You found a $39-a-day rental car online. You’re feeling sharp. Then the agent at the counter slides a clipboard across, smiles, and starts asking questions. Forty minutes later, you’re driving off with a bill closer to $85 a day.
That’s not bad luck. That’s the business model.
According to a December 2025 industry report cited by Kiplinger, the average daily rental car rate at 100 U.S. airports is $62.25 — and that’s before the agent goes to work on you.
I’ve been writing about money since before most rental car websites existed. The pitches change. The playbook doesn’t. Here are the seven add-ons that catch travelers most often, and how to refuse them without losing your spot in line.
1. The loss damage waiver
This is the big one. The agent will look you in the eye and warn that if you scratch the bumper, you’re on the hook for thousands. Then they offer “peace of mind” for $13 to $30 a day.
Here’s the catch. It’s almost never insurance. It’s a waiver — the rental company simply agrees not to come after you for damage.
And here’s what they don’t tell you. Your own auto policy likely already covers rental cars in the U.S. So do many credit cards — for free, as long as you pay with the card and decline the counter’s coverage.
Before you fly, call your insurer and your card issuer, or find the answer in writing online. Many issuers, including American Express, offer secondary coverage, meaning their coverage kicks in only after your personal policy does.
2. Phantom damage from AI scanners
This one’s new, and it’s ugly. Hertz has been rolling out AI-powered scanners — made by a company called UVeye — at airport locations to inspect cars before and after each rental.
According to CBS News, one Atlanta renter was billed $80 twice for two small dents plus a $190 processing fee — $350 total — for damage he hadn’t even noticed.
The backlash got loud enough that in August 2025, Sen. Richard Blumenthal demanded answers from Hertz’s CEO about its damage-charge process and the fees customers were getting hit with.
What to do? Before you drive off the lot, take a slow video walking all the way around the car. Hit the dashboard, the mileage, the fuel gauge, and every wheel. Do the same when you return it. And don’t forget the interior.
If a charge shows up a week later, you’ll have the evidence.
3. Prepaid fuel
The pitch sounds reasonable. Pay for a full tank up front and skip the gas stop on the way back to the airport. So convenient!
It’s almost always a loser. You’re paying for a full tank whether you use a full tank or not. Any gas you leave in the car is a gift to the rental company.
Unless you plan to roll in on fumes, fill up yourself five minutes from the airport and keep the receipt. You’ll pay local pump prices, not the rental company’s markup.
Quick aside — most internet financial advice comes from people who weren’t alive during the last recession. I’ve been writing about money for more than 40 years. Want rock-solid advice? Sign up for the free Money Talks Newsletter. Takes 10 seconds. No fluff. No spam.
4. Toll transponder ‘convenience’ fees
If you’re driving in Florida, Texas, the Northeast, or anywhere with cashless tolls, this one will bite. National, Alamo, and Hertz typically charge $4.95 a day in “convenience” fees every day you trigger the transponder — even once.
Avis goes further. Its e-Toll Unlimited flat fee runs $10.99 to $25.99 per day depending on location, charged whether you use a toll road or not.
It’s been a racket for years. An investigation by the New York City Comptroller’s office found rental companies at LaGuardia and JFK charging convenience fees as high as $21.49 a day — and most were billing customers at the higher cash toll rate instead of the discounted E-ZPass rate.
What works: Bring your own E-ZPass, SunPass, or FasTrak from home and register the rental’s plate to your account. Or use cash lanes where they still exist. Either move can save $50 or more on a week-long trip.
5. The airport pickup tax
Pick up your car at the airport and you’ll pay an airport concession recovery fee plus a customer facility charge — together often $15 to $25 a day before you’ve left the lot.
Renting from a location a few miles off-airport can cut most of that. Just price the Uber or shuttle to get there, and compare the all-in totals. Off-airport often still wins.
For more on shopping rates before you book, here’s how to get the best deal on a rental car.
6. The little add-ons that aren’t little
GPS unit: up to $15 a day. Satellite radio: a few bucks a day. Child seat: $10 to $15 a day. Add a few of these for a week and you’re staring at an extra $150 to $200.
The fix is simple. Your phone is a better GPS than anything on the rental lot — mount it on the vent and download offline maps before you fly.
Your car seat from home is free, and you already know it fits your kid. Streaming on your phone replaces satellite radio.
Bring what you already own. Skip the rest.
7. Extra-driver and underage-driver fees
Adding a second driver runs about $13 a day at most major chains. Drivers under 25 typically get hit with a young renter surcharge of $20 to $30 a day on top of the regular rate.
There are a few ways around it. In about 10 states — including New York, California, Texas, and Illinois — state law requires rental companies to add a spouse or domestic partner as a free additional driver. AAA and Costco Travel memberships sometimes waive the extra-driver fee in other states.
Ask. Then ask again. Then ask the manager.
The bottom line
The Federal Trade Commission has called out rental car companies for delaying disclosure of mandatory fees until customers are deep in the booking process. The agency’s original 2023 junk fees proposal would have covered car rentals, but the final rule that took effect in May 2025 didn’t — leaving the industry largely free to keep playing the same game.
The advertised rate is the bait. The fees are the trap. The agent at the counter is paid to close the gap between the two.
You don’t have to fall for any of it. Call your insurer. Bring your own gear. Take video at pickup and return. Say no with a smile.
Your wallet will thank you.
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