The Costco rental car program has become a go to tool for many travelers who want predictable pricing, name brand agencies and easy comparison shopping. Offered through Costco Travel, it promises low rates from major rental companies, a waived fee for an additional driver and the ability to cancel most reservations without penalty.
Yet the details are not always obvious at first glance, especially when it comes to insurance, eligibility, geographic limits and how the discounts really work. This guide explains the Costco rental car program in plain language so you can decide when it is the smartest way to book and how to avoid the common pitfalls.
How the Costco Rental Car Program Works
Costco does not own a rental car fleet or operate rental counters. Instead, Costco Travel acts as a specialized travel agency that has negotiated contract rates with several major rental brands, currently Alamo, Avis, Budget and Enterprise.
When you search for a car on the Costco Travel site, you are effectively using a private price comparison tool that looks only at those partner agencies and applies Costco’s contracted discounts and coupons automatically. The rental itself is still fulfilled by the agency you choose, and your contract at pickup will be with that company, not with Costco.
For most Costco members in the United States, access to rental cars is available as long as you book through the Costco Travel portal and are logged into your membership account. The program covers standard car rental needs: airport and neighborhood locations, a range of vehicle classes from economy through full size SUVs, and both domestic and many international destinations.
At checkout, your reservation shows the selected supplier, the pickup and drop off location, included mileage and most taxes and fees that can be calculated in advance.
One of the core features is that the program uses what Costco markets as a Low Price Finder. Rather than simply displaying whatever coupon you click, the system scans eligible discounts and rate codes and tries to surface the combination that yields the lowest total base rate for your dates and car class.
This means the coupon name on your booking may differ from what you initially selected, because the system will override it if another offer results in a better price per day.
Importantly, for typical retail rentals the program works on a pay at pickup model. You generally do not pay a deposit when you reserve, and you settle the full bill at the counter or during online check out with the rental agency. This structure makes it easy to cancel and rebook if prices fall, and it significantly reduces the risk of being locked into a high rate as long as you keep an eye on prices before your trip.
Eligibility, Membership Levels and Where You Can Use It
The Costco rental car program is a membership perk, so you must have an active Costco membership to access the Costco Travel booking engine. In practical terms, that means the primary driver on a reservation should be a current member and be able to present their physical or digital membership card at pickup to receive the discounted rate and added benefits. If the primary driver cannot show valid membership at the counter, the rental car company may reprice the rental at its standard public rate.
Non members can still be added as additional drivers on a Costco booked rental as long as they meet the rental company’s usual requirements for age, license and payment card. They do not need their own Costco membership card, but they must appear in person at the counter to be added to the contract. This makes the program flexible for families and groups where one person holds the membership but someone else may share driving duties.
There are two main membership tiers that matter for car rentals: standard Gold Star membership and Executive membership. Both can use Costco Travel and book discounted car rentals. Executive members receive an additional 2 percent annual reward on the pre tax amount of most travel purchases made through Costco Travel, which typically includes rental cars. That rebate is issued annually as part of the Executive membership reward, effectively giving frequent renters a modest cash back on top of already discounted rates.
Geographically, U.S. based members can use the rental program for domestic rentals and many international destinations. The free additional driver benefit is widely available in the United States and Canada and, depending on the rental company, may also extend to locations in the United Kingdom, much of Western Europe and Puerto Rico.
However, coverage can vary by supplier and country, and some international locations may have stricter age or licensing rules. During booking, the search results and any fine print next to each car listing are the best indicators of where specific perks apply.
Key Benefits: Low Prices, Extra Driver and Flexible Policies
The most tangible benefit of using Costco for car rentals is straightforward pricing that is often, though not always, lower than booking directly. Because Costco negotiates volume based discounts and combines them with selected coupons, the base rental rate is frequently competitive with other travel sites. The Low Price Finder automatically applies whichever promotional code or discount structure results in the lowest cost for the car type and rental length you choose, which helps remove some of the guesswork from deal hunting.
Another notable perk is the included free additional driver on qualifying rentals. For U.S. and Canadian pick ups, Costco booked reservations with Alamo, Avis, Budget and Enterprise generally include one additional driver at no extra charge. In many markets, standard retail rentals charge a daily fee to add anyone beyond the primary renter, so having this fee waived can generate significant savings, especially on longer trips. In certain European countries, the free driver benefit currently applies to Alamo and Enterprise as well, although details can vary and are subject to change.
Flexibility is also a strong selling point. Most Costco Travel car rentals can be canceled online without any penalty up until the scheduled pickup time. Because no prepayment is required for typical rentals, you can monitor prices and rebook if you see a lower rate closer to your trip. This no fee cancellation policy is particularly helpful in markets where rental prices fluctuate sharply depending on demand, school holidays or local events.
