Cost of Renting a Car in Austin, Lakeway, Round Rock and Cedar Park and Surrounding Areas
Renting a car can be a great idea for special trips or events. However, there are things you should know about and understand before you rent a car or truck. Below are explanations of the terms on most rental applications. The video and article below explain the process of renting a car and provides some practical advice.
Rates Car rental firms have 4 basic rate types: daily rate with a mileage charge; daily rate with a limited number of free miles per day; a daily rate with unlimited mileage; and a rate that has free mileage over an extended period. They usually have specials or promotions that combine days or weeks.
Remember! If you don't have car insurance, you will be required to buy the rental agencies insurance for the time you are using the vehicle.
Taxes In addition to the daily rental rate and the charges mentioned above, taxes are also charged. At Austin-Bergstrom International Airport some car rental firms may also charge an "airport surcharge" fee of about 10% of the rental rate in addition to normal taxes.
Drop-off Charges An extra fee is usually charged if a car is returned to a different city or location than where it was picked up. Be sure to advise the agent when making your reservation if you wish to drop off the car at a different location.
Be prepared! ASC found some great car rental deals online that indicated there was no mileage limit. When arriving at the rental company, we were told they don't allow their cars to go outside of Texas. This was a national chain, so make sure to inquire about the limitations of certain companies and contracts before driving off the lot.
Gasoline Make sure you know car rental company's policy on gasoline when you return the car. Some companies charge you a flat rate for gas upon renting the car and expect you to return with the gas tank empty. Most, however, will assess a charge based on the firm's gas rates for filling the gas tank when the car is returned, if it is not already full. Since gas prices are usually less expensive at gas stations, it is advisable to fill the tank before returning the car if you are expected to return it with a full tank of gas.
Insurance Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)
If a rental car is damaged, the renter may be responsible for the first several hundred dollars of damage (the deductible) up to the full price of the car. By purchasing CDW (also known as Loss Damage Waiver or LDW), the renter is released from responsibility of any loss or damage to a vehicle up to the full value of the car. However, if the renter is in violation of the rental agreement, the waiver is void. Your personal auto insurance may already provide coverage for damage to rental cars and the purchase of CDW or LDW may not be necessary. Regulations for selling CDW/LDW vary from state to state.
Austin Money Savers Tip There are several ways you can save money on a car rental. First, pay attention to "junk mail" you receive. Many times there will be free rental days or upgrade coupons for national car rental companies. Also, even if you are using the vehicle for a few days, sometimes it is better to rent it for a whole week. Daily rental rates can sometimes be double the price of each day under a weeklong contract. Lastly, be sure to inquire about all discounts. You'll find that many providers offer deals for AAA members, Entertainment card holders and senior citizens.
Personal Accident Insurance (PAI) Personal Accident Insurance provides accidental death and medical coverage for the renter and additional passengers during the time they are riding or driving with you. Check your personal car insurance policy to see if it covers car rentals. If your policy covers car rentals, you may not need PAI. This insurance is usually optional.
Personal Effects Coverage (PEC)
This coverage provides protection against loss or theft of personal belongings from the rental car. Once again, check your own auto insurance policy to determine whether your coverage includes rental cars.
Be prepared! The only national car rental company that permits drivers under the age of 25 is Enterprise. Make sure to ask about age limitations if using a local independant provider.
Additional Liability Insurance (ALI) ALI is an optional insurance that protects the renter and other authorized operators against claims made by third parties for bodily injury/death and property damage caused by the use or operation of the rental vehicle. Check with your own auto insurance policy to determine whether additional excess coverage is already provided.
Late Return Fees Rates are usually based on a 24-hour period, with a one-hour grace period allowed to return the car. If you keep the car for more than four hours after it was due back at the rental company, it is usually worth extending the contract for another day since overtime charges average $12 to $15 per hour. Hourly car rental rates are usually higher.
What do you think?Our goal is to get more and better information out to Austin residents everyday. We can't improve without your help....Please let us know what you like, dislike and what we could be doing better. Email at feedback@austinsmartconsumer.com
Remember! If you don't have car insurance, you will be required to buy the rental agencies insurance for the time you are using the vehicle. 
Be prepared! ASC found some great car rental deals online that indicated there was no mileage limit. When arriving at the rental company, we were told they don't allow their cars to go outside of Texas. This was a national chain, so make sure to inquire about the limitations of certain companies and contracts before driving off the lot. 
Austin Money Savers Tip There are several ways you can save money on a car rental. First, pay attention to "junk mail" you receive. Many times there will be free rental days or upgrade coupons for national car rental companies. Also, even if you are using the vehicle for a few days, sometimes it is better to rent it for a whole week. Daily rental rates can sometimes be double the price of each day under a weeklong contract. Lastly, be sure to inquire about all discounts. You'll find that many providers offer deals for AAA members, Entertainment card holders and senior citizens.