What Costco Travel Car Rental Actually Is

Costco Travel does not operate its own rental fleet. Instead, it negotiates discounted rates with major rental companies — primarily Hertz, Budget, and Avis — and passes those rates to Costco members. You book through Costco Travel's website or phone line, but you pick up the car from the rental company's location and deal with that company for the actual rental.

The discount comes from Costco's volume purchasing power. Because Costco funnels thousands of members to these companies, the rental agencies offer lower daily rates than you would find booking directly. The savings are real but not unlimited — you are still paying market rates, just negotiated ones.

You do not need to be a Costco warehouse member to use Costco Travel. A Gold Star membership (the basic tier) is required, which costs $65 per year as of 2024, though that price has changed in the past. If you are only renting a car once or twice a year, the membership cost may erase the rental discount.

Key Takeaways

  • Costco Travel negotiates rates with Hertz, Budget, and Avis but does not own or operate rental cars itself.
  • You must have a Costco Gold Star membership ($65 per year) to book through Costco Travel, and the membership fee can offset savings on a single rental.
  • Prices vary by location, season, and car class, and you should compare Costco's rate against the rental company's direct website before booking.
  • Costco Travel rates typically include basic insurance coverage, but the terms depend on which rental company you use and what you select at pickup.
  • You pick up and return the car at the rental company's location, not at Costco, and you follow that company's standard rental policies.

How to Book a Car Through Costco Travel

Go to costcotravel.com and log in with your Costco membership number. Enter your pickup location, return location, dates, and driver age. Costco Travel will show you available cars from its partner companies, sorted by price and car type.

Each listing shows the daily rate, total rental cost, and which rental company operates that location. Click on a specific offer to see what is included — insurance coverage, mileage limits, and fuel policy vary by company and rate tier. Read the fine print before you book, because you cannot change these terms after purchase.

Once you select a car and complete payment through Costco Travel, you will receive a confirmation email with a booking reference number. Print this or save it on your phone. You will also receive a separate email from the rental company (Hertz, Budget, or Avis) with pickup instructions and your rental agreement details.

Comparing Costco Prices to Direct Rental Company Rates

Costco Travel discounts are not automatic wins. A Hertz economy car might cost $35 per day through Costco but $32 per day if you book Hertz's website directly during a promotion. The only way to know is to check both.

Search the same car, dates, and location on Costco Travel and on the rental company's own website. Write down the total cost including taxes and fees — this is where hidden charges often appear. Some rental companies charge facility fees, airport surcharges, or local taxes that Costco's display may not highlight clearly until the final step.

Also check third-party rental aggregators like Kayak, Autoslash, or Priceline. These sites sometimes surface rates that beat Costco, especially for off-peak travel or longer rentals. The Costco membership fee ($65 per year) should factor into your decision if you are a light renter.

Insurance and Damage Coverage Through Costco Travel

Costco Travel rates typically include a damage waiver or collision damage waiver (CDW), depending on the rental company. This means you are not liable for minor damage to the car — the rental company absorbs the cost. However, the coverage has limits and exclusions.

Read the rental agreement before you sign. Some waivers exclude damage from off-road driving, towing, or mechanical failure. If you decline the waiver, you are responsible for all damage, and your personal auto insurance or credit card may cover it — but you have to file a claim yourself and wait for reimbursement.

Costco Travel does not offer supplemental liability insurance (coverage for damage you cause to other vehicles or property). If you want that protection and your personal policy does not cover rentals, you must purchase it from the rental company at pickup, which costs $10 to $20 per day depending on coverage limits.

What Happens at Pickup and Return

Arrive at the rental company's location with your confirmation email, driver's license, and a credit card in your name. The rental agent will review the car's condition with you — walk around it and point out any existing scratches, dents, or stains before you drive off. Take photos if the location allows it. This protects you from being charged for damage you did not cause.

The agent will explain fuel policy, mileage limits, and late fees. Most Costco Travel bookings include unlimited mileage, but confirm this on your agreement. Fuel policy varies: some include a full tank; others charge you for fuel used. If you return the car on empty, expect a premium price per gallon.

Return the car on time and in the same condition. Late returns are charged at the daily rate or a higher hourly rate, depending on how late you are. Some rental companies charge a flat fee for returns after hours (after 5 or 6 p.m.). Check your agreement for the exact cutoff time and fee structure.

When Costco Travel Rates Do Not Save You Money

If you rent fewer than two or three times per year, the $65 Costco membership cost may not pay for itself. A single three-day rental saving $20 total does not justify the annual fee. You would need to save at least $65 across all your rentals in a year to break even.

Costco Travel rates are also less competitive during peak travel seasons (summer, holidays, spring break). Rental companies raise prices across the board, and Costco's negotiated discount shrinks in percentage terms. During these periods, checking third-party sites becomes more important.

If you need a specialty vehicle — a truck, van, or luxury car — Costco Travel's selection may be limited. The program focuses on economy and mid-size cars, which have the highest volume and best negotiated rates. For specialty rentals, you may find better pricing or availability through the rental company directly.

Costco Travel Car Rental vs. Other Discount Programs

AAA members receive rental discounts from the same companies (Hertz, Budget, Avis) without paying an additional membership fee if they are already AAA members. AAA discounts are often comparable to Costco's, so if you have AAA, compare both before booking.

Credit card rental benefits vary widely. Some premium cards (American Express Platinum, Chase Sapphire Reserve) offer rental car insurance, roadside information, and occasionally discounted rates through their own travel portals. These benefits are free if you already hold the card, making them worth checking before you book through Costco.

Corporate discount codes and employer programs sometimes offer rates that match or beat Costco Travel. Ask your employer's HR department whether they have a rental car discount program. Government employees, military members, and healthcare workers often have access to special rates that are not advertised to the general public.

Frequently Asked Questions

Do I have to be a Costco warehouse member to use Costco Travel?

No. You need a Costco Gold Star membership (the basic tier), which is $65 per year, but you do not need to shop at Costco warehouses. You can purchase a membership online solely for Costco Travel access, though the membership also includes discounts on gas, prescriptions, and other Costco services.

Can I modify or cancel a Costco Travel car rental after I book?

Cancellation and modification policies depend on the rental company and the rate you selected. Most Costco Travel rates are non-refundable, but you may be able to modify the dates or car type for a fee. Contact Costco Travel customer service or the rental company directly to request changes. Do this as soon as possible, because some changes are not allowed within 24 hours of pickup.

What if the rental company charges me for damage I did not cause?

Dispute the charge with the rental company in writing within 30 days, referencing the photos or notes you took at pickup. If the company does not respond or refuses to remove the charge, contact your credit card company and file a dispute. Your card issuer can often reverse the charge if you provide evidence that the damage was pre-existing.

Are Costco Travel rates cheaper than booking directly with Hertz, Budget, or Avis?

Usually, but not always. Rental companies run frequent promotions on their own websites, and these sometimes undercut Costco's negotiated rates. Always compare the total cost (including taxes and fees) on both Costco Travel and the rental company's website before you book.

Does Costco Travel include roadside information or towing?

No. Roadside information and towing are not included in Costco Travel rates. If you need these services, you can purchase them from the rental company at pickup, or you can rely on your personal auto insurance or roadside information membership (AAA, for example) if it covers rental cars.