When you rent a cheap car overseas, the full cost of the car is often not fully reflected in the booking you made online. It’s only until you reach the car rental shop that you realize what the hidden costs were, and that there is almost no way you can avoid them (unless you decide not to rent the car altogether).
So make sure you factor in these hidden costs the next time you rent a car overseas, otherwise you might end up paying more than you expect.
#1 Insurance
Car rental companies usually have a few insurance options available, starting from basic insurance coverage to full coverage ones. The price of the insurance often ranges from about $10-$40 each day.
Some people get their own auto insurance policy instead of the ones offered by the car companies.
In countries/states such as California, there are laws that require you to get an insurance for your vehicle (i.e. Third party liability coverage in California). This means that you have no choice but to get the basic insurance provided by the car rental companies.
The basic insurance differs from company to company. In fact, some basic insurance coverage provided by car rental companies may be as good as the full coverage ones provided by others. Be sure to look through what is covered and what is not before deciding on the insurance to choose.
#2 Young Driver Fee
This fee applies to drivers who are under the age of 25. There is almost no way young adults can avoid this charge. This fee can range from about $10-$30 a day.
It would be wiser to get the oldest person in your travelling party to do the booking, and to put their name down as the driver, especially if they are above the age of 25. Also note that the minimum rental age in most countries would be 21 years old.
#3 Additional Driver Fee
Some companies charge an extra $10-$30 a day for an additional driver. Think twice before you decide to put your partner/friend’s name as a second driver. Some companies cap that charge for people who are renting for longer period.
#4 Taxes
The amount you see online when making a booking is often not the final amount that would be printed on your receipt at the car rental branch. Taxes are included in many countries such as the USA and Canada.
#5 Credit Card Bills
Most (if not all) car rental companies only accept credit cards as the form of payment when you rent the car. Very often, these credit cards need to be embossed for their machines to accept the card (the credit card number should be popping/standing out of the card rather than simply printed).
The final payment can sometimes be paid in cash, but this is not the case with every rental company. Some companies do not accept cash at all, while others accept cash only at certain branches. Paying by cash would save you some money because the rates given by credit card companies would be less competitive from what you can get at the moneychanger.
Lastly, be sure to check through your receipt before signing to make sure that no extra costs that you are unaware of have been added.
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