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5 minutes read. Published on October 19, 2022.
Writen by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers to navigate the ways and pitfalls of borrowing money to purchase the car they want.







Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain confidence to manage their finances through providing concise, well-researched, and clear facts that break down complicated subjects into digestible pieces.









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When you're away on holiday and desire the freedom and convenience of wheels while exploring or require a vehicle while yours is in the shop, chances are you'll take a rental vehicle at some time. There were 1.8 million rental vehicles in service in 2021 . Costs differ based on the kind of car you hire, the rental car firm you select and the location you choose to rent the vehicle. Knowing how these variables influence the cost will allow you budget for the expense. The typical cost of a car rental for renting a car differs depending on factors including location, car type , and rental company. However, the cost average in mid-October 2022 was about $81 per day . To determine the cost you're likely to pay, reach out to Hertz, Enterprise, Avis or other rental companies you're thinking of using to prepare for the cost. The factors that affect rental car prices Several aspects influence the price of your rental -- as well as outside of your control. Reduce costs wherever you can by understanding what impacts price. Car type when selecting the rental car the first thing renters are asking is how much space they need. Car rental companies categorize their vehicles according to their size. Economy cars are usually the least expensive and smallest rental firms offer. They are able to accommodate one or two people, as well as their luggage. The compact or intermediate models offer more space than standard cars generally through more space in the trunk. Intermediate cars accommodate up to four passengers and have a limited volume of bags. The standard vehicles that have full-sized back seats can accommodate four adults. They also provide plenty of trunk space making them an ideal option for families who have plenty of luggage. Luxury vehicles are the most expensive models which range from sleek convertibles to large SUVs and vans. Most of the time the rental cost per day is based on the size and class of the car or truck. But, occasionally, rental companies provide special deals on vehicles in certain categories and, in particular, if they have plenty available. For instance, if the rental company has a small number of economy cars available to rent for a certain weekend, they could offer a discounted rate on the standard cars. Here are the lowest prices for daily use for various types of cars, according to Kayak. Car type
Approximate capacity
Least expensive rate per day
Economy
2 adults, 2 bags
$14
Compact
4 adults, 2 bags
$10
Intermediate
5 adults 3 bags
$14
Standard
5 adults 3 bags
$23
Full size
5 adults 2 bags
$18
Full-size SUV
5 adults, 2 bags
$34
Minivan
5 adults 5 bags
$30
Premium
5 adults, 5 bags
$26
Kayak in October 2022. Location As with other goods or services, costs vary depending on demand and supply. Many people find better car rental rates in the middle of the city, instead of the airport. Rental fees also vary in different areas of the country. Tourist areas that are heavily populated may have lower rental fees than other places due to the increasing competition. They may also have higher rates during the peak season where demand is very high. Location
Average rental cost per day
Atlanta
$50-$85
Chicago
$47-$85
Houston
$51-$84
Las Vegas
$47-$78
Los Angeles
$48-$67
Miami
$34-$64
New York
$68-$111
Orlando
$43-$65
Kayak as of October 2022. Age of the driver The renter's age has a significant impact on the cost. If the renter is younger, more expensive cost, since younger drivers pose a higher risk to rental businesses. Many rental companies do not rent to anyone less than twenty years of age. Rental companies may charge extra fees for renters who are young. Based on the state of residence charges can be anywhere from $40-$65 per day. Take into consideration these costs in determining the driver of your rental. Some states allow fees for drivers in certain age ranges. For instance, hiring at Enterprise in Michigan comes with an additional $40 per day fee for drivers 18 to 20 years old, and $19 per day for those between 21 and 24 years old. Young renters in New York can expect to be charged more than $64.50 due to their age. But not every rental agency will charge these costs. Consider both the daily cost and additional fees when choosing where to rent from. What can you do to get the most bargain on your rental vehicle The cost of a rental car is based on a range of elements however, there are several things you can do to drive away with some extra money in your pocket. Comparison shopping You can save money on your next car rental by shopping around. Prices can vary by rental agency, so doing a bit of research could get you a much better deal. Comparison websites like Priceline, Expedia, AutoSlash and Kayak make it easier to find the best rental car rates. Visit the rental agency's websites to ensure you're getting the most competitive price on the vehicle. Make sure to fill the tank with fuel. Always stop to top up the tank of gas prior to returning the rental vehicle to the agency. You'll save money on refueling. Make reservations early. Booking your rental car in advance allows you to get the right vehicle, avoid lengthy lines and potentially save cash. This is particularly important when you plan to travel extensively during a holiday. Skip add-ons Before getting the keys to the rental, you'll likely receive a number of additional options. Options may include a GPS or toll plan, access to XM radio, and the option of car seat. Avoid these options if can to save money. Another costly option is often presented when you reserve or collect the car. It could add $15 to $30 per day, but could save you thousands of dollars if you're involved in an accident or the vehicle is stolen. The four common types of insurance for rental cars include: Loss and damage waiver (LDW) (also known as collision damage waiver (CDW): provides coverage for damage to the vehicle or stolen Supplemental liability protection: shields you from liability if you damage property or vehicles. Personal accident coverage: will cover medical costs for yourself and passengers (if applicable) when that you get into an accident Personal effects coverage: pays the cost of items that are stolen from the rental car These protections may already be or current auto or homeowners insurance policy. Some have limitations, though, so be sure to check in conjunction with the credit card provider or insurance provider. Hidden fees and other charges Car rental companies also have hidden costs that affect the price of renting. They build some of these fees into the price of the rental. Others may appear on statements for several months following the rental period. Renting a car at the airport costs more than renting from an off-site location. The reason is that the airport has fees, such as an airport concession fee and a customer facility charge that the rental car company transfers to the customer. Certain companies place an authorization hold on the client's credit or debit card. This charge, which ranges between $150 and $500, provides the rental car company with some security in the event that the renter has an accident or is not able to return the vehicle. The company can release the funds within a few days after receiving the rental vehicle back in good state. A lot of companies charge a cancellation fee to renters who cancel their reservations less than 24 hours prior to the rental. If the renter paid prior to the rental, then the company would refund the payment minus the cancellation fee. Renters who wreck the interior or exterior of the vehicle have to be responsible for the repairs . Inexperienced renters could end in paying for damage done by previous drivers. Be sure to thoroughly inspect the car prior to driving it off the lot Take pictures of the apparent damage and inform the employee. The majority of rental agencies have a fee per day to add additional drivers in the rental agreement. The price is decided by the rental agency and the state. Modifying the terms of the rental agreement through a modification or extension may also come at additional cost. The amount you're charged can vary and you may pay a higher daily rate. While knowing about these hidden fees can help renters realize why total rental fees cost more than the rental advertised price, there is usually little that you can do to avoid these charges. The basic rental car costs vary by rental agency, car type location, and the how old the chauffeur is. You'll also find that some locations are more expensive than other markets. However, there are ways to reduce your expenses by searching around, making reservations early and skipping additional charges. Make sure you read the rental contract's fine print to avoid having to pay any unanticipated costs. Find out more


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Authored by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers to navigate the ins and outs of securely using loans to buy a car.



Editor: Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate from late 2021. They are dedicated to helping their readers to take control of their finances with precise, well-studied information that breaks down complicated subjects into bite-sized pieces.






Auto loans editor




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