What You Should Know About Pre-Paid Auto Rentals

Many car rental agencies, both big name companies and smaller independent companies, offer around 10 percent off when a customer pre-pays for their rental. Some companies may have smaller discounts, like 5 or 7 percent, while others have larger deductions, sometimes up to 15 percent off. Even budget brands that already have some of the lowest rates available offer pre-pay savings options.

Discounts for pre-payment may vary depending on the type of vehicle being rented. For example, some agencies may not give discounts on certain classes of vehicles, like SUVs. Most of the time, you won't get a greater pre-pay discount the higher the overall price is — the discount will stay the same even if you rent the car for an extended period of time or during a time of the year with high rates. Understanding fees, gas, and payment details will help you budget accurately.

When you pre-pay for a car, be prepared to go through extra steps at the rental counter, especially if you've paid online instead of in person. You'll always need to provide a photo ID when you rent a car, but you may also need to present the credit card you used to book the rental. If you used someone else's card, that person may need to be present as well. Review what you need to rent a car for a full checklist.

Pre-paying may help you get an affordable rental, but it could also come with a strict cancellation policy. You may get a voucher toward your next rental or an almost-full refund, or you could be charged an extra fee. Always read the fine print before committing to a pre-paid reservation.