Travel
The Car Hire Extras That Cost More Than the Daily Rate
The rental desk is at the end of a long corridor, and there is a small queue ahead. A woman is signing something on a tablet with her thumb. A man behind her checks his phone, then his watch, then the clock above the counter. The screen at the desk shows a price that’s lower than the one on the website, and the person behind the counter is about to explain, in a friendly way, the four things that are not included in it.
The form is long, the pen is attached to the counter, and the people with the least energy are the ones signing. That’s usually where the daily rate stops being the price.
Car hire is a very good deal for the right trip. It’s just that the number in the search results is rarely the number on the final bill, and the gap is made of car hire extras that are easy to miss when you’re comparing. The most useful habit on a hire booking isn’t hunting for the lowest daily rate. It’s adding up the total.
The extras, one at a time
Companies differ, and the terms change, so treat this as a list of things to look for, not a promise of what any particular company charges.
- Airport and premium location surcharges. Picking up at an airport often costs more than picking up in the city, and the charge may be built into the price or added on top. City branches can be cheaper but may have shorter opening hours.
- Fuel policy. “Full to full” means you collect the car with a full tank and return it full. Pre-purchased fuel means you pay for a tank upfront, usually at a set price, and you generally don’t get credit for fuel left in the tank. Full to full is usually the better value if you’re prepared to refuel before you return the car.
- Tolls. Some roads are toll-only, and some rental companies add an administration fee on top of every toll you incur, not only the toll itself. Ask how tolls are charged and whether the car has an electronic tag.
- One-way fees. Collecting in one place and returning in another often adds a charge, sometimes a substantial one.
- Young driver surcharges. Drivers under a certain age may pay a daily fee, and some companies limit which vehicles they can hire. The age limit differs between companies.
- Additional drivers. Anyone else who might drive usually needs to be listed and may cost extra, sometimes per day.
- Kilometre limits. Unlimited distance suits a road trip. A capped allowance can look cheaper until you drive further than you thought.
- Insurance excess and excess reduction. The excess is the amount you pay if the car is damaged. Excess reduction products lower it, at a daily cost. Check whether your travel insurance or credit card already covers hire car excess, and read what it excludes.
- Equipment. Child seats, roof racks and navigation units are often charged per day, sometimes capped.
- Late return and cleaning fees. Returning the car late, or very dirty, can trigger a charge.
A worked example, and it’s hypothetical
The figures below are invented to show the arithmetic. They aren’t real prices from any company. Take a five-day hire and two quotes for a similar car.
| Quote A (low daily rate) | Quote B (higher daily rate) | |
|---|---|---|
| Daily rate x 5 days | $35 x 5 = $175 | $55 x 5 = $275 |
| Additional driver | $10 a day = $50 | Included |
| Airport pick-up surcharge | $40 | $0 (city pick-up) |
| Pre-purchased fuel | $90 | $0 (full to full, you refuel) |
| Total | $355 | $275 |
Quote A looked $20 a day cheaper. After the extras, it’s the more expensive of the two by $80, and that’s before any tolls or insurance excess reduction. The point isn’t that one type of quote is always better. It’s that the daily rate alone can’t tell you which is cheaper.
A fair counterpoint: sometimes Quote A really is cheaper. If you’re travelling solo, you don’t need a second driver, you’ve arranged your own fuel and you can’t avoid the airport pick-up, Quote A may win. That’s why the exercise is to total the costs that apply to you.
How to read the terms
Rather than reading every line, look for the sections that decide the cost.
- Find the price summary and see what it says is included and excluded.
- Find the fuel policy, and decide whether you’ll refuel before returning.
- Find the toll and fee section and look for an administration fee.
- Find the excess and insurance section, and note the excess amount and what reduces it.
- Find the additional driver and age rules and check they match who’s driving.
- Find the cancellation terms, so you know what changing your plans would cost.
Companies’ terms vary and change over time, so read the current terms for the company you’re booking with. When you collect the car, photograph it all round and note existing damage on the form, so there’s no argument on return.
Where the cost shows up on the road
Some charges only appear once you start driving. Toll roads in cities are the usual surprise, and fuel is the other. If you’re planning a road trip around a capital city, it’s worth knowing when and where fuel is cheapest before you head off. Our guide to finding the cheapest petrol explains price cycles and the live price tools. And if you’re deciding between hiring a car and arranging transfers, there’s a comparison of airport transfer options that may help you weigh the two.
Reading the fine print
Before you book, add up the extras that apply to you, and compare totals, not daily rates.
Sources: The current rental agreement, price summary and terms and conditions published by the company you book with (read the version that applies on the day you pay)
