Costco Travel has become one of the most popular ways for savvy travelers to book rental cars, largely because of its flexible change and cancellation rules. Yet details can be confusing, especially when third-party rental brands and prepaid rates enter the picture. Understanding exactly how Costco’s rental car cancellation and change policy works can help you lock in low rates early, rebook when prices drop, and avoid surprise fees at the counter.
For a broader overview of how the Costco rental car program works overall, including pricing, eligibility and partner agencies, see our Costco Rental Car Program explained guide.
How Costco Travel Rental Car Bookings Work
When you book a rental car through Costco Travel in the United States, you are essentially making a “pay later” reservation with one of four partner agencies: Alamo, Avis, Budget, or Enterprise. Costco serves as an intermediary, applying negotiated member discounts and coupons, while the rental company ultimately provides the vehicle. Crucially, for standard online bookings through Costco Travel’s Low Price Finder, you are not prepaying for the car at the time of reservation.
Because no payment is taken upfront on these online bookings, Costco Travel’s standard rental reservations are highly flexible. You can cancel at any time before pickup without a fee, and if you simply forget to cancel and fail to show up, there is typically no penalty. The rental location will simply mark the reservation as a no-show and release the vehicle back into its inventory. This “no money down” model is a key reason frequent travelers favor Costco for rental cars.
It is important, however, to distinguish Costco Travel’s typical online rental car bookings from other arrangements that may involve advance payment. If you bypass Costco Travel and book directly with a rental brand using a prepaid rate, or if you book by phone through Costco Travel on a prepaid offer from a partner agency, different rules can apply. In those cases, the rental company’s own cancellation and change terms govern, and fees may be charged if you cancel too close to pickup or fail to show.
For most travelers using Costco’s online booking engine, though, the experience is straightforward: reserve a car without paying anything in advance, enjoy Costco-negotiated rates, and retain the ability to walk away without penalty if plans or prices change.
Costco Rental Car Cancellation Policy, Explained
For standard rental car reservations made online through Costco Travel in the U.S., the cancellation policy is generous and simple. You can cancel your reservation at any time before the scheduled pickup without being charged a cancellation fee by Costco Travel or by the rental car company, as long as you booked a non-prepaid rate.
This flexibility is explicitly laid out in Costco Travel’s rental car FAQs and help center guidance, which state that there is no charge for cancelling an online rental car reservation and that you can cancel a rental car only booking at any time without penalties.
Costco also notes that because you do not pay at the time of booking, there is no financial consequence if you forget to cancel and simply do not pick up the car. In that situation, the booking will lapse and be marked as a no-show, with no charge to your card. This is very different from typical prepaid reservations made directly with many rental brands, where failing to cancel within a specific window can lead to a fee or forfeiture of a prepaid amount.
There are exceptions travelers need to keep in mind. If you make a prepaid reservation over the phone through Costco Travel, or if you use Costco discount codes while booking a prepaid rate directly with Avis or Budget, cancellation fees may apply under those rental companies’ own terms.
Those fees are often in the range of about 50 dollars if you cancel more than 24 hours before pickup, and higher amounts or full forfeiture can apply closer to the rental date. In these situations, Costco Travel does not add its own fee, but it does not waive the rental company’s penalty either.
Another vital detail is that once you cancel a Costco Travel rental car booking, it cannot be reinstated. If you change your mind after cancelling, you must make an entirely new reservation at the rates and availability that exist at that moment. Costco’s help materials stress this point and advise travelers to be certain they want to cancel before finalizing the process.
How to Cancel a Costco Travel Rental Car
Costco Travel makes the cancellation process straightforward, with several options available depending on your preference and how you originally booked. The most efficient way to cancel is typically online through your Costco Travel account. After signing in, you can navigate to your upcoming bookings, select the rental car reservation you want to cancel, and follow a short series of prompts confirming your decision. Once completed, your reservation page will show that the booking was cancelled on that date, and you will receive an email confirmation.
If you prefer to speak with someone, you can call Costco Travel’s customer service lines during their published hours and ask an agent to cancel your reservation. This can be especially useful if you are unsure whether your rate is prepaid or if you have questions about potential penalties on a more complex itinerary, such as a rental tied to a broader vacation package or cruise booking.
Another option is to contact the rental car company directly and ask them to cancel the reservation. This is most common when you are already traveling and closer to the pickup date, or if you booked using your loyalty number and want to discuss alternative options with the agency. However, for bookings made through Costco Travel’s standard online tool, cancelling through Costco usually provides the clearest record and confirmation, since the reservation was generated through Costco’s booking system.
Regardless of which cancellation path you choose, the key protection is the same. For non-prepaid Costco Travel rental car reservations booked online, there is no cancellation fee, and you are not charged for failing to show up. For the best documentation, always retain your cancellation confirmation email or note the updated status in your Costco Travel account in case of any later billing questions.
Changing a Costco Rental Car Reservation
Costco Travel’s approach to changing rental car bookings is slightly different from traditional modification tools offered by many rental companies. Instead of allowing you to directly edit the dates, times, or car categories of an existing booking, Costco Travel instructs customers to create a new reservation with the desired changes, then cancel the old one. In other words, any “change” to a rental car reservation is effectively a cancellation followed by a rebook.
