Do Car Rental Loyalty Programs Save Money? Expert Guide

Renting a car can often feel like navigating a maze of hidden fees and fluctuating prices. As a car repair expert at carcodereader.store, I’ve seen firsthand how unexpected transportation costs can throw a wrench into travel budgets. You’re probably wondering, “Do car rental loyalty programs actually save money?” The answer is yes, and they offer a range of other benefits that can significantly enhance your rental experience. Let’s dive into how these programs work and how to maximize your savings and perks.

Rethinking Your Trip Planning Strategy for Car Rentals

It’s common practice to book flights and hotels first, then think about car rentals. However, in today’s fluctuating travel landscape, this approach can backfire. Stories of trips being canceled due to rental car unavailability are becoming increasingly frequent. My goal is to equip you with knowledge to save significantly on your next car rental, drawing from expert insights and proven strategies. Jonathan Weinberg, from Autoslash, a company that has saved renters over $100 million, shared valuable tips in a recent conversation, and I’m excited to pass these savings strategies on to you.

The Rollercoaster of the Rental Car Market

Remember the days of snagging a rental car in Los Angeles for just $10 a day? Those days are largely behind us. Market rates now often range from $80 to $200 per day. This surge is due to pandemic-era market shifts. Rental companies downsized their fleets when demand plummeted, planning to repurchase as demand returned. However, a global computer chip shortage hampered new car production, creating a supply crunch.

While the situation has slightly improved, inventory shortages persist in certain regions. This volatility underscores the importance of strategic booking and leveraging every available saving tool, including loyalty programs.

Casting a Wide Net for Rental Car Deals

Rental car companies are fiercely competitive, constantly adjusting prices to attract customers. This price war is your opportunity to save. The key is to broaden your search beyond the most obvious options. If you’re flying into an area with multiple airports, compare rates at each location. Factor in transportation costs to and from each airport to calculate the true total expense and identify the most economical choice.

Explore Off-Airport Locations: Off-airport rentals can be cheaper, but consider transportation costs (rideshares, taxis) and operating hours, which are often 8 AM to 5 PM. Late arrivals could pose a problem. However, off-airport locations can be advantageous for one-way rentals within the same city. For example, you might pick up off-airport and drop off at the airport for the same rate, simplifying your departure.
Weekly vs. Daily Rates and Return Flexibility: Weekly rates (5+ days) can be surprisingly cheaper than daily rates. Even if you need a car for only four days, a five-day rental might be more cost-effective. Some companies may prorate weekly rates if you return the car early. Remember, a rental “day” is a 24-hour period starting at pickup. Late returns can trigger extra day charges. Be aware of grace periods for returns: Enterprise (59 minutes), Avis/Hertz (29 minutes). Exceeding these grace periods can lead to additional charges.
Pickup Time Variance: Pickup times can influence rates, even shifting your pickup by just 30 minutes. While this seems arbitrary, major companies usually accommodate pickups anytime on your reservation day due to flight schedule changes. Discount brands might be less flexible, so confirming their policy is advisable.
Prepaid vs. Pay-at-Counter Rates: Prepaid rates often offer discounts but limit flexibility. Pay-at-counter rates allow for cancellations and re-bookings if prices drop. Cancellation fees on prepaid rentals can sometimes be low enough to justify the initial savings, but remember, prepayment doesn’t guarantee car availability priority. It’s usually “first-come, first-served,” regardless of payment method.
Prepaid Fuel Trap: Avoid prepaid fuel options. While the per-gallon price might seem lower, you’re paying for a full tank and rarely return the car empty, leading to wasted fuel and money. The most economical approach is to refuel within 10 miles of the drop-off location.

Navigating the Car Rental Process Like a Pro

The car rental process involves several steps, each with opportunities to optimize savings and convenience.

Rental Car Searches: The sheer volume of variables (pickup times, car types, locations) makes searching intensive. Don’t assume the cheapest compact car company also has the cheapest SUV. Search for all vehicle types you’d consider to ensure you’re comparing apples to apples and finding the best overall deal.
Booking Strategies: Booking site matters. Some offer better discounts, flexible payment options, and price tracking tools. Unlike hotels and flights where booking direct is often recommended, car rentals are often best booked wherever you find the lowest price, as all bookings ultimately go through the same rental car companies.
Car Pickup Efficiency: Without loyalty program status, expect counter lines for reservation confirmation. This is where car rental loyalty programs truly shine. One of the biggest advantages of car rental loyalty programs is the ability to bypass these lines and head directly to car selection. These programs are free to join, making them a no-brainer for frequent renters.

When selecting your car:

Check mileage as an indicator of vehicle condition.
Inspect tire tread, considering weather conditions.
Verify desired amenities (Bluetooth, USB ports).
Document existing damage with photos or video before leaving the lot for your protection.
Smooth Drop-offs: Protect yourself during drop-off. Always obtain a receipt, digital or paper, before leaving. Photograph or video the car’s condition upon return. Minor damage (under a quarter size in the US) is usually acceptable, but documentation is wise. Photograph the fuel gauge and mileage as backup proof, especially if disputes arise.

Brand Breakdown: Finding Your Best Fit

Three major players dominate the rental car market: Hertz, Enterprise, and Avis, each with subsidiary brands.

Hertz: Owns Dollar & Thrifty.
Enterprise: Owns Alamo & National.
Avis: Owns Budget & Payless.

