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Steer Clear of Car Surcharges
The Travel Tightwad · August 16, 2002

Rich Swisshelm thought he'd found a bargain when he locked in a rate of $28 a day for a sport utility vehicle in San Jose, Costa Rica. But when he tried to pick the truck up from the Advantage Rent-A-Car counter, he discovered he'd thought wrong.

"The agent informed me that I had to purchase liability insurance at $20 per day and personal accident insurance at $8 per day, which doubled the cost of the rental," he remembers. "They said both insurances were mandatory, and I could not rent the car without purchasing the insurance."

Swisshelm, a San Diego, Calif., software engineer, eventually agreed to the charges. But he wasn't happy about them. Nor, for that matter, are the thousands of other travelers who encounter surprise car rental surcharges ranging from taxes to fees that pay for auto tags when they're on the road.

Here's what you should expect and how to navigate around them:

"Fixed" company fees

Lisa Karl noticed a "concession recovery fee" and a "consumer storage fee" on her car rental bill and couldn't figure out what it was for. "It really infuriates me," says the Elgin, Ill., writer. "I took the time to shop around to find a rental for $226. But then it cost $304."

What they do: These are company-specific charges that help offset fixed costs of doing business, such as paying for parking, facilities, gas, vehicle titles, and even parking tickets. Disclosure is usually terrible, but if you can prove that you weren't notified about them, then you can sometimes talk your way out of paying.

How to get around them: Print out your itinerary. Compare the quoted price to the price you're charged. Is there a difference? If so, the car rental company can be talked into removing it.

"Optional" company fees

These are insurance charges that your friendly car rental agent swears you can't drive without. To underscore the point, you'll sometimes get shown a picture with a damaged car and asked, "Do you want this to happen?"

What they do: Line the car rental company's pocket, mostly.

How to get around them: Bring a copy of your own car insurance contract with you. It will indicate whether you're covered for rentals (you probably are). Also, many gold and platinum-level credit cards cover you under certain circumstances. Bring those agreements, too. And just say, "no."

Taxes

Samuel Kutler booked a car from Thrifty Car Rental's website recently at Manchester Airport, and found that the state was charging $10.50 in taxes. That's enough to upset anyone, including the Annapolis, Md., traveler. But if he only knew what the taxes were being used for. Many cities funnel the money into projects that will never benefit travelers, such as building a new racetrack or stadium, or funding education. Not that there's anything wrong with these projects. But should travelers pay for them?

What they do: Offer easy money for the community from a group that has no choice but to pay the fees.

How to get around them: Vote.

Airport or port authority charges

Fees for airport vans, monorails, buses, and consolidated car rental facilities are imposed on car rental companies by airports. And the car rental companies pass them along to you. David Pennington, a senior manager for a consulting firm based in San Francisco, was surprised to find such a surcharge on his last car rental bill. "Hertz wanted $12 for the airport shuttle," he recalls. "That's enough to pay for a shuttle to downtown San Francisco."

What they do: The fees allow airports to recover some of their expenses of offering transportation to and from car rental lots or maintaining a car rental facility on the premises.

How to get around them: Forget it. If you don't pay, then the car rental company is liable for the fee, so there's very little wiggle room. The only way you can argue your way out of it is if you can prove the car rental company failed to inform you of the charge.

One of my personal favorite solutions is to book a car through a site like Hotwire, which includes all taxes and booking fees in its quotes. I booked a car from the website recently and was pleasantly surprised at the lack of hassle when I checked out. I wish all price quotes from car rental companies were so straightforward.

Christopher Elliott is a travel commentator based in Key Largo, Fla. All e-mailed questions may be edited, condensed or republished at the site's discretion.