These Are The Best Ways to Save Money When Renting a Car

The holiday travel season is in full swing and more people are hitting the roads than ever, so if you haven't already reserved your own rental car, it's time to do so.

We've written before about why you should book your rental car early to lock in your rate, because you can (usually) cancel and rebook with no penalty if prices drop. But regardless of when you reserve and how rates fluctuate, there are a number of strategies for saving money on both base rates and fees (such as upcharges for young or additional drivers) when you book so you don't wind up blowing your whole travel budget on your rental car.

Shop around for the cheapest rate—and get creative about it

You should obviously compare prices across rental companies to get the cheapest option, especially if you aren't a member of any loyalty programs, and include rental car alternatives like Turo and Getaround. AutoSlash tracks rental car rates—for free—so you can set up an alert for your reservation.

But go one step further than just comparing companies. your rental company has multiple locations in your area—both in-town and at the airport, for example—check for price differences if you pick up and drop off at one versus another. Downtown pickup is cheaper on average than airport locations, according to NerdWallet. However, you should also factor in convenience (taking a rideshare to a location further away could offset any savings) and business hours, as well as available inventory and one-way fees if you pick up at one location and drop off at another.

Sign up for a membership club with an auto discount

AAA is perhaps the best-known auto club to offer car rental discounts, but there are a handful of membership programs with similar perks:

• AARP: up to 30% off base rates

• BJ's: up to 30% off base rates

• Costco: up to 30% off base fares

• USAA: up to 25% off

• Sam's Club: up to 25% off

Each of the above contracts with certain rental car companies to offer discounts to their members, so if you prefer a specific provider, you should check the specifics before joining. Note that other than USAA (which offers membership only to military service members and their families), these clubs have fees to join that range from $12 to $110, and you may have to book your rental through the club's portal to take advantage of your discount.

But if you use this perk (and others) often, the money you save could quickly offset the price of admission.

Book with your travel credit card

As The Points Guy lays out, there are a handful of travel credit cards—the Chase Sapphire Reserve, The Platinum Card from American Express, and the United Club Infinite Card, for example—that have solid rental car benefits, such as discounts, waived fees, free upgrades, and priority service.

Another potential perk of using a travel credit card to book your rental is that insurance coverage such as damage waivers may be included, so you don't have to purchase costly coverage from the rental company or file a claim with your personal insurance in the event of a collision. (Obviously, you should check what's covered with your card before declining any additional insurance options.)

Go through your travel loyalty program

Hotel and airline loyalty program members may be able to score rental car discounts with partner companies and earn bonus points or miles on the booking. For example, Alaska Air offers 35% off Avis and Budget rentals and up to 1,250 miles for its Mileage Plan customers who use their membership number when booking, while Marriott has a partnership with Hertz to offer discounts to Bonvoy members.

If you use rental cars frequently and/or have a preference for a certain provider, you may want to consider joining their rewards program, which can earn you points that can be redeemed for rate discounts and upgrades.

Use your company or school perks

Ask your employer about a corporate code for rental car discounts (just be sure you understand any restrictions, such as using it for personal vs. business travel). Similarly, some universities have partnerships with rental companies to offer discounts and perks to students and alumni. Union members may also have access to car rental benefits through UnionPlus.

Note that you may have to show proof of employment, enrollment, or membership to qualify for your discount.