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5 min read Published on October 19, 2022.

Writen by Rebecca Betterton Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the details of using loans to buy the car they want.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since late 2021. They are passionate about helping readers gain confidence to manage their finances through providing precise, well-researched and well-written data that breaks complicated subjects into digestible pieces.

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If you’re to a vacation spot and would like the freedom and convenience of wheels while exploring or require a vehicle while yours is in the shop, chances are you’ll hire a vehicle at some point. In 2021, there were 1.8 million rental vehicles in service in 2021 . Prices vary based on the type of car you hire, the rental car service you choose to use and the location you choose to rent the vehicle. Understanding the factors that impact the cost can help you budget for the cost. Typical cost of a car rental to rent a car varies dependent on the location, type of car and the rental company. The average price at mid-October 2022 was around $81 per day . To determine the cost you’re likely to pay contact Hertz, Enterprise, Avis or any other rental company you’re considering to ensure you are prepared for the cost. The factors that affect rental car prices Several aspects influence the price of your rental – both in and outside your control. Save money where you can by understanding what impacts the price. Type of car when choosing a rental car the first thing renters want to know is the amount of space they will need. Car rental companies classify their vehicles according to their size. Economy cars are usually the least expensive and smallest rental companies provide. They are able to accommodate one or two people, together with luggage. Compact or intermediate cars provide more space than economy cars, usually through extra room within the trunk. Cars that are intermediate can accommodate up to four people with a small volume of bags. The most basic vehicles with large back seats are able to accommodate four adults. They also offer ample trunk space, which makes them a great choice for families that have lots of luggage to bring along. Luxury cars are high-end vehicles that range from sporty convertibles to full-size SUVs and vans. Most of the time the cost of renting a car per day increases with the size and type of the car or truck. But, occasionally, rental companies provide special deals on certain types of vehicles and, in particular, when they have plenty of vehicles available. For instance, if the business has a restricted amount of economy vehicles available to rent out for a specific weekend, they could offer a discount on the standard cars. Below are the lowest daily rates for different types of vehicles, as per Kayak. Car type

Approximate capacity

Least expensive rate per day


2 adults 2 bags



2 bags, 4 adults



5 adults, 3 bags



5 adults 3 bags


Full size

5 adults 2 bags


Full-size SUV

5 adults, 2 bags



5 adults, 5 bags



5 adults 5 bags


Kayak at the time of writing in October 20, 2022. Location Similar to other goods or services, costs change according to supply and demand. A majority of people can find cheaper car rental rates close to the heart of the city rather than the airport. Prices for rental vary across different areas of the country. Tourist areas that are heavily populated might have lower rental rates than other locations because of the increased competition. They may also have more expensive rates during peak seasons when demand is high. The location

Average rental cost per day







Las Vegas


Los Angeles




New York




Kayak at the time of writing in October 2022. Age of the driver The renter’s age greatly influences the cost. If the renter is younger, greater cost, since young drivers increase risks to rental businesses. A lot of rental companies don’t even rent to those less than twenty years of age. Rental companies can charge additional charges for renters under the age of 20. According to the state, these fees can be anywhere from $40-$65 per day. Take into consideration these costs when determining the driver for your rental. Some states allow fee for drivers of certain age groups. For instance, hiring from Enterprise in Michigan comes with an additional $40 per day charge for drivers aged 18 to 20 years old and $19 per day for drivers between 21 and 24. Young renters in New York can expect to pay an additional $64.50 because of their age. But not every rental agency will charge these costs. Consider both the daily cost as well as additional fees when you decide where to rent from. How can you get the best bargain on your rental vehicle The cost of a rental car is determined by a variety of variables, there are still several ways you can get a little extra cash in your pocket. Comparison shop You can get a better deal for your next rental car by shopping around. The prices vary from one rental agency, so doing some research can get you a much better deal. Comparison websites like Priceline, Expedia, AutoSlash and Kayak make it easier to compare quotes for rental cars. Visit the rental agency’s websites to ensure you’re getting the most competitive price on the car. Fill up the tank Be sure to refill the gas tank prior to returning your rental car to the agency. There are no additional charges for fueling. Plan your reservation early. Making reservations in advance will allow you to choose the correct vehicle, skip long lines and potentially save cash. This is especially crucial if you intend to travel on a long holiday. Skip add-ons Before receiving keys to the rental, you’ll likely be offered several add-ons. These could include GPS, toll plan, accessibility to XM radio, and the option of car seat. Do not use these features if you are able to save money. This is a costly extra-cost option that is usually presented when you book or take the vehicle for pickup. It could add 15 to $30 per day to the bill but could save you thousands if the car is involved in an accident, or the vehicle is stolen. The four common types of insurance policies for rental vehicles include: Loss-and-damage waiver (LDW) or collision damage waiver (CDW): provides coverage if the car is damaged or stolen Supplemental liability protection: protects you from liability if you cause damage to property or vehicles Personal accident protection: covers medical expenses for passengers and yourself (if necessary) when that you get into an accident Personal effects coverage: covers the cost of belongings stolen from the rental car This protection may be already included in your credit card or current auto or homeowners insurance policy. Certain policies have limitations, however you should verify how they interact in conjunction with the credit card issuer or insurance provider. Hidden fees and additional costs Car rental companies also charge hidden charges that impact the cost of renting. They build some of these fees into the price of renting. Some of them may appear on the statement several months after the rental period. Renting a car at an airport is more expensive than renting through an off-site location. The reason is that the airport is charged fees such as an airport concession charge and a customer facility charge which the rental car provider passes on to the consumer. Certain companies put an authorization block on the customer’s debit or credit card. This charge, which ranges from $150 to $500, offers the rental car provider some protection if the renter has an accident or is not able to return the vehicle. The company can release the funds within a couple of days after receiving the rental car back in good in good condition. A lot of companies charge a cancellation fee for renters who cancel their reservations within 24 hours of the rental. If the renter has paid prior to the rental, then the company would refund the payment minus the cancellation fee. Renters who wreck the interior or exterior of their vehicle are required to pay for the repairs . Renters who aren’t careful could end in paying for damage done from previous owners. Be sure to thoroughly inspect the car prior to driving it off the lot and take photos of any visible damage and alert the employee. Most rental agencies have a fee per day to add drivers to the rental contract. The amount is determined by the rental agency and the state. The ability to change the conditions of the rental agreement by altering or expanding it can also result in an additional cost. The cost you pay can vary and you could pay more per day. Although knowing about these hidden fees can help renters realize why total rental cost is higher than the rental advertised price, there is usually little that can be done to reduce them. The basic rental costs for cars vary based on the rental agency, car type, location and age of the driver. It is also possible to find that certain locations are more expensive than other markets. There are ways to lower your costs, like searching around, making reservations early and skipping additional charges. Be sure to read the rental contract’s fine print to avoid incurring any unexpected costs. Learn more


Written by Auto Loans Reporter

Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers in navigating the ins and outs of securely borrowing money to purchase an automobile.

Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers to control their finances through providing precise, well-studied information that breaks down complicated topics into digestible chunks.

Auto loans editor

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