Renting a car should be simple, but rental companies love sneaking in extra fees, overpriced add-ons, and shady policies that drain your wallet before you even hit the road.
Here are 10 rental car ripoffs you need to watch out for—and how to avoid them.
1. “Mandatory” Insurance That Isn’t Actually Mandatory
The Ripoff: Rental agents push expensive insurance ($20-$40/day) by claiming you must buy it.
How to Avoid It:
- Check if your credit card offers rental coverage—many do.
- Your personal auto insurance may already cover rentals.
- Decline it unless you truly need extra protection.
2. “Prepaid” Fuel That Costs You More
The Ripoff: Rental companies offer a “convenient” prepaid fuel option—but they charge way more per gallon than local gas stations.
How to Avoid It:
- Refill the tank yourself before returning the car.
- Keep your gas receipt as proof.
- If they charge you anyway, dispute it with your credit card.
3. Sneaky Extra Fees (Like “Vehicle Licensing” and “Concession” Fees)
The Ripoff: Rental contracts include mystery fees like “concession recovery,” “licensing,” or “facility” fees that inflate the total cost.
How to Avoid It:
- Ask for a full fee breakdown before signing.
- Compare rates from different locations—airport rentals always have higher fees.
- Book through third-party sites like Costco Travel, Priceline, or Kayak, which sometimes waive certain fees.
4. Charging for an Extra Day If You’re Late by Minutes
The Ripoff: Return your car 15 minutes late? Some companies charge you for an entire extra day.
How to Avoid It:
- Ask about grace periods before renting (some give 29-59 minutes).
- Plan ahead and return the car early if possible.
- If you’re late, call ahead and negotiate—some companies may waive the charge.
5. Outrageous “Damage” Claims
The Ripoff: Some rental companies blame you for pre-existing damage or charge hundreds for minor scratches.
How to Avoid It:
- Take photos and videos of the car before and after rental.
- Get an employee to sign off on the car’s condition when you return it.
- Use a credit card that covers rental car damage for extra protection.
6. GPS or Toll Pass Rentals That Are a Total Ripoff
The Ripoff: Rental companies charge $10-$15 per day for GPS or toll passes that you can get cheaper (or free) elsewhere.
✅ How to Avoid It:
- Use your phone for navigation (Google Maps & Waze are free!).
- Bring your own toll pass (or pay tolls manually if possible).
- Turn off toll pass devices if you don’t want to be charged automatically.
7. Charging for “Upgrades” You Didn’t Ask For
The Ripoff: The agent tells you “we don’t have the car you reserved”, then offers a “free upgrade”—only to hit you with a higher rental fee later.
✅ How to Avoid It:
- Stick to what you booked—if they upgrade you, confirm it’s truly free.
- If they charge you, demand the price from your original booking.
- Book through a reputable third-party site that guarantees the rate.
8. Extra Driver Fees That Are Completely Unnecessary
The Ripoff: Rental companies charge $10-$15 per day per extra driver—even for spouses or family members.
How to Avoid It:
- Some companies (like Costco Travel) waive extra driver fees.
- Hertz and Enterprise waive fees for spouses in certain states.
- If possible, stick to one driver to avoid the charge.
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9. Unreasonably High Young Driver Fees
The Ripoff: If you’re under 25, rental companies slap on massive extra fees—sometimes $30+ per day.
How to Avoid It:
- Check if your credit card or employer has rental discounts.
- Some companies, like Hertz and Enterprise, waive fees for AAA members.
- Turo (peer-to-peer rentals) sometimes has lower fees for young drivers.
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10. Overpriced One-Way Drop-Off Fees
The Ripoff: Renting in one city and dropping off in another? Expect to pay hundreds in extra fees.
How to Avoid It:
- Compare one-way rental rates at different locations (smaller towns often charge more).
- Consider taking a short flight instead—it might be cheaper.
- Some companies (like National and Hertz) sometimes waive drop-off fees during promotions.
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