Understanding car rental cancellation policies

Travel plans can change quickly, whether your work schedule shifts, you suddenly get sick or you simply don’t feel like going away. But canceling plans may cause you to incur fees and be unable to recoup non-refundable payments, including for your car rental. Avoid the expense of costly car rental cancellation fees by following these eight tips.

1. Understand the rental car cancellation policy before reserving

All rental agencies define their own car rental cancellation policy. Find out the details before you make a reservation, since some are more strict than others. Unless you are booking a car for the next day and have a very low chance of canceling, it’s crucial to use the car rental cancellation policy as one of your selection criteria when making a reservation. See below for cancellation policies from some popular car rental companies in the U.S.

Avis cancellation policy

If you do not provide credit card information to Avis when you book a car, you can cancel online without incurring a fee. However, if you prepay for your rental car, then you will receive a refund minus a $50 processing fee if you cancel 24 hours prior to pick-up or $150 if you’re within 24 hours of your reservation’s start time.

Budget cancellation policy

Similar to Avis, if you prepaid for your reservation at Budget, you’ll receive a refund minus a $50 processing fee if you cancel 24 hours before your reservation’s start time or $150 if you cancel within 24 hours of pick-up. If you included credit card information at booking, but did not prepay, you’ll need to pay a $75 fee if you cancel within 48 hours of your reservation’s start time. If you do not provide credit card information when you book a car, you can cancel anytime without incurring a fee. 

Enterprise cancellation policy

Those who do not prepay for their Enterprise rental car will not be charged a cancellation fee. However, if you do prepay, then you will receive a refund minus $50 if you cancel more than 24 hours prior to your scheduled pick-up time or $100 if the cancellation occurs within 24 hours of the reservation’s start time.

Hertz cancellation policy

If you prepay with Hertz, there is no fee if you cancel within 24 hours of booking. After that period and up to 24 hours prior to the start of the reservation, you will be charged a $100 fee. If you cancel less than 24 hours before the scheduled pick-up time, then a fee of $200 will be charged. 

2. Select the “pay later” option

In order to get a car rental cancellation for free, choose the “pay later” option instead of prepaying for your reservation. In most cases, you’ll need to enter your contact information to make the reservation, but you won’t be required to add credit card details. Since the company doesn’t have your payment method on file, there’s no way for them to charge you a fee should you cancel your reservation or even not show up. 

While you may see a lower rate with a prepaid option than a “pay later” option, it often comes with hefty fees if you need to cancel, so the latter can save you money in the long run. 

3. Cancel at least 24 hours ahead of your reservation

Some car rental companies’ cancellation fees only go into effect if you cancel within 24 hours of your reservation. As long as you cancel before you enter the 24-hour window leading up to your reservation, you may be able to avoid the fee. Of course, this varies by company. Some still charge a fee but it’s less if you cancel more than 24 hours in advance.. Check before making any plans and see how long you have to cancel without getting charged.

4. Change your dates instead of canceling

If you’re already in the territory of being charged a fee, consider modifying your trip instead of canceling it so that you can avoid a cancellation fee. However, you typically don’t have a guarantee that your rate will be the same. It may not make a difference if you’re picking dates further out, since a larger lead time typically results in a lower rate. But if you’re changing the day of the week or modifying to a holiday weekend, you could end up paying more.

5. Avoid not showing up 

When you’re a no-show and you prepaid for your booking, you’re not charged a cancellation fee. Instead, you have to pay for the entire reservation. So no matter how little notice you’re able to give, canceling is still usually better than not showing up for your reservation at all. 

6. Ask to have fees waived

In some instances, you may be able to get your cancellation fee waived by simply calling the car rental company and asking. For example, if you’re sick or had a family emergency, you may find some sympathy from a customer service rep. There’s no guarantee with this tactic, of course, but it is an option if you’re in a sticky situation. If the customer service rep doesn’t have the authority to waive a fee, ask to speak to a supervisor. Just remember that kindness goes a lot further than anger — be nice to the person on the other end of the phone, no matter how they handle your request.

7. Get travel insurance

Getting a travel insurance policy can protect the cost of a car rental both before and during your trip. Most policies cover trip cancellations and trip interruptions. The former covers your travel reservations in case you have to cancel your trip before it even begins. So if you’re within the period in which you’ll be charged a rental car cancellation fee, your insurance may reimburse you for the cost. With trip interruption insurance, you may be reimbursed for changes to your reservation in the event you have to cut your trip short.

8. Use a car sharing service

Another way to avoid a rental car cancellation fee is to use a car sharing service instead. Avail car sharing, for instance, does not charge a cancellation fee prior to the reservation’s start time. You can modify your booking without a penalty fee too. Our convenient neighborhood locations in Chicago and Denver are all self-service, so you can just grab the keys and get on your way without waiting in line. Each booking is protected by Allstate insurance and 24/7 roadside assistance, so you can enjoy your trip worry-free.