Travel

5 Mistakes Most People Make When Renting a Car on Vacation

By Erica Coleman · June 25, 2026

The rental car industry generates over $30 billion annually in the United States. A meaningful portion of that revenue comes from add-ons, insurance products, and fees that renters accept without questioning — often in a high-pressure counter interaction after a long flight when they just want the keys. Here are five mistakes that consistently cost travelers more than they should pay.

1. Buying the collision damage waiver at the counter

The collision damage waiver (CDW) typically costs $15 to $35 per day — adding $100 to $245 to a week-long rental. Most travelers don’t realize their personal auto insurance policy already covers rental cars, and many credit cards include rental car coverage as a cardholder benefit. Before you rent, call your auto insurer and ask whether your policy extends to rentals. Then check your credit card benefits. If both say yes, the CDW is a duplicate product you’re paying for twice.

2. Prepaying for a full tank of gas

Rental companies offer a “prepaid fuel” option that charges you for a full tank at a rate slightly below local gas prices. The catch: you pay for the entire tank regardless of how much you use. Unless you return the car bone empty — which almost never happens — you’re paying for gas you didn’t burn. The better move: return the car with a full tank and fill up at a station near the airport. You pay only for what you used.

3. Not photographing the car before driving off the lot

Walk around the car before you leave and photograph every panel, bumper, and wheel — including existing scratches, dents, and chips. Email the photos to yourself so they’re timestamped. When you return the car, do the same thing. This takes three minutes and is the only reliable defense against being charged for damage you didn’t cause. Rental car damage disputes without photographic evidence almost always resolve in the company’s favor.

4. Booking at the airport counter instead of online in advance

Airport rental counters charge premium rates because they know you need a car right now. Booking online days or weeks in advance — through the rental company’s own site or through a comparison tool — consistently produces rates 20 to 40% lower than walk-up counter prices. If your plans change, most reservations can be canceled or modified without penalty.

5. Ignoring the return time and location

Rental contracts specify a return time. Returning the car even one hour late can trigger a full additional day’s charge. Returning it to a different location than where you picked it up — a one-way rental — typically adds $50 to $200 or more in drop-off fees that may not have been prominent during booking. Confirm both the return time and the return location before you sign. Set a phone alarm for two hours before the return deadline.