What Happens If You Damage A Rental Car? Learn How To Avoid Our Mistakes
Renting a car for your national park road trip? After years of travel across many states and a hard-learned $911 damage claim lesson, here are the 9 most important rental car tips we wish we’d known sooner, including insurance, inspections, prepay vs. pay later, toll roads, and more.
Plus, learn exactly what happens if you damage a rental car and what happens after, along with some rental car tips to avoid our mistakes.
The content below is for informational purposes only. We are not liable for any decisions you make regarding your rental car. All information below is a suggestion based on our experiences. Always check with your specific rental car company/contract, your credit card companies, and your auto insurance policy/agent.
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1. Rental Car Tip 1: Should You Prepay or Pay Later?
This is a question you might be asking yourself – is it cheaper to pre-pay or should I pay at the counter? It depends – our favorite non-answer!
Prepay: In some cases, it is cheaper to prepay for your rental car, but doing so could come at a cost if you have to cancel. Some rental car companies charge a fee if you need to cancel a prepaid rental.
Although the prepaid cost might be cheaper, you can get dinged when you cancel a reservation. Fees for some agencies can even double if you cancel last minute, within 24 hours of your start rental time. Fees to cancel can range from $50.00 to $200.00!
Pay later: This is the option we usually pick. Sometimes the cost of a pay later rental car contract is more, the same, or even less than a prepaid rental reservation. If you pay at the counter, you can continuously check the prices before your trip.
If the price is lower than when you booked, cancel for free and rebook for the lower price! Most major rental car companies have free cancellation on pay later bookings, but always check the fine print before you complete your reservation.
For some of our rentals, we have been able to cancel and get a bigger or better car for a lower price. Our favorite rental swap was going from a “mid-size” sedan for $700.00+ to a “full-size elite” for just over $500.00 for a week. The Volvo S60 was so much fun to drive!
🚙 After everything we’ve learned the hard way, one thing we always do before any trip is compare rental car prices on Booking.com. Most bookings have free cancellation — so if the price drops before your trip, you can cancel and rebook for less. That Volvo S60 upgrade we mentioned? That’s exactly how we scored it.
2. Rental Car Tip 2: Should I Complete the Accelerated/Advanced Check-In & Skip the Counter?
Yes! Preferred or Insiders Club Members often get access to these perks. In some cases, there will be no option to complete an accelerated/advanced check-in or skip the counter. Sometimes this is the case at smaller locations. However, larger locations may have these options and will save you so much time!
No Option
If there is no option to complete an accelerated/advanced check-in or skip the counter, you must check in at the counter. Oftentimes, if you are a preferred or insider member, there are dedicated lines at the counter to bypass folks who are not company members.
Accelerated Check-In
For accelerated check-in, some rental car companies allow you to enter your driver’s license and contact information early so you can save some time at the counter when you arrive. Information will be ready for the counter agent. All you need to do is verify, accept, or decline add-ons, pay, and you’ll be on your way!
Skip the Counter
This is the greatest! Do as it says – go directly to your car, bypassing the counter altogether. Some rental car agencies allow this step after completing accelerated/advanced check-in. If you have the option, do it!
Note that you will accept or decline optional add-ons during this step. After, you will enter your payment information. However, in most cases, you won’t be charged until you return the car.
Finally, you will be supplied with a QR code or barcode via app or email. Show the attendant when you arrive at your car company’s garage/lot. In most cases, you can pick whatever car you like from the lot in your category, and the keys will be in, ready to go.
Once you secure that Corvette…. er Corolla, proceed to the exit gate. Here, a staff member will verify your information and payment, and you’ll be on your way.
3. Rental Car Insurance: Do You Really Need It?
Our favorite answer: It depends!
We have all been there after a long day of travel. The rental car agent is asking you if you want supplemental insurance, damage waivers, additional drivers, roadside assistance, and liability protection.
Your head might be spinning like ours. These options can add substantial extra costs to your rental, sometimes adding up to $50.00/day!
In most cases, you likely do not need to add any of these options. Most personal auto insurance policies extend coverage to rental cars, and most credit card companies provide supplemental insurance to cover damages to a rental car as well.
However, as noted before, check the fine print of your auto insurance and credit card policies! Contact your insurance agent and ask if you don’t know or can’t find this information in your policy.
That being said, if you damage your rental car, costs for repairs, diminished value, and loss of use can add up very quickly! If you choose to accept some or all of the optional add-ons, you might not be held liable for some damages you cause, and this could potentially save you money in the long run if your rental car is damaged.
Please check your rental contract for details!
4. Rental Car Tip 4: Always Inspect Your Rental Car Before Leaving the Lot
Absolutely! 100% yes. This is a MUST. BEFORE you leave the rental car lot, inspect your vehicle for existing damage on the inside and outside of the car. The best option for doing this is taking a video of the inside and outside.