Brand rankings, according to experts like Jonathan Weinberg and his team:

National: Sets the gold standard with superior overall experience. Their Emerald Club loyalty program is exceptional for earning free rentals. They offer car selection and excellent service.
Hertz: A close second with “Ultimate Choice,” allowing car selection at many airports and quick service.
Avis: Remains a top-tier choice.
Enterprise, Alamo, and Budget: Solid mid-tier options. Enterprise excels in customer service, Alamo allows car selection, and Budget offers fast check-in, but they lack the seamlessness of the top tier.
Dollar, Thrifty, and Payless: Discount brands. Cars are generally reliable, but service and experience are typical of budget providers.

Unlock Savings with Discounts

Memberships (AAA, Costco, AARP), credit cards, and employer programs offer significant rental car discounts. Explore these and other potential discounts from organizations, alumni groups, military affiliations, and senior citizen programs. Company discounts, like Google’s Hertz discount mentioned in the original article, can be exceptionally competitive. Autoslash is a valuable tool for comparing discounts across programs without manual searching, potentially saving you significant time and money.

AAA and Costco memberships offer substantial savings and benefits that can quickly offset membership costs, even with a single rental.

Discount codes often extend beyond base rates, also reducing extra fees:

AAA: Under-25 fee waivers at Hertz.
AAA rates: Include free car seats and roadside assistance.
AAA & Costco rates: Free additional driver.
Most major companies: Waive spouse driver fees (often added at loyalty program express checkout).

Employer Discount Caution

Using unauthorized employer discount codes is risky, even if tempting. Rental companies are cracking down, and misuse can lead to “do not rent” lists. Accidents while using ineligible corporate discounts can create further complications, as employer-covered repair agreements likely won’t apply. If using an employer discount, ensure you are eligible and decline rental insurance.

When Your Reservation Isn’t Honored

While less frequent now, car shortages can still occur. Rental companies often overbook to maximize car utilization, as many reservations are canceled or no-shows. However, your reservation is a binding contract. If a car isn’t available upon arrival, insist on a resolution. Demand:

Free transport to another location.
Car delivery from another location.
Rental from a competitor at their expense.
Compensation like free points, upgrades, or add-ons.

Avoid booking backup reservations, as this exacerbates overbooking issues. For off-airport rentals with smaller fleets, calling ahead to check inventory is prudent.

“Cheap upgrades” can sometimes mask car unavailability in your booked class. Challenge forced upgrades, as you may be entitled to a free upgrade if your reserved car type isn’t available. If an upgrade results in lower fuel efficiency, request fuel compensation or other discounts.

Insurance: Decline Wisely

Generally, declining rental company insurance is safe when using a credit card with primary coverage and having personal car insurance extending to rentals. Credit card primary coverage handles rental car damage. Personal auto insurance should cover liability (damage to others/property, injuries). Ensure adequate liability coverage before declining rental liability. If you lack personal car insurance, consider purchasing rental liability coverage. Collision coverage can be declined if your credit card provides it. Frequent renters without personal car insurance might explore non-owner car insurance policies.

Credit card rental insurance typically applies even when using points for rentals, as long as a portion of the transaction (deposit, fees) is charged to the card. For point-based rentals and absolute insurance certainty, consider extending the rental slightly to incur a charge on your card.

Top Credit Cards for Car Rental Perks

Credit cards offering primary rental car coverage are ideal:

The Platinum Card® from American Express: While not offering primary coverage directly (without extra cost Premium Car Rental Protection), it provides Hertz benefits:

Complimentary one-class upgrade (when available).
4-hour return grace period in the US.
10% bonus points per rental.
Special cardholder rates at select locations.

Reminder: Support content creators by using their card referral links when applying for new cards.

Unlock Elite Rental Car Status

Many credit cards provide complimentary elite status in rental car loyalty programs:

The Platinum Card® from American Express: Avis Preferred Plus & National Emerald Club Executive®.
Visa Infinite Cards (e.g., Chase Sapphire Reserve®): Avis Preferred Plus, National Emerald Club Executive®.
Capital One® Venture X Rewards Credit Card: Hertz President’s Circle (top tier).
Delta co-branded cards: Hertz Five Star (Gold), President’s Circle (Diamond/Platinum Medallion).
United co-branded cards: Avis Preferred Club (Silver/Gold), President’s Club (Platinum+ Premier).

These statuses enhance your rental experience and can lead to significant savings and upgrades over time, directly answering “do car rental loyalty programs save money?” with a resounding yes.

International Rentals: Extra Vigilance

International rentals require heightened caution. Scrutinize contracts, quoted rates, and add-ons before finalizing. Thoroughly inspect for pre-existing damage, as even minor marks can incur charges abroad. Obtain a drop-off receipt and document the car’s return condition meticulously.

Local companies, often franchises of major brands, may have unique policies and terms. Mandatory liability insurance, as seen in Cabo San Lucas, can significantly increase seemingly low base rates.

Non-Traditional Rental Services: Alternatives to Consider

Beyond major brands, explore alternatives: Turo (Airbnb-style peer-to-peer rentals), Kyte (delivery/pickup service), Silvercar (Audi-only rentals, often cheaper than luxury rentals from traditional companies, Visa Infinite discounts available). Silvercar is particularly useful for AWD/4WD rentals, often more economical than SUVs. These services aren’t universally available but are worth comparing if present in your destination city.

Autoslash & Hotelslash: Your Savings Allies

Autoslash consistently finds lower rental car rates than direct booking and tracks prices for further savings. Even with existing discounts, Autoslash often beats competitors. Their claim of 30% initial booking savings and 20% during tracking is often accurate. Hotelslash, their hotel equivalent, is under development. While loyalty benefits may be limited through these sites, the potential savings can be substantial.

Editor’s Note: Information is accurate as of the posting date, but partner offers may change. Opinions are the author’s alone and not endorsed by external entities.