It’s not too early to reserve a holiday rental if you need one, and you can still reserve without prepaying. The rental car business is famous for its gouges—even within the gouge-happy travel business overall—but you can avoid the worst if you’re careful.
Rates
If your last rental experience was pre-pandemic, expect sticker shock this year. I’m seeing most big-company rates starting north of $80 a day on weekly rentals, including taxes and fees but before any needed extras. Small-company rates, usually to and from off-airport offices, and opaque rates can cut that close to half.Insurance
Collision coverage remains the biggest potential gouge, but if your rental car gets damaged while you’re driving it, you’re on the hook to reimburse the rental company for the costs of repairs plus loss of revenue while the car is out of service. You absolutely must cover the risk, but you have some options.The rental company’s collision/loss damage waiver (CDW) is the easiest—and by far the most expensive. If you don’t buy it, the rental company puts a big hold on your credit card, and you have to pay the rental company immediately for the estimated repair and loss costs and claim reimbursement later. It adds about $30 a day, but it offers one big advantage: If your car is damaged, you just return it, hand over the keys, and walk away from the problem, except maybe having to pay for minor damages it doesn’t cover.
