I've worked in rental cars for 12 years. I haven't read the links posted yet, but here is what I know from the inside. 1) The first thing the auto makers did to cut losses was to slash discounts car rental companies get when we buy cars. Increased price of our cars means we have to pass the price on. 2) We are different than a hotel or airline. Hotels have X amount of rooms to rent every day of the year for years on end. Airlines can't buy and sell planes quickly. In the car rental business, we only keep a car for 6 months on average, meaning we can change our fleet size significantly within a year. Every company knew travel would be down, so every company started lowered it's fleet size. When supply reduces faster than expected demand drop, it produces higher prices. Besides, car rental prices have not kept up with inflation over time. In the 70's and early 80's the cost of a compact car was the same as staying at the local hotel. I know people that set prices back then, that is actually how they set them. Somebody sees a hotel price of 70/night now and they can't believe the deal. 40/day for a car and they want to know how they can lower the rate. This explains the high cost of one-way rentals (dropping it off in a different city). It makes it really hard to plan fleet sizes for reservations if people are taking the cars all over. 3) Be careful of the Wild Card, Lock Low and Go, or other we pick them cars. We will give you whatever crap vehicle we have too much of that day. This can include big SUVs or Minivans. If you don't want to drive one of those, pay the extra $2/day or so and reserve the midsize. 4) Don't prepay for anything before you arrive at the location. The biggest problems are when people prepay for the vehicle with Priceline or Expedia. It will work most of the time, but if there is a problem you can't threaten to walk to the next counter. It also makes it hard to get your money back. If you haven't prepaid and you don't like what you're getting from company X, go to company Y and try there. Also, don't prepay for insurance. You are buying it from the website, not the rental car company. If something happens to the car, we still go after you. It is your responsibility to pay us and get reimbursed from the website. 5) Read the fine print or call and ask questions before hand. Know how much you need on your card. Know the policy of renting with a debit card. Too many people make reservations on Expedia and yell at us that they didn't know our rules. This can and has prevented people from renting a car because they did not meet our requirements. 6) I won't say here whether you need insurance. Every situation is different. But do the grunt workers a favor. If you know you will not be taking insurance, won't pay for an additional driver or pay for an upgrade, sign up for the frequent renter's program. We get punished financially (lower commission) and might lose our jobs if we don't sell a high enough percentage of these products. But frequent renter program rentals do not count against our average. For the company I work, all that is needed to sign up is for you to go to the website and give us the info on your license and credit card.