What you need to rent a car

To rent a car, you need a valid driver's license, a credit card in your name, and proof of insurance. Most rental companies require you to be at least 21 years old, though some charge extra fees for drivers under 25. A few companies will rent to drivers as young as 18, but expect higher daily rates and stricter vehicle restrictions.

Your driver's license must be current and not suspended. If you have an international license, bring your passport as well — some companies ask for both. The credit card holds a deposit (usually $200 to $500) that the company releases after you return the car undamaged. Debit cards are rarely accepted for the deposit, even if you have the funds available.

Insurance is the piece most renters get wrong. Your personal auto policy may already cover rental cars, or your credit card may offer rental coverage. Before you book, call your insurer or credit card company and ask specifically whether rental cars are covered and what the limits are. If you have no coverage, the rental company will sell you their own insurance at the counter — this is expensive but necessary.

Key Takeaways

  • You must have a valid driver's license, a credit card in your name, and proof of insurance before you arrive at the rental counter.
  • Check your personal auto insurance or credit card benefits before booking, because rental company insurance sold at pickup costs significantly more.
  • Drivers under 25 usually pay extra daily fees, and some companies will not rent to drivers under 21 at any price.
  • Inspect the car for damage before you leave the lot and take photos of any dents, scratches, or stains so you are not charged for pre-existing damage.
  • Return the car on time and with a full tank of gas, or the rental company will charge you a refueling fee that is much higher than the cost of gas at a pump.

How to book a rental car

You can book through the rental company's website, through a travel site like Kayak or Expedia, or by calling the company directly. Websites and travel sites often show lower advertised rates, but read the fine print — taxes, fees, and insurance can double the final price. Calling the company directly sometimes reveals discounts that do not appear online, especially if you are a member of AAA, AARP, or a frequent-renter program.

When you book, you choose a car class (economy, midsize, SUV, and so on) rather than a specific vehicle. The rental company assigns your actual car when you arrive. If you need a particular feature — a car seat, extra trunk space, or a specific transmission — mention it when you book and confirm it again when you pick up the car.

Book early if you are renting during peak travel times (summer, holidays, weekends). Prices rise sharply as the rental date approaches, and popular car classes sell out. Booking a week or two ahead usually saves money and guarantees availability.

What happens at pickup

Arrive at least 15 minutes before your reservation time. Bring your driver's license, credit card, and proof of insurance. The rental agent will ask for your contact information, confirm your insurance coverage, and show you the car you are assigned.

Before you drive away, walk around the car with the agent and inspect it together. Point out every dent, scratch, stain, and chip in the paint. The agent should note these on your rental agreement. Take photos of the car's condition with your phone — front, back, sides, and interior. This protects you from being charged for damage that was already there when you picked it up.

Check that the gas tank is full, the lights work, the wipers function, and the spare tire is in the trunk. If anything is broken or missing, tell the agent before you leave the lot. Do not assume you can report it later — the rental company will assume you caused the damage.

Insurance and damage coverage

Your personal auto insurance or credit card may cover rental cars, but the coverage varies widely. Some policies cover collision and comprehensive damage but not liability. Some credit cards cover damage to the rental car but not damage you cause to other vehicles or property. Call your insurer or credit card company before you rent and ask these specific questions: Does the policy cover rental cars? What is the deductible? Does it cover liability? Does it cover damage caused by you?

If you have no coverage, the rental company will offer you a damage waiver (sometimes called Loss Damage Waiver or LDW) at the counter. This costs $15 to $30 per day and covers most damage to the rental car. It does not cover damage you cause to other vehicles, property, or people — that is liability coverage, which you must have through your own insurance or purchase separately.

Do not buy the rental company's insurance if your personal policy or credit card already covers you. It is redundant and expensive. If you have no coverage at all, buy the damage waiver — the risk of paying thousands of dollars out of pocket is not worth saving $20 a day.

Fuel, mileage, and return policies

Most rental companies charge you for fuel if you return the car with less than a full tank. The per-gallon price they charge is usually 50 to 100 percent higher than the price at a gas station. To avoid this, fill the tank at a gas station near the rental location before you return the car. Keep your receipt — some companies ask for proof that you filled it yourself.

Mileage is usually unlimited on daily rentals, but check your agreement. Some companies charge per mile on weekly or monthly rentals, and the per-mile fee adds up quickly on long trips. If you are planning a road trip, ask about unlimited-mileage options when you book.

Return the car on time. Late returns are charged at the daily rate, sometimes higher. If you are running late, call the rental location and ask if you can extend your reservation — this is usually cheaper than paying a late fee. Return the car clean. The company may charge a cleaning fee if the interior is visibly dirty.

Common rental fees and what they cover

The advertised daily rate is rarely the final price. Taxes vary by location but typically add 10 to 20 percent. A facility fee (usually $2 to $5 per day) covers the rental location's operating costs. A vehicle license fee covers the registration of the rental fleet. These are mandatory and appear on every rental agreement.

Optional fees include GPS rental ($5 to $15 per day — use your phone instead), additional driver fees ($10 to $15 per person per day if someone else will drive), and young-driver fees (extra daily charge for drivers under 25). Roadside information is sometimes offered but is usually redundant if you have AAA or roadside coverage through your auto insurance.

Tolls and parking tickets are your responsibility. If you use a toll road, the rental company will charge you the toll plus an administrative fee. If you get a parking ticket, you will receive it in the mail — the rental company does not pay it for you.

What to do if the car is damaged during your rental

If you damage the car, report it to the rental company when ready. Do not try to hide it or repair it yourself. Take photos of the damage and get a written statement from the rental agent describing what happened. If you were in an accident, call the police and get a police report number.

The rental company will assess the damage and send you a bill if it exceeds your damage waiver coverage or if you did not purchase coverage. If you believe the damage was pre-existing or caused by the rental company's negligence, dispute the charge in writing within 30 days. Include your photos from pickup and any police reports.

If you have personal auto insurance, report the damage to your insurer as well. Your insurer may cover the damage and handle the claim with the rental company, which is often faster than disputing the charge yourself.

Frequently Asked Questions

Can I rent a car without a credit card?

Most major rental companies require a credit card in your name to hold the deposit. Some smaller or regional companies accept debit cards, but they may require a larger deposit or charge higher daily rates. Call ahead to confirm whether a debit card is accepted.

What happens if I return the car late?

Late returns are charged at the daily rate, sometimes at a higher rate than your original reservation. If you are more than a few hours late, you may be charged for an extra full day. Call the rental location as soon as you realize you will be late and ask about extending your reservation.

Do I have to buy the rental company's insurance?

No, if your personal auto insurance or credit card covers rental cars. Check your coverage before you book. If you have no coverage, buy the damage waiver to protect yourself from expensive repair bills.

Can I rent a car with an international driver's license?

Yes, but you will also need your passport and a valid driver's license from your home country. Some companies require an International Driving Permit as well. Call the rental company before you book to confirm what documents they need.

What if I get a speeding ticket or parking ticket in a rental car?

You are responsible for paying the ticket. The rental company will not pay it for you. If you get a parking ticket, you will receive it in the mail at the address on your rental agreement. If you get a speeding ticket, you may receive it by mail or be required to pay it in court.