Booking a rental car through Costco Travel can be a smart way to save money and streamline your trip planning. Members often enjoy competitive rates, additional driver perks and flexible cancellation policies compared with booking directly through a rental agency. Yet many travelers still leave money on the table or run into unexpected hassles because of avoidable mistakes.
Understanding how Costco’s rental partnerships work, what is and is not included, and how to compare your options can help you turn a good deal into a great one. For a broader overview of how the Costco rental car program works overall, including pricing, eligibility and booking rules, see our Costco Rental Car Program explained guide.
Misunderstanding What Costco Travel Actually Offers
Costco Travel is a broker, not a rental car company. When you reserve a vehicle through Costco, you are actually booking with a partner brand such as Alamo, Avis, Budget or Enterprise. That means many of the rules governing your reservation, from driver age requirements to fuel policies, come from the rental agency’s contract, not Costco’s. Some travelers assume that Costco controls every aspect of the booking and are caught off guard when a local rental counter enforces its own policies.
Another common misconception is that Costco has an inventory of cars set aside exclusively for members. In practice, the platform taps into the same pools of vehicles as other booking channels, with negotiated rates and package-style inclusions. During peak travel periods like holidays and summer weekends in popular destinations, cars can still sell out or prices can rise significantly. Relying solely on the assumption that Costco will always have cheap cars available can lead to last minute sticker shock or limited choices at the counter.
It is also easy to overestimate what is included in a Costco rate. Many quotes are base rental prices before taxes, surcharges and optional extras such as GPS, toll programs or child seats. Some bookings come with added value like one free additional driver, but that does not mean all customary fees are waived. A careful reading of both the Costco booking page and the rental company’s terms can prevent unwelcome surprises when you check out your vehicle.
Failing to Compare Rates and Promotions Across Agencies
Costco Travel usually surfaces several offers side by side for the same dates and destination, but many renters select the first or cheapest looking option without digging deeper. That can be a mistake if you value flexibility, shorter lines or specific vehicle types. A slightly higher daily rate with one company might include a better fuel policy, a closer airport location or friendlier hours of operation, which could save both time and money over the course of the trip.
Travelers also sometimes forget that rental car prices are highly dynamic. The price you see when you first search is not necessarily the best you can get. Costco’s free cancellation policy on most pay-at-counter reservations makes it easy to re-check rates periodically. Failing to revisit your search a few times before departure means you could miss out on later price drops or newly added promotional codes that get integrated into the Costco platform.
Another oversight involves comparing Costco rates with other channels while accounting for all fees and benefits. A deal found directly on a rental company’s website may appear lower until you notice that Costco includes an additional driver at no charge or offers a more favorable cancellation window. Conversely, a promo fare elsewhere may include prepaid fuel or a mileage plan bonus that Costco does not provide. The smartest approach is to price out the complete cost of each option, including taxes and any perks that have value to you, before making a final decision.
Overlooking Membership, Driver and Age Requirements
Because Costco is a membership warehouse, travelers sometimes assume that once they log in and book a car, every eligible driver in their group automatically qualifies under that membership. In reality, the primary renter must typically match the Costco account information and present a valid driver’s license and credit card in their own name at pickup. If a friend or family member who is not linked to the membership attempts to pick up the car alone, the rental desk may refuse the reservation or reprice it according to standard retail rates.
An equally important consideration is age. Many of Costco’s partner agencies impose surcharges and restrictions on renters under 25, and in some locations under 21. The Costco platform does not eliminate those age-based rules. Young drivers might assume they are protected from “underage” fees by booking through Costco, only to face unexpected daily surcharges at the counter. Carefully checking the age policies for the specific rental brand and location, especially for international trips, can prevent stressful disputes when you arrive.
Additional drivers are another area where assumptions can cause trouble. One of Costco’s strongest benefits is that many partner rates include a free additional driver, typically a spouse, domestic partner or another travel companion. However, the exact eligibility criteria, documentation requirements and regional differences vary. Some states allow a spouse as a free driver whether or not you booked via Costco, while other locations require that they be specifically listed on the contract. Failing to add secondary drivers properly can leave you exposed if they are involved in an accident.
Ignoring Insurance, Coverage and Deposit Details
Rental car insurance is complicated under the best of circumstances, and layering Costco into the mix can add confusion. A frequent mistake is assuming that Costco membership itself provides primary rental coverage. Costco Travel does not act as an insurer. Coverage will generally flow from a combination of your personal auto policy, any travel insurance you have purchased, and the benefits tied to the credit card you use to pay. Before you decline or accept the rental counter’s collision damage waiver, you should know precisely which protections you already have and what conditions apply.
