Booked a rental car online? These hidden charges and damage fees can increase your final bill, expert explains

A rental car’s advertised price may not be the final bill. Here are the charges and damage-liability terms customers should check before booking a self-drive car.

A rental car may appear affordable when you make the booking, but the final amount can be higher if certain charges apply during or after the rental period. Traffic fines, refuelling fees and damage-related costs are among the charges customers may overlook because they are often mentioned in detailed terms and conditions.

Anupam Agarwal, Founder and CEO of Revv, said customers should pay particular attention to charges that apply only in specific situations. These include damage charges that fall outside the scope of a damage waiver, automated e-challans generated during the rental period and refuelling service charges levied by some rental arrangements.

Check what the damage waiver covers

One of the most important things for customers to understand is the difference between the vehicle's insurance and their own liability as a renter. The vehicle's insurance governs the arrangement between the insurer and the rental company, while the customer's liability is determined by the damage waiver offered at the time of booking, Agarwal said.

Customers should check whether the booking has a liability cap and the maximum amount they could be charged if the vehicle is damaged. They should also check whether an additional paid damage waiver can reduce this amount and, importantly, which situations are excluded from the cap.

For example, incidents involving drunk driving are typically excluded from damage waiver protection, he said.

Damage does not always mean a large bill

The amount a customer pays after damaging a rental car depends on the damage waiver and the liability cap applicable to the booking, Agarwal said.

At Revv, minor issues such as small scratches generally do not attract a charge, he said. The company said its approach is to keep damage-related charges low so that concerns about damaging a vehicle do not discourage customers from choosing self-drive rentals.