Avoiding nasty charges for car rental...

How to avoid nasty "surprises" in your credit card statement?First of all, you must understand how the total price you pay is calculated

How to avoid nasty "surprises" in your credit card statement?First of all, you must understand how the total price you pay is calculated. Everything starts with the daily base rate - this is the rate you pay for the daily use of the car excluding all other charges. It doesn't mean that this is the price you pay! Instead, you may find your total bill is double of that of the base rate. Extra mandatory charges like GST, airport location surcharges, administration fees, vehicle registration fees are all part of the total bill given to you at the rental counter. I can't stress enough the importance of getting a bill at the end of your rental, but this is another story. So, by the time all the extra charges are added onto your bill, you may find yourself paying almost double that seductive base rate.To give you an example, a friend of mine rented a car in Australia with a base rate around $177 for four days. The final total? Including a vehicle registration fee, admin fee, airport location surcharge, a surcharge for not filling the gas tank, and a GST on top of all those other charges, my friend paid about $358 - more than a 100 percent increase over the base rate.So how can you avoid nasty surprises? Below you can find a list of standard surcharges you're most likely to find at most car rental locations in Australia, as well as some tips for your next trip to the car rental counter.Airport and GST SurchargesThe majority of car rental transactions happen at the airports around the country. Airport surcharge is something that car rental supplier has no control over and it varies considerably from one airport to another. Therefore, when you pick the car up from the airport you should expect to pay between 3 and 18 percent extra on top of other charges. Unfortunately, you can't avoid paying GST, which can will add 10 percent. However, if your car rental bill amounts to over $300 and you leave the country within 30 days after returning the car, you may claim GST component of your car rental at the airport.However, you can avoid the airport charges - such as airport location surcharge fees by picking up and dropping off your car at an off-airport location. Be sure to weigh the possible inconvenience and the price of any additional transportation against the concession fees charged by the airport location - which can be between 3 and 18 percent of your total price.The bottom line? If you don't want to pay the airport location surcharge, check out your rental options downtown.InsuranceYour rental car comes with a standard insurance liability of between $2900 and $3300 depending on a car rental supplier. This liability can be further reduced by paying an extra daily charge of between $25 and $27. However, since the price of insurance is almost half of what you pay for you car, I recommend that you check your credit card/travel/car insurance to make sure it doesn't cover you in a rental car.Gasoline ChargesFor your convenience most car rental companies provide cars with a full tank of fuel, however, be assured that if you don't return the car with a full tank you will pay a higher price for petrol used to fill up the empty tank. However, most car rental companies now offer the option of purchasing a full tank of gas when you first take the car, enabling you to return the car with as much or as little fuel as you wish.Please note that there is no refund for unused fuel, so it's likely you'll be paying a little extra for the convenience of skipping the trip to the gas station. Drop-Off ChargesAn extra fee is usually charged if a car is returned to a different location than where it was picked up. This fee varies by location; in some instances there is no charge, while you could pay $300 or more for cross-country drop-offs. However, some companies do not require a charge when dropping off in-state at many Brisbane, Sydney, Melbourne and other locations in Australia.The 24-Hour ClockCar rental industry operates on a 24-hour clock rate. However, there is also a 59-minute grace period before hourly charges apply. To give you an example, if you rent a car at 12:00pm on Tuesday and return it by 12:59pm on Wednesday, you will be charged for one day only. However, if you return the car after 27 hours (in this case after 15:00) you'll then be charged for the full extra day. Hourly charges apply between 25-27 hours.Early ReturnsWhen you rent a car for a particular number of days, you sign a sale contract for that period. So, just like with any other contracts out there, if you break your contract you must pay cancellation fees. Since, car rental companies set their rates based on the rental period, the longer you keep the car the cheaper the daily base rate. If you managed to reserve a car for 7 days using one of these "hot" weekly specials and then decide to bring the car two days earlier, you might get charged at a default daily rate and your total car rental charge for 5 days might end up costing you more than if you kept the car for 7 days. Therefore, please don't forget to ask a car rental agent if you pay different daily rate for earlier returns.