Everyone talks about the $1.50 hot dog or the massive tubs of mayonnaise, but if you’re a frequent traveler, the real "secret sauce" isn’t in the food court. It’s the travel portal. Specifically, renting car through Costco has become a sort of cult-favorite hack for people who hate getting ripped off by airport rental counters. Honestly, it’s one of the few perks that actually pays for the membership itself in a single trip.
But it’s not always a slam dunk.
You’ve probably seen the forum posts or heard a neighbor brag about saving $200 on a minivan for their Florida trip. Is it legit? Usually, yeah. Costco Travel acts as a massive broker. Because they have millions of members, they have a weird amount of leverage over companies like Alamo, Avis, Budget, and Enterprise. They aren’t just listing prices; they’re negotiating specific "Costco-only" rates that often include perks you’d normally have to pay extra for.
Why Renting Car Through Costco Feels Different
If you’ve ever booked a car through one of those discount travel sites that looks like it was designed in 2004, you know the anxiety. You print out a voucher, pray the agency honors it, and then get hit with a "mandatory" insurance upsell at the desk.
Costco doesn't really play that game.
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The biggest draw, hands down, is the additional driver fee. Most rental agencies will charge you anywhere from $10 to $15 per day just to let your spouse or friend take a turn at the wheel. If you’re on a ten-day road trip, that’s $150 gone. Poof. When you’re renting car through Costco, that fee is almost always waived for the second driver. It’s a massive relief. You just show both licenses at the counter, and you’re good to go. No hidden math.
Then there’s the cancellation policy. It’s incredibly flexible. Most of the time, you aren’t paying upfront. You’re just reserving a rate. This leads to the "pro move" that seasoned travelers use: they book a car months in advance, then check back every Tuesday to see if the price dropped. If it did, they just book the new rate and cancel the old one. No penalties. No "non-refundable" deposits. Just pure price chasing.
The Selection Reality Check
You won't find every company on the Costco portal. They stick to the "Big Four":
- Alamo (Usually the best for families)
- Enterprise (Great service, often a bit pricier)
- Avis (Solid for business vibes)
- Budget (The name says it all)
If you’re looking for Hertz or some ultra-low-cost carrier like Fox or Sixt, you’re out of luck. Costco tends to vet their partners. They want to avoid the "we don't have your car" horror stories that plague the bottom-tier rental brands. It’s about consistency.
The Math: Does It Actually Save Money?
Let's look at a real-world scenario. Say you're heading to Denver for a ski trip. You need an SUV because, well, mountains.
A direct search on a major rental site might show you $550 for the week. You check the Costco portal, and it’s $510. Not a huge difference? Look closer. That $510 includes the extra driver. It also often includes a "member discount" that stacks on top of the base rate. Plus, if you have the Executive Membership, you get 2% back on the purchase. If you’re using the Costco Anywhere Visa® Card by Citi, you get another 3% back on travel.
Suddenly, that $40 difference turns into a $100+ value shift.
It’s also worth noting that the prices you see on the Costco site are inclusive of taxes and fees. A lot of other sites show you a "base rate" of $19 a day, then you get to the checkout screen and it’s $80 because of "airport facility charges" and "concession recovery fees." Costco is pretty transparent about the total out-of-pocket cost from the jump.
Where It Fails
Don't be a zealot. Sometimes Costco loses.
If you have "Elite" status with National (like Emerald Club) or Hertz (Gold Plus), you might get a better deal going direct. Status perks like "choose any car in the aisle" aren't always guaranteed when booking through a third-party portal, though many members report being able to add their loyalty numbers to their Costco reservation after the fact.
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Also, if you're traveling internationally—outside of Canada, the UK, France, Germany, Ireland, or Spain—you might find the Costco options are basically non-existent. They are very focused on the North American and select European markets.
The Weird Quirks of the Costco Travel Portal
The website feels a little bit like a throwback. It’s functional, but it isn’t "slick." You’ll need your membership number handy just to see the prices. This is a hurdle that keeps the "commoners" out, ensuring the negotiated rates don't get leaked to the general public, which would annoy the rental brands.
One thing people get wrong: You don't need a Costco credit card. Any Visa card works (or Mastercard if you’re booking online). You just need the membership. And yes, they will check your membership at the rental counter—sort of. Usually, the reservation is flagged in their system as a Costco rate, and as long as the name matches your ID, they rarely ask to see the physical gold star card. But keep it on you just in case.
