60 Second Savings: Renting a Car

If you need a vehicle for a short time, either in your own area or when you're away, renting may be the best bet. Here are some savings tips.

First, size down and beware of so-called "free" upgrades.

Figure out the smallest size car you need for the trip. Sometimes you'll get a free upgrade, but if you accept it, be prepared to pay more at the pump.

If you're left with no other choice but to size up and you don't want to pay more for gas, ask for a discount to compensate for the higher costs.

Next, don't be wooed by a great base rate. Your total price may skyrocket once all the appropriate taxes and fees are added on. Remember to ask for the complete cost breakdown with an itemized list of all charges.

Also, before you sign up for the car-rental insurance, call your insurer to find out whether your existing auto policy covers your rental car -- most do. Sometimes your credit-card company covers damages, too.

Finally, find out if there are any available specials or if you can use your frequent flier miles towards the car-rental cost. Ask about AAA, AARP, student, union or any other discounts.

To view Farnoosh Torabi's video take of today's segment, click here.