Updated june 20, 2024
What you need to know before renting a car in North America
Aleksandrs Buraks
Head of Growth at DiscoverCars.com
So you've decided to rent a car for your next vacation in the USA, Canada, or Mexico. So what do you need to know before doing so? Never rented a car before? An international traveler? Or still unsure about what the rental company tries to sell you at the desk?
We'll make everything you need to know clear here so you don't run into any unpleasant surprises when you show up to get the car.
We'll make everything you need to know clear here so you don't run into any unpleasant surprises when you show up to get the car.
What you need to know before renting a car in North America
By Aleksandrs Buraks | Updated June 20, 2024
So you've decided to rent a car for your next vacation in the USA, Canada, or Mexico. So what do you need to know before doing so? Never rented a car before? An international traveler? Or still unsure about what the rental company tries to sell you at the desk?
We'll make everything you need to know clear here so you don't run into any unpleasant surprises when you show up to get the car.
We'll make everything you need to know clear here so you don't run into any unpleasant surprises when you show up to get the car.
Credit Cards vs. Debit Cards
One of the biggest issues with renting a car in the past (and still these days in Europe) is that rental companies would only accept credit cards. This had a lot to do with liability and that the rental company would only put a hold on the card and not actually charge it.
Thankfully, starting with Dollar, this restriction was gradually changed by the bigger brands. Many of the largest rental companies now accept debit cards. There are, however, still cases where you would have to have a credit card, for example, if you rent a van or luxury car or book within 24 hours of picking up the car
Many smaller or local brands still only accept credit cards. So be sure to find out before booking your car.
Renters should also be aware that American Express cards are often not accepted. Many, especially Americans, would prefer to use these if they have them due to the insurance coverage provided. Be sure to check before booking if you plan to use American Express.
Note for French renters: French cards are almost always debit cards. Unless the card specifically says credit, you can assume it is actually a debit card. So if you plan to rent a car in North America, be sure to find a rental company that specifically accepts debit cards.
Thankfully, starting with Dollar, this restriction was gradually changed by the bigger brands. Many of the largest rental companies now accept debit cards. There are, however, still cases where you would have to have a credit card, for example, if you rent a van or luxury car or book within 24 hours of picking up the car
Many smaller or local brands still only accept credit cards. So be sure to find out before booking your car.
Renters should also be aware that American Express cards are often not accepted. Many, especially Americans, would prefer to use these if they have them due to the insurance coverage provided. Be sure to check before booking if you plan to use American Express.
Note for French renters: French cards are almost always debit cards. Unless the card specifically says credit, you can assume it is actually a debit card. So if you plan to rent a car in North America, be sure to find a rental company that specifically accepts debit cards.
Required Additional Fees
Renters should be aware that there may be additional fees that are required otherwise they will not be able to pick up the car.
The most common of these fees is based on age. Drivers under the age of 25 are often charged an additional fee, usually per day up to a certain maximum. Rental companies see less experienced drivers as riskier, thus why these fees are charged. On our website, these fees are always included in the total price if you search using your actual age (or the age you will be when you pick up the car if you happen to be booking far in advance).
Even if you over 25, there are other fees that may be required, too.
The most common of these fees is based on age. Drivers under the age of 25 are often charged an additional fee, usually per day up to a certain maximum. Rental companies see less experienced drivers as riskier, thus why these fees are charged. On our website, these fees are always included in the total price if you search using your actual age (or the age you will be when you pick up the car if you happen to be booking far in advance).
Even if you over 25, there are other fees that may be required, too.
Crossing Borders
International
If renting in say Washington or other states bordering Canada, you very well may wish to pop over the border. The same if you rent in Canada. This is oftentimes, but not always, allowed. In particular, this is likely allowed by National, Alamo, Avis, Budget, Dollar, and Thrifty. But to be sure, ask in advance. Sixt, Fox, and smaller brands usually do not allow you to cross the border.
A notable exception is that if you rent from Routes in Vancouver, you are allowed to travel to Washington, but only to Washington. So if you plan a short trip to a neighboring state or province, be sure to check the rental conditions of each company to find out which ones allow it.
