What are Underage Charges and How do they Effect Younger Drivers?
Youth is usually a paradox: For anyone who is age 18 or older you’re considered mature enough to be able to vote, pay taxes, and also go to war. But, until recently, if you were under 25, many car rental companies wouldn’t trust you to drive their vehicles. Because drivers under 25 statistically get into more auto accidents than other age groups, car rental agencies have long penalized young drivers-even those with good driving records-by charging high daily underage fees, restricting the kinds of cars that can be rented, as well as banning drivers (specifically those ages 18 to 21) from renting at all. So, what’s an underage road tripper to do?
The picture actually isn’t as bleak as it was a few years ago when many of the big rental car companies didn’t allow anyone under 25 to rent. Drivers ages 21 to 24 can now rent at most locations operated by Advantage, Avis, Budget, Dollar, Enterprise, Hertz, National, and Thrifty.
In the majority of cases, drivers ages 21 to 24 still have to pay a daily surcharge (varying by location) that averages around $25 per day. Pricier rental car categories for example luxury vehicles, vans, and SUVs are generally off limits to renters within this age group as well, although some companies may allow you to drive specialty vehicles with an even higher daily surcharge.
To avoid paying the highest rates, you’ll want to compare fees and restrictions at the rental agencies in the area where you wish to rent, as these can vary by owner. You may also want to check and see if you are eligible for corporate or organizational rates that may include underage fee waivers. If you have a job or are doing an internship and need to rent an automobile, check if your company has a corporate account with a rental car agency. Some companies have special contracts with rental companies that allow employees to rent at reduced rates and avoid paying underage fees. Some organizations have similar agreements. For instance, USAA, an institution for military personnel and their children, carries a partnership with Avis that allows members ages 21 and up to rent cars without an age surcharge.
Drivers ages 18 to 21 are generally unable to rent from the big rental companies. The exception is rentals in New York and Michigan, where state laws require agencies to rent to drivers ages 18 and up. However, you’ll pay dearly for the privilege, especially in New York, where some companies may charge drivers under 21 an additional daily fee of more than $100. The age penalties in Michigan usually aren’t as high, ranging from about $25 to $50 per day. In other states, you could be able to find smaller or lesser-known agencies that rent to drivers under 21-for an additional charge of course. For instance, Rent-A-Wreck, a rental car agency with more than 350 franchise locations, rents to drivers under 21 in certain locations. @West Rent A Car rents to 18- to 21-year-olds at its Los Angeles locations for an extra $45 per day. If you’re under 21, you can try browsing online to get independent car rental agencies locally or destination that may rent to you. You will have to call each location or visit its website to find what its policies are.
One further exception to the under-21 rule is rentals to U.S. Government or military personnel. People in the military or government workers as young as 18 who are traveling on official business can rent from most agencies at special government/military rates.
Overall, renting a car will likely be expensive until you’re 25 and difficult or impossible until you’re 21, so consider all of the available transportation options. Renting your own vehicles may be convenient but the expense may not be worth it if there are other transportation options. You will need to calculate the cost of the base daily rental fee with the daily underage fees, the daily insurance fees (unless you already have coverage), and taxes and fees, and then compare that total with all the costs of other travel options. When you have tallied the numbers, taking the bus or sucking it up and asking mom and dad to borrow the family minivan may not seem like such a bad idea. You could put the money you’ve saved towards buying your own car.
What to Do in an Accident with a Rental Car
If you’ve found yourself in a minor fender-bender or a larger accident with a rental car, first things first, be sure everyone’s okay! Call 9-1-1 if there are any injuries.
For the next steps, allow me to share a few tips on how to document damages:
Call the local police.
You may need to file a copy of the police report for insurance purposes and the car rental company will need one as well. Also, remember that you’ll be held liable and accountable for any traffic violations that occurred.
Contacts to make:
Call the rental car company. Check in the glove compartment for the car rental company’s contact information and have your account information ready.
Don’t have their info or can’t find it? Here’s a list of major car rental company roadside assistance contact numbers:
- Alamo: 1-800-803-4444
- Avis: 1-800-354-2847
- Budget: 1-800-354-2847
- Enterprise: 1-800-307-6666
- Thrifty: 1-877-435-7650
Questions you should ask the rental car company:
- What do you require me to do to document the damage?
- How would you like it documented – Photos? Writing information down?
- What information do you want? (date, time, etc.)
- When and how am i going to receive a replacement car?
- Explain the payments for the crashed car and the replacement car.
- Ask about any other assistance you might need – hotel?
Call your insurance agent.
