60 Second Savings: Renting a Car

04/02/07 - 08:16 AM EDT

Farnoosh Torabi

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.

Farnoosh Torabi joined TheStreet.com TV in July 2006 as the site's first official video correspondent. Previously, Farnoosh was a business producer and on-air reporter for NY1 News, Time Warner's 24-hour news channel in New York City. Farnoosh is a regular columnist for AM New York and has written for Money, Time, New York Daily News and Newsday. Farnoosh is a graduate of Pennsylvania State University, with a degree in Finance and International Business and holds a M.A. from the Columbia School of Journalism.
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