Guide to Renting a Car for the First Time

Reasons to rent a car

Before we get into what to know when renting a car, let’s get into why, so you can decide if car rental is right for you. 

Are you traveling somewhere (like a state park or other remote area) without reliable public transportation? Does your trip include multiple destinations in the same general area, where booking a flight or train to each isn’t feasible? Or maybe your everyday car just isn’t up for what you’re planning.

Some other reasons for renting a car include: 

• Getting to and from work and other locations when your everyday car is temporarily unavailable
• Moving large or inconvenient items (like furniture or film equipment) between locations
• Family visits or day trips when you don’t own a car
• Traveling with someone unable to use other means of transportation 
• Traveling to a location without reliable EV charging when you own an electric or hybrid car

The car rental process

Whether you’re renting a car for the first or the hundredth time, the process is generally the same.

• Start by doing your research. Consider your location (both where you’re renting from and where you’re traveling to) as well as your budget; the length of your trip; how many people will be in the car; and your needs around storage, return location and add-ons, like car seats and GPS. Try to do this early, so you can book in advance.
• Once you've decided what you need, you're ready to book. In most cases, you can check availability, read rules and book a car online. Pick your location (for pickup and drop off) and dates, and you’re one step closer to cruising. You can book through rental car companies directly, brokers or online travel agencies. If you have an eligible Citi credit card, the Citi Travel^® site allows you to search for and book cars directly.
• Make sure you have the documents listed above (and your reservation info, if you booked online), and head to the lot to pick up your car. The agent will give you an opportunity to read over your rental agreement, ask any questions and sign up for insurance or add-ons. At this point, it can be a good idea to check out (and photograph) all aspects of your rental car before you head out.

If you’re unable (or just don’t want) to travel to a rental lot yourself, check for companies that deliver cars right to your door and pick them up when you’re done or companies that will pick you up and take you to the lot.

Rental car insurance

Do rental cars require insurance? As mentioned above, most rental companies don’t require it, but they typically have several plans available. To determine if you need insurance for a rental car, consider what options are available and what you need (e.g., collision, personal accident/effects and liability).

Review your own auto insurance policy (if you have one). Check whether the credit card you’re paying with offers insurance, too, and find the details.

Either way, you should be able to purchase coverage at the rental company’s counter. An agent can go over what each plan covers and any associated minimums or deductibles. Go over the policy thoroughly and ask questions so you understand what you’re getting.

If you’re renting a car for work-related travel, your employer may also have coverage options.

Checking the car before leaving the rental car lot

Before you leave the lot with your rental car, it’s typically a good idea to do a walk-around to note any damage or unusual elements of the car. Mention whatever you find to the agent so they can make note of it in your rental agreement (agents usually do their own walk-around as well) and take dated photos of the car for your records. 

• Some things to check for can include:
• Pre-existing scratches, dents or windshield chips
• Tire inflation/damage
• Issues with AC/heat, interior/exterior lights or entertainment system
• License plate/registration tags
• Gas level, particularly if your rental agreement requires you to bring back the car with a full tank or the level of gas it had when you rented it (not all companies require this, but if you’re not filling up, there’s usually a fee)

You might also want to check for an owner’s manual, spare tires, weather implements (like snow scrapers) and USB ports before you head out, so you’re not caught off-guard.

Returning a rental car

Your online reservation (if you have one) and rental agreement will state the drop-off time and location for your first-time car rental. To avoid fees, it’s usually best to avoid arriving later than what’s listed in your agreement (though many rental car companies charge by the day, and count days based on 24-hour windows from when you picked up the car). To avoid stress, familiarize yourself with where you’re going, how to get there and any unusual elements of the route (like one-way streets and lots you can’t back out of). Once you’re on the lot, signs or an attendant will usually tell you where to park. 

On your way, you’ll want to stop for gas. Search for stations 10 miles or less from the lot. It’s best to know where you’re headed and where you’re going afterward, so you don’t have to fill up all over again. This is also a good time to dispose of any trash. Don’t forget to take stock of any personal items in the car. Remove any suitcases, car seats, GPS devices or charging cords you brought yourself.

Once you’re out of the car, perform the same walk-around as before, noting any new (or old) damage and taking pictures for your records. If there are any new bumps, spills or chips, you may have to file a Condition Change Report and pay a fee. For more extensive damage, such as those caused by an accident, the rental company may contact an estimator.

In addition to taking photos, you can ask for a printed (or emailed) receipt. This will usually provide proof of return time and fuel amount.

Can you return a rental car to a different location?

If your destination is your final stop (for example, if you’re moving, or planning an extended stay without need of a rental car), you might want to book a one-way car rental. While this option is convenient, keep in mind that it can come with additional fees or a higher rate. Costs can be affected by pickup/drop-off location (especially if you’re traveling across country lines), length of rental and even the vehicle you rent. Returning a car to a different location also typically requires that you book in advance.

While time on the road is never short on surprises, it is typically not cost-effective (or, in some cases, even possible) to return a car to a different location without prior authorization. If such an issue arises, contact your rental company ASAP. 

Canceling a rental car

When booking your rental car, pay attention to the cancellation policy in your agreement. If your plans change, it may be as easy as clicking a button to cancel your reservation, but there may be associated fees, depending on how/when you do it. 

Many companies allow you to cancel for free as long as you do so more than 24 hours before your rental time (fees may appear at, and increase if, you’re within, 24 hours). If you’ve prepaid, you may receive all or some of your payment as a refund; if you haven’t, you may not have to pay for (some or all of) the canceled reservation.

Renting a car vs. taking public transportation or cab

Now that you know what renting a car entails, you can decide whether it’s the right option for your trip.

Rental cars can be helpful when traveling in areas without other transportation options, or when taking public transit or ridesharing isn’t feasible due to luggage, scheduling or number of destinations. However, it’s worth knowing what situations are best served by public transit and cabs. You may want to forego the car rental if you’re:

• Visiting a city with reliable public transport (where parking may be time-consuming and expensive)
• Visting a conference, theme park or other tourist destination with shuttles to and from most locations
• Visting a location with driving restrictions, such as an area that is accessible only by ferry or can only be driven in by residents
• Visiting a location accessible by plane or public transit where you'll mostly be staying in one place (such as an all-inclusive resort)

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.

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