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 the daily rate jumps significantly and you may need to provide additional documentation.

Your driver's license must be current and not suspended. The credit card is used to hold a deposit — typically $200 to $500 — which is released when you return the car undamaged. Debit cards are rarely accepted for the deposit hold, even if you have the funds available. Proof of insurance can come from your personal auto policy, your credit card's rental coverage, or the rental company's own insurance product, which you purchase at pickup.

Bring your license, credit card, and proof of insurance to the rental counter. You'll also need to provide a current address and phone number. If you're renting under a corporate account or through a third-party booking site, bring confirmation of that reservation as well.

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.
  • Rental companies place a hold on your credit card for a deposit, typically $200 to $500, which is released after you return the car.
  • Drivers under 25 pay significantly higher daily rates and may face additional restrictions or fees at most major rental chains.
  • Insurance coverage can come from your personal policy, your credit card's rental benefit, or the rental company itself — you must have one of these three before pickup.
  • Booking directly through the rental company's website often gives you better rates and more control over your reservation than third-party booking sites.

How rental rates are calculated

Rental companies charge a daily rate plus taxes and fees. The daily rate varies by car type, location, and how far in advance you book. A compact car might cost $35 to $60 per day in a smaller market, while the same car in a major airport location could run $70 to $120 per day. Luxury or full-size vehicles cost more, and specialty vehicles like vans or trucks add another 30 to 50 percent.

Booking further in advance usually locks in a lower rate, but prices can also drop closer to your rental date if demand falls. Taxes and fees — which include airport surcharges, facility charges, and state sales tax — often add 20 to 40 percent to your base rate. A $50 daily rate can easily become $65 to $70 after taxes and fees are applied.

Mileage is typically unlimited at no extra charge, though some budget rental companies or long-term rentals may impose a per-mile fee. Always check the terms before you book. Fuel is your responsibility: you can return the car with a full tank, or you can pre-purchase a tank of fuel from the rental company at a marked-up price.

Insurance and damage coverage options

You have three ways to cover damage to a rental car. The first is your personal auto insurance policy, which often extends to rental vehicles — call your insurer before you book to confirm the coverage limits and whether it applies to the location where you're renting. The second is rental coverage through your credit card, which covers collision and theft but not liability; this is common on premium credit cards but rare on basic cards. The third is the rental company's own insurance product, called a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), which you purchase at the counter.

The rental company's CDW typically costs $15 to $30 per day and covers damage to the vehicle, though it usually includes a deductible of $500 to $1,500. If you already have coverage through your personal policy or credit card, buying the rental company's CDW is redundant and wastes money. If you don't have coverage, the CDW is worth the cost — a single accident can result in repair bills of $5,000 or more.

Liability coverage — which covers damage you cause to other vehicles or property — is included in the rental company's base rate in most states. However, the liability limit is often low, sometimes as little as $15,000 per person. If you have a personal auto policy, your liability coverage extends to rentals and is usually higher. If you don't have personal insurance, ask the rental company about purchasing additional liability coverage.

Booking direct versus third-party sites

Booking directly through a rental company's website (Enterprise, Hertz, Budget, Avis, National, or Alamo) gives you the best control over your reservation and often the lowest rate. You can see exactly what's included, modify your booking without calling, and earn loyalty rewards if you're a member. Direct bookings also let you select your specific car type before you arrive, rather than getting whatever is available at pickup.

Third-party booking sites like Kayak, Expedia, or Autoslash show rates across multiple companies and can highlight deals, but they often hide fees in the fine print and make changes difficult. If you book through a third-party site and need to modify your reservation, you may have to call the site's customer service rather than the rental company directly, which adds time. Some rental companies also don't honor loyalty discounts or rewards when you book through a third party.

The best approach is to check third-party sites for the lowest rate, then visit the rental company's website directly to confirm that rate is still available. Often you'll find the same price or better on the company's own site, and you'll have a clearer view of what's included and what costs extra.

