Car rental is something which on the surface seems simple enough, but is fraught with danger for those who don’t read very carefully the booking conditions and the paperwork that they are signing.

Here are my explanations, tips, and advice, based on many many car rentals, and experiences good and bad over 30 years. I currently hire regularly in Australia from Thrifty and Hertz, and shortly I collect a rental car from Hertz in the UK. My comments and advice are based on those companies and so are totally up to date. Other major car rental companies have very similar terms and conditions.

Rule Number One – read the Terms and Conditions BEFORE booking the car. This document spells out all the fine print. It may contain terminology that is not clear to you, so here is my explanation of what certain terms mean.

• Driver’s licence. This varies from country to country but generally you must have held a valid driver’s licence for over 12 months issued by your state, normally without endorsements or restrictions as a result of some major misdemeanour. In some countries you may also need an International Driver’s Licence obtainable from your state motoring organization. I always carry one to be on the safe side. It does not replace your regular licence which you must also have with you. Hertz in the UK is now specifying that if you are from outside the EU then you must produce an International Licence.
  

• Collision Damage Waiver or Loss Damage Waiver. Car rental from a recognized company will normally include insurance of the vehicle, but there may be an amount of Excess which is not covered even though the costing may say that it includes CDW or LDW. This can be very confusing, so read the fine print very, very carefully to see what the amount of Excess is. This is what you really need to know – the Excess.

• Excess. On a standard car the Excess will normally be between AUD 2,000 and AUD 4,000 and this is the maximum amount of your liability in the event of an accident, and it will be automatically charged to your credit card after the accident. That authority is detailed in the paperwork that you sign at the desk when you collect the car.

• If you want to totally remove the Excess you normally pay an extra daily fee which can be quite substantial if paid directly to the rental company at time of collection – roughly around AUD 30 to AUD 40 per day.Most companies now offer a Standard Excess removal and a Premium one. Only the latter covers everything – well almost!

•  A cheaper way to reduce the Excess may be to hire through a car wholesaler like Rentalcars.com where the daily rate to reduce the Excess to Nil may be as low as AUD 10. But does it cover everything? Or even better, Excess cover can be a part of your travel insurance, which is the best way to go. But make sure that it is a GOOD travel insurance.

• Theft Waiver. Again, even if it says it is included in the rate, look for an Excess and often your liability will still be AUD 2,000 to AUD 4,000. For peace of mind look for an insurance cover which gives you Nil Excess for both accident and theft.

• Insurance Cover Exclusions. Even with Nil Excess cover you will not be covered for damage whilst DUI (Drunk under the Influence of alcohol), taking the car onto unsealed roads, taking the car into forbidden countries, using incorrect fuel, and damage to sub structure or superstructure as a result of poor driving. In these cases your total insurance cover may be void and you will be charged the full value of the damage. Damage to windscreen and tyres is normally only covered under a Premium cover. Hail damage is a grey area – some cover it with their Premium cover, some don’t.
  

• Third Party Liability. This is normally included in all rental agreements to cover your liability to injury to third parties – normally several million dollars.

• Personal Accident Insurance. (PAI). If you have travel insurance, as you should, then you don’t need it.

• Location Fee. Collection from a major airport or, sometimes, a central downtown location often attracts a fee which is normally a percentage of the total rental cost. At Sydney airport most companies currently charge 28.5%. Before booking it is not always possible to immediately identify the location fee on the site when you look at the cost breakdown, so sometimes you need to do some digging. Somewhere you will find it mentioned on the site. Take the time to find it, as you need to know the bottom line cost before booking. And take a printed confirmation with you.

• Some travel “experts” advocate catching a taxi or public transport to a nearby off airport depot to avoid the charge. I am not a big fan of the idea if you have come off a long flight, tired with lots of luggage. And I have found that many airports have such huge fleets that sometimes the base rate is cheaper than that at a suburban depot, so when you add the location fee it is a similar price – swings and roundabouts.
  