Finally, using Costco Travel centralizes your bookings. If you book a car along with a hotel or vacation package through the same portal, your itinerary details and confirmations are stored in one place. This can simplify trip management, especially for travelers who already use Costco for flights, cruises or resort stays and want to keep their travels under a single account that also tracks Executive member earnings.
We compare Costco’s pricing against direct booking and other rental platforms in our analysis of whether Costco is the cheapest way to rent a car.
Limitations, Fine Print and When Costco May Not Be Best
Despite its strengths, the Costco rental car program has limitations that are important to understand. First, you are restricted to a specific set of partner companies. If your trip would be better served by a specialist brand that focuses on luxury cars, peer to peer rentals or off airport discount operations, those will not appear in the Costco search results.
For some destinations, especially smaller cities or non U.S. markets, this can reduce your choices and in some cases may mean that the lowest available rate in the broader market is with a company that does not partner with Costco.
The program also inherits the rules and fees of each rental agency. Age minimums, underage surcharges, deposit amounts, toll policies and additional optional fees are determined by the rental company and may vary by state or country.
Costco’s own terms state that car rentals are subject to the rules and regulations of the car rental company and that fuel, optional insurance, local surcharges and some taxes are not included in the prepaid amount. That means you must still read the rental agency’s terms carefully even if you book through Costco.
There are structural limitations on certain rental patterns. For example, Costco Travel’s standard online tool does not support every possible one way neighborhood to neighborhood rental combination. In some cases, picking up a car at one local office and dropping it at a different local office is not allowed through the website, even if the agency might allow it by phone.
One way rentals that are permitted often include an embedded drop fee in the base rate, so while you will not see an extra fee added at the counter, the daily rate may be significantly higher than for a round trip booking.
Finally, Costco’s pricing is not always the absolute cheapest. Some travelers with elite status or targeted discounts with specific rental brands may find that direct booking with those companies produces better value when you factor in loyalty benefits like free upgrades, bonus points or free rental days.
For a direct comparison of Costco’s rates and perks versus booking straight with rental companies, see our breakdown of Costco rental cars versus booking direct.
Likewise, special corporate or government rates may beat Costco’s rates in some markets. Treat Costco’s quotes as a strong benchmark but not an automatic winner, and compare them with at least one or two alternatives for important trips.
Many frustrations with Costco rentals stem from avoidable misunderstandings, which we cover in our guide to common Costco rental car mistakes to avoid.
Booking a Rental: Step by Step Experience
Booking a rental car through Costco Travel starts with logging into your Costco account and navigating to the cars section. From there, you select your pickup and drop off location, dates, times and driver age. Including your actual age is important because rental companies use it to determine eligibility and any applicable surcharge.
The search results page then displays a grid of car categories and partner companies, along with base prices and any key conditions such as mileage limits or geographic restrictions.
Each listing shows the vehicle class rather than a specific model and indicates whether the rate includes unlimited mileage, what taxes and fees are estimated and whether the free additional driver perk applies at that location. If there are special geographic or mileage rules, such as a prohibition on driving into certain neighboring states or regions, a bullet point next to the rental listing typically explains those limits. Carefully reviewing this section helps avoid surprises at the counter, particularly for road trips that cross borders or cover long distances.
Once you select a car, you move into the details page, where you confirm your personal information and membership details. At this stage you may be able to enter a rental car loyalty number for the selected agency. Doing so can help you earn points or miles with the rental company and, in some cases, speed up the pickup process if the agency offers a preferred or express service line.
However, the rate and qualification are still tied to Costco’s contract, so some elite benefits or promotional codes from the rental company cannot be stacked on top.
After submitting your reservation, Costco Travel sends a confirmation that includes both a Costco reference number and the rental company’s confirmation code. It is wise to bring or save both, as the rental counter staff generally work from their own company’s record locator, while Costco’s system assists with any later support calls.
If your plans change, you can manage the reservation online within your Costco Travel account, where options to cancel or rebook are usually clearly labeled and, for standard pay at pickup rentals, do not incur fees.
Insurance, Liability and What Is Not Included
One area that often confuses travelers is insurance. Costco Travel itself does not automatically include collision damage waivers or liability coverage in the base rental rate for U.S. bookings. Instead, it indicates that auto insurance is the responsibility of the registered driver and that optional insurance coverage offered by the rental agency is extra.
At the counter, you will typically be presented with several coverage options, such as a loss damage waiver, supplemental liability and personal accident insurance, all of which carry daily fees.