This workflow is summarized in Costco Travel’s rental car FAQs, which explain that existing rental car only bookings cannot be modified. The recommended process is to first book and confirm a new reservation reflecting your new dates, pick-up location, or vehicle type, and only then cancel the previous reservation. This sequencing matters, because Costco emphasizes that rental car pricing and availability are always subject to change.
If you cancel your original booking before securing a new one, you risk losing a favorable rate or a specific vehicle class if availability tightens. By reversing that order, you can compare your existing reservation against current options, grab a better price if one appears, and then safely cancel the earlier booking. Since standard online Costco Travel car reservations come with no cancellation fees, this strategy is a major advantage, especially during peak travel seasons when rates may fluctuate daily.
Even though Costco does not process traditional modifications, the practical result is that you can change your plans as often as needed without penalty, as long as you stick to non-prepaid rates. Travelers often leverage this flexibility to monitor prices and rebook whenever they notice significant savings, sometimes shaving hundreds of dollars off a multi-week rental simply by checking rates periodically in the months leading up to a trip.
Special Cases: Prepaid Rates, Packages, and No-Shows
While Costco Travel’s standard car rental policy is refreshingly simple, several special scenarios are governed by more restrictive rules. First are prepaid rates booked either by phone through Costco Travel or directly with rental brands like Avis and Budget using Costco discount codes. In those arrangements, you are paying the rental company in advance and agreeing to its terms. That often means cancellation fees for changes made within a specific window and potential forfeiture of the prepaid amount for last-minute cancellations or no-shows.
Costco Travel’s materials indicate that it does not offer prepaid rates through its U.S. online rental car platform, largely because prepaid products tend to carry change and cancel fees that are less favorable to members. However, the option still exists when dealing with partner companies directly or via phone, which is why frequent renters need to read the fine print each time.
If your confirmation indicates that you have selected a prepaid rate, you should review the rental company’s cancellation deadlines and fee structure, since Costco will not override those rules.
Vacation packages and cruises booked through Costco Travel represent another special case. When a rental car is bundled into a broader package, the change and cancellation terms are governed by the overall package conditions rather than the standalone car-only policy. Costco explicitly notes that cancellation fees may apply to vacation packages and cruises, and those fees can extend to the rental car component. In these situations, you generally must call Costco Travel to make changes or cancellations, and fees or supplier penalties may apply.
No-show situations also differ slightly depending on the type of booking. For a typical non-prepaid Costco Travel rental car only reservation, not showing up usually results in a simple cancellation without penalty, since no payment was collected.
For prepaid reservations, on the other hand, the rental company may treat a no-show as a late cancellation and charge the applicable fee or keep the full prepaid amount. Travelers who decide not to rent after all should therefore cancel as soon as possible, even if they booked through Costco, to preserve any potential refund rights tied to a prepaid booking.
How Costco’s Policy Compares to Booking Direct
One of the main reasons Costco’s rental car program is so popular is its relative flexibility compared with booking directly through many rental brands. Major companies such as Enterprise, Avis, Budget, and Alamo all offer both pay-at-counter and prepaid options on their websites.
The pay-at-counter reservations often come with free cancellation, but some brands require a credit card guarantee and may impose a no-show fee if you do not cancel in advance. Prepaid rates, meanwhile, typically charge a penalty for cancellations made within 24 hours of pickup and may keep a portion of your payment even if you cancel earlier.
Costco Travel’s approach minimizes much of that complexity for standard U.S. online bookings. By designing its Low Price Finder to prioritize pay-later rates with no advance payment, Costco effectively shields members from many of the cancellation and no-show pitfalls that come with prepaid deals. As a result, you can book early and often, rebooking whenever rates dip, without worrying about triggering penalties as long as you avoid prepaid products.
Another distinction is that when you book directly with a rental company, changes are typically processed as formal modifications to the existing reservation. These changes can sometimes affect the pricing structure, potentially recalculating your rate at current market levels. With Costco’s cancel-and-rebook model, you retain the freedom to shop current rates across multiple partner brands each time, rather than being locked into one company’s internal modification system.
However, booking through Costco does introduce an extra layer between you and the car provider. If a dispute arises about charges or a cancellation, you may need to work through Costco Travel rather than dealing solely with the rental brand.
For complex situations, such as weather disruptions or overlapping bookings, resolving issues can occasionally take longer when a third party is involved. Travelers who prioritize absolute control and direct status with a specific rental loyalty program sometimes prefer booking straight with the agency, accepting tighter cancellation rules in exchange for elite benefits or points.
Practical Strategies for Using Costco’s Flexible Policy
To make the most of Costco’s generous cancellation and change framework, it helps to adopt a few practical strategies. The first is to book early, even if your dates are not completely firm. Since you do not pay at the time of reservation and face no cancellation penalties on standard online rentals, there is little downside to locking in a vehicle as soon as you know your general travel window and destination.
