I'll never forget my first rental car experience. I was seven months pregnant and my husband and I had taken our other children, ages four and two, to Disney World for the first time.
When we arrived late at night to retrieve the car, we discovered that the rental company we used only listed hours for its physical location, not the kiosk where we showed up. Sadly, we were out the money and the car.
At that moment, exhausted, pregnant, holding my other kids and stranded at nearly midnight, I vowed to never skimp on a budget rental car again. And that extends to many of the add-ons that make the experience safer, more reliable, and less stressful.
To ensure it never happens again, I turned to the experts, who shared where to splurge and where to save when it comes to rentals, including the extra costs that are always well worth the price.
In this article
Splurge-Worthy: Rental Car Insurance
Car insurance is non-negotiable, and that doesn’t refer just to the vehicle you keep parked at home. It’s required whenever you travel, too.
Melanie Musson, a travel expert with AutoInsurance.org, says rental car coverage, whether through the rental company or an additional external policy, is a must. "If you don’t have full coverage or your credit card won’t provide coverage, you need the coverage the rental company offers, and it’s worth every penny," she says firmly.
Otherwise, you could end up on the hook for costly repairs in the event of a minor fender bender or a full-on accident.
Joshua Morrison, president of the auto insurance company, Bad Driving Record, echoes Musson, noting that you should first check your primary auto insurance coverage, as well as your credit card coverage, to see if they already cover car rentals.
"If you don’t have either of those protections in place, you could be putting your finances at risk by declining the rental company’s offerings," Morrison says.
Splurge-worthy: Roadside Assistance
According to Morrison, paying extra for rental car roadside assistance is another good option to add on if it is not already included in your personal policy or on your credit card’s rental protection.
"You’ll pay far less per day than it would cost for a tow and service call if you find yourself broken down in an unfamiliar city," he points out.
The one caveat for roadside assistance is if you are traveling short distances in a highly populated urban area, as you will most likely not require it.
Splurge-worthy: Space Upgrades
On a long drive, especially with groups or families, paying the small gap to move up a car class can earn its keep, notes Simon Grannville, who operates Nero Line, a fleet of rental cars in Spain.
A true space or luxury upgrade, he adds, can be the real difference between five hours in a cramped car and five hours in one that gets you there comfortably. "That is the upgrade people tell us they would gladly pay for again," says Grannville.
A larger vehicle can also be well worth it if you are hauling a lot of stuff.
“People almost always underestimate how much room they need," explains Ashley NeSmith, founder, Ashley the Auto Advocate. "Once you add luggage, strollers, coolers, beach gear, golf clubs, and everything else that comes with a family vacation, that economy car starts feeling very small."
This is especially true for large families.
"If you're traveling with kids, grandparents, or a lot of luggage, spending a little extra for a midsize SUV or larger vehicle can make the trip much more comfortable," she says.
Skip It: Car Seat Rentals
As a parent who at one point had four kids aged six and under, I am torn on this one, because hauling around several car seats is no fun for anyone.
However, Musson points out that while adding on car seats can be incredibly convenient, the cost can also be "staggeringly high." She recommends basing your decision on how long you are using the rental car.
For instance, she notes that if a rental car company charges a per-day car seat fee and you're traveling for 7-10 days, you may be better off simply buying a new car seat to use.
"Another thing to consider is that it’s free to check a car seat when you fly, so even though it’s a hassle to carry a car seat with your luggage, it’ll save you $100 or more, so it’s probably worth the 10-minute inconvenience," she adds.
Skip it: GPS Navigation
Obviously, with smartphones, built-in GPS navigation is really a splurge of the past.
However, Joe Cronin, president of International Citizens Insurance, who works with frequent travelers, points out that the one-time splurging for an in-unit GPS could be worth it if you are driving through a very rural or unfamiliar international area where you may not be able to count on your phone's data plan.
Only in those instances, it will definitely pay off not to be stranded.
Skip it: Counter Damage Waivers
Excess coverage is usually worth the money, but only if you buy before you travel, instead of when you pick up your car at the counter.
"The counter damage waiver (also called a collision damage waiver, which waives financial responsibility for lost, damaged, or stolen vehicle) is the single most marked-up thing on the lot," Grannville states. "A standalone excess policy arranged in advance does the same job for a fraction of the price, so you stay protected, just not at the desk's markup."
That being said, Morrison cautions that coverages like the collision damage waiver can have value and should be considered before outright declining. "Not only does it waive your right to file a claim through your personal auto policy (helping you keep a clean record and avoid raised premiums due to a rental accident), but it can also help high-risk drivers who are already paying increased premiums to keep a rental claim off their records altogether," Morrison explains. "The daily price is expensive, but the long-term benefits can be worth it."
NeSmith says the mistake she sees most travelers make is not knowing what the regular auto insurance covers and panic-buying at the counter.
Bottom line: Do your research and buy ahead of time, if needed, to save money.
Skip It: Prepaid Gas
Nearly all of our experts agreed that prepaid gas is essentially a convenience fee, and it's rarely ever "worth" the price of filling up yourself.
That being said, Musson points out that it can be worth it for some people, such as the chronically late or those with a very early flight who will not have time to fill up.
Sometimes, time is money.
Worth Considering: Prepaid Tolls
The experts we interviewed had mixed feelings about prepaid tolls provided through the rental car company.
On the one hand, you can come out ahead if you are traveling daily on toll-heavy routes. On the other, if you only encounter a few toll roads, you may end up paying extra for nothing.
The answer should come down to simple math.
"It’s typically better to rent the transponder and pay only for the tolls you actually use," Musson says. "If you know you’ll be driving toll roads every day, it may be worth the prepaid tolls upgrade, but that’s something you should take a moment to actually figure out before spending for something that isn’t worth it."
The Shortcut
Get rental car insurance if you don't already have coverage through your credit card or personal auto policy; it's one of the few add-ons the experts agree is non-negotiable.
Skip prepaid gas and GPS, unless you're chronically late to the airport or driving somewhere with no cell service.
Buy a standalone excess policy before you travel instead of the counter damage waiver. It offers the same coverage, but without the markup.
