Charges On Car Rentals Explained

Posted on Monday, June 2, 2025

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by Outside Contributor

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Sponsored By: AMAC Car Rental

Looking down at your receipt after renting a car can seem like you just went grocery shopping and paid for things you did not want!   It can be frustrating, however, there is a lot of complexity in the cost of renting a car.   

So let’s get a better understanding of the costs and associated fees.  Many of which are mandated federal, state, and local taxes!

1. Base Rental Rate: This is the basic cost of renting the car itself for the period you need it. It covers the vehicle and its use.
2. Taxes and Fees:
   • Government Taxes: These are taxes imposed by local, state, or federal governments on rental car transactions, similar to taxes on other goods and services. 
   • Airport Concession Fees: If you’re renting from an airport, these fees help the rental company pay for its space and operations at the airport facility. These fees are sometimes denoted as Concession Recovery Fees.
   • Customer Facility Charges (CFCs): These fees often fund airport improvements or facilities directly related to car rentals, such as rental car centers or shuttles. 
   • Energy Recovery Fees: These fees may cover environmental costs related to car operations and maintenance. 
   • County Surcharge: This could be a fee imposed by a specific county. 
3. Insurance and Protection:
   • Collision Damage Waiver (CDW): This is an optional protection that waives your responsibility for damage to the rental car. Without it, you might be liable for the full cost of repairs.
   • Liability Insurance: This covers damages or injuries you might cause to other people or property in an accident. Your personal auto insurance might cover this, but it’s wise to check.
   • Other Protection Packages: Some companies offer packages that include things like tire protection, roadside assistance, or coverage for personal belongings. 

4. Additional Driver Fees: If someone other than the primary renter will be driving, there’s often a fee for adding them to the agreement. Many suppliers include an additional driver, so be sure to check on that!
5. Optional Extras:
   • GPS Navigation: Renting a GPS device can be convenient if you don’t have one.
   • Child Seats: These are available for families traveling with children.
   • Prepaid Fuel: You can pay for a full tank of gas upfront. This can be useful, but might not always be the most cost-effective option.
   • Toll Charges: Some rentals offer a “Pass Like” device with unlimited tolls. This is usually a good option in larger cities that have Toll Roads.   If you don’t have this and go through tolls, you can expect a much larger bill for the tolls and service fees from the supplier.

6. Location Surcharges: Renting at airports or popular tourist destinations can sometimes incur higher fees due to their convenience and demand. 
7. One-Way Rental Fees (Drop Fees): If you pick up the car in one location and drop it off in another, there’s often a fee to cover the cost of returning the vehicle to its original location. 
8. Age-Related Fees: Some companies charge additional fees for drivers under a certain age.
9. Late Return Fees: Returning the car late can result in extra charges.

Also note, if you bring your vehicle back early, you usually don’t get a credit! 

That sure is a lot, but each of these charges has a specific reason. It’s all about ensuring you have the right coverage and understanding the terms of your rental. 

Hope you found this read valuable, and thanks for being a valued AMAC Member!