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If you need to rent a car on your next holiday trip, think twice. Do you need to travel into the country far from the city and have a list of places of interest to visit? If your answer is a yes, then renting a car is a sound option. Many travellers have the assumption that car rental rates are all about the same, and that shopping is a waste of time. You may be surprised that rates do vary, sometimes by quite a bit, between companies and destinations. Just check several car rental companies on the net and you will see what I mean. It pays to know the hidden costs involved and to avoid paying unnecessarily to rent a car for your holiday trip.

The tips below will help you to save costs on your next holiday trip abroad:

1) Surf the Net. As is the case with many purchases, you’ll usually find the best rates on the Internet. Renting online will afford you the luxury of seeing what rates look like on any vehicle you intend to rent. Also, many companies offer special discounts to people who rent online. Rates will obviously vary from company to company, depending on vehicle availability, location and other factors.

2) Go for weekday rates. Weekday rates are cheaper as less people tend to rent cars for holidays on weekdays. If you intend to rent a vehicle for several, go for weekly special rates as they tend to be cheaper than daily rates.

3) Beware of hidden fees and extras. Refuel charges: Typically, renters have two choices when it comes to fuel: You can pay for a full tank of petrol in advance or you can opt to refuel it yourself when you collect the car. Unless you plan on using the entire tank of petrol, prepaying will cause you to pay for more fuel than you actually consume especially if you rent the car just for a day.

Tax charges: Also, you can typically expect to pay 10-15% (or more) in taxes when you rent a car.

Loss and damage waiver (LDW): Rental agencies always push their loss and damage waiver on you when you’re signing up. This option typically provides you with zero-deductible coverage for any sort of loss or damage to the rental vehicle. Unfortunately, it comes at a price — usually $20-$30/day or more.

Individual car insurance almost always covers rentals. Moreover, many credit cards provide car rental insurance if you pay for your rental with the card.

Drop-off charges: If you pick up at one location and return at another, you might be subject to a drop-off fee, even if the other location is just down the road. This isn’t always the case, though, so check at the rental counter.

Mileage limits: In many cases, car rental agencies limit you to a certain number of miles per day (usually around 150). Exceed this limit and you can expect to pay $0.25-$0.50 for each additional mile.

Upsizing: Last but not least, it’s not uncommon for a rental agency to run out of small sized cars. In such cases, the standard practice is to upgrade you to a larger vehicle. The bigger cars get worse mileage, and you might find yourself spending far more on gas than you have anticipated.

 4) Airport rentals are best avoided. It’s often very convenient to rent a car at the airport, but keep in mind that you’ll pay for the privilege. If you’re on a business trip, many times you can rent a car from your downtown hotel. If you can conveniently arrange a hotel shuttle or public transportation from airport to front desk, you’ll save money taking delivery off the airport grounds.

5) Decline the insurance. Companies make big profits from insurance fees. It is very likely, however, that your auto insurance policy at home covers rentals as well. Call your agent to verify it.

Also check with your credit card company to see if using the card to pay for a rental provides collision coverage.

6) Book early. Rates depend on how many vehicles the company has on the lot at the time the rental is made, so sooner is better. Reserve your car at least a week in advance.

7) Avoid renting child safety seats. If you’re taking your child on board, you can save some dollars by bringing your own child safety seat. Rental companies can charge almost $10 per day for child safety seat rental.

As you can see, it pays to take some time to compare prices online. Call up the rental company to clarify any doubts so that you will not get misled by sales gimmicks online. Decide on the best deals and be mindful of the tips mentioned above in order to avoid unnecessary spending.

Tags: car rental tips