Traveling on a budget is all about smart strategies, and rental cars are one area where you can save big! Whether you’re going on a family vacation, or a road trip with friends, rental cars can quickly become one of the priciest parts of your trip. But with a little know-how, you can reduce—or even eliminate—this expense altogether.

1. Book Through Your Bank’s Travel Portal

Booking your rental car through your bank’s travel portal is one of the easiest ways to save on rental car costs. Many major credit card companies, like Chase and Capital One, offer travel portals where you can use your rewards points to book rental cars.

While the value of points in travel portals isn’t always as high as it is when booking flights or hotels, booking through these portals can still help offset or even eliminate the cost of your rental car. Here’s how it works:

• Chase Ultimate Rewards (Chase Sapphire Reserve, Chase Sapphire Preferred, etc.) lets you redeem points at a value of 1.25 to 1.5 cents per point for rental cars. So, depending on which Chase card you have, you can save big!
• Capital One allows you to use miles to book rental cars through the Capital One Travel Portal (we’ll discuss this in more detail below).

Real-Life Example:

If you have 30,000 Chase Ultimate Rewards points, you could book a rental car worth $375 (30,000 points x 1.25 cents per point). That’s a major savings!

2. Use Capital One’s Travel Portal

If you have a Capital One card, such as the Capital One Venture X, you can use your Capital One miles to book rental cars through their travel portal.

• Capital One usually values miles at 1 cent per mile for car rentals, which is a little lower than Chase’s redemption rate, but still an excellent option if you want to avoid paying cash for your rental.

Additionally, if you have a Capital One Venture X card (or any other eligible Capital One rewards card), you can use statement credits to offset your rental car expenses. This means you can pay for your rental upfront and then apply your Capital One miles as a statement credit toward your rental charges.

Booking Example in the Capital One Travel Portal:

1. Log in to your Capital One account and go to the Travel Portal.
2. Click on Rental Cars and enter your desired location, dates, and car type.
3. Choose your rental car, proceed to checkout, and apply your Capital One miles (or statement credits) to cover the cost of the rental.

Once confirmed, your rental car cost will be covered with your miles or travel credit, leaving you with a zero-dollar rental!

3. Use Discount Websites Like AutoSlash, AARP, AAA, or Costco

If you don’t want to use points for your rental, another great way to save is to shop around on discount websites and membership programs.

• AutoSlash: This site will automatically apply all available discounts to your rental car booking, helping you get the best deal possible.
• AAA, AARP, Costco, and even NEA (National Education Association) memberships offer discounts on rental cars. For example, teachers can save up to 25% on rental cars from major agencies like Hertz, Avis, and Enterprise.

Example:

If you’re a Costco member, you can often save 10-20% off your rental car rate compared to booking directly with the rental agency!

4. Decline Rental Car Insurance (If You’re Covered)

Many car rental agencies will try to sell you additional insurance coverage for damages, theft, and loss. But if you have the right auto insurance or a credit card with Primary Auto Rental Collision Damage Coverage, you may not need to buy their expensive protection.

Primary vs. Secondary Coverage

• Primary Insurance: If your credit card offers primary coverage, the credit card company will handle any claims directly with the rental agency. This saves you from dealing with your personal insurance provider and potentially raising your premiums.
• Secondary Insurance: If your credit card offers secondary coverage, it only kicks in after your personal insurance has been used. You may still have to deal with your own insurance company and pay a deductible.

Cards Offering Primary Coverage:

• Chase Sapphire Reserve
• Chase Sapphire Preferred
• Capital One Venture X

5. Use a Credit Card with Primary Rental Car Coverage

Some travel credit cards offer Primary Auto Rental Collision Damage Coverage, which can save you a lot of money and hassle if something goes wrong. Here’s how it works:

If you pay for the rental with a card that offers primary coverage, you won’t have to file a claim with your personal insurance if there’s damage to the rental car. The credit card company will handle the claim directly with the rental agency.

Example of Primary Coverage Saving You Money:

Imagine renting a car and getting into a minor accident that causes $1,300 in damages. Without primary coverage, you’d need to file a claim with your personal insurance and possibly pay a deductible. But with Primary Rental Car Coverage from a card like the Chase Sapphire Reserve, your credit card company would handle the claim directly—saving you from paying any deductible or dealing with insurance companies.

Step-by-Step Instructions for Booking a Rental Car Using Chase and Capital One Travel Portals

Booking Through the Chase Travel Portal (Using Ultimate Rewards Points):

1. Log in to your Chase account and go to the Ultimate Rewards portal.
2. Under the “Travel” tab, click on Rental Cars.
3. Enter your pick-up and drop-off location, times, and car type.
4. Once you see available options, select the rental car you want.
5. At checkout, choose to redeem your points—1.25 cents per point for Chase Sapphire Reserve cardholders or 1.5 cents per point for Sapphire Preferred cardholders.
6. Confirm your booking and enjoy your free rental car!

Booking Through the Capital One Travel Portal (Using Miles):

1. Log in to your Capital One account and navigate to the Travel Portal.
2. Click on Rental Cars and enter your pick-up location, dates, and car type.
3. Select the rental car and proceed to checkout.
4. At checkout, apply your Capital One miles at a rate of 1 cent per mile to cover the rental cost.
5. Confirm the booking and enjoy your zero-cost rental!

How to Use Capital One Miles for a Statement Credit:

If you prefer to pay for your rental car upfront, you can redeem your Capital One miles as a statement credit:

1. Pay for your rental car with your Capital One card.
2. After the charge appears, log into your Capital One account and select “Use Miles”.
3. Choose Statement Credit and select the rental charges to apply the credit toward.
4. Your Capital One miles will offset the cost of your rental car, leaving you with a zero balance!

Final Thoughts

Rental cars don’t have to be a big expense when you’re traveling. By using strategies like booking through your bank’s travel portal, taking advantage of credit card benefits, and redeeming your reward points or miles, you can save big on rental car costs—or even get them for free! Whether you’re using Chase Ultimate Rewards, Capital One miles, or taking advantage of discount websites, these methods will help you travel smarter and more affordably.