The Worst Rental Car Companies and Agencies (2023)

Many Americans associate domestic travel with the open road and a long road trip. Over Memorial Day 2021, AAA estimatedmore than 37.1 million travelers would be hitting the road as part of their vacation.

Car rental agencies are a regular fixture at airports worldwide, each promising travelers deals on automobiles to take them far and wide. However, many of those deals evaporate quickly when car agencies add many hidden and blatant charges to a traveler's invoice. Fees and deposits for damages, cleaning, road tolls, and more can blow a budget up without notice.

When it comes to what rental agencies you can trust and which you cannot, many factors help determine the best and worst car rental companies you'll find in America. According to user