Before accepting or declining those options, it is important to understand what protection you already have. Many standard U.S. auto insurance policies extend your existing collision and liability coverage to rental cars for personal use within the United States, subject to your usual deductibles and coverage limits. In addition, a number of travel oriented credit cards offer rental car coverage when you use that card to pay for the rental and decline the agency’s damage waiver.
This card based protection is often primary for damage to the rental car itself but does not usually cover injuries to others or damage to other property. Because insurance rules and benefits vary, reviewing your auto policy and credit card terms before you travel is essential.
Costco Travel does not directly sell its own branded travel insurance in the United States, but it has preferred relationships with third party insurers for broader trip coverage on vacation packages. Some of those plans may include rental car damage protection as part of their benefits.
However, for stand alone car rentals booked through Costco Travel, the recommended path is to either rely on your own auto policy and credit card benefits or purchase coverage from the rental company at the counter if you need it and have no other protection.
It is also important to budget for charges that are not part of the base quote. Fuel is never included, and rental companies may impose high refueling charges if you do not return the car with the required level of gas. Local taxes, airport concession recovery fees, vehicle licensing fees and surcharges for additional equipment such as child seats, GPS units or toll transponders are often added at the counter.
While Costco’s estimate usually reflects known taxes and fees, some location specific surcharges can only be finalized at pickup. Reading the breakdown on your confirmation and asking questions at the counter will help ensure that your final bill matches your expectations.
For a deeper explanation of collision damage waivers, credit card coverage and when you might actually need to buy insurance at the counter, see our guide to Costco rental car insurance explained.
Special Situations: One Way Rentals, Young Drivers and International Trips
Certain rental scenarios require extra attention when booked through Costco Travel. One way rentals, where you pick up in one city and drop off in another, are widely supported between many airport locations, but there are restrictions. Costco’s FAQ notes that pickups at one neighborhood location and drop offs at a different neighborhood location are not supported through the website for any of the partner companies. If you need that pattern, you may have to call Costco Travel or the rental company directly to see if an exception can be arranged.
When a one way rental is permitted, any drop fees or elevated rates are typically baked into the quoted price. You may not see a separate line labeled drop fee, but the daily average may be higher than for a similar round trip rental. This structure is helpful because it means you should not encounter surprise additional charges at the counter specifically for the one way nature of the trip, but it also underlines the importance of comparing different pickup and drop off combinations to find the most economical route.
Young drivers, especially those under 25, face another layer of complexity. The general rule in Costco Travel’s terms is that cars are available for rental to individuals 25 years or older, with exceptions that vary by supplier and location. When drivers under 25 are allowed, the rental company often adds a daily young driver surcharge, which is not waived simply because you booked through Costco.
The free additional driver benefit may still apply, but if the additional driver is also under 25, they may incur that same surcharge even though the base additional driver fee is waived. Checking the age policy for your specific location is crucial to avoid unexpected costs.
For international trips, the Costco rental car program can be an attractive option, particularly in Europe where Alamo and Enterprise have broad coverage. However, rules regarding insurance, cross border travel, snow tires, vignettes and required documentation vary widely by country. In some European countries, basic liability cover may be included by law in the rate, while collision damage waivers and theft protection might be bundled or offered separately.
Costco’s booking pages will usually note whether such coverage is included, but you should read the rental agency’s local terms carefully and be prepared for a higher level of mandatory fees than you may be used to in the United States.
International rentals involve additional rules around insurance, documentation and cross-border travel, which we explain in detail in our guide to using Costco rental cars for international trips.
Maximizing Value: Practical Tips for Costco Renters
To get the best value from the Costco rental car program, it helps to approach it as a strategic tool rather than a set it and forget it default. Start by searching your trip dates through Costco Travel to establish a baseline price for each car class. Then, if you are a member of any rental car loyalty programs or have access to corporate or association discount codes, compare the Costco rate to a direct booking quote on at least one of the partner agencies’ websites.
In many cases, Costco will still come out ahead, especially when you factor in the free additional driver and Executive member rebate, but in some markets your other affiliations might win.
Booking early and rechecking regularly can also pay off. Because Costco rentals usually require no prepayment and carry no cancellation penalty up to pickup time, you can lock in a decent rate well in advance, then monitor prices as your trip approaches.
If you see a lower rate through Costco for the same dates, simply book the new reservation and then cancel the old one. Prices for rental cars can fall sharply at off peak times or after an initial demand surge subsides, so a few quick checks can save a meaningful amount.
When traveling with another eligible driver, make sure to take full advantage of the free additional driver benefit. Add the second driver at the counter so they are properly covered, and bring their license and payment card to avoid delays. Even if you expect to do all the driving, having another person on the contract can be a useful safety net in case of illness or fatigue on a road trip.
