Travel Deal of the Day (August 8, 2008)

If you are trying to save money on your next trip, you should be sure to calculate all the hidden costs of renting a car on your next trip.

The Deal:
It can be very convenient to have a rental car when you are on vacation. But the costs of having a rental car can be high, so I advise calculating the costs of having a car to verify if using taxis or public transportation might better fit your budget.

When renting a car, it is easy to forget about all the hidden costs. The first hidden costs (in addition to the per day cost of the car) arise based on the fees/surcharges that may apply for your car rental reservation. Then, you must consider the fees to park your car at your destination, the cost of gas and the cost of insurance. When you compare these costs with the cost of taxing a taxi or using other public transportation alternatives (when available), it can sometimes save you money to avoid renting a rental car.

The key is to be an informed consumer and compute these costs in advance. Investigate the costs and the public transportation alternatives and make an informed decision.