Take pictures of the damage you see as well. Make sure your videos and pictures show a time stamp. Generally, any damage larger in size than a golf ball can get you in trouble.
If you return your rental car after hours, you are technically responsible for the car until a staff member of the rental company checks the car in the next morning. Be aware that this could get you in trouble if damage occurs between when you drop the vehicle off and when it’s checked in.
If you use after-hours drop-off, it’s a good idea to take a video and pictures of the car before you leave it. If something happens during that time, at least you have some proof that you dropped the vehicle off in good condition. However, that does not always guarantee you won’t receive a damage claim. Check with your rental car agency for their after-hours drop-off policy.
Always keep the videos and pictures of any damage you spot on your rental car for at least 6 months or longer. What if you delete them and then receive a damage claim? That would not be good!
5. What Happens If You Damage A Rental Car?
Oh no! You too?! Here is a real-world example of our experience dealing with a damage claim. I will preface this by saying, we 100% did NOT travel off-road and did NOT damage the vehicle. We did, however, make one crucial mistake! That being said, here is our story:
Imagine traveling for 17 hours straight. You had 2 layovers and finally made it to the gorgeous tropical island of Maui, Hawaii. Vacation time! You skip the counter, it’s getting dark, and in haste, you miss the crucial step of taking a video of your rental car.
You snap a few pictures of some minor scratches and head out. Blame it on the travel fatigue? For sure!
Fast forward, and you had the most amazing week in Maui visiting the beaches, mountains, watching the sunrise, and trying delicious local foods. It’s time to hop on a flight to Kauai for the second week of your Hawaiian vacation.
Rental Car Return
You top off the gas tank and arrive at the airport. Everything is going smoothly until the rental car agent asks you, “Did you notice any damage to the vehicle before you drove it off the lot?”
You reply, “Yes, we did see some minor scratches and took a few pictures,” while pulling out your phone to show the agent.
The agent asks, “Did you notice this?” as you walk around to the other side of the car, where he is crouched down.
And there you see it. A 1-2 foot long scratch on the rocker panel of the vehicle. The agent then asks, “How did you do this? Did you drive off-road? Where did you go?” And so it begins.
“Let Me Call My Manager Over.”
The manager arrives and states, “Due to the fact that you have no proof of prior damage, we will have to file a damage claim. Who is your auto insurance company?”
You respond, “Sir, we 100% did not go off-road or damage the vehicle,” but proceed to give him your auto insurance information. This is about all you can do at this point.
After this, it’s a waiting game while the rental car agency proceeds to assess the damage.
The Damage Claim
Fast forward a few weeks after vacation, and you receive an email from the damage recovery unit of the company asking you to contact your auto insurance agency or credit card company to report the claim.
There is no other information on what the claim is or how much damage they have assessed. You may need to reach out to the agency to inquire, which is exactly what we did. The agency responds, stating it could take up to 60 days to get a copy of the invoice and the amount owed.
Then, about a month later, you receive the invoice.
Damages, fees, and loss of use came to a total of $911.24. REALLY?!?! For a scratch! There is no way!
Talk To Your Insurance or Credit Car Company
First, we ended up talking with our insurance company, which stated that it may cost us more in the long run to make a claim on our insurance (raising our rates) than it would be to pay the amount in full.
We also talked about opening a claim with our credit card company, but ultimately did not. This is an option that you have if your credit card company covers damage. Don’t overlook this option.
At this point, we were prepared to cough up the cash, but decided to fight the damage claim as we honestly were not responsible. Truly, if we were responsible for the damage, we would have done the right thing and settled, paying out the claim. Scout’s honor!
The Fight & How To Handle A Damage Claim
After spending some time on the merry-go-round of corporate America, we finally found the person we needed to speak with about this situation. Most of our correspondence was through email, even though we tried to speak with them by phone.
We explained the situation and asked many questions about damage reported on the vehicle prior to our rental agreement, and asked them to send us this information from the months prior to our rental.
We also asked what they saw on their cameras at the exit gate, as they stated they would check them to see what they could see. We also noted that no staff member asked us about damage prior to exit, nor did they walk around the vehicle either before we left.
After a few weeks of outgoing emails to the company and no response to us, we finally received an official notice that our claim had been closed! It was definitely a shocking ending to this situation! We don’t know how or why this decision was made, but we did not question it.
Lessons Learned
Bottom line: Videos and pictures are your best friends! Get down on your hands and knees if you have to, and make sure you get all parts of the vehicle that could have damage! Yes, even under the car!
We definitely learned our lesson from this experience, and we will never leave a garage or lot before a thorough inspection of our rental car! Don’t be afraid to point out any damage you discover and ask your rental company to make a note in their records.
