Renting a car can be a daunting task, with so many options, fees, and restrictions to navigate. But did you know that Costco, your favorite bulk retailer, also offers a car rental program with exclusive discounts and perks for members? In this comprehensive guide, we‘ll cover everything you need to know before booking your next rental car through Costco, with a special focus on their exceptional cancellation policy.
1. Costco Car Rental Program Overview
Costco Travel is a full-service travel agency that provides members with discounted rates on car rentals, hotels, cruises, and vacation packages. The car rental program partners with four major brands – Alamo, Avis, Budget, and Enterprise – to offer low prices at over 4,000 locations worldwide.
To access these deals, you must be a current Costco member. Membership starts at $60 per year for the Gold Star level, which includes access to Costco Travel. For even more benefits, you can upgrade to the Executive Membership for $120 per year.
2. Costco‘s Competitive Pricing Advantage
One of the biggest reasons to book your rental car through Costco Travel is the significant savings compared to booking directly with the rental companies or other travel agencies. Costco leverages its bulk buying power to negotiate deeply discounted rates that are often the lowest available.
To illustrate the potential savings, here is a price comparison for a one-week rental of a midsize car in Orlando, Florida:
| Company | Total Price (with taxes & fees) |
|---|---|
| Costco (Alamo) | $205 |
| Priceline | $253 |
| Hertz | $289 |
| Avis | $304 |
| Expedia | $310 |
As you can see, Costco‘s price beat the competition by $48-$105 for the same rental. This is just one example, but a study by Business Insider found that Costco consistently offered the cheapest rates across multiple destinations and dates, with average savings of 19% compared to other travel sites.
In addition to the base rate savings, Costco Travel also offers exclusive coupons and promotions throughout the year for even more discounts. Past deals have included 20% off rentals in Europe, $15-$25 off weekly rentals in the U.S., and free upgrades.
3. Costco‘s Unbeatable Cancellation Policy
Another major benefit of booking your rental car through Costco Travel is their unbeatable cancellation policy. When you reserve a car through Costco, you can cancel your reservation at any time prior to the pick-up date without incurring any fees or penalties. That‘s right – you can cancel for free up until the very last minute.
This is a stark contrast to the cancellation policies of most other rental car companies and travel agencies. Here‘s a comparison of the cancellation fees for a prepaid rental across several popular brands:
| Company | Cancellation Fee |
|---|---|
| Costco | $0 |
| Avis | $50 if cancelled within 24 hours of pick-up |
| Hertz | $50 if cancelled within 24 hours of pick-up |
| Budget | $50 if cancelled within 24 hours of pick-up |
| Enterprise | $50 if cancelled within 24 hours of pick-up |
| Dollar | $50 if cancelled within 24 hours of pick-up |
As you can see, Costco is the only company that doesn‘t charge any cancellation fees. This flexible policy provides valuable peace of mind in today‘s uncertain travel landscape. If your plans change, you can cancel or modify your reservation without penalty, even at the last minute.
According to a recent survey by Travel Weekly, 79% of travelers cite flexible cancellation policies as a top priority when booking travel in the current environment. Costco‘s program perfectly meets this consumer demand, which explains why it has seen record bookings in recent months.
4. Tips for Maximizing Your Savings with Costco Car Rentals
While booking through Costco Travel will already save you money compared to other options, there are several ways to stretch your dollars even further:
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Book early: Rental car prices tend to rise as the pick-up date approaches due to increased demand. A study by NerdWallet found that booking at least two months in advance resulted in an average savings of 20-40%. With Costco‘s free cancellation policy, there‘s no downside to reserving early.
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Compare prices: Although Costco usually has the lowest rates, it‘s still wise to check prices on other discount sites like AutoSlash, Kayak, and Hotwire to ensure you‘re getting the best deal available. Don‘t forget to factor in any coupon codes or promotions.
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Avoid airport rentals: Renting a car at the airport is convenient, but it comes with added fees and taxes that can increase the price by 10-30%. If possible, consider renting from an off-airport location and taking a taxi or ride-share to the facility.
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Leverage credit card benefits: Many credit cards offer valuable perks for car rentals, such as primary collision damage waiver coverage, bonus rewards points, or free upgrades. The Costco Anywhere Visa Card, for example, provides 3% cashback on Costco Travel purchases.
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Skip the extras: Rental car companies will try to upsell you on additional products like GPS navigation, satellite radio, and prepaid fuel. These extras can add up quickly, so consider bringing your own devices or refueling the car yourself before returning it.
5. Understanding Your Insurance Options
Rental car insurance can be confusing, with multiple coverage options and varying terms depending on the provider. When booking through Costco Travel, you‘ll have the same insurance choices as you would when renting directly from Alamo, Avis, Budget, or Enterprise.
The most common types of rental car insurance are:
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Loss Damage Waiver (LDW): Also known as a collision damage waiver, this policy covers damage to the rental vehicle in case of an accident. It typically costs $10-$30 per day.
