Renting a car in the United States is one of the most convenient ways to travel, especially if you plan to explore multiple cities, visit national parks, or avoid expensive taxi fares. However, with dozens of car rental companies—each offering different prices, insurance options, and deposit requirements—many travelers find the process confusing.
This guide will help you understand how to choose the best car rental company in the U.S., compare major brands, and avoid the common traps that travelers often fall into.
- Why Renting a Car Is Popular in the U.S.
The United States is designed for driving. Public transportation works well in some large cities, but most areas outside urban centers require a car.
Key Benefits of Renting a Car:
Freedom to travel anywhere
Saves time compared to buses or trains
More affordable for groups/families
Essential for national parks and road trips
Convenient for airport arrivals and departures
Because of this, choosing the right rental company can make your trip easier, cheaper, and more enjoyable.
- Major Car Rental Companies in the U.S.
Here is a breakdown of the most commonly used rental companies, including their strengths and weaknesses.
Enterprise
Known for excellent customer service
Newer cars with low mileage
Flexible pickup and returns
Slightly higher prices
Best for travelers who want reliability and better vehicle conditions.
Hertz
Large network of locations nationwide
Fast pickup process
Solid loyalty program
Higher security deposits
Ideal for frequent travelers who value convenience.
Avis
Strong airport presence
Wide variety of vehicles
Good upgrades for members
Prices fluctuate often
A good choice for business travelers or frequent flyers.
Budget
Competitive pricing
Cheaper than most major brands
Older cars compared to Enterprise
Best for travelers who prioritize savings.
Alamo
Popular among tourists
Easy self-service kiosk pickup
Affordable rates
Great for international visitors wanting speed and simplicity.
National
Geared toward business travelers
High-end vehicle options
Reliable service and fast return process
Good for premium renters or those wanting luxury vehicles.
- Airport vs. City Pickup — Which One Is Better?
Where you pick up your car affects both the price and convenience.
Airport Pickup
Pros:
Most convenient
24/7 service
Wide vehicle selection
Cons:
Higher taxes and fees
More expensive during peak hours
City Pickup
Pros:
Cheaper than airport rentals
Fewer extra taxes
Cons:
Limited car choices
Shorter operating hours
Tip:
If you’re staying in the city for a few days first, take Uber to your hotel and rent the car from a city location—this can save $50–$120.
- Understanding Car Rental Insurance in the U.S.
Insurance can be confusing, but here are the essential types you should know:
CDW/LDW (Collision Damage Waiver)
Covers damage to the rental car. Recommended for all travelers.
SLI (Supplemental Liability Insurance)
Covers damage to other vehicles or people. Especially important for international renters.
PAI (Personal Accident Insurance)
Covers medical costs for the renter and passengers.
PEC (Personal Effects Coverage)
Covers stolen personal items in the car.
Most travelers only need CDW/LDW + SLI.
- Deposit and Credit Card Requirements
Most U.S. rental companies require:
A credit card
A deposit between $200–$500
A driver’s license (Roman alphabet recommended)
Sometimes a return flight ticket (for airport rentals)
Debit cards are accepted by some companies, but often come with stricter rules.
- Hidden Fees to Watch Out For
Many travelers end up paying extra because they didn’t understand the hidden charges. Common fees include:
Young driver surcharge (under 25)
Additional driver fee
One-way drop-off fee
Airport facility charge
Toll program fee
Late return fee
Fuel service charge
Always read the terms before confirming.
- How to Compare Prices the Smart Way
Here’s the best strategy:
Use 2–3 comparison platforms:
Expedia
Kayak
Priceline
Costco Travel
Then check the direct website of:
Enterprise
Hertz
Alamo
Avis
Sometimes booking directly with the company gives special discounts or better policies.
- Best Time to Book a Rental Car in the U.S.
Unlike flights, car rental prices don’t change dozens of times per day. But they do rise as the pickup date approaches.
General rule:
Book 2–4 weeks in advance for the best price.
For holidays (Christmas, New Year, July 4), book 1–2 months in advance.
- Choosing the Right Car Type
Depending on your travel plan, choose the most suitable car:
Economy
Best for budget travelers
Fuel-efficient
Easy to park
SUV
Ideal for family trips or national parks
More comfortable
Better for mountain areas
Convertible
Perfect for California, Miami, and Hawaii
More expensive
Minivan
Best for groups of 5–7
Good for road trips
Choosing the right car saves money and improves comfort.
- Final Tips for Hassle-Free Car Rental
Take photos of the car before leaving
Check fuel level before returning
Avoid prepaid fuel unless necessary
Don’t buy unnecessary insurance
Compare airport vs. city prices
Return the car on time
Keep toll receipts
These small details help avoid unexpected fees.