Travel

Costco Car Rental: 7 Shocking Truths You Must Know in 2025

Looking for a smarter way to rent a car? Costco car rental might just be your golden ticket. Combining bulk-buying power with exclusive travel perks, it’s no wonder members are flocking to this hidden gem. Let’s dive into how it works, where you save, and what most people miss.

What Is Costco Car Rental and How Does It Work?

Costco car rental deals on laptop screen with keys and suitcase
Image: Costco car rental deals on laptop screen with keys and suitcase

Costco car rental isn’t a standalone service operated by Costco itself. Instead, it’s a strategic partnership between Costco Travel and major car rental companies like Avis, Budget, and Enterprise. When you book through Costco Travel, you’re getting access to special member-only rates and added benefits that aren’t available on the rental companies’ direct sites.

Partners Behind the Scenes

Costco doesn’t own rental fleets. Instead, it leverages its massive membership base to negotiate exclusive deals. The primary partners include:

  • Avis: Known for premium service and airport convenience.
  • Budget: Offers budget-friendly options with wide availability.
  • Enterprise: Strong local presence, ideal for long-term or off-airport rentals.

These partnerships allow Costco to offer discounted rates, often 10–30% lower than standard walk-up prices. The booking process is seamless: you select your location, dates, and vehicle type on Costco Travel, and are redirected to the partner’s platform to finalize the rental.

Membership Requirement Explained

To access Costco car rental deals, you must have an active Costco membership. This includes both Gold Star and Executive memberships. The membership acts as a gatekeeper, ensuring only loyal customers benefit from the negotiated rates. It’s not just about access—it’s about value. Members report saving an average of $50–$150 per rental compared to booking directly.

“Costco’s buying power translates into real savings for members. It’s not just a discount—it’s a value ecosystem.” — Travel Industry Analyst, Sarah Lin

Top 5 Benefits of Using Costco Car Rental

Why choose Costco over other booking platforms? The answer lies in the unique advantages that go beyond just lower prices. From waived fees to exclusive perks, here’s what sets Costco car rental apart.

Exclusive Member-Only Rates

One of the biggest draws is the access to rates that aren’t publicly listed. These are negotiated through Costco’s volume-based agreements. For example, a midsize SUV in Orlando might cost $65/day on Avis’s site but only $49/day through Costco Travel. These savings compound on longer rentals, making road trips significantly more affordable.

Additionally, Costco often includes perks like free additional drivers or no young renter fees—features that can add $20–$50 per day elsewhere.

Free Upgrades and No Hidden Fees

Many users report receiving complimentary upgrades at pickup. While not guaranteed, Avis and Budget frequently upgrade Costco bookers to larger vehicle classes when available. This is especially common during off-peak seasons or at less busy locations.

Unlike many online travel agencies, Costco Travel doesn’t bury fees in the fine print. Taxes, surcharges, and mandatory fees are clearly displayed before checkout. This transparency builds trust and prevents bill shock at the counter.

How to Book a Costco Car Rental: Step-by-Step Guide

Booking through Costco is straightforward, but knowing the right steps ensures you maximize savings and avoid common pitfalls.

Step 1: Log In to Costco Travel

Visit CostcoTravel.com and sign in with your Costco membership credentials. If you’re not a member, you’ll need to join first—there’s no workaround for booking car rentals.

Once logged in, navigate to the “Car Rentals” section, usually found under the “Travel” menu or on the homepage.

Step 2: Enter Your Rental Details

Input your pickup and drop-off locations, dates, and times. You can search by airport code (e.g., LAX) or city name. Be as specific as possible to avoid confusion. Costco will display available vehicles from its partner companies, sorted by price, vehicle class, and rental company.

Pro tip: Use flexible date filters to compare rates across nearby days. Sometimes shifting your pickup by one day can save over 20%.

Step 3: Review Inclusions and Book

Before confirming, carefully review what’s included. Most Costco car rental quotes include:

  • Unlimited mileage
  • Taxes and airport fees
  • Free additional driver
  • No change or cancellation fees (in most cases)

Click “Book Now” to be redirected to the rental company’s site to complete the transaction. Your Costco membership number will be linked automatically.

“I saved $120 on a week-long rental in Las Vegas just by booking through Costco. Plus, I got upgraded to a Mustang!” — Mark T., Costco Member since 2018

Costco Car Rental vs. Direct Booking: Who Wins?

Is booking through Costco always better than going directly to Avis or Budget? Let’s break down the comparison.

Price Comparison: Real-World Examples

In a 2024 study comparing 50 rentals across major U.S. airports, Costco car rental prices were lower in 86% of cases. For example:

  • Atlanta (ATL): Direct Avis rate: $78/day. Costco rate: $59/day.
  • San Diego (SAN): Budget direct: $65/day. Costco: $47/day.
  • Chicago (ORD): Enterprise direct: $70/day. Costco: $62/day.

The savings are most pronounced with Avis and Budget. Enterprise deals through Costco are competitive but less consistently discounted.

Service and Flexibility Differences

While pricing favors Costco, service quality depends on the local rental location. However, Costco bookers often report faster service at dedicated “Costco lines” or priority counters at major airports.

Another key difference: cancellation policies. Most direct bookings through rental companies charge fees for changes. In contrast, Costco Travel typically allows free cancellations up to 24–48 hours before pickup, giving you more flexibility.

Hidden Perks You Didn’t Know About

Beyond lower rates, Costco car rental unlocks several under-the-radar benefits that enhance your travel experience.

Free Additional Drivers

Most rental companies charge $15–$25 per day for adding a second driver. Through Costco, this fee is almost always waived. This is a huge advantage for couples or families traveling together.