Another pitfall is overlooking international nuances. In some countries, certain types of coverage are mandatory and are embedded into advertised base rates, while in others they are offered as costly add-ons at the counter. A Costco quote that appears inexpensive might not reflect required third party liability coverage overseas, which means your final bill can climb sharply. Conversely, some Costco partner offers bundle a collision waiver and theft protection at a competitive price, making them better value than piecing together insurance separately. Reading the coverage section of your booking carefully and comparing it with the rental agreement is essential.
Security deposits and hold amounts on your credit card are often misunderstood as well. Costco does not control how much any given rental counter will preauthorize. That decision rests with the car company and can vary by country, vehicle class and payment method. If you arrive with a debit card that does not meet the location’s requirements, or with a credit limit too low to accommodate the hold, your reservation could be refused. Checking deposit policies and acceptable payment types at the specific pickup branch in advance is far safer than assuming your Costco confirmation guarantees smooth processing.
Mismanaging Location, Timing and Vehicle Selection
Many of the most expensive rental mistakes begin at the search stage. Travelers sometimes select the wrong pickup location on Costco’s map interface, confusing an off-airport branch with an in-terminal desk. Although off-airport agencies can be cheaper, they may require shuttle rides, restricted hours or different rules for fuel and after-hours returns. Choosing the wrong location can add logistics headaches or force you into high last minute add-on fees if you must switch branches on arrival.
Timing is equally crucial. Some renters underestimate how quickly popular vehicle categories sell out during school breaks, major events or cruise season in port cities. Booking late through Costco, assuming that “member access” will shield you from scarcity, is risky. Even if cars remain, you may only find premium or specialty models at much higher prices. Conversely, others lock in a reservation far in advance and never revisit it, missing opportunities to rebook at lower rates during periodic price dips. Since most Costco car reservations are cancellable without penalty up to pickup time, setting reminders to recheck can pay off.
Selecting the wrong vehicle class is another recurring issue. Opting for the smallest car to secure the lowest quote might make sense on paper but can backfire if you arrive with oversized luggage or extra passengers and have no choice but to upgrade at a walk up price. On the other hand, reserving a large SUV for a city trip where parking garages are tight and fuel is expensive may unnecessarily inflate your budget. Evaluating your route, luggage needs and local conditions, and then matching them to the car class before you finalize through Costco, provides far more control than leaving it to chance at the counter.
Overlooking Taxes, Fees and Special Conditions
Travelers sometimes assume that the estimated total on the Costco summary page captures every fee they will ever face. In reality, while Costco does a good job presenting base charges and many common taxes, certain location specific surcharges only appear on the final rental agreement. Airport concession fees, tourism levies, road use charges or local regulatory add-ons can vary significantly between jurisdictions. If you are comparing a city branch with an airport branch, the headline rate may not reflect the full difference once these extras are included.
Fuel, toll and mileage policies are fertile ground for miscommunication. Some Costco partner offers include unlimited miles, while others restrict mileage in remote or island locations. A misunderstanding in this area can be especially costly if you plan a road trip. Fuel terms also vary. Prepaid fuel plans might be offered at the counter that were not visible in your original Costco booking flow. If you accept such an option without reading the fine print, you may pay for a full tank even if you return the car half full. Clarifying your fuel and mileage choices before driving off is just as important as confirming the price.
Special conditions for cross border travel and one way rentals are another area where Costco users sometimes stumble. You may need explicit approval to drive a rental car across certain state or national borders, and additional documentation or fees can apply. One way drop charges between some cities are modest, while in other regions they can rival the cost of the base rental. The Costco search results might list a one way option, but not all of the nuances of what that implies for insurance, mileage and local laws. Taking a few minutes to verify cross border permissions and drop off terms can prevent last minute route changes or unwanted penalties.
Skipping Reservation Management and Documentation
Once a Costco rental is booked, some travelers treat the confirmation as the final word and never revisit the details. That can be problematic if flight times shift, travel companions change or weather events disrupt plans. While Costco makes modifying or canceling reservations straightforward online, failing to update your booking promptly can lead to no show charges or unavailability of the car type you originally selected. Keeping the reservation aligned with your actual itinerary helps the rental company prepare appropriately and keeps you eligible for your original rate.
Documentation is another easily overlooked but vital component. Your Costco confirmation number, the rental company confirmation number and the exact terms shown at booking should be saved in multiple places, such as printed copies and digital screenshots. Relying solely on the rental counter’s system to pull up your reservation can be risky in destinations with sporadic connectivity or during busy travel periods when lines are long and agents are rushed. If a discrepancy arises over rate, inclusions or fuel policy, having your original Costco booking details at hand puts you in a much stronger position to resolve the issue.