What happens at pickup and return

When you arrive at the rental counter, the agent will ask for your license, credit card, and proof of insurance. They'll review the rental agreement with you, which includes the daily rate, taxes, fees, and any add-ons like CDW or GPS. Read this carefully — this is where hidden charges often appear. The agent will also ask about fuel: whether you want to return it full, pre-purchase a tank, or pay for fuel used at the time of return.

You'll then walk to the car with the agent or a lot attendant. They'll point out any existing damage — dents, scratches, stains — and note it on the contract. This is your chance to speak up if you see damage that wasn't mentioned. Take photos of the car's condition on your phone if the company allows it. The agent will also show you where the fuel door, trunk, and spare tire are located.

At return, you'll drive the car back to the rental location and park it in the designated area. An agent will inspect the car for new damage, check the mileage and fuel level, and process your return. If you pre-purchased fuel, they won't charge you extra. If you're returning it with less than a full tank, you'll pay for the fuel used at the company's rate, which is typically higher than a gas station. The credit card hold is released within a few days, though it may take up to a week to appear back in your account.

Common rental restrictions and fees

Most rental companies restrict who can drive the car. Only the person whose name is on the contract can drive it; adding another driver requires paying an additional fee, usually $10 to $15 per day. Some companies allow spouses or domestic partners to drive at no extra charge, so ask when you book.

Smoking in a rental car typically results in a $200 to $500 cleaning fee. Pets are usually not allowed, though some companies have pet-friendly options for an extra fee. Crossing state or international borders may be restricted or require advance permission and an additional fee. If you plan to take the car across a border, tell the rental company when you book.

Late returns are charged at the daily rate, sometimes with a premium. If you're running late, call the rental location as soon as you know — they may extend your return time without penalty if they don't have another reservation for that car. Returning the car to a different location than where you picked it up usually costs extra, though some companies waive this fee for one-way rentals between major cities.

How to get the best rate

Book as far in advance as possible, but check prices again a few days before your rental — rates can drop if demand falls. Use a price comparison tool like Autoslash, which tracks your reservation and alerts you if the rate drops; you can then rebook at the lower price. Clear your browser cookies before searching, as some sites show higher prices to repeat visitors.

Join the rental company's loyalty program before you book, even if you've never rented from them before. Membership is free and often unlocks discounts or waives the additional driver fee. If you're a member of AAA, AARP, or a military branch, mention it when you book — these memberships often come with rental discounts.

Avoid renting at airports if you can. Airport locations charge facility fees and surcharges that can add 20 to 30 percent to your total cost. If you're flying in, consider taking a rideshare to an off-airport rental location, or use public transit if the rental company has a downtown office. The savings often exceed the cost of getting there.

Frequently Asked Questions

What if I get into an accident while renting?

Call the rental company when ready and report the accident, even if it's minor. Take photos of the damage, get contact information from any other drivers involved, and file a police report if required by your state. The rental company will assess the damage and determine whether it's covered under your insurance, the CDW you purchased, or your personal policy. You may be responsible for the deductible.

Can I rent a car with a debit card instead of a credit card?

Most rental companies require a credit card because they need to place a hold for the deposit. A few companies accept debit cards, but they often require a larger deposit, proof of return travel, and additional documentation. Call the rental company directly to ask about their debit card policy before you book.

What happens if I return the car with damage I didn't cause?

Report any damage you notice during your rental to the rental company when ready, in writing if possible. Take photos and get a written acknowledgment from an agent. At return, point out the damage again so it's documented. If you're charged for damage you didn't cause, contact the rental company's customer service with your photos and documentation; most will reverse the charge if you can prove you reported it during the rental.

Is it cheaper to rent for a week or a month?

Weekly rates are usually lower per day than daily rates, and monthly rates are lower still. A car that costs $60 per day might cost $350 for a week (about $50 per day) or $800 for a month (about $27 per day). If you need a car for more than five days, ask about weekly and monthly rates — they're often not shown in the initial search results.

Can I extend my rental after I've picked up the car?

Yes, you can usually extend your rental by calling the rental company or visiting the location. Extensions are charged at the daily rate in effect at the time of extension, which may be higher or lower than your original rate. If you think you might need the car longer, ask about extending before you pick it up — the rate may be locked in at your original booking rate.