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Making Sense of the Car-Rental Game

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What we want when we rent a car is the same thing we want when walking down a dark alley — no surprises. But too often we end up paying more than we expected to, buying extra insurance coverage we're not sure we need. Or we discover, as Jerry did on Seinfeld, that rental-car companies know how to take reservations but not how to hold them — and that the minivan we reserved for our family of six was rented to another family an hour ago. Here are some ways to sidestep the most common car-rental pitfalls and increase your chances of getting exactly what you want.

1. RESEARCH RATES. Pricing is astonishingly variable. A Consumer Reports study in April 2002 found that, at the same location, one firm might charge up to twice as much as another for the same class of car. And keep in mind that the rental firm with the best rates in one city may be among the most expensive in another. So it pays to do some homework--and the easiest way to do that is to go on-line. Sites such as Orbitz, Expedia, and Travelocity let you quickly compare the rates being offered by many rental firms, including, sometimes, small local firms you might not otherwise think of. You can also use these sites to compare rates at airport and downtown or neighborhood locations, which may offer lower rates.

2. LOOK FOR SPECIAL DEALS. While you're checking rates on-line, look for Web-only specials offered by the travel services or on the rental companies' own sites. And don't forget to ask about special offers when you pick up your car — individual rental locations may offer spur-of-the-moment deals on certain types of cars, for example. This is also the time to request a complimentary upgrade. If cars are available, rental agents can be quite accommodating. The worst that can happen is they'll say no.

3. ASK ABOUT MEMBERSHIP DISCOUNTS. If you are a member of AAA, AARP, or certain other organizations, or if you're in the U.S. military, you may be eligible for additional discounts on your rental. Members of frequent-flyer plans should also inquire about accumulating miles with their rental. If you rent frequently, consider becoming a preferred member with a company--you can enjoy special discounts and get perks, such as expedited service.

4. RESERVE EARLY. According to the industry publication Auto Rental News, in each of the last two years since September 11, car-rental companies have trimmed their fleets by 5 percent. Because there are fewer cars, you should book early to make sure you get the car you want or, at busy locations, any car at all.

5. GET THE TOTAL PRICE IN ADVANCE. Whether you book on-line or on the phone, the figure you're quoted is usually just a base price. But hidden costs--airport concession fees, sales tax, stadium and convention-center surcharges, and, since 9/11, security-related surcharges--can really add up, swelling that base price by as much as 39 percent. When making a reservation by phone, ask for a complete accounting of charges. If you book on-line, you may not always be able to see the total price. Hotwire and Travelocity, however, do reveal the full price before you confirm your reservation, including taxes and applicable surcharges (but not optional charges, such as additional insurance; see number 8, below). Other common additional fees include a charge for drivers under 25 and a second-driver fee (which many companies will waive for the spouse of the primary renter).

6. CONFIRM THE AVAILABILITY OF SPECIAL EQUIPMENT. Need a child seat? A ski rack? While you can usually request special options when you reserve through an on-line travel service or a rental company's website or national reservation number, you should always confirm the availability of special equipment with the local rental location, preferably close to the date you'll be renting. Be specific when asking about the equipment. If it's not the brand of car seat you're used to using, for example, you may be more comfortable bringing your own from home (just make sure it works with the car you're renting).

7. CONSIDER DOUBLE-BOOKING. Just don't say we told you to. If you're traveling during peak season to a popular destination, or if you must have that minivan, you might want to make a reservation with two companies. Check that there's no penalty for canceling last minute, and don't forget to cancel the reservation you don't use. It's the least you can do.

8. INSURANCE: KNOW WHAT YOU'RE COVERED FOR. Car-rental firms offer a bewildering array of coverage options, and they've been known to use hard-sell tactics to persuade renters to purchase them. And — talk about sticker shock — optional insurance can end up doubling the base cost of your rental. The best way to avoid buying unnecessary coverage is to understand the coverage you already have through your auto or homeowners' insurance policy and your credit card. The bottom line is that most renters don't need to purchase rental insurance. In most cases, the coverage and deductibles you have on your own car also apply to a rental car. If you don't have comprehensive or collision coverage for your own vehicle, for example, you will not be covered if your rental car is stolen or damaged. Many credit-card companies provide collision damage waiver (CDW) coverage to card-holders, but often only to upper-level, gold or platinum members (and only if you've used that card to pay for the rental). Also keep in mind that your personal auto insurance or credit-card coverage may not cover luxury cars or recreational vehicles.

9. READ THE RULES AND REGULATIONS. They're actually written in plain English. Confirm the mileage policy. Look for restrictions on interstate or off-road travel. Be aware of fees for dropping off at another location. Ask about anything you don't understand before driving away.

10. DON'T RUSH OFF. Take a minute to get to know the car and plan your route. Get directions. Get an extra key. Check the outside of the vehicle for damage. If you find anything, have it documented before you leave. Familiarize yourself with the car's interior and control panel. Check the lights and brakes.

11. REFUELING OPTIONS: DO THE MATH. Your best bet is to fill the tank yourself before returning the car. But it's easy to run out of time or forget to gas up as you race to make a flight. If you choose the fuel prepurchase option (FPO, in industry lingo), you lose money if you don't return the car with an empty tank. On the other hand, if you don't take the option and return the car less than full, you will have to pay astronomical refueling rates (up to $4 a gallon).

12. AVOID LATE FEES AT ALL COSTS. Know exactly when your car is due back. You'll often get a grace period of an hour, but after that each additional hour can cost you up to a third of the daily rate. It's usually better to book an extra day than incur a late fee. Find out what time your rental location closes — some smaller, neighborhood locations shut down as early as five in the afternoon. If you're a little late with your return and are charged a late fee, "make a fuss," says Amy Ziff, editor-at-large for Travelocity. Especially if there are other customers around, the rental agent may "make an exception" to resolve things peacefully.
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