Finally, many travelers do not thoroughly inspect vehicles at pickup and return. Although this step is not unique to Costco bookings, the tendency to trust that a “member friendly” process will protect them can lead to complacency. Walking around the car, photographing existing damage, confirming that the fuel gauge and mileage align with the contract, and keeping a copy of your final receipt all help safeguard you from post trip billing disputes. These habits matter regardless of where you booked, but they are particularly valuable when dealing with multi party arrangements in which Costco, the rental brand and the local branch all play a role.
The Takeaway
Costco Travel can be a powerful tool for securing value packed rental car deals, especially for members who appreciate transparent pricing and the convenience of booking alongside flights, hotels or cruises. However, the platform is not a magic shield against the usual complexities of car rental. Misunderstanding the relationship between Costco and its partner agencies, neglecting to compare all in costs across brands, ignoring age and driver requirements, and glossing over insurance and fee details can erode the savings that attract many travelers in the first place.
By treating a Costco rental like any other major travel purchase, you put yourself in the best position to benefit from the program’s strengths. That means carefully reading terms and conditions, verifying coverage and deposit needs, double checking locations and vehicle classes, and using the flexibility of free cancellation to monitor price changes as your trip approaches. It also means staying on top of reservation management and documenting the condition of your vehicle before and after use. With a bit of preparation and attention to detail, Costco’s negotiated rates and added perks can genuinely enhance your journey instead of complicating it.
Ultimately, the most successful Costco rental car experiences belong to travelers who combine the buying power of membership with thoughtful planning. Avoid the common mistakes, ask questions before you sign the contract and keep your expectations aligned with how the system actually works. Do that, and your membership card can open the door to smoother drives and more affordable adventures wherever the road leads.
FAQ
Q1. Does booking through Costco Travel always give me the lowest possible rental car price?
Not always. Costco often secures competitive rates and useful perks, but rental prices fluctuate frequently and other channels may occasionally beat Costco on certain dates or car classes. The best strategy is to compare total costs, including fees and benefits, across multiple sources and recheck prices periodically before your trip.
Q2. Is rental car insurance automatically included with my Costco booking?
No. Costco Travel does not itself provide primary rental insurance. Coverage usually comes from your personal auto policy, a travel insurance plan or the credit card you use, along with any optional protections you purchase from the rental company. Always confirm what coverage you have before declining or accepting insurance at the counter.
Q3. Can someone who is not on my Costco membership pick up the rental car?
Generally, the primary renter must match the name on the Costco booking and present their own driver’s license and payment card. A person who is not associated with the membership may face rebooking at standard rates or may be denied the car. Check the specific rental company’s rules and ensure the correct driver is listed as the primary renter.
Q4. Do all Costco rental car rates include a free additional driver?
Many, but not all, partner offers include a complimentary additional driver, often a spouse or domestic partner. The exact terms can vary by brand and location, and sometimes by local law. Always look for the additional driver language in the Costco offer details and confirm at the rental counter that the second driver has been properly added to the contract.
Q5. Can booking through Costco waive young driver surcharges?
In most cases, no. Age based rules are set by the rental companies and local regulations, and underage surcharges typically still apply to renters under 25, and in some places under 21, even when the reservation came through Costco. Review the age policy for your specific rental brand and location before booking.
Q6. Will the price on my Costco confirmation match what I pay at the counter?
It should be very close for the base charges, but there can be differences due to local taxes, surcharges or optional extras you choose at pickup. To avoid surprises, compare the estimate on your Costco confirmation with the itemized breakdown on the rental agreement and ask questions about any fees you do not recognize before you sign.
Q7. Can I easily change or cancel a Costco rental car reservation?
Most Costco rental car bookings are pay at counter and can be modified or canceled online without a fee up until your scheduled pickup time. There may be exceptions for certain prepaid or specialty offers. Always check the cancellation policy in your confirmation and, if your plans change, update the reservation as soon as possible.
Q8. What happens if my flight is delayed and I arrive late for pickup?
Policies differ by rental company and location, but most hold reservations for a limited grace period beyond the scheduled pickup time. If a significant delay occurs, contacting the rental location or customer service as soon as you know your new arrival time improves your chance of having a car held for you at the original rate.
Q9. Can I take a Costco booked rental car across borders or on ferries?
Cross border and ferry travel are subject to the rental company’s rules and sometimes to local law or insurance restrictions. Some routes are allowed with advance notice and possibly extra fees, while others are prohibited. Check cross border permissions for your specific pickup location and itinerary before finalizing your Costco booking.
Q10. How can I avoid unexpected charges after I return a Costco rental car?
Inspect the vehicle at pickup and drop off, photograph any existing or new damage, keep fuel receipts if you refuel and retain a copy of your final rental receipt. If you see unfamiliar charges later, contact the rental company promptly with your documentation, and reference your original Costco reservation details for support.