New ways to avoid rental car fees

How do you avoid excessive car rental fees? Dan Bagby does it by by avoiding car rental employees.

“I always use the kiosks and apps to check in,” says Bagby, who works for a grocery chain in Austin. “That way, you just click ‘no’ a few times to refuse the additional services and insurance.”

Oh, the things car rental customers do to steer clear of the little extras. And there are a lot of little extras, for everything from overpriced insurance to pricey toll transponders.

No one knows exactly how much these fees will increase the cost of your next set of wheels, but I’ve read enough surveys to come up with my own estimate. I call it the 50-50 rule of car rentals: Roughly half of all renters will see an unwanted fee on their final bill, and the average bill is inflated by around 50% over the quoted daily rate, a number that includes pesky taxes and airport facilities fees.

This is not news, especially to the millions of Americans traveling this summer. But this is: They’re using technology to avoid the fees.

Bagby’s strategy is clever because it leverages a system that’s meant to make the check-in process go faster, shortcutting a lengthy sales process. Front-line car rental agents are trained to sell you “optional” extras like added insurance; they may even be evaluated based on how much they sell, especially expensive insurance.

Sure, the terminals are trying to upsell you, too, but Bagby knows his way around the displays, and he also knows what he needs. Talk about using their own technology against them.

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Or you can do what Mo Lotfi did when he found a surprise refueling fee on his rental car recently. He’d returned the vehicle with slightly less than a full tank, and his car rental agency took that as a license to charge him for an entire full tank. Instead of complaining, he got even.

Lotfi, who works for a social networking site in Hamburg, Germany, created an app called Gas Break that tells you exactly how much fuel you need before the car is full. When you top off a tank, you’re actually filling a part of the tank that is not shown on the gauge. After just a few seconds of computing basic information about your rental car, Gas Break lets you to see the exact amount of real tank capacity. This allows you fill the tank to the line — no more, no less. And by telling the app the current gauge level of your rental car, it can clue you in to how much gas you need for a full tank.

“In our tests, we were able to save an estimated 10% in total gas price by using this app,” Lotfi says.

Another source of unwelcome fees: parking tickets. They’re particularly vexing to rental customers because car rental agencies add fees on top of the charge when they send them to you in order to cover their expenses (and some renters claim, turn a little profit).

Enter Joshua Browder, a Stanford University freshman who created the site DoNotPay — billed as the word’s first “bot” lawyer that helps you challenge traffic tickets. The site offers a series of automated responses to questions about a parking ticket, which can help you fix it on your own. He’s reportedly helped motorists in New York contest more than 9,000 tickets and all told has saved drivers more than $3 million. There’s no telling how much he’s cost car rental companies, but they can’t be too happy about it.

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“From my experience, when the local government knows someone is using a rental car, they are particularly prone to issuing an unfair ticket,”  Browder says.

And then there’s insurance. Upselling clueless car rental customers on insurance accounts for close to $1 in every $10 collected by your car rental company, so they are understandably protective about it. The workaround: You can make sure you’re covered before you show up at the rental counter, through either your auto policy or your credit card. Or you can book through one of the new car-rental apps like Carla, which includes insurance in the price of its cars.

Car rental companies aren’t taking this threat lightly. Just last week, I heard from a rental customer in Orlando who couldn’t show proof of insurance. Although car rental insurance isn’t required, the rental agency still refused to rent to her. They haven’t come up with an app for that yet, but it’s just a matter of time.

More tips to save on your rental

• How to avoid tolls: Car rental companies add extra fees for using their transponders, sometimes charging by the day (whether you use a toll road or not). Either bring your own toll transponder or avoid tolls with a reliable mapping app. “I would suggest using Google Maps,” says Nenad Cuk, a frequent car renter based inSalt Lake City. “The application has advanced settings that allow you to avoid routes with tolls.”

• How to avoid high insurance rates: Car rental insurance can be found in unexpected places, including your own credit card, travel insurance policy or as a standalone product from your online travel agency. (Some are limited, so be sure to read the restrictions.) If you are starting to plan for your trip or find yourself at the counter without a collision-damage waiver policy, don’t worry; you can still buy it from a site like for rates that start at about $5 a day.

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• How to avoid tickets: Download an app like Speed Cameras & Traffic by Sygic (iOS, $4.99), which lets you see the speed limit for the road you are traveling on, or CamSam Plus (Android, $.99), which alerts you to speed cameras. Many GPS navigation systems also come equipped with traffic enforcement warnings. Better yet, obey posted laws and speed limits.

Christopher Elliott

Christopher Elliott is an author, journalist and consumer advocate. You can read more about him on his personal website or check out his adventures on his family adventure travel site. Contact him at Read more of Christopher's articles here.