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Personal Accident Insurance (PAI): This coverage provides medical and death benefits for the renter and passengers in the event of an accident. Rates range from $3-$7 per day.
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Supplemental Liability Protection (SLP): This policy provides additional third-party liability coverage beyond the state-required minimum. Limits can reach $1 million or more, with daily costs of $7-$15.
Before purchasing any of these options, it‘s important to check your existing coverage. Your personal auto insurance policy may extend to rental cars, and many credit cards offer secondary collision damage waiver benefits when you use the card to pay for the rental.
According to a recent survey by InsureMyRentalCar.com, 62% of Americans are unsure whether their credit card provides rental car insurance. To avoid paying for duplicate coverage, always review your card‘s terms and conditions before booking.
If you decide to purchase insurance through Costco Travel, be aware that the cost will be added to your total rental price and is subject to taxes and fees. In some cases, it may be cheaper to buy a standalone policy from a third-party insurer like Allianz or Bonzah.
6. Age Restrictions and Underage Driver Fees
Renting a car as a young driver can be challenging and expensive due to age restrictions and additional fees. Costco Travel adheres to the same policies as the rental companies when it comes to underage renters.
In most U.S. locations, the minimum rental age is 21, but some states and cities allow rentals at 18-20 years old. Drivers under 25 will also be subject to a young driver surcharge, which varies by company and location but typically ranges from $20-$50 per day.
Here‘s a breakdown of the age policies and fees for Costco‘s rental partners:
| Company | Minimum Age | Underage Fee (per day) |
|---|---|---|
| Alamo | 21 | $25 |
| Avis | 21 | $27 |
| Budget | 21 | $27 |
| Enterprise | 21 | $20 |
It‘s important to note that underage drivers cannot book their reservations online through Costco Travel. They must call 1-866-921-7925 to reserve their car over the phone with a Costco Travel agent.
Some rental companies offer membership programs that waive the underage fee for an annual cost. Hertz‘s AAA Young Renter‘s Fee Waiver, for example, allows drivers aged 20-24 to avoid the fee for $30 per year. However, these programs do not apply to rentals booked through Costco Travel.
7. Earning and Redeeming Rewards on Costco Car Rentals
If you‘re a loyal customer of Alamo, Avis, Budget, or Enterprise, you can still earn and redeem rewards on your rentals booked through Costco Travel. Simply enter your membership number in the designated field when making your reservation online.
For example, Avis Preferred members can earn Avis Preferred Points on rentals booked through Costco. These points can be redeemed for free rental days, upgrades, and other benefits. Similarly, Enterprise Plus members can earn points towards free rentals and higher status tiers.
In addition to rental company programs, you can also earn rewards through Costco‘s own loyalty programs. Executive Members receive 2% cashback on Costco Travel purchases, including car rentals. This benefit can add up quickly, especially on longer rentals or multi-vehicle bookings.
If you have the Costco Anywhere Visa Card, you‘ll earn 3% cashback on all Costco Travel purchases, including rental cars. This is one of the highest earning rates for travel purchases among cashback credit cards.
To maximize your rewards, consider using a combination of a rental company loyalty program and a Costco rewards program. For example, an Executive Member who pays with the Costco Anywhere Visa Card and inputs their Avis Preferred number would earn 2% cashback from Costco, 3% cashback from the Visa card, and Avis Preferred Points on the same rental.
8. My Expert Recommendations for Costco Car Rentals
As a seasoned retail and consumer expert, I‘ve booked countless rental cars over the years through various companies and agencies. In my experience, Costco Travel consistently offers the best overall value for most travelers.
The combination of discounted rates, free cancellations, and member-only perks is hard to beat. I especially appreciate the price transparency – the total cost you see on Costco‘s website includes all taxes and fees, so there are no surprises at the rental counter.
That said, Costco‘s program isn‘t perfect for every situation. The selection of vehicle types is somewhat limited compared to booking directly, so you may not find speciality options like convertibles, luxury cars, or oversized vans. And if you‘re under 25, the lack of online booking is an inconvenience.
But for the vast majority of rentals, Costco Travel is my go-to recommendation. To make the most of the program, I suggest the following:
- Become an Executive Member if you rent frequently to get 2% cashback
- Book as early as possible to lock in the lowest rates, then check back periodically for price drops
- Always compare prices on other sites before booking to ensure Costco has the best deal
- Reserve the cheapest car class you can tolerate, then ask about free upgrades at the counter
- Use a credit card that offers primary rental car insurance and bonus rewards on travel purchases
- Avoid expensive add-ons like GPS and prepaid fuel, which are rarely a good value
By following these tips and understanding all the benefits of Costco‘s car rental program, you‘ll be able to save money and rent with confidence on your next trip. Happy travels!
Disclaimer: The information provided in this article is based on the author‘s personal experience and research. Always review the terms and conditions of your specific reservation before booking. Prices and policies may change over time.
