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Renting a Car: Page 2

Information that could save you money on your next car rental.

By Donna L Montaldo, About.com

In addition to CDW coverage, a rental car company also may offer:

  • Personal Accident Insurance (PAI)
    At a daily cost of $1.50 to $4, PAI pays a death benefit and a portion of your medical expenses if you're in an accident.

  • Personal Effects Coverage (PEC) or Personal Effects Protection (PEP)
    At an average daily cost of $1.25, it safeguards your luggage against damage. If your homeowner's policy covers your luggage and other belongings while you travel, you may not need this protection.

  • Refundable Charges
    A refundable charge may be required when you pick up your rental car. The charge varies, but may be hundreds of dollars. Most rental companies make the charge to your credit card but do not process the amount unless you do not return the car as specified in your rental contract. Until you return the car, however, your spending limit on your credit card may be reduced by the amount of the deposit. This may be important if you plan to charge other items to your credit card and are near your credit limit. If you do not have a major credit card, or you do not want to charge the deposit, companies may ask for the deposit in cash.

  • Airport Surcharges and Drop-Off Fees
    These charges can increase the base rental rate considerably. Surcharges apply when airport authorities impose fees for airport use even when rental car companies shuttle you to an off-airport site. Drop-off fees refer to charges that some companies impose to allow you to drop off the car at a different location from the pick-up point.

  • Fuel Charges
    A fuel charge is the amount many rental car companies add to your bill for gasoline. Some companies give you a half-tank at a charge of $15 to $20 and tell you to return the car empty. Other companies fill the tank and charge for the amount of gas you use. Companies that do not charge for the initial tank may ask you to return the car with a full tank. If you don't, you'll be charged the rental company's price for gasoline. It's often much higher than a local station.

  • Mileage Fees
    These fees usually are assessed on a cents-per-mile basis or as a flat fee when you exceed the allotted free mileage cap. Knowing approximately how far you will drive will allow you to select the company that offers the most favorable mileage terms.

  • Taxes
    Taxes are levied by states and some municipalities. You may be able to avoid the higher tax rate of an urban pick-up site if you pick up your rental car at a suburban location.

  • Additional-Driver Fees and Underage-Driver Fees
    These fees are based on the costs a company assesses when you share the driving with another person or when a driver is under a certain age (often 25).

  • Out-of-State Charges
    These are assessed when you drive the car out of the state in which it was rented.

  • Equipment-Rental Fees
    A fee imposed when you order extras such as ski racks and car seats. If these items are important to you, make sure you reserve them in advance.

    Enjoy your trip.

    Information for this article was provided by the FTC.

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