Renting a car can be confusing and expensive if you don't understand industry terms and how fees are calculated.  If you have a poor driving record, renting a car may be next to impossible.  Before you reserve a car, think about the size you want or need and how much you're willing to spend.  This will help you avoid making a hasty or expensive decision that you may regret later.   At the same time, be aware that vehicle classification systems vary.  The terms "compact,"  "mid-size," and "luxury" sometimes differ among companies. 

    Call several rental car companies for price estimates, or check rates through your travel agent.  Ask about specials geared to the length of time you need the vehicle.  Many companies offer weekly or weekend deals.  If your plans are flexible, you may be able to save money by renting a car when price breaks are available.   But be sure to ask about restrictions on special offers, including blackout dates when an advertised price may be available.

    Ask if the rental car company checks the driving records of potential customers.  Many companies now check driving records when customers arrive at the counter.  Some reject customers whose driving records don't meet company standards.   Even if you have a confirmed reservation, you may be disqualified from renting a car for moving violations within the last few years; seat belt law violations; accidents, regardless of fault; convictions for Driving Under the Influence (DUI), reckless driving with an invalid, suspended or revoked license.

    Ask if there may be charges that could increase an advertised base rate, such as Collision Damage Waiver (CDW) fees; a deposit or refundable charge; airport surcharges and drop-off fees; fuel charges; mileage fees; taxes; additional-driver fees; underage-driver fees; out-of-state charges; and equipment-rental fees (for items such as ski racks and car seats).

    Collision Damage Waiver (CDW) is an optional charge which generally costs $9 to $13 a day. Rental car agents may urge you to buy this option. Although they call it "collision damage" coverage, it's not technically collision insurance.  Rather, it is a "guarantee" that the rental company will pay for damages to your rented car.  By declining the waiver, you accept responsibility for any damages.  Under CDW, however, the company will not pay for bodily injuries or damages to your personal property.  If you do not buy CDW coverage and are not covered by your personal auto insurance policy or otherwise covered, you could be liable for damages to the car.  Some rental companies may hold you liable only for the first $1,000 or $2,000.  If you rent cars frequently, check with your own insurance agent to see if you can get this coverage cheaper with a rider to your regular coverage.

    Some CDWs exclude coverage under certain circumstances.  For example, coverage may be revoked if you damage the car when driving it in a negligent manner, on unpaved roads, or out of the state in which you rented the vehicle.  Some companies void their CDW coverage if a driver drinks alcohol or if a non-authorized driver operates the car.

    The coverage offered by rental car companies may duplicate insurance you have through your auto and homeowner's policies.  Coverage under your medical plan would offer protection that CDW coverage lacks.  Read your insurance policies and medical plan for specifics.  If you're not sure about the coverage, call your insurers.  If you're traveling on business, your employer may have insurance that covers you.  Also, some credit card companies and motor clubs provide members with free rental protection when you use their cards to pay for rentals.

    Remember, before you sign your rental agreement ask about terms and charges.