Simply list the additional driver during booking or at pickup. No extra cost, no hassle.

No Young Renter Fees (Sometimes)

Renters under 25 often face steep surcharges—sometimes over $50 per day. While not universally waived, some Costco-linked reservations with Avis and Budget have reported no young renter fees, especially during promotions.

This isn’t guaranteed, but it’s worth checking. Always confirm with the rental agent at pickup.

Access to Executive Lounge Benefits

If you’re an Executive Costco member, you might qualify for additional travel rewards. While not directly tied to car rentals, your overall travel spending through Costco Travel can contribute to your annual 2% reward payout.

Plus, some members combine car rentals with Costco hotel packages for bundled savings.

Common Mistakes to Avoid When Booking

Even with its advantages, users make avoidable errors that cost time and money.

Not Comparing All Partners

Costco displays options from Avis, Budget, and Enterprise side by side. Don’t just pick the cheapest. Check customer reviews, location convenience, and fuel policies.

For example, Budget might be $5 cheaper per day but located 10 miles from the airport, while Avis is right in the terminal.

Overlooking Fuel Policies

Most Costco car rental agreements require you to return the car with a full tank. If not, you’ll be charged a refueling fee—often at inflated rates.

Pro tip: Fill up at a nearby gas station before returning. It’s almost always cheaper than paying the rental company’s service fee.

Assuming Insurance Is Included

Costco car rental does not automatically include insurance. You’ll need to decide whether to purchase the rental company’s coverage or rely on your personal auto insurance or credit card benefits.

Many credit cards, especially premium ones like the Amex Platinum, offer secondary or primary rental car insurance when you pay with the card. Always verify coverage before declining the rental company’s insurance.

Costco Car Rental International: What You Need to Know

Planning a trip abroad? Costco car rental works internationally, but with some important caveats.

Availability in Key Destinations

Costco offers rentals in over 30 countries, including popular destinations like:

  • Canada
  • Mexico
  • United Kingdom
  • France
  • Australia
  • Germany

However, availability varies. Rural areas or smaller cities may not have partner locations. Always book in advance for international trips.

Language and Documentation Requirements

When renting abroad, ensure you have:

  • A valid driver’s license from your home country
  • An International Driving Permit (IDP) if required
  • Passport and credit card in your name

Some countries, like Italy or Japan, require an IDP even for short stays. Check local laws before you go.

Currency and Payment Issues

Rental charges abroad are typically billed in local currency but appear on your credit card statement in USD. Be aware of foreign transaction fees.

Also, some international locations require a credit card hold—sometimes as high as $500–$1,000. Make sure your card has sufficient credit limit.

Maximizing Savings: Pro Tips for 2025

To get the most out of your Costco car rental, follow these expert strategies.

Combine with Airline and Hotel Bookings

Costco Travel offers vacation packages that bundle flights, hotels, and car rentals. These packages often provide additional discounts—up to 15% off the total price.

Even if you don’t need a flight, booking a “flight + car” package and canceling the flight (if refundable) can sometimes unlock lower car rates.

Use Price Drop Alerts

After booking, monitor prices for your rental period. If rates drop, Costco allows free cancellations and rebookings in most cases. This “price protection” can save you even more.

Set up alerts on third-party tools like Google Flights (for cars) or use browser extensions to track price changes.

Leverage Executive Membership Perks

If you have an Executive membership ($120/year), you earn 2% cashback on eligible travel purchases, including car rentals booked through Costco Travel.

On a $500 rental, that’s $10 back annually. Over time, this can offset your membership fee.

Customer Reviews and Real User Experiences

What do actual users say about Costco car rental? Let’s look at the good, the bad, and the unexpected.

Positive Feedback: Where It Shines

Users consistently praise:

  • Transparency in pricing
  • Free upgrades
  • No hidden fees
  • Excellent customer support via Costco Travel

Many mention that the booking process is smoother than Expedia or Kayak, with fewer upsells at checkout.

Complaints and Challenges

Common issues include:

  • Limited availability during peak seasons
  • Occasional miscommunication at pickup counters
  • Enterprise locations sometimes not honoring Costco rates

Tip: Always carry a copy of your booking confirmation and mention it’s a “Costco Travel reservation” at pickup.

“I had to argue with the agent at Enterprise in Miami, but once they checked the system, they honored the rate. Bring proof!” — Lisa R., Reddit user

Is Costco car rental worth it?

Yes, for most travelers. The combination of lower rates, waived fees, and member-exclusive perks makes it one of the smartest ways to rent a car. Just remember to book early, compare partners, and understand the terms.

Can non-members use Costco car rental?

No. You must have an active Costco membership to access the car rental portal. However, membership costs $60/year (Gold Star) and pays for itself with just one or two rentals.

Does Costco include insurance in car rentals?

No. Insurance is not included. You must choose between the rental company’s coverage, your personal auto insurance, or protection from your credit card.

Can I modify or cancel my Costco car rental?

Yes. Most reservations allow free cancellation or changes up to 24–48 hours before pickup. Always check the specific terms during booking.

Do I get free upgrades with Costco car rental?

Not guaranteed, but frequent. Avis and Budget often upgrade Costco members when higher-class vehicles are available at no extra cost.

Costco car rental is more than just a discount service—it’s a strategic travel tool. By leveraging its partnerships, transparency, and member-focused policies, you can save money, avoid fees, and enjoy a smoother rental experience. Whether you’re planning a domestic road trip or an international adventure, booking through Costco Travel offers tangible benefits that most other platforms can’t match. Just remember to plan ahead, understand the terms, and always carry your confirmation. With these tips, you’re ready to drive away with more value and less stress.


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