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Rental Car Companies: Rules of the Road

Renting a car can provide freedom and flexibility when you travel, but it can also be confusing and expensive if you're not careful. Consider these tips to keep your trip on budget.

Make reservations online. Don't wait until you reach your destination. Most rental companies offer discounted rates online—especially if you book in advance or at the same time you book your flight.

Downsize to economize. If you can take the gamble, rent the smallest car at the cheapest rate. About half the time, the rental company won't have the small car you ordered and will have to give you a larger car at the small-car price.

Don't duplicate insurance. Did you know you are already likely covered and don't need the insurance the rental company wants to sell you? In many cases, whatever coverage and deductibles you have on your own car apply to your rental car. In addition, if you have a Visa credit card, you are automatically enrolled in Visa's Auto Rental Collision Damage Waiver Program, which provides free 24-hour coverage on damage caused by collision or theft. Just make sure you book the car with this card!

Inspect the vehicle closely before driving it off the lot. Once you sign the rental contract, you're legally responsible for any damages to the vehicle—even those that may have gone unnoticed while it was still on the lot. Also, make sure things like lights and turn signals work. These are often overlooked in the pre-rental inspection.

Fill 'er up. Many companies now offer prepaid fuel plans, but the plan that's most affordable is to return the vehicle with a full tank of gas.

Additionally, if you are a member of Local Government Federal Credit Union, which you are eligible to join if you are a local government employee, you can receive a discount at Hertz Car Rental. Just call 800.654.2200 or visit www.hertz.com and have CDP code 1575008 ready.