  • Harvey-6-3.5

    While all this technology and round about efforts sound lovely, maybe a simple legislative fix that 1) requires damage claims to be documented with photographs, repaired, and the itemized bill provided to the consumer, 2) limits ticket payments and toll fees to actual handling costs incurred (so this isn’t a profit center for car rental companies), would allow consumers to just rent cars without knowing nearly as much, yet still avoid being ripped off.

  • MF

    The free market clowns will claim that more regulation is bad, that it will cause prices to rise, that workers will loose their jobs, and it’s the next step on the road to socialism – did I leave anything out?

  • AJPeabody

    You left out black helicopters, hyperinflation, and Zombie Apocalypse. And “lose” has only one “O.”

  • James

    I had an idea for traffic tickets that I’d love to see as a ballot proposition.

    Since it is claimed that the tickets are for “safety” and not “revenue” — when a find is issued, it goes into an escrow fund paying the same rate as the state bonds. If you go three years without an inhury/property damage accident that is your fault, you get the money back, as a reward for being a safe driver. If you get another ticket in those three years, the clock restarts on the larger escrow. If you at fault in an accident, the money is turned over to a state fund to assist accident victims where the other driver is un-insured or under-insured.

  • sirwired

    “Half” of all car rental bills contain an unwanted fee? I must be the luckiest man alive, because it’s never happened to me.

    And fees are high at big-city airports, but they usually don’t make up 50% of the bill.

    Lastly, do we even have speed cameras in the US? I know they are common in Europe, but I’ve never seen them here.

  • Don Spilky

    Yep. They have them in NYC, and Long Island just decommissioned them after EVERYONE got tickets.

  • Jeff W.

    Chicago has them. In “safe zones” such as parks and schools.

    You get one “free” warning, but since the warning applies to the license plate owner and not the driver, it would be very unlikely that as a rental car driver you would be the recipient of the warning.

  • Jeff W.

    The section on avoiding tolls is helpful, but let me add a few caveats.

    * If you bring your own transponder, you need to be very careful and check your toll log when you return. There is often a delay when you unregister a transponder, The car may be turned over quickly and the new driver could rack up some toll charged before the system is fully updated.

    * Make sure your home transponder works with the states that are visiting. The EZ-PASS system works in the northeast, and is also compatible with Illinois (called I-PASS). Doesn’t work with SunPass.

    * Get toll receipts if available. It is possible that the transponder charges you for a toll AND you pay cash. The receipts can also prove that you were “here” when the car rental company charges you for a toll “there”.

    * In some states, you don’t need a transponder, it is toll by plate, FL comes to mind.

  • jim6555

    The “toll by plate” systems found in many states really cause a problem for rental car customers. When this system is in use, there is no way to pay a cash toll. The systems take pictures of car’s license plates and charges the toll to the user’s transponder account. When operating a non-rental vehicle in Florida, if there is no transponder account associated with the plate number, the information is stored in Turnpike Authority’s computers and at the end of a 30 day period, the user is billed for all tolls accumulated during the 30 days plus a $2.50 service charge. I think that the system is reasonable EXCEPT.when it comes to rental cars. The license plate numbers of all the rental cars in the nation are stored in Florida’s computer system. When a rental car plate is photographed at a toll barrier, the charge amount is almost immediately sent to the rental agency’s servicing company. Their computer then places the toll charge plus a surcharge on the renter’s bill. With many rental agencies, the renter is charged per day for each day that the car is rented even is a toll was only paid on one day. The charges can be as high as $10.49 per day of the rental period (with a maximum of $52.49 per week)..

  • LonnieC

    Yeah. And the fact that such legislation from our totally dysfunctional federal and state legislatures is less likely than a new app that will fly us to our destinations for free.

  • pauletteb

    EZ-PASS works south to North Carolina and west to Illinois, so not just the Northeast.

  • pauletteb

    Don’t use it in Virginia or Canada. Connecticut used to prohibit them; wish we still did!

  • Maxwell Smart

    the more paperwork required for damage, the higher the cost to the consumer. We all know wages in USA are incredibly low, but it still costs some time, which someone, ie. consumer has to pay for.

    That said, there needs to be a better way to pay tolls. When in USA, the last thing I want is to have my mobile phone on global roaming, costing a fortune, just so I can pay a $3 toll.

  • bayareascott

    Except when I needed that 20-25 minutes to catch a flight. Then crucial.

  • MF

    Are you reading my mind??? I need another layer of tinfoil on my head to block those liberal attacks on my fine paranoid mind. Should we just put meds in the water of all conservative households? Oops, I forgot, we’re already doing it, Rush says so…

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