the days before your date to see if you can get a better deal.

What is the cheapest day for a rental car?

Weekdays from Monday to Thursday are typically cheaper than Fridays and weekends. If you’re booking for a popular holiday, it's probably best to lock in your rental a few months in advance.

Can you negotiate a rental car price?

Individual customers usually cannot negotiate a rental car price…but rental car comparison sites like DiscoverCars.com will do it for you. That’s how they get consistently lower prices than if you book your rental directly from the supplier.