Costco members get discounts on car rentals through partnerships with Hertz, Budget, and Avis, but the savings vary by location and rental dates

Costco's car rental discounts work through negotiated rates with three major rental companies: Hertz, Budget, and Avis. When you rent through Costco Travel (the membership's travel booking service), you access member-only pricing that is typically 30 to 50 percent lower than walk-up rates at the same company. The discount applies to economy cars, midsize vehicles, SUVs, and specialty rentals depending on what each company offers at that location.

The actual savings depend on when and where you rent. A compact car in a major city during peak season may save you $15 to $25 per day compared to booking directly with the rental company. The same car in a smaller market or during off-season might save less. Costco Travel shows you the member rate before you book, so you can see the exact discount for your dates and location.

You do not need to do anything special to access these rates beyond being a Costco member and booking through Costco Travel's website or phone line. There is no separate membership tier or enrollment step.

Key Takeaways

  • Costco members book car rentals through Costco Travel at discounted rates with Hertz, Budget, and Avis, with savings typically ranging from 30 to 50 percent off standard pricing.
  • The actual dollar amount you save depends on the rental location, vehicle type, and travel dates — peak season and major cities usually offer larger discounts in absolute terms.
  • You must book through Costco Travel's website or phone number to receive member pricing; booking directly with the rental company will not include the Costco discount.
  • Costco Travel rates are prepaid and non-refundable, so cancellation policies are stricter than some direct bookings with rental companies.
  • Insurance, fuel, tolls, and parking are not included in the quoted rate and are charged separately, the same way they would be with any rental company.

How to Book a Rental Through Costco Travel

Go to Costco Travel's website and select the car rental section, or call Costco Travel's phone line if you prefer to book by phone. You will need your Costco membership number. Enter your pickup location, return location, dates, and the type of vehicle you want. Costco Travel will show you available cars from Hertz, Budget, or Avis at that location along with the member price for each option.

Compare the rates across the three companies — sometimes one offers a better price than the others for your specific dates and location. Once you choose a vehicle and rate, you will pay the full rental cost upfront through Costco Travel. You will receive a confirmation email with your reservation details and a confirmation number to use when you pick up the car.

When you arrive at the rental location, present your confirmation number and a valid driver's license. You do not need to show your Costco membership card at the rental counter — the discount is already applied to the reservation in the system.

What Is Included and What Costs Extra

The quoted rate covers the vehicle rental for the dates you selected. It does not include insurance, fuel, tolls, parking fees, or additional driver charges. If you want collision damage waiver (CDW) or liability coverage beyond what your personal auto insurance or credit card covers, you can add that during booking or at the rental counter — this will increase your total cost.

Fuel is your responsibility. You can choose to prepay for a full tank at the rental company's rate (usually higher than local gas stations) or return the car with a full tank yourself. Tolls and parking charges incurred during your rental are either charged to the payment method on file or billed to you after the rental ends, depending on the rental company's system.

Some rental locations charge a fee for an additional driver beyond the primary renter. Check the terms during booking to see whether this applies at your pickup location.

Cancellation and Change Policies for Costco Travel Rentals

Costco Travel car rentals are prepaid and non-refundable. If you cancel your reservation, you will not receive a refund of the rental cost. You can modify your reservation — changing the pickup or return date, or switching to a different vehicle class — but modifications are subject to availability and rate changes. If the new rate is higher, you will pay the difference. If it is lower, Costco Travel does not issue a refund for the difference.

The cancellation and modification policies are stricter than some direct bookings with rental companies because Costco Travel locks in a discounted rate upfront. This is the trade-off for the member pricing. If you are uncertain about your travel dates, book closer to your trip or choose dates you are confident about.

If the rental company (Hertz, Budget, or Avis) cancels your reservation due to vehicle unavailability, Costco Travel will work with the company to rebook you in a similar vehicle or issue a credit toward a future rental.

Comparing Costco Travel Rates to Other Discount Options

Costco Travel discounts are competitive with other membership-based rental programs like AAA or AARP, but the savings vary by location and date. Sometimes a rental company's own promotional rate (found on their website) beats the Costco rate for a specific date range. Before you book through Costco Travel, spend two minutes checking the same dates and location directly on Hertz, Budget, or Avis's website to see if a current promotion is lower.

Credit card rental car discounts and loyalty program rates can also compete with Costco Travel pricing. If you rent frequently with one company, that company's loyalty program might offer better rates than Costco Travel for your typical rental patterns. The best approach is to compare the final quoted rate across Costco Travel and the rental company's direct website for your specific trip.

Costco Travel also bundles car rentals with hotel and flight bookings, which can create additional savings if you are booking a full vacation package. The package discount sometimes exceeds what you would save booking each component separately.

Insurance and Liability Coverage for Costco Rentals

The rental rate does not include damage or liability coverage. Your personal auto insurance may cover a rental car, but you should check your policy before you travel — some policies exclude rentals, and some cover only liability, not collision damage. If your policy does not cover rentals, you will need to purchase coverage from the rental company.

Many credit cards offer rental car damage coverage if you use that card to pay for the rental. Check your card's benefits guide to see what is covered and what is not. Some cards cover collision damage but not liability; others cover both. If your card covers the rental, you typically do not need to purchase the rental company's damage waiver.

If you do not have coverage through insurance or a credit card, purchase the rental company's collision damage waiver (CDW) and liability coverage during booking. This protects you financially if you damage the car or cause injury to another person. The cost varies by location and vehicle type but typically ranges from $10 to $25 per day.

Costco Travel Customer Service and Support

Costco Travel has a dedicated phone line for members who need to modify, cancel, or ask questions about a reservation. The number is available on your confirmation email and on the Costco Travel website. You can also contact the rental company directly using the confirmation number from your Costco Travel booking — Hertz, Budget, and Avis will honor the reservation and can answer questions about the specific pickup location or vehicle.

If a problem occurs during your rental (the car breaks down, you have an accident, or the company overcharges you), contact the rental company first. They handle the day-to-day rental issues. If the rental company does not resolve the issue to your satisfaction, contact Costco Travel's customer service with your confirmation number and details of the problem.

Frequently Asked Questions

Do I have to use Costco Travel to get the member discount, or can I call the rental company directly?

You must book through Costco Travel to receive the member discount. Calling Hertz, Budget, or Avis directly and mentioning you are a Costco member will not give you the discounted rate. The discount is only available through Costco Travel's booking system.

Can I use my Costco credit card rewards or cash back on a Costco Travel rental?

Yes. When you pay for the rental through Costco Travel, you can use any payment method, including a Costco credit card. You will earn rewards or cash back on the purchase the same way you would on any other Costco Travel booking.

What happens if the rental company does not have the car I booked?

The rental company will offer you an upgrade to a similar or larger vehicle at no extra charge. If no vehicles are available at that location, the company will work with Costco Travel to rebook you at a nearby location or provide a credit toward a future rental.

Is the Costco Travel rate cheaper than booking directly during a rental company's sale?

Not always. Rental companies run frequent promotions, and sometimes their promotional rate is lower than the Costco member rate for the same dates and location. Compare the final quoted price on Costco Travel and the rental company's website before you book to see which is lower for your specific trip.

Can I add an extra driver after I book through Costco Travel?

Yes, you can add an extra driver at the rental counter when you pick up the car. Some locations charge a fee for additional drivers; others do not. The fee, if applicable, will be charged at pickup and is not included in your prepaid Costco Travel rate.