Car Rental Rip-Offs! Hidden Fees and Fake Damage Claims

Avoiding Hidden Car-Rental Costs

Car-rental costs can rise well beyond the advertised rate through fees and add-ons. Lauren Fix advises renters to:

• Read the rental agreement and ask for a full breakdown of charges before signing.
• Be cautious about prepaid fuel plans, which may cost more than refueling the car yourself.
• Check what coverage their personal auto insurance and credit card provide before deciding whether to buy extra insurance.
• Photograph and video the car inside and out at pickup and return to document any existing damage.
• Ask about the real costs of a “free” upgrade, including its fuel use and insurance implications.
• Check early- and late-return rules, and add everyone who may drive the car to the rental agreement.
• Compare airport and city-center rates with nearby off-site locations. Consider bringing a car seat or using a phone for navigation instead of paying for rental extras.

Costs and Preparation

Fix says U.S. rental companies collected more than $2 billion in optional insurance and add-on fees in 2024. She argues that renters should prepare carefully because transparency and regulation remain limited. She also suggests using an AI tool to help explain a rental contract.

Presenter: Lauren Fix