Travel from the US to Mexico and vice versa is only allowed by certain companies and with restrictions. First, only cars rented in states that border Mexico are allowed to be taken across the border. Second, you must be a US citizen, return to the US (one-way rentals are not allowed), and purchase Mexican insurance.
If flying into and out of Tijuana, there are rental companies that have locations at the Cross Border Xpress bridge so that you can rent a car on the American side of the border.
Note: Your auto insurance almost certainly does not cover your car nor a rental car in Mexico and your credit card insurance does not provide liability insurance (see the insurance section below).
Going over state lines
Traveling from state to state on a long road trip is almost an American right of passage. And it is certainly the best way to get to know the country whether you are an American or visiting from abroad.
You need to be aware that some rental companies restrict which states their cars can be taken. In addition, it also depends on whether you are flying in or are a local resident.
In general, the largest brands typically allow their cars to be taken to any state. This includes Dollar, Thrifty, Alamo, National, Hertz, Enterprise, Budget, and Avis.
Sixt usually allows travel to states in the same region as the location where you pick up the car, but not to all states.
Some smaller companies in Florida and other states only allow their cars to be driven in that state. If this is the case, you may be charged penalty fees and your rental contract and any coverage may be voided if you take the car outside of the state.
Finally, note that even if a company usually allows travel to any state, they may restrict such for local residents or certain vehicles. So be sure to ask in advance if you plan specifically to travel to multiple states but are not flying into the location where you will rent the car or are renting a luxury or special vehicle.
If renting in say Washington or other states bordering Canada, you very well may wish to pop over the border. The same if you rent in Canada. This is oftentimes, but not always, allowed. In particular, this is likely allowed by National, Alamo, Avis, Budget, Dollar, and Thrifty. But to be sure, ask in advance. Sixt, Fox, and smaller brands usually do not allow you to cross the border.
A notable exception is that if you rent from Routes in Vancouver, you are allowed to travel to Washington, but only to Washington. So if you plan a short trip to a neighboring state or province, be sure to check the rental conditions of each company to find out which ones allow it.
Travel from the US to Mexico and vice versa is only allowed by certain companies and with restrictions. First, only cars rented in states that border Mexico are allowed to be taken across the border. Second, you must be a US citizen, return to the US (one-way rentals are not allowed), and purchase Mexican insurance.
If flying into and out of Tijuana, there are rental companies that have locations at the Cross Border Xpress bridge so that you can rent a car on the American side of the border.
Note: Your auto insurance almost certainly does not cover your car nor a rental car in Mexico and your credit card insurance does not provide liability insurance (see the insurance section below).
Going over state lines
Traveling from state to state on a long road trip is almost an American right of passage. And it is certainly the best way to get to know the country whether you are an American or visiting from abroad.
You need to be aware that some rental companies restrict which states their cars can be taken. In addition, it also depends on whether you are flying in or are a local resident.
In general, the largest brands typically allow their cars to be taken to any state. This includes Dollar, Thrifty, Alamo, National, Hertz, Enterprise, Budget, and Avis.
Sixt usually allows travel to states in the same region as the location where you pick up the car, but not to all states.
Some smaller companies in Florida and other states only allow their cars to be driven in that state. If this is the case, you may be charged penalty fees and your rental contract and any coverage may be voided if you take the car outside of the state.
Finally, note that even if a company usually allows travel to any state, they may restrict such for local residents or certain vehicles. So be sure to ask in advance if you plan specifically to travel to multiple states but are not flying into the location where you will rent the car or are renting a luxury or special vehicle.
Insurance
One of the most confusing parts of renting a car anywhere is insurance. Do you need it? Should you purchase it when picking up the car or online in advance? Will your credit card cover the car? Will your car insurance cover the car?
In North America, unlike in Europe, auto insurance typically covers rental cars. And for this reason, a Collision Damage Waiver is usually not included in the rental rate for domestic customers.
If you have comprehensive car insurance, then it almost certainly covers rental cars. But you still may want to be sure before you go out and rent one. Also, keep in mind that some smaller companies (particularly in Florida) only accept policies from certain companies. Be sure to check the Rental Conditions before booking to see if your insurance policy will be accepted.
