How to avoid surprise fees and high prices on rental cars this holiday season

Holiday travelers across San Diego are reporting rising rental car prices and unexpected fees, prompting renewed concerns as demand climbs.

According to NerdWallet, rental cars are running about 35% more expensive than a year ago — a spike that has many travelers searching for ways to cut costs.

Jayke Norris of Fresno said he relies on military discounts to manage his travel expenses.

“I have a baby coming, so we’re just saving every dollar we can,” Norris said.

NerdWallet travel writer Sally French said increasing demand continues to push prices higher.

“That’s a lot, and that’s a lot higher than inflation,” French said. “People are coming back this year in full force to travel.”

For travelers hoping to avoid inflated rates and surprise charges, French shared several strategies. One option is renting a car outside the airport, which can save an average of 18% with the same company.

“The reason for that is one, convenience. Airport car rentals can just charge more because they would know people want that rental car. But secondly, the airport will charge a fee to the rental car company, and they pass on that fee to you,” French said.

French also said procrastination can pay off when booking.

“I booked a rental car for one day out. That day it was $20, when it would have been over a hundred had I booked it three months in advance,” French said. “So I practice what I preach, and it’s really, really possible to find last-minute rental car deals.”

For those worried about waiting too long and finding nothing available, she recommended a backup approach: reserve early with a pay-at-counter option.

“Then continue monitoring. And if you see that price drop, go ahead and rebook that same exact time and car and date, but at that lower price. Always check your cancellation policy,” French said.

Many rental car companies offer free cancellations leading up to the trip.

Still, travelers who choose to pay at the counter should know the company may not guarantee a car will be available. Several people recently reached out to NBC 7 and Telemundo 20 Responds with complaints about this issue.

When it comes to insurance, check whether your credit card or personal auto insurance includes rental coverage.

And you may want to price-compare with alternatives like Turo, public transportation or ridesharing.

To avoid additional fees when renting a car, French advised gassing up the car before returning it and documenting the vehicle’s condition at pickup and drop-off by taking photos and videos.

“So that way you can say that it came and left in the same condition. That way, you won’t get charged for something that might have been a ding from the next renter after you,” she said.

Whether travelers plan months ahead or book as they go, these strategies may help keep holiday trips more affordable.

This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication.