7 Rental Car Fees to Avoid
Rental car fees add up. You could pay double the daily rate unless you just say no at the counter.
Alexandra Svokos
For many travelers, nothing beats a great deal on a rental car. But to avoid the worst rental car fees, you'll need to do a bit of homework and practice saying "no."
The average daily rental car rate was $62.25 across 100 U.S. airports, according to a report from Cheap Car Rental released in December 2025. However, rental car costs vary widely depending on the type of vehicle, rental company, time of year and where you are picking up or dropping off the car. For example, if you rented over the week of Christmas, average rates jumped up to $84 per day.
On top of those factors, pesky fees can quickly drive up the cost of your rental car. While you may have picked a budget-friendly pick-up location, those fees can make it costly. On the bright side, though, some rental car fees are avoidable.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Here's how to dodge seven fees and add-ons for your next car rental.
1. Airport pickup
Some rental car companies charge an "airport concession fee" or "concession recovery fee" if you pick up a car at the airport. These airport pickup fees can range from a few bucks to $10 or more a day. You can avoid them — and potentially get a lower rate overall — by renting from a facility a few miles away from the airport.
Pro tip: When comparing the cost of an airport rental car with an off-airport rental car, make sure to factor in the cost of transportation, such as an Uber or taxi, to pick up the vehicle and to return to the airport after you drop the car off.
2. Insurance
Agents often try to upsell customers on car insurance at the counter — and insurance can sometimes double the cost of your rental. Kiplinger personal finance writer Rachael Green explains: "Technically, what rental car companies are offering you is usually not insurance, but a waiver. Basically, for a fee, you can waive responsibility for damage to the rental car while you have it."
These fees can cost $13 to $30 per day or more. But, Green writes, your primary car's insurance policy likely covers damages to rental cars and other property damaged in an accident.
Moreover, some credit cards cover rental car insurance, although coverage amounts vary. Check with your insurance agent and credit card provider for the specifics.
3. Additional drivers
Your rental car company may charge extra for you to add an authorized driver, from around $5 to $15 a day per driver. Joining the company's loyalty program can sometimes eliminate additional driver fees for spouses or domestic partners.
For example, Dollar, Hertz and Thrifty offer this perk to their members. If you're a Costco member, Alamo, Enterprise, Avis and Budget waive the additional driver fee in the U.S. and Canada if you rent through Costco Travel.
4. Refueling
Rental car agencies often charge a higher price-per-gallon than market value to refill the tank when you return the vehicle. It's known as a "prepaid fuel" charge, and it's another instance where convenience comes at a price. (To Enterprise's credit, the company is transparent on its website about its refueling rates being typically higher than the local pump price.)
A simple solution: Fill up the vehicle yourself at a nearby gas station before you return the car.
5. Extra miles
Many rental car companies let you choose between an unlimited mileage or a limited mileage policy. The allowance for a limited mileage policy can vary, but after you reach the cap, you'll be charged for each additional mile, usually around $0.10 to $0.25 per mile, according to Kayak.
Therefore, calculate roughly how many miles you expect to drive before selecting a limited mileage policy. And, be aware: You may see different mileage restrictions within the same rental company for certain cars, with lower mileage allowances for luxury and exotic vehicles, says AutoSlash, a car rental deals website.
6. Toll transponders
Many rental car companies charge a daily fee for using their toll transponder, typically running between $5 and $10 a day. So, bring your own transponder, like your E-Z Pass — or use Google Maps or Waze to avoid toll roads when possible.
If you do bring your own, AAA advises: "You'll also need to go to the website where you manage your transponder and register the rental car details" — and remember to take it out of the car when you return the car.
Pro tip: Some companies also offer an option to "prepay" unlimited tolls. If you know where you'll be driving, check the route beforehand to see how much tolls would cost (Google Maps makes this easy), and then see if the unlimited fee is higher or lower.
AAA suggests the unlimited fee option is sometimes worth it "on short rental periods and interstate, one-way rentals," but can add up if on a multiday trip that doesn't involve lots of toll roads. But be aware of restrictions on the "unlimited" option; for example, some unlimited toll options from rental car companies don't include the new Congestion Relief Zone fee in Manhattan.
7. Satellite radio
Most rental car companies charge a fee for SiriusXM, including Budget ($8 per day or $30 per week), Enterprise ($6 per day or $25 per week), and Hertz ($7 per day). Generally, this fee is easy to skirt, since car rental companies usually require you to opt in for satellite radio service.
Bonus tip: Check the invoice
So, you've gone through each optional fee on your rental car and feel confident in your decisions. But when the charge hits your credit card, something looks off. Oh no: You were charged a fee you thought you'd skipped!
The way to avoid this is to be sure to check what you're being charged for before you accept the keys to the car. Talk to the desk agent and ask them to review what's on your booking. You can ask them to print it out for you to check it thoroughly yourself, too. This extra step will save you frustration when you get home.
Related Content
-
$100,000 Travel Emergencies You Don’t See Coming and How to PrepareTravel emergencies can get expensive fast. Here's how to protect your wallet from the worst case scenario.
-
Ask the Tax Editor: Residential Rental Property QuestionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on reporting income and loss from residential rental property.
-
11 Stock Picks Beyond the Magnificent 7With my Mag-7-Plus strategy, you can own the mega caps individually or in ETFs and add in some smaller tech stocks to benefit from AI and other innovations.
-
$100,000 Travel Emergencies You Don't See Coming and How to Prepare
Travel emergencies can get expensive fast. Here's how to protect your wallet from the worst case scenario.
-
The Financial Details Every Couple Should Share (Before There’s an Emergency)From passwords to policy numbers, having shared access to key accounts can prevent financial chaos when life throws a curveball.
-
I’ve Played 1,300+ Golf Courses: These Are the 4 on My 'Must-Play' List for 2026These four luxury golf courses offer an extraordinary experience for players this year.
-
Your Post-Accident Survival Guide, From an Insurance ExpertAfter a car accident, stay calm and document everything to preserve the facts. Remember: You don't have to solve the problem — that's why you have insurance.
-
How Prices Have Changed in Trump's First YearTrump campaigned on bringing prices down for Americans. Here's where prices stand one year into his second term.
-
Beyond the Bar: Your 5-Step Guide to Discovering Whether a Lawyer Is ShadyResearch shows you can't rely on some state bar websites to vet a lawyer you're considering hiring. Here's how to check out a lawyer before you hire.
-
6 Practical Steps to Help Keep Your Student Focused on College Rather Than the Financial StrainToo many students drop out due to financial strain. This plan can help families plan for the costs and get timely aid that sees students through to graduation.
-
How to Plan a (Successful) Family ReunionFrom shaping the guest list to building the budget, here's how to design a successful and memorable family reunion.
