What you need to rent a car or van
To rent a vehicle, you need a valid driver's license, a credit card in your own 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 the daily rate is significantly higher and insurance requirements are stricter.
Your driver's license must not be suspended or revoked, and it should match the name on your credit card and reservation. If you have a learner's permit or provisional license, most major rental companies will not rent to you. Some smaller local companies may have different rules, but this is rare.
The credit card serves two purposes: to hold a deposit (called an authorization hold) and to charge the rental fee. Debit cards are sometimes accepted, but rental companies treat them differently—they may place a larger hold on your account, and you may need to show proof of return travel or additional documentation. Prepaid cards are almost never accepted.
Key Takeaways
- You must have a valid driver's license, a credit card in your name, and proof of insurance; most companies require you to be at least 21 years old.
- The rental company will place an authorization hold on your credit card for the full rental cost plus a damage deposit, which can be $200 to $500 or more depending on the vehicle.
- Insurance through the rental company costs extra but may be unnecessary if your personal auto policy or credit card already covers rental vehicles.
- Fuel charges, late fees, and mileage overages are common hidden costs; clarify the fuel policy and mileage limits before you confirm your reservation.
- Inspect the vehicle for existing damage before you drive away, take photos, and get a written record of its condition from the rental agent.
Understanding the authorization hold and what it means for your account
When you rent a vehicle, the rental company places an authorization hold on your credit card. This is not a charge—it is a temporary freeze on that amount of money. The hold typically covers the full rental cost plus a damage deposit, which ranges from $200 to $500 depending on the vehicle size and the company's policy.
The authorization hold can take 3 to 7 business days to release after you return the vehicle, even if you return it on time and in good condition. During that time, the money is unavailable to you, though you are not charged twice. If you have a tight budget or limited credit available, this hold can affect your ability to make other purchases or pay other bills.
If you damage the vehicle or return it late, the rental company will charge you for those costs, and the hold will be adjusted upward. You will see the final charge on your credit card statement within 5 to 10 business days of return. Some companies charge a damage assessment fee on top of repair costs, even for minor damage.
Insurance: what the rental company offers and what you may already have
Rental companies offer several insurance options at the counter, and they are expensive. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) costs $15 to $30 per day and covers damage to the rental vehicle from collisions, theft, or vandalism. Liability coverage covers damage you cause to other vehicles or property and costs $10 to $20 per day. Personal Effects coverage covers theft of your belongings and costs $5 to $10 per day.
Before you buy these at the rental counter, check whether your personal auto insurance already covers rental vehicles. Most policies do, though some exclude certain types of rentals (like commercial use or long-term rentals). Call your insurance company before you book and ask specifically whether collision, liability, and theft are covered on rental vehicles.
Credit cards often include rental car coverage as a cardholder benefit. American Express, Visa, and Mastercard each have different terms—some cover collision and theft, some cover liability, and some cover neither. The coverage is secondary, meaning your personal insurance pays first. Read your credit card's benefits guide or call the card issuer to confirm what is included.
If neither your auto insurance nor your credit card covers rentals, buying the rental company's coverage is necessary. If both cover you, buying the rental company's insurance is usually redundant and a waste of money. If only one covers you, check the deductible—if it is high, the rental company's waiver may be worth the cost.
Fuel, mileage, and other charges that add up quickly
Rental companies offer three fuel policies: full-to-full (you receive the car with a full tank and return it full), full-to-empty (you receive a full tank and return it empty, paying only for what you use), and pre-purchase (you pay upfront for a full tank, whether you use it or not). Full-to-full is the most common and usually the cheapest if you return the car with a full tank. If you return it with less fuel, the company charges you per gallon at a rate that is typically 50% to 100% higher than gas station prices.
Mileage limits vary by rental type and company. Economy car rentals often include unlimited mileage, but luxury vehicles, vans, and long-term rentals may have daily mileage caps (typically 100 to 200 miles per day). Exceeding the limit costs 15 to 50 cents per mile. Calculate your expected mileage before you book and confirm the policy in writing.
Late return fees start at $40 to $75 for each hour you are late, and some companies charge a full day's rental if you are more than a few hours over. Tolls, parking tickets, and traffic violations incurred during the rental are charged to your credit card, often with an administrative fee added. Some rental locations charge a drop-off fee if you return the vehicle to a different location than where you picked it up.