Next, revisit your reservation periodically in the months and weeks leading up to your trip. Rental car prices can fluctuate widely, especially around holidays and peak seasons. Many travelers use Costco’s Low Price Finder to rerun the same dates and locations every few weeks; when a better rate appears with the same company or a different partner, they simply book the cheaper option and then cancel the more expensive one. Over the course of a long rental, the savings can be substantial.
It is also wise to avoid prepaid products whenever possible if flexibility is a priority. While prepaid rates can sometimes be slightly lower, they reduce your ability to pivot as prices and plans change. For most Costco members, the combination of no upfront payment, no cancellation fees, and the ability to rebook easily is worth far more than the occasional marginal discount offered by prepaid deals.
Finally, keep track of your confirmation numbers and cancellation emails. Although Costco’s systems are generally reliable, having a paper trail or digital record of your cancellations can be valuable if billing questions emerge later. Save your emails in a dedicated travel folder and double-check your Costco Travel account to verify that cancelled reservations are clearly marked as such before your travel dates.
The Takeaway
Costco Travel’s rental car program stands out for its consumer-friendly approach to changes and cancellations. For standard non-prepaid reservations booked online through Costco’s Low Price Finder, members enjoy no upfront payment, free cancellations at any time, and no penalties for most no-show situations. This structure empowers travelers to book early, monitor prices, and rebook as often as needed to capture better deals.
At the same time, the landscape is not entirely uniform. Prepaid rates, whether secured directly with rental brands or by phone through Costco Travel, carry stricter rules and potential cancellation fees. Rentals embedded within vacation packages or cruises also follow different policies, sometimes involving supplier penalties or more rigid change windows. Understanding which type of booking you have and where the governing terms reside is essential to avoiding unexpected costs.
For many Costco members, the flexibility of car-only reservations, combined with negotiated rates and perks like additional drivers at no extra charge in certain regions, makes Costco Travel one of the most attractive options for renting vehicles. By learning how the cancellation and change policies work, and by taking advantage of the cancel-and-rebook method when prices fluctuate, you can drive away with both a good deal and greater peace of mind.
FAQ
Q1: Does Costco charge a fee to cancel a rental car reservation?
For standard non-prepaid rental car reservations booked online through Costco Travel, there is no cancellation fee from Costco or the rental car company. You can cancel any time before pickup without penalty.
Q2: What happens if I forget to cancel and do not pick up my Costco rental car?
If your reservation is a typical pay-at-counter booking made online through Costco Travel, you are generally not charged if you simply do not show up, since no payment was taken in advance. The rental location will mark the booking as a no-show and release the car.
Q3: Can I modify the dates or car type on an existing Costco rental car reservation?
Costco Travel does not modify existing rental car only bookings. Instead, you should book a new reservation with the desired dates or car type and then cancel your original reservation. There is no fee for cancelling the earlier booking if it is a standard non-prepaid rate.
Q4: Are there cancellation fees on prepaid car rentals booked with Costco discounts?
Yes, there can be. If you book a prepaid rate directly with a rental company like Avis or Budget using Costco discount codes, or accept a prepaid offer by phone through Costco Travel, the rental company’s own cancellation rules and fees apply. Those may include penalties for late cancellations or no-shows.
Q5: How do I cancel my Costco Travel rental car reservation online?
Sign in to your Costco Travel account, go to your upcoming bookings, select the rental car reservation you wish to cancel, and follow the prompts to confirm. Your account will show the booking as cancelled, and you will receive an email confirmation.
Q6: Does the cancellation policy change if my rental car is part of a vacation package or cruise?
Yes. When a rental car is bundled within a vacation package or cruise booked through Costco Travel, the overall package’s change and cancellation rules apply. Those may involve supplier penalties or stricter timelines, so you will typically need to call Costco Travel to review your specific terms before cancelling.
Q7: Can I rebook multiple times if rental car prices drop after I reserve with Costco?
Yes. Many travelers use Costco’s flexibility to their advantage by repeatedly checking rates. When they find a cheaper option for the same dates, they book the new reservation and cancel the old one, taking advantage of free cancellations on standard non-prepaid rentals.
Q8: Are taxes or fees affected when I change my Costco rental car booking?
When you book a new reservation, rates, taxes, and fees are recalculated according to current prices and availability. While base rates on an existing booking do not change on their own, any new reservation is subject to prevailing conditions, so you should always compare the full estimated total before cancelling your original booking.
Q9: Do I need to call the rental car company as well as Costco to cancel?
In most cases, cancelling through Costco Travel is sufficient for reservations made on its website. However, you can also contact the rental company directly if you prefer. For complex situations or questions about prepaid terms, speaking with both Costco Travel and the rental brand may provide added clarity.
Q10: How can I tell if my Costco-related reservation is prepaid or pay-at-counter?
Review your confirmation details carefully. Standard Costco Travel online rentals will indicate that payment is due at pickup and will not show a charge to your card before your trip. If your confirmation notes that you prepaid or that a payment has been processed, you likely have a prepaid rate, and the rental company’s separate cancellation fees and deadlines will apply.