Rental cars in most states are required to have the state minimum of liability coverage. Note that certain liabilities are not required in a few states like Florida. Also, the state minimum is often quite low. But if you have your own car insurance, it should provide coverage on top of the minimum coverage. Alternatively, you can purchase supplementary liability coverage from the rental company (you can not purchase this online).
Protip: If you plan to use your own insurance to cover the rental car, be sure to check the rental conditions of the supplier before booking. Some smaller companies in places like Florida charge an additional admin fee if you use your insurance. This may increase your costs significantly.
Many people also make use of their credit card coverage. Credit cards usually cover damages to rental cars (but do not provide liability coverage). This coverage is usually secondary to whatever other coverage you have. It also usually works not just in the USA, but in most countries (Ireland and Italy may be two exceptions, be sure to check your specific credit card policy).
If you don't have credit card coverage or car insurance, you are left with two options. Purchasing insurance online when booking or at the rental desk.
Purchasing insurance online is almost always significantly cheaper, though it comes with the disadvantage that you have to pay the costs to the rental company and be reimbursed afterward. This process is simple and quick, though, and many renters find it to be worth the trade-off to save a significant amount of money.
Finally, it is worth noting that your car insurance may cover rental cars in Canada, but almost certainly does not cover rental cars in Mexico. When renting a car in Mexico as an American or Canadian, you will often be quoted a rate that doesn't include coverage. You will then be required to purchase coverage.
Most American insurance companies will not insure Mexican vehicles, so your only option will be to purchase this coverage through the rental company.
In North America, unlike in Europe, auto insurance typically covers rental cars. And for this reason, a Collision Damage Waiver is usually not included in the rental rate for domestic customers.
If you have comprehensive car insurance, then it almost certainly covers rental cars. But you still may want to be sure before you go out and rent one. Also, keep in mind that some smaller companies (particularly in Florida) only accept policies from certain companies. Be sure to check the Rental Conditions before booking to see if your insurance policy will be accepted.
Rental cars in most states are required to have the state minimum of liability coverage. Note that certain liabilities are not required in a few states like Florida. Also, the state minimum is often quite low. But if you have your own car insurance, it should provide coverage on top of the minimum coverage. Alternatively, you can purchase supplementary liability coverage from the rental company (you can not purchase this online).
Protip: If you plan to use your own insurance to cover the rental car, be sure to check the rental conditions of the supplier before booking. Some smaller companies in places like Florida charge an additional admin fee if you use your insurance. This may increase your costs significantly.
Many people also make use of their credit card coverage. Credit cards usually cover damages to rental cars (but do not provide liability coverage). This coverage is usually secondary to whatever other coverage you have. It also usually works not just in the USA, but in most countries (Ireland and Italy may be two exceptions, be sure to check your specific credit card policy).
If you don't have credit card coverage or car insurance, you are left with two options. Purchasing insurance online when booking or at the rental desk.
Purchasing insurance online is almost always significantly cheaper, though it comes with the disadvantage that you have to pay the costs to the rental company and be reimbursed afterward. This process is simple and quick, though, and many renters find it to be worth the trade-off to save a significant amount of money.
Finally, it is worth noting that your car insurance may cover rental cars in Canada, but almost certainly does not cover rental cars in Mexico. When renting a car in Mexico as an American or Canadian, you will often be quoted a rate that doesn't include coverage. You will then be required to purchase coverage.
Most American insurance companies will not insure Mexican vehicles, so your only option will be to purchase this coverage through the rental company.
Tolls
Tolls and how to pay for them in a rental car can be a big question in places that have toll roads, most notably Florida.
In many states, tolls are now all electronic and cash payments are no longer accepted. For this reason, most rental companies offer some form of system for paying for tolls that either includes a daily fee plus the actual tolls you incur or a flat fee for unlimited tolls.
In some states, you can register a rental vehicle yourself in the pay-by-plate system or you can still pay for tolls in cash. Follow our blog for a future post explaining this in detail.