Lastly, if a car rental agency claims you damaged their vehicle, don’t be afraid to fight back if you know you are not in the wrong. That being said, I would imagine if we had opted for the optional insurance, we might not have been in this pickle!
This might surprise you, but to this day, we still rent from this company even though they put us through the wringer!
Book Your Rental Car Now!
🚗 Ready to book? We use Booking.com to search and compare rental car prices before every trip. It’s free to search, most bookings have free cancellation, and you can easily monitor prices and rebook if rates drop.
6. Can I Drive My Rental Car To Canada or Mexico?
Canada: In most cases, yes. Check with your rental agency to determine if this is permitted. The agency may need to provide you with additional documentation to keep in the vehicle.
Additionally, most U.S.-based personal auto policies extend to Canada, but check with your auto insurance company to make sure. If not covered, this may be one instance where you’ll need to purchase the optional damage waivers and other add-ons.
Wait, what about Mexico? No! Most major rental car companies will NOT permit you to drive the vehicle from the U.S. into Mexico. Check with your rental agency if travel to Mexico is necessary.
7. Should I Refill the Gas Tank?
Yes! This one is likely a no-brainer. Don’t drop off your rental car without filling the gas tank to full. Or, if you received the car with less than a full tank, fill it up to the amount it was received in. Or, just pay it forward and fill it all the way!
Some rental car companies will charge you an arm and a leg if you fail to complete this requirement. This could be a few dollars more per gallon than if you do it yourself.
Also, always fill up as close as you can to your drop-off point! Some cars have electronic sensors and will charge you even if it’s just a little bit less than it should be. Trust us, we know from experience as well! 😄
8. What Happens When I Drive a Rental Car on a Toll Road?
Most of the major rental companies have information on what happens if you travel a toll road on their website. In some cases, you will be charged a daily fee plus the cost of the toll. Some have all-inclusive options, and others have in-car transponders already in place.
Usually, there is an upper limit on what you will pay if you drive on many toll roads, capping the amount at a certain cost. Familiarize yourself with your rental policy and choose what is best for you.
In some cases, you can bring your own transponder. Make sure the one you buy or use is accepted on the roads you plan to drive.
Sometimes you can use cash at a toll booth. This is a great option, but make sure you turn off the in-car transponder if there is one. But wait! Some toll roads are now cashless and use cameras to capture the car’s license plate. If that is the case, the bill is sent to the rental agency and forwarded on to you to pay, sometimes with extra fees added.
Your best bet is to avoid toll roads altogether. However, this may be hard in some cities. If you use Google Maps, you do have the option to specify that you’d like to avoid toll roads:
In the Google Maps app, put in your directions. Next, click the 3 dots in the upper right corner. Then, click options. Now you can toggle “Avoid tolls” on or off. Problem solved! Note that this might add time to your travel, so do what is best for you.
9. Can I Pick Up at One Location and Drop Off at Another?
Yes! Of course, you can do this. However, this will cost you more. Extra fees for a one-way rental can add up fairly quickly. Use your preferred car rental company to see what these fees will add up to before committing.
Sometimes it might be worth the extra money for convenience, and sometimes not. It should be noted that picking up a rental car in the United States and dropping it off in Canada is not recommended. Some companies will let you do this, but it will likely cost you thousands in fees!
Frequently Asked Questions About Renting A Car
Should I buy insurance from the rental car company?
In most cases, no. Your personal auto insurance and credit card likely already provide coverage. Always check both policies before declining rental insurance.
What happens if I don’t fill up the gas tank?
Rental companies charge a premium per gallon — often significantly more than local gas stations. Always refuel before returning.
Can I fight a rental car damage claim?
Yes, and it’s worth doing if you know you’re not responsible. Document everything with timestamped photos and videos, ask for prior damage reports, and correspond in writing. We successfully had a $911 claim closed this way.
Is it cheaper to prepay for a rental car?
Not always. Pay-later bookings often allow free cancellation, letting you rebook at lower prices if rates drop before your trip.
Can you drive a US rental car into Canada?
Usually yes, but check with your rental agency at the counter first, as additional documentation may be required. Driving into Mexico is generally not permitted.
Final Thoughts
What a wild ride we had! To this day, we still can’t believe that a tiny scratch like that could cost about $1,000 to fix! We will never make the mistake of leaving the rental car lot before taking a million photos and videos.
We have learned from many rental car mistakes made during our travels, and we hope this helps you save time, money, and extra headaches while renting a car.
Enough rental car mistakes, right? Time to start planning your trip, so check out one of our epic itineraries!
🚘 But wait! Don’t forget to compare options, prices, and find the best rental car for your trip at Booking.com!