Finally, keep documentation organized. Print or save a PDF of your Costco confirmation and the rental company confirmation code, along with any screenshots that show included mileage, geographic restrictions and estimated taxes and fees.
If there is any discrepancy at the counter or on your final bill, having these details at hand makes it easier to work with the rental company or Costco Travel’s customer service after the fact. While most rentals proceed smoothly, being prepared is one of the easiest ways to protect yourself as a traveler.
The Takeaway
The Costco rental car program is a powerful, traveler friendly way to secure competitive rates with major rental brands, particularly for U.S. and Canadian travelers who already shop at Costco. Its main advantages are contractually negotiated discounts, automatic application of value oriented coupons, a free additional driver on many rentals and generous cancellation flexibility. For families, couples and frequent road trippers, those benefits can translate into real savings and reduced hassle at the counter.
At the same time, the program is not a universal solution. It is limited to certain agencies, inherits each company’s rules and fee structures and may not always deliver the single lowest rate compared with targeted loyalty or corporate discounts. Insurance remains largely the traveler’s responsibility to understand and arrange, and special cases such as young drivers, one way local rentals or international trips require close attention to fine print.
If you are comfortable comparing a few quotes and reading the terms, Costco Travel’s rental car offering can fit neatly into a broader strategy for cost conscious yet flexible travel planning. Used wisely, it becomes one more lever you can pull to keep your trip budget under control without sacrificing the security of booking with widely recognized rental brands.
FAQ
Q1: Do I have to be a Costco member to book a rental car through Costco Travel?
Yes. The primary driver on the reservation must have an active Costco membership and should be prepared to show their Costco membership card at pickup. Additional drivers do not need to be members, but they must meet the rental company’s usual requirements.
Q2: Which rental car companies participate in the Costco program?
Costco Travel currently partners with several major brands, most prominently Alamo, Avis, Budget and Enterprise. The exact mix can evolve over time, but these are the primary companies you will see when searching for rentals through Costco’s portal.
Q3: Is the additional driver always free when I book with Costco?
In many locations, yes. For eligible rentals booked through Costco Travel, one additional driver fee is typically waived with Alamo, Avis, Budget and Enterprise in the United States, and with some of those partners in Canada and select European countries. However, young driver surcharges and location specific conditions can still apply.
Q4: Does Costco Travel include insurance in the rental price?
No. The base rates shown through Costco Travel generally do not include collision damage waivers or supplemental liability coverage for U.S. rentals. Those protections are optional add ons sold by the rental company. Many travelers rely on their personal auto insurance and credit card benefits instead, but you should verify your coverage before declining any protections.
Q5: Can I cancel a Costco booked rental car without a fee?
For most standard pay at pickup rentals, you can cancel through the Costco Travel website without paying a cancellation fee any time before the scheduled pickup. Because you typically do not prepay, there is no deposit to lose. Always check the specific terms of your reservation to confirm, especially for any special rate offers.
Q6: Will I earn points or miles with the rental car company if I book through Costco?
Often yes. Many reservations allow you to enter a rental car loyalty number during booking so you can earn points or credits with the agency. However, the rate and eligibility for some elite benefits are governed by Costco’s contract, so not every perk or promotion from the rental company will stack with the Costco rate.
Q7: Are one way rentals allowed with Costco Travel?
Many one way rentals, especially between major airports, are supported and any applicable drop fees are included in the quoted price. However, some neighborhood to neighborhood one way routes are not available through the website. In those cases, you may need to call Costco Travel or the rental company directly to explore options.
Q8: How does the Executive membership benefit apply to rental cars?
Executive members typically earn a 2 percent annual reward on most travel purchases made through Costco Travel, including qualifying rental car reservations. The reward is calculated on the pre tax cost and is issued annually as part of the Executive membership rebate, effectively giving frequent renters a small amount of cash back.
Q9: Can someone else be the primary driver if I am the one with the Costco membership?
For the Costco discount to apply, the primary driver should be the Costco member and must present their membership card at pickup. You can reserve on behalf of a friend or family member, but the person named as primary driver on the booking is the one who must show membership. Non members can be added as additional drivers if they meet the rental company’s requirements.
Q10: Is Costco Travel always cheaper than booking directly with the rental car company?
Not always. Costco’s negotiated rates and coupons are frequently very competitive and often yield a lower total cost, especially when you factor in the free additional driver and Executive reward. However, drivers with strong corporate, government or elite loyalty discounts may occasionally find better value by booking directly. Comparing a Costco quote with at least one direct quote is the best way to know which option is cheaper for a specific trip.