Carl’s Van Rental TIP: Call your credit card company
Why? Your credit card may offer rental car insurance coverage.
Document the damage of the accident.
Although you may don’t have insurance, it is best to take pictures because doing so could help the process with the rental car company.
Towing the vehicle.
In the event the car has to be towed to a garage or repair shop, be sure to get the exact specifics of the location and name of the towing company and the body shop. You could be held responsible for these towing and storage fees if your auto insurance policy doesn’t cover it.
Carl’s Van Rentals Staff TIP: Grab Your Stuff
Before your vehicle is towed away, look for and remove all your belongings. Don’t forget to check the trunk and glove compartments!
Keep copies of ALL receipts
Hotels, restaurants, gas, repairs, everything – these expenses may be covered under your own car insurance.
Get extra estimates.
Just like you would for your car, you may be asked to get a number of different estimates for any repairs. Your own personal automobile insurance policy might not cover everything in this situation.
Carl’s Van Rentals Expert Tip:
Coverage in the event the vehicle needs repairs, your automobile insurance may not cover rental agency expenses, including loss of rental income while the auto is out of service, or any other “incidental” items like towing, storage, and administrative costs that the rental company may incur.
Bottom Line: Document damages, just like you would for your own personal car. You will never know what you might be held liable for!
Fight Rip-offs From Car Rental Companies
Some but not all car rental companies are out to rip you off and pad their pockets with your hard earned cash. Steer clear of the following forms of highway robbery.
The insurance hard-sell.
Anticipate to be pressured to sign a loss damage waiver to limit your liability with some companies. But at $60 to $250 a week, is it necessary? “Consumers may already be covered independently vehicle insurance policy whether it includes collision and/or comprehensive coverage,” notes Consumer Reports. “Some credit cards have protection. Just make sure the individual policy covers rentals and business travel and that it pays the ‘full value’ of any loss, administrative fees, towing and ‘loss of usage.’ ” Also, understand that credit cards are almost always secondary. What this means is that they will pick up the tab after your personal insurance leaves off. Make sure you check with your credit card and get it in writing!
Your defense: Call your insurance and credit card company before hand to find out whether it is possible to avoid a pointless purchase. Only in the case you are not covered already, get the rental add-on policy or scour the Internet for third-party companies that offer coverage.
Also be wary of rental companies requesting huge deposits if you decline the insurance plan, or threatening to not rent to you whatsoever – that’s illegal in most states. When you get these threats, talk with a manager. Do understand of course that if you are not properly covered for the vehicle, rental car companies do have the right to deny you the rental without sufficient coverage and/or a security deposit. Read over the contract thoroughly.
Who made that dent?
After turning in a car and going on your way, you might learn you have been charged for dings and dents you didn’t cause. However, if at pickup you signed a form saying there was no damage whatsoever, you are going to have trouble making an “it wasn’t me” protest.
Your defense: Take photos or video with a digital or camera phone when you initially get the car – and again whenever you return it. Be sure you get close-ups of all existing blemishes, dings and scratches. Pay very close attention to bumpers, windshield and undercarriage.
Most rental car companies are not “out to get you”, but always ensure that you protect yourself. Take shots of the mileage and fuel levels at both check out and return in addition to noting the damage. Pay special attention to the inside of the vehicle as well as their may be pieces missing or damaged.
Fuelish omissions.
Recent surveys said that car rental companies at 13 airports were charging as much as $9.29 per gallon, a lot more than twice the rate at the pump, to fill the tanks of cars whose renters had promised to return them full. Plus some agencies add yet another surcharge for the “service” of filling the tank. Remember, if the fuel pricing is outlined on the rental agreement and you sign accepting it, you are fully responsible for paying that amount if it is not brought back at the same level.
Your defense: Find out where there’s a service station near the rental agency and always, always fill up the tank to the level it was when you rented on the way to return the vehicle.
And think twice about any “fuel option” where the rental company bills you a market-based price for the tank full of gas that is included with the automobile, and then allows you to return the vehicle less than full without any charge.
The catch: The company gets any leftover gas and you get no credit on your bill. To make this system pay, you’ve basically got to be running on fumes when you turn the vehicle in. And who wishes to risk coasting to a stop a mile from the lot?
How To Save Rental Dollars In A Down Economy
Renting a vehicle isn’t generally considered fun, but when you need another set of wheels other than your own for long trips or when you are visiting a destination away from home, there a few other choices. Renting an automobile offers you a sense of peace knowing that you don’t have to worry about the mileage or deterioration of your own vehicle or having to worry about relying on public transportation. With the economy putting a tighter belt on our wallets, what might you do in order to help stay afloat and steer clear of getting conned with your next rental car?