Insurance: The Great Confusion
When renting car through Costco, people often ask if insurance is included.
No. It’s not.
You’re still responsible for the Collision Damage Waiver (CDW) and Liability. However, because you’re likely a savvy shopper, you probably have a credit card that offers primary or secondary rental insurance. Or your personal auto policy covers you. Costco’s role is purely as the booking agent and price negotiator. They don't provide the coverage, but their "Terms and Conditions" section is usually much clearer than the fine print you'll find on Expedia or Kayak.
Common Misconceptions and Pitfalls
"I can just use my friend's membership number."
Don't do this.
The primary renter must be the Costco member. If you get into an accident and the rental company realizes the booking was made under a membership that doesn't belong to the driver, they can void your coverage. It’s a nightmare you don't want. A basic membership is $60 or $65. If you’re saving $100 on one rental, the membership literally pays for itself in five minutes. Just buy the membership.
Another mistake: Forgetting to check the "Off-Airport" locations. Costco usually defaults to airport searches. But often, if you take a $15 Uber to a rental office three miles away from the airport, the price drops by 30%. You can search these "local" sites on the Costco portal too. It takes an extra minute of clicking around, but the savings can be stupidly high because you’re avoiding those heavy airport taxes.
How to Optimize Your Booking
If you want to be a pro at renting car through Costco, follow a non-linear strategy. Most people book and forget. That’s a mistake.
- Book as soon as you have flight dates. Since you don't pay upfront, there is zero risk. Secure a "ceiling" price so you know the most you’ll ever have to pay.
- Check again 14 days before the trip. Rental companies often adjust inventory levels two weeks out. If they have too many SUVs sitting on the lot, the price through the Costco portal will tank.
- Check one last time 48 hours before. Sometimes last-minute cancellations create a fire sale.
- Link your loyalty program. After you get your Costco confirmation number, go to the rental car company’s actual website (e.g., Alamo.com) and try to "Find My Reservation." Plug in the number. Often, you can attach your loyalty ID there, which might help you skip the line at the airport.
Is the "Executive" Membership Worth It for Travel?
If you spend more than $3,000 a year at Costco (including travel), the Executive upgrade is a no-brainer because of the 2% reward. A single big family vacation—car, hotel, and flights booked through Costco—can easily hit that mark. Many people find they get a reward check at the end of the year that covers the entire cost of their membership and then some.
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Real World Nuance: The Counter Experience
There’s this fear that if you show up with a "discount" reservation, the staff will treat you like a second-class citizen. In reality, it’s the opposite. Rental agencies love Costco customers because they tend to be reliable and have higher credit scores.
I’ve personally seen instances where the "Costco Rate" was for a mid-size car, but because the agency was overbooked, the Costco customers were the first ones moved up to the Luxury line for free. It’s not a guarantee, but there’s a certain level of "vetted" status that comes with the booking.
However, be prepared for the hard sell on the "Prepaid Fuel" option. Just say no. Unless you’re return-flight-is-at-4-AM-and-I’m-exhausted level of tired, filling up the tank yourself at a gas station (maybe even a Costco gas station near the airport) will save you $20 to $30.
Final Strategy for the Best Experience
Don't just look at the price. Look at the "Free Extra Driver" benefit. If you’re traveling with a partner, always check if they are included. Even if Costco is $10 more expensive than a random site, the extra driver inclusion makes Costco the winner.
Also, keep an eye on the "Special Offers" tab on the Costco Travel homepage. Occasionally, they run deals where you get a $50 or $100 Costco Shop Card (basically a gift card) just for booking a certain car class for a week. That’s actual cash back in your pocket for groceries when you get home.
Actionable Next Steps
- Check your membership status: Ensure your Costco membership is active and you have the login for the Travel portal.
- Run a "Ghost" Search: Before your next trip, compare the Costco total price against a generic aggregator like Google Flights/Travel. Ensure you’re comparing the "Total with Taxes" price.
- Verify Driver IDs: Make sure the primary member is the one listed as the lead driver on the reservation.
- Monitor and Re-book: Set a calendar reminder to check the rates every two weeks after booking. If the price drops, snag it and cancel the old one.
- Use the Right Card: Pay with a card that offers primary rental insurance (like the Chase Sapphire Preferred or Reserve) to avoid the pricey insurance at the counter.