To make matters worse: "Right now is peak season for rentals," said Neil Abrams, rental car expert and president of Abrams Consulting Group. "If the rental companies don't make [the bulk of their profits] in the May through September window, they are not going to make it."

Of course, that doesn't mean you should abandon summer traveling plans and stay home.

Jean Chatzky is the author of the best-selling book "Pay It Down!"

On the right route

* Book as early as possible. The less-expensive economy cars generally go first. So to make sure that you are not forced into an SUV that will in turn cost you $30 or $40 more per day, book as far ahead as possible. Then monitor prices until your departure day. Unlike airlines, car rental companies typically do not charge a fee if you cancel your reservation, Abrams said. So, if prices drop, simply call and cancel and then rebook at the lower price.

* Fill 'er up yourself. The rental agent at the counter generally asks you if you want to pre-pay a tank of gas. Don't do it. You are paying a very hefty premium, as much as two times the retail rate on gasoline, for the convenience.

* Decline insurance and waivers where you can. The agent at the counter will explain to you [often in unfortunately cumbersome language] that you will be responsible for the entire monetary value of the car if you waive the collision damage coverage. What happens? More than 25% of consumers who buy it do so because they are unsure if they are already covered by their personal auto policy, and 15% feel pressured into it, according to a survey by the Ohio-based Progressive group.

A large number of these people are paying $9 to $20 a day for coverage they don't need. The solution is to figure out what coverage you already have before arriving at the rental counter. This coverage often duplicates insurance you have through your auto and homeowner's policies.

If you charge the car to a credit card, particularly a gold or platinum one, you may be covered by your card issuer as well.

* Avoid airport rentals. You can save 10% to 20% by renting a car from an off-airport location. When you rent a car at an airport, companies add all sorts of surcharges and fees. So if possible, take a shuttle or cab to a location away from the airport. [Note: You'll even see price differences renting from the same company by going to an off-airport location.]

* Return on time. In years past, if you returned a car within one hour of the designated return time, then you were off the hook from paying for additional time. But some of the larger car rental companies have reduced that grace period to 30 minutes, said Abrams. Depending how late you are, you will be charged an hourly fee or even for an additional day — or more.

If you return the car on a Monday and must pay for an additional day, the one-day rate for Tuesday may cost you as much as the total bill for the weekend because weekday rates are often much higher than weekend charges, warned Philip Reed, consumer advice editor at Web site Edmunds.com.


Source: New York Daily News