Here are some tips that we have learned throughout the years booking travel that I hope may add value in your next travel adventure.
Don’t rent a vehicle from the airport - You may pay a lot more by renting directly from the airport. Fees charged by the airport for facilities, etc, for car rental companies are passed on to the customer. Your rental car rate looks cheap until you choose where you’re picking up your automobile. Most rental car companies have various locations you are able to select from to pick up your rental. Take note of their hours of operation and if you’re able to return the car to another location. If you do decide to rent off-airport, make sure there is a shuttle available.
Avoid the GPS - I have noticed car rental companies offer GPS systems in cars to assist you along your trip. Stick with a map instead because in some instances, rental companies charge extra mileage fees should they detect that you went more than the allowed mileage. Sometimes GPS units will not take you on the shortest route causing additional time for travel as well as additional mileage. My advice: Don’t order GPS for your car. You could use your cell phone GPS as an alternative or use an atlas or maps.
Do I really have to Fill up the vehicle before bring it back? - Depends… Not all auto rental companies fill their tanks. This is a cost-cutting measure to ensure that you, the renter, gets the lowest rates. Make sure you don’t use the gas stations near the airport given that they tend to have higher prices. Simply make it a rule to make time to fill the gas tank to the correct level before taking it back.
Price Gouging- I book travel all the time so when I am searching for pricing, I look just about everywhere. So should you! Book car rentals on the weekend because during the week; business travelers have a tendency to use rental services more. If you book online, be on the lookout for coupons or discount voucher codes which will help you save more. Beware though, some discount coupons will actually raise your rate higher than the advertised price online, and the car rental company will never call to inform you. When you pick your vehicle up they’ll quote you higher than what you saw online. Compare, Compare, and Compare again until you find the right price for you.
Should I buy rental insurance or not? – This choice even confuses me, but what you can do to prevent costly fees is talk with your individual car insurance or credit card company to determine if it rolls over to car rentals. If it’s a leisure trip, most times you will be covered, but do your homework and check it out first.
Where’s my vehicle I rented? – Have you ever rented a specific car and when you got there it wasn’t even available? Rental-car agreements aren’t guaranteed, unless you rent from Carl’s Van Rentals, it’s just contingent on availability. If you’re ever stuck with an inferior car than what you picked, make sure they give you a rate adjustment. Car companies tend to pull this trick a lot and as long as you have a rental reservation, they are obligated to get you a car regardless.
Natural Disasters are your problem now – If a natural disaster occurs, it may your responsibility to get the car out of harm’s way and to ensure its safekeeping. In addition, the time that you keep the vehicle will still be your responsibility regardless of circumstances. Also, check the early return policy of your auto rental company. My advice: Read the fine print.
Gasoline vs. E85 – What’s the deal?!
Within that past few years, E85 (a mix of 85% ethanol and 15% gasoline) has become more widely available throughout the United States. With this release and the introduction of many manufacturers’ vehicles featuring “FlexFuel” friendly engines, the use of E85 has been increasing ever since. The question that begs to be asked – “Is it really worth it?” I was on a mission to find out!
Ethanol has its camp of followers featuring everyone from environmentalists to road-warrior travelers and even just the normal consumer looking to save a few dollars on the cost of fuel. I read and had been given information about E85 that was conflicting and somewhat controversial. Those who are for E85 and its use will say that it is more environmentally-friendly and helps us to decrease our dependence on fossil fuels. While this may be true, those who stand against ethanol and E85 defend their position by asserting that in order to keep up with the demand for fossil fuels, we would have to devote a huge amount of farmland, etc, to producing corn, the base crop for the production of ethanol. One distinct difference between E85 and gasoline is that E85 does not have as much energy per its weight as gasoline. This essentially means that it does not produce as much power as gasoline and therefore is not considered as efficient as gasoline.
On a recent trip from Ft. Lauderdale, Florida to Orlando, Florida, I made a stop at a rest area to refuel. The vehicle that I was in was a 2010 Ford Econoline E-350 15 passenger van. I know from previous trips with this vehicle year and model that unloaded it gets about 14-15 miles per gallon highway. This is, of course, with normal 87 octane gasoline. Luckily, this vehicle has an ‘average miles per gallon’ option which allowed me to check the fuel economy while using E85 fuel. After resetting the ‘miles per gallon’ and driving about 100 miles, the average miles per gallon was 12.4, reflecting a decrease in fuel economy with E85 over gasoline of about 15% (taking the average of 14-15 miles per gallon with gasoline and averaging 14.5 miles per gallon).
