Travel

Vacation Budgeting

Rental Cars

If you must rent a car in your destination, shop carefully. A low rate of $19 a day, for example, can easily end up costing $50 or more a day if you are not careful! Here are some money-saving tips:

Determine which size car you really need and don’t pay for a more expensive one. An upgrade of “just a few dollars a day” will add up – and you will likely spend more in fuel with a larger car.

Ask about taxes and fees when shopping for an auto rental. These add significantly to the cost. Also ask about airport fees, and whether a fee will be charged if you have a second driver. Don’t allow anyone else to drive the car (including your spouse) unless you clear it with the rental agency.

Check with your auto insurance company ahead of time to find out what coverage you have when you rent a car, and to decide what you need to purchase. Check your credit cards, since many of them also offer a collision damage waiver that will cover deductibles, if you use that card to pay for the vehicle.

Consider fuel costs carefully. Some rental places will encourage you to purchase a tank of fuel ahead of time at a discounted cost. But you will pay for any fuel you don’t use. Similarly, if you don’t buy fuel in advance and return the car without a full tank, you’ll usually pay a hefty price for the rental company to refill the car.

Plan accordingly and ask about gas stations closest to the return area. Another tip: Make sure the tank is full before you take the car. Traveler’s Beware!” Too good to be true” deals may be just that.

Always check out a company you don’t know, and use your credit card to make the reservation for additional protection. Get refund or cancellation policies in writing, and consider buying travel insurance for extra protection. Restrictions apply to travel insurance policies, so read the fine print.