Should You Rent a Car With Costco?

You may think of Costco as the place you go to buy $4.99 rotisserie chickens and toilet paper in bulk. But groceries and household supplies aren't the only things you'll score with your membership. You can also get discounts when you rent a car. Read on to learn how Costco's car rental program works and whether it's actually worth it.

The basics of renting a car through Costco

In addition to offering vacation packages and discounts on hotels and cruises, Costco Travel can help you save money on rental cars. Costco doesn't directly rent out cars, but it partners with four companies -- Alamo, Avis, Budget, and Enterprise -- to offer car rentals at a discounted rate. You can get discounted car rentals no matter what tier of Costco membership you have, though Executive members score an extra 2% reward with their rentals.

Some other perks of renting a car through Costco:

• You can add an additional driver for free at Alamo, Avis, Budget, and Enterprise locations in the U.S. In Canada, you'll only get the additional free driver at Alamo and Enterprise, though. While the primary driver must be a Costco member, the second driver need not have a membership.
• You can cancel reservations without a fee using your online Costco Travel account.
• You can use Costco Travel's search engine to find the best deal among all four companies.

The easiest way to book a car through Costco is to use the Costco Travel website and select "rental cars." You'll enter your ZIP code and pick-up and drop-off locations, times, and dates.

You'll need to verify your membership when you book your rental card, but no credit card is required to make the reservation. When you pick up the vehicle, you can pay with any major credit card.

You'll also be asked whether you're at least age 25. If you're younger than 25, you'll still get the Costco membership discount, but you may be charged an underaged driver fee. Drivers who haven't yet reached the quarter-century mark will also have to call Costco Travel directly at 1-866-921-7925, Option 1 to book instead of making reservations online.

Is renting a car from Costco really cheaper?

Of course, a number of factors determine how much you'll pay to rent a car, including the type of car you're renting, your rental dates, and your pick-up and drop-off locations. I searched Costco Travel along with Booking.com and Hotels.com to see how Costco Travel discounts would stack up if I were renting a four-door compact gas-powered car that holds five passengers from Nov. 20-Nov. 25, 2023, which is Thanksgiving week, from three major U.S. airports. I searched for options that let you pay at pickup and offer unlimited mileage and free cancellation.

Here's how the three websites compared. Note that prices are for five days total.

Atlanta-Hartsfield International Airport

• Costco Travel: $344 for a Toyota Corolla or similar vehicle (via Avis)
• Booking.com: $319 for a Ford Focus or similar vehicle (via Thrifty Car Rental)
• Hotels.com: $319 for a Nissan Versa or similar vehicle (via Thrifty Car Rental)

Winner: Tie between Booking.com and Hotels.com

John F. Kennedy International Airport

• Costco Travel: $450 for a Toyota Corolla or similar vehicle (via Budget)
• Booking.com: $484 for a Nissan Versa or similar vehicle (via Sixt)
• Hotels.com: $484 for a Nissan Versa or similar vehicle (via Sixt)

Winner: Costco

Los Angeles International Airport

• Costco Travel: $448 for a Toyota Corolla or similar vehicle (via Alamo)
• Booking.com: $190 for a Toyota Camry or similar vehicle (via Black & White Car Rental)
• Hotels.com: $292 for a Dodge Neon or similar vehicle (via NU Car Rental)

Winner: Booking.com

As you can see, Costco Travel was only the cheapest option in one of the three cities in this very unscientific experiment. One shortcoming is that Costco only has four car rental companies in its network, whereas Booking.com and Hotels.com were searching for deals with far more companies.

Should you rent a car through Costco?

The results above apply only to five days in November 2023 at three major airports in the U.S. When you're renting a car, be sure to shop around. Plug your dates and location into several travel search websites and see what provides the best deal.

Some additional factors to consider beyond price:

• What's the additional driver policy? While Costco doesn't charge for a secondary driver, some rental companies also allow you to add your spouse, domestic partner, or business partner at no extra cost.
• Will you earn loyalty points? You can earn 2% rewards with Costco's car rental if you're an Executive member, but many travel sites like Booking.com, Hotels.com, and Expedia have loyalty programs. It's worth looking at the points you'll earn through these sites, particularly if you're a frequent traveler.
• Are there additional fees? Make sure you're aware of any additional fees you could be charged, like cancellation fees, before you book a car, as well as the policy on refueling and mileage.

Whether you book a car through Costco or a different site, consider using a travel rewards card so you're earning points wherever your next adventure takes you.