On that particular day, the cost of a gallon of 87 octane gasoline was $3.65. The same gallon of E85 cost $3.05, a difference of about 17%. I most places, I’ve noticed that there is about a 50 cents per gallon difference (on the Florida Turnpike, at least) between regular gasoline and E85. With a 2% difference in actual operating costs comparing the E85 and gasoline, the decision is up to you.
Whether you feel that it is more environmentally responsible to support E85/Ethanol based fuels, or whether you deem it more appropriate to stick with gasoline, the +/- 2% difference could be considered negligible to someone who doesn’t drive much. But, if you are driving on a road trip or have a long commute to work, that 2% difference at the end of the year may be the difference between being able to do something you really want to do and being able to afford it and not being able to! The average American spends about $2500 per year in fuel for their vehicles. 2% of $2500 equates to $50.
“So how does this affect my car rental?” you ask. As stated in the first paragraph, more and more vehicles manufactured are “FlexFuel” friendly. The purpose of this blog is to inform auto renters about what is
going on in the industry – this is a fairly large trend with manufacturers that can directly affect the cost of your vacation or trip. Please give me your thoughts on the subject!
Car Rental Rip Off Tips
We all have been in the situation of needing to rent a car for one reason or another. Whether it be needing a set of wheels for vacation, a business trip, or your car is in the shop being worked on. At the same time being ripped of is the last thing you want as well. Research is going to be the key to avoid getting ripped off. Follow these simple rules and you will be good to go.
1. Before doing a Google search to find the best rental place check the local Better Business Bureau out first to make sure the rental companies are reputable. This is a little time
consuming, but worth the effort in the end.
2. Check to see if there are any specials or coupons available. There might be a discount for signing up online, a weekly/monthly special, a business person’s discount, or even a seasonal special. If your car is in the shop bring a copy of the work order to the car rental place. You probably will be able to get a discount because most rental places will give you one when your car is being worked on. Why pay full price when you don’t have to?
3. Remember the rental car is not yours and treat it as such. If you’re a smoker check to see if there is a car that you can smoke in. These are very rare these days. If you are not able to smoke in the car then don’t. Similarly if you have pets do not allow them in the rental car. A lot of people have pet allergies. If the rental place has to get the car cleaned and detailed for any reason they will pass that cost on to you, which can be very expensive.
4. Rent the size of car that you need and no larger. SUV’s and trucks are more expensive.
5. Read the rental contract completely especially the fine print. You do not want to have any surprises when you return the car. The only response you will get is you agreed to it in the teeny tiny print that we did not even tell you about when you signed the contract.
6. If you’re going to be doing long distance driving find out if there is a mileage allotment. You will be charged for anything over that allotment.
7. Check with your insurance company to see if you’re covered for car rentals. If not then you might want to look at the insurance offered by the car rental place. Your insurance may also offer some type of reimbursement for the car rental as well.
8. Finally be sure you return the car in the same condition when you first got it. This consists of any damage not on the damage check list you filled out before you left with the car. It also includes the gas tank being at the same spot you left with.
Rental Car Returned 7 Months Late
This story is one for the record books. Back in June Nicholas Balzer, of Port Richey FL, returned a car he had rented 7 months late. Balzer had originally rented a car from Budget Rent A Car on October 20, 2010 and failed to return it on the lease expiration date of November 20, 2010. He turned himself in to Moon Police after leaning a warrant had been issued for his arrest. The charges against Balzer are felony theft of leased property and unauthorized use of an automobile.
What makes this story even more interesting is Balzer not only racked up close to $900 in late fees, but the car was also involved in an accident back in the fall. His insurance says they are no longer covering damages to the rental car. Being in an auto accident with a rental car is bad, but even worse is not returning it and going to jail. Balzer appeared before Judge Mary Murray in the Coraopolis District Court on June 21, 2011.
Being mentally stable should be a prerequisite for renting a vehicle. In fact, if a renter looks even mildly incapacitated in any way, legally, they cannot rent a vehicle. One thing for sure though is Mr. Balzer has plenty of time to think about his next car rental and making sure it is returned on time.
While this article is an extreme example, it does demonstrate a great point – returning your rental vehicle on time is of monumental importance. If you do need to keep the vehicle longer than your rental agreement stipulated, call the company that you rented from right away! Remember, it is not your vehicle and you do not have the right to keep it longer than you are contracted. However, most rental car companies know that situations can arise that requires keeping a vehicle longer. Also remember that if you look (or smell) like you’ve had anything to drink, you cannot rent a vehicle legally.
