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Renting a car is a common way for people to get around when they are traveling. However, there are many things to keep in mind when renting a car.

One important thing to remember is to always compare prices. There are often hidden fees that can make a rental more expensive than it should be.
Paying in Advance
Many rental car companies offer a "pay now" option where you can pay for your rental in advance. This is a good thing for them, because it gives them guaranteed business. But it can be a bad thing for you, because it will usually charge your credit card in one big chunk.

Prepayment can also limit your flexibility if you change your plans. Most major rental car companies have cancellation fees for prepaid bookings, which can be quite costly if you cancel within 24 hours.

Additionally, you may need to provide proof of insurance if you choose to prepay for your rental. While this can be easy to do, it can add extra hassle if you’re traveling overseas and don’t have proof of coverage. Some rental car companies will accept the purchase protection provided by your credit card, which can ease this problem. But this isn’t always the case.
Choosing the Right Car
Even if you own your own car, there are many occasions when renting one makes more sense. When you’re renting, make sure to select the right car for your needs. Choosing the right car can save you time and money.

Start your search on travel websites like Kayak and Priceline, and use apps such as Autoslash to track prices. Also, check out a few different locations to see which has the best selection of cars, as one-way fees can add up quickly.

Consider the number of people you will be traveling with, and what type of car they may need. For example, a larger vehicle like an SUV is ideal for family trips, while smaller cars like sedans are good for solo travelers or couples. Also, remember that rental agencies typically have a limited amount of each size of car. Hence, calling ahead to see what kind of cars they have in their fleet may help you narrow down your options.
Choosing the Right Location
While it may seem obvious to pick up and drop off a car at the same location, it can add significant costs if you do not. Some rental companies charge a fee to drop off a car at another location, and they may also have different return times or requirements. Ideally, you want to keep the rental for as long as possible and avoid incurring extra fees.

Many car rental companies offer a variety of add-ons that you can pay for at the counter, such as GPS, toll plan, access to XM radio and even car seats. Try to skip these extras to save money.

Be sure to check reviews on the various rental agencies online. Many of these sites aggregate prices and coupons from various agencies, and can help you find the best deal. Beware that some of these sites tend to push insurance, so it is important to compare offers and read the fine print.
Choosing the Right Time
We’ve all heard horror stories of people booking last-minute rentals only to find out they’re paying a lot more than the prepaid, fixed rate they booked at. But this isn’t always the case. Rental car companies often have incentives to entice people into their cars, and if you’re willing to keep checking rates (or using apps like Autoslash that track prices for you) you can sometimes save money by changing your reservation.

You can also reduce your costs by skipping add-ons that aren’t necessary. For example, many rental car companies charge extra for gas or a second driver. But if you have your own personal car insurance that covers you when you rent, then this probably isn’t an issue for you. You can also save by not prepaying for a full tank of gasoline, as most rental companies allow you to return the car with an empty tank and refill it at a lower cost.