Florida
In Florida, the Sunpass system makes for a disappointing experience in many rental cars. There are also two types of transponders — one removable and the other fixed to the windshield. The one that is fixed to the windshield can also not be turned off.
There are some toll roads that accept cash, but if you are in a vehicle with a transponder it will still register even if you pay in cash. This creates a headache where the rental company will charge you for the toll and an exorbitant fee for not using their toll package.
Many of the smaller rental companies in Florida use this type of transponder. This forces you to either avoid toll roads altogether or to purchase their toll package. Eseentialy, this increases the cost of your rental. So be sure to check the Rental Conditions before booking to know how much you'll have to spend to purchase their toll package.
In many states, tolls are now all electronic and cash payments are no longer accepted. For this reason, most rental companies offer some form of system for paying for tolls that either includes a daily fee plus the actual tolls you incur or a flat fee for unlimited tolls.
In some states, you can register a rental vehicle yourself in the pay-by-plate system or you can still pay for tolls in cash. Follow our blog for a future post explaining this in detail.
Florida
In Florida, the Sunpass system makes for a disappointing experience in many rental cars. There are also two types of transponders — one removable and the other fixed to the windshield. The one that is fixed to the windshield can also not be turned off.
There are some toll roads that accept cash, but if you are in a vehicle with a transponder it will still register even if you pay in cash. This creates a headache where the rental company will charge you for the toll and an exorbitant fee for not using their toll package.
Many of the smaller rental companies in Florida use this type of transponder. This forces you to either avoid toll roads altogether or to purchase their toll package. Eseentialy, this increases the cost of your rental. So be sure to check the Rental Conditions before booking to know how much you'll have to spend to purchase their toll package.
Know the rules
Rental cars come with a strict set of rules built into the rental contract concerning all things from who can drive the vehicle to where the vehicle can be driven. As a renter, you need to be aware of all of these to save yourself the hassle and potentially large fines from the rental company.
One particularly common rule is not being able to drive on unpaved roads. This may not be an issue in eastern states, but could be if you plan to visit remote parts out West. And confusingly, having a 4x4 vehicle does not always negate this restriction.
The rules regarding fuel and how much you should return the car with are also often confusing. But don't worry, if you return the car with the amount of fuel it had when you received it, you should not be charged any additional fees. Just know that if you don't, you likely will be charged for refueling at a rate much higher than the current gas prices in the area.
Tip: Always try to find the nearest gas station to the airport when leaving it so that you will know where to fill up when returning the car.
Returning the car after the designated time can also end up costing you. Most rental companies have a grace period, usually, an hour, within which you can return the car without being charged extra. After that, you may have to pay per hour or for another day altogether.
Only people listed on the rental agreement are allowed to drive the vehicle. If someone else drives the car, then coverage can be voided, or even worse, law enforcement may become involved. Be sure to add any additional drivers to the contract in advance!
One particularly common rule is not being able to drive on unpaved roads. This may not be an issue in eastern states, but could be if you plan to visit remote parts out West. And confusingly, having a 4x4 vehicle does not always negate this restriction.
The rules regarding fuel and how much you should return the car with are also often confusing. But don't worry, if you return the car with the amount of fuel it had when you received it, you should not be charged any additional fees. Just know that if you don't, you likely will be charged for refueling at a rate much higher than the current gas prices in the area.
Tip: Always try to find the nearest gas station to the airport when leaving it so that you will know where to fill up when returning the car.
Returning the car after the designated time can also end up costing you. Most rental companies have a grace period, usually, an hour, within which you can return the car without being charged extra. After that, you may have to pay per hour or for another day altogether.
Only people listed on the rental agreement are allowed to drive the vehicle. If someone else drives the car, then coverage can be voided, or even worse, law enforcement may become involved. Be sure to add any additional drivers to the contract in advance!
Aleksandrs Buraks
Head of Growth at DiscoverCars.com
Aleksandrs has over 10 years of experience in marketing with a focus on creating stellar content that provides topical insights using data. Having taken five road trips across Europe and one in the U.S., he is passionate about traveling by car. His favorite countries to visit are Denmark and Thailand. You can find him on Linkedin, Facebook, and Twitter.