How to inspect the vehicle and protect yourself from damage charges
Before you drive away, walk around the vehicle with the rental agent and look for dents, scratches, broken lights, torn upholstery, and stains. Point out every mark you see, no matter how small. The agent should note these on the rental agreement or take photos. If the agent does not document the damage, take your own photos or video with your phone and email them to the rental company with your confirmation number before you leave the lot.
Check that all lights work (headlights, brake lights, turn signals, interior lights), that the windshield wipers function, and that the mirrors are intact. Test the air conditioning and heating. Look under the car for leaks. Open the trunk and check the spare tire and jack. If anything is broken or missing, tell the agent when ready—you do not want to be charged for damage you did not cause.
When you return the vehicle, the agent will inspect it again. If there is new damage, ask to see it and ask whether it will be charged to you. Request a written damage report before you leave. If you disagree with a damage charge later, you will need proof of the vehicle's condition when you returned it. Keep your photos, emails, and the rental agreement for at least 30 days after the rental ends.
Choosing between a rental company location and a third-party service
Major rental companies (Enterprise, Hertz, Budget, Avis, National) operate their own locations and set their own prices. Third-party booking sites (Kayak, Autoslash, Turo, Zipcar) aggregate prices from multiple companies or offer peer-to-peer rentals. Booking through a third-party site can sometimes show lower daily rates, but read the fine print—some sites add booking fees, and the insurance terms may be different.
Airport locations charge higher rates than off-airport locations because airports charge rental companies a concession fee. If you are renting at an airport, consider taking a taxi or rideshare to an off-airport location to save 10% to 30% on the daily rate. The savings often exceed the cost of the ride.
Peer-to-peer rental services like Turo connect you directly with vehicle owners. Rates are often lower, and the vehicle selection is wider, but you are responsible for any damage beyond what the owner's insurance covers, and disputes are handled between you and the owner rather than by a company with a customer service department. Read reviews of the specific vehicle and owner before you book.
What happens if you have an accident or mechanical problem
If you are in an accident, stop the vehicle in a safe location, turn on hazard lights, and call the police if anyone is injured or if there is significant damage. Get the other driver's name, phone number, address, driver's license number, license plate, vehicle make and model, and insurance information. Take photos of the damage to both vehicles and the accident scene. Do not admit fault or sign anything except the police report.
Call the rental company's roadside information number (it is on your rental agreement) and report the accident. The company will tell you whether to take the vehicle to a specific repair shop or whether to arrange your own tow. Do not leave the vehicle unattended or attempt repairs yourself. The rental company will handle the insurance claim with the other driver's insurance if you are not at fault.
If the vehicle breaks down or has a mechanical problem while you are driving, pull over safely and call the roadside information number. The company will send a tow truck or arrange a replacement vehicle. You are not responsible for mechanical failures—the rental company maintains the vehicle and covers repairs. If you are stranded, the company may also cover the cost of a hotel or rental car while the vehicle is being fixed.
Frequently Asked Questions
Can I rent a car if I don't have a credit card?
Most major rental companies require a credit card in your name because they need to place an authorization hold. Some smaller local companies or peer-to-peer services may accept a debit card, but the hold will be larger and you may need to show proof of return travel or a deposit. Call ahead to confirm the company's policy before you book.
What if I return the car late?
Late return fees typically start at $40 to $75 per hour and can add up to a full day's rental charge if you are significantly over. Some companies have a grace period of 30 minutes to an hour. If you know you will be late, call the rental company as soon as possible—they may extend your reservation at no extra charge if availability allows.
Do I have to buy insurance from the rental company?
No, if your personal auto insurance or credit card already covers rental vehicles. Check your policy or call your insurance company before you book. If you have no other coverage, the rental company's collision and liability coverage is necessary to protect yourself financially in case of an accident.
What if I find damage on the car after I drive away?
Call the rental company when ready and report the damage. If you have already driven the vehicle, the company may assume you caused the damage, so the sooner you report it, the better. Email photos of the damage to the company with your confirmation number. If you are charged for damage you did not cause, dispute the charge with your credit card company.
Can I rent a car one-way and drop it off in a different city?
Yes, but most companies charge a drop-off fee that ranges from $50 to $300 or more depending on the distance. Some companies waive the fee if you book in advance or rent for a certain number of days. Compare the one-way fee to the cost of a round-trip rental plus a return flight or ride home—sometimes round-trip is cheaper.