• Border restrictions. There may be limitations as to whether you can take a rental car across a border into another country which the rental company considers unsafe, or where there is considerable car theft. Check this one before you hire. From USA into Mexico is often taboo, as is travel from Western Europe into some Eastern European countries. In the latter case a way around it may be French leasing, which we will discuss soon.

• Mileage charges. Unlimited Mileage is the norm these days, but in some countries there may still be a maximum per day and then a charge per mile/kilometer. Read the details.

• One Way Fee. Collecting in one city and dropping in another is simple in some countries, and difficult or not permitted in others. And often within one country you can do it between some cities and not others. This is the case in the USA. This is largely because of different state laws, or because large rental companies are a mix of company owned and local franchisees who need their cars returned to them at the end of a rental.
  

When one way is permitted, the fee can vary widely. If there is a considerable amount of traffic back and forth between two popular cities then the fee may be relatively small for obvious reasons. However the costs can also be very high between less popular cities. To further complicate matters, the one way fee can vary enormously according to the car rental company, so this is where a car wholesaler offering a range of companies can assist.

Collecting in one country and dropping in another is normally so expensive that it is not an option worth considering, as the car has to be transported back to its base and you will be paying for that. However in Europe the French leasing scheme may help you to get around the problem if you are a little flexible.

• Additional driver. This can often be added at an extra cost, on average AUD 10 per day.

• Fuel policy. The rental company will supply you with a car with a full tank and you return it full. If it needs topping up they will hit you double the regular cost plus a fee. The trick is finding a service station near the drop off depot when you have no idea where you are – hang on, there must be an app for that – off you go and find one – your homework.

• Some rental companies have a scheme where you pay for a full tank and then bring it back near empty. There is the catch – near empty! The jury is divided on this one. Do you search to find a service station near the depot to fill the car or play Russian roulette with the fuel supply? Running out of petrol on the Golden Gate Bridge would not be nice. So I prefer the former.

• Car types. Vehicles are grouped according to size and type of vehicle. In each group a typical vehicle is shown but you are not guaranteed that car. It may show a Toyota and you are given a Hyundai, but it should be same size, number of doors and type of vehicle – e.g. hatchback. If you want a particular make, sometimes you can request at time of booking but no guarantees.

• Credit Card. If you book and pay for the vehicle with a credit card sometimes the company insists that you use that same card for the compulsory bond when you collect the car – look out for that one. If you book via a car wholesaler it won’t matter as you will arrive with a prepaid voucher.
  

To hire a car you will need to provide a credit card at the counter at collection, or provide one in advance if you are on a loyalty program. –no credit card, no car. With most of the companies that I have spoken to, unless you supply a credit card at the time of collection, you will not receive the car.

When dealing with a reputable company you have no worries about giving them access to your credit card. I have done it many times overseas with Avis, Thrifty, Hertz, Budget and Alamo with never a hitch. Just be aware that, like a hotel, they will put a hold of AUD 200 or so on the card to cover any extras you may run up which will be released on return of the car.

• Debit card? Basically they don’t like them, although I know that at times some companies will take them. Thrifty Australia is accepting them at present but taking a hold of $750, which is $750 you cannot use until they release it. The problem with Debit Cards is insufficient guarantee of funds for the car rental company in case of unlawful or reckless actions by the driver.

• Hertz UK state – ” Cash and Debit cards are not accepted. This company will not accept prepaid, recharge or virtual credit cards – or any card on which the relevant characters are not raised (‘embossed’)” 

• Yes hotels will allow a cash deposit instead of credit card, but you are not driving the room away! With a car you are taking something worth many thousands of dollars and they want to hold a guarantee. Unfortunately there are some dishonest people out there.

• Yes I know some of you don’t like credit cards. So go back to bank transfers, cash, and travellers cheques like the old days. I am no fan of the banks and credit card companies either, but it makes travel so much easier with a credit card. And I never get ripped off on the exchange rates – want some figures – I have lots. 

That’s it for now. Look out for my blog on car rental – COLLECTING THE CAR.

PS Thanks Jodie from Thrifty Kippa Ring Queensland for that spotlessly clean car today.

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