Costco's car rental discounts come through partnerships with Hertz, Budget, and Avis, not through a Costco-branded rental service

Costco does not operate its own car rental fleet. Instead, the warehouse offers negotiated rates and discount codes through three major rental companies: Hertz, Budget, and Avis. Members access these discounts by visiting Costco Travel (the membership's travel booking portal) or by using a Costco discount code directly on the rental company's website. The discount typically ranges from 10% to 30% off the base rate, though the exact savings depend on the rental company, location, vehicle class, and travel dates.

The mechanics are straightforward: you book through Costco Travel, enter your membership number, and the discount applies at checkout. If you book directly with the rental company instead, you enter a Costco discount code (provided on the Costco Travel site) to receive the same rate. Either way, you are booking with the rental company itself—Costco is not holding inventory or managing the transaction.

Key Takeaways

  • Costco members receive discounts through Hertz, Budget, and Avis partnerships, typically 10% to 30% off the base rental rate depending on location and dates.
  • You can book through Costco Travel online or use a Costco discount code directly on the rental company's website; both routes explore the same member rate.
  • The discount applies only to the base rental rate, not to insurance, fuel, tolls, or other add-ons, so compare the total cost before booking.
  • Costco Travel bookings are non-refundable once confirmed, so verify your travel dates and vehicle choice before completing the purchase.

How to find and use your Costco car rental discount

Log into your Costco membership account and navigate to Costco Travel. From there, select the car rental section and enter your travel dates, pickup location, and vehicle type. The site will show you rates from the three partner companies. Once you select a vehicle and rate, enter your membership number at checkout to lock in the Costco price.

If you prefer to book directly with the rental company, go to the Costco Travel website, find the car rental section, and look for the discount code listed for each company. Copy that code and visit the rental company's website directly. Enter your travel details, and when you reach the discount or promo code field, paste the Costco code. The rate will adjust to match the Costco Travel price.

Both methods should yield the same final rate. The Costco Travel route is simpler if you want to compare all three companies at once; the direct-booking route works if you have a loyalty account with one rental company and want to earn points or status while using your Costco discount.

What the discount covers and what it does not

The Costco discount applies to the base daily rental rate only. It does not reduce the cost of optional insurance (collision damage waiver, liability coverage, or personal effects coverage), fuel charges, GPS rental, child seats, tolls, or airport facility fees. These add-ons are priced separately and will appear as line items in your final quote.

Before you book, review the total cost including all add-ons. A 20% discount on the base rate can look attractive until you add a $15-per-day insurance policy and a $5 airport fee. Compare that total against a non-member rate at a competing company that includes insurance in the price. Sometimes the Costco discount is the best deal; sometimes it is not, depending on what you actually need.

Costco Travel booking rules and cancellation policy

Costco Travel car rental bookings are non-refundable once confirmed. You cannot cancel and receive your money back. If your plans change, you may be able to modify the reservation (different dates, different location, or different vehicle class) if the rental company allows it, but you will not receive a refund for the difference if the new booking costs less.

Before you complete your purchase, triple-check your travel dates, pickup location, and vehicle type. Costco Travel does not issue refunds for user error, and the rental company will not refund you either—you booked through a third-party portal with non-refundable terms.

If you need to cancel because of a covered reason (such as a travel insurance claim), you would need to file that claim with your travel insurance provider, not with Costco or the rental company. Costco Travel does not offer travel insurance as part of the booking, so if you want that protection, you would purchase it separately before booking.

Comparing Costco rates to other discount sources

Costco's discount is one option among several. Other discount sources include rental company loyalty programs, credit card travel portals, AAA membership discounts, and aggregator sites like Kayak or Autoslash. The best rate depends on your specific trip.

If you are a frequent renter with one company, that company's loyalty program might offer a better rate or perks (free upgrades, late checkout, waived fees) that outweigh a percentage discount. If you have a premium credit card with a travel portal, that portal may have negotiated rates that beat Costco's. AAA members often receive discounts comparable to Costco's, sometimes better at specific locations.

The practical approach: get a quote through Costco Travel, then get quotes from your credit card's travel portal, AAA (if you are a member), and directly from the rental company's website. Compare the total cost of each, including any perks or protections, and book the cheapest option. The Costco discount is valuable, but it is not always the winner.

Which rental companies partner with Costco and what to expect

Hertz, Budget, and Avis are the three companies offering Costco discounts. Hertz and Avis tend to have broader location networks, especially at major airports and city centers. Budget is often the lowest-priced option before discounts are applied, so a Costco discount on Budget can be very competitive.

All three companies operate under the same basic rental rules: you need a valid driver's license, a credit card in your name, and proof of insurance (either your personal auto policy or the rental company's coverage). Pickup and return procedures are identical to any other rental. The only difference is the rate you pay.

Availability varies by location and date. A Costco discount code does not reserve a vehicle—it only discounts the rate for available inventory. If a location is sold out of economy cars on your travel date, you cannot force them to honor the economy rate for an upgrade. You would either book a higher class at the discounted rate or choose a different location or date.

Membership requirements and who can use the discount

You must have an active Costco membership to access Costco Travel and its car rental discounts. Gold Star (basic), Gold Star Executive, and Costco Business memberships all include Costco Travel access. The membership must be active and in good standing at the time you book.

You do not need to present your membership card at the rental counter. The discount is tied to your membership number, which you enter during booking. The rental company will not ask to verify your Costco status when you pick up the car.

If your membership expires before your rental date, the discount code may still work (rental companies typically do not verify membership status in real time), but Costco Travel itself will not let you log in to book. If you are close to renewal, renew before booking through Costco Travel to avoid any issues.

Frequently Asked Questions

Can I use a Costco car rental discount if I book through a third-party site like Expedia or Kayak?

No. The Costco discount is only available through Costco Travel or by using the Costco discount code directly on the rental company's website. Third-party travel sites like Expedia, Kayak, or Priceline do not have access to Costco's negotiated rates. If you book through those sites, you will not receive the Costco discount, even if you are a member.

Do I earn Costco Cash or rewards points on car rental bookings?

Costco Travel bookings do not earn Costco Cash or warehouse rewards. However, if you use a Costco credit card (such as the Costco Anywhere Visa) to pay for the rental, you will earn cash back or points on that credit card. The rental company may also credit loyalty points to your account if you are enrolled in their frequent renter program.

What happens if the rental company raises prices after I book through Costco Travel?

Your rate is locked in at the time you book. If prices go up, you pay what you booked. If prices go down, you do not receive a refund or rate adjustment—your non-refundable booking stays at the original price. This is why it is important to book only when you are confident in your travel dates.

Can I modify my reservation after booking through Costco Travel?

Modifications depend on the rental company's policy and whether the new dates or vehicle class are available. You would need to contact the rental company directly (not Costco) to request a change. If the new booking costs less, you will not receive a refund for the difference. If it costs more, you will pay the additional amount.

Is the Costco discount better than renting through my credit card's travel portal?

It depends on your specific trip and credit card. Some premium credit cards negotiate rates that match or beat Costco's discount. The only way to know is to get quotes from both and compare the total cost. Costco's discount is competitive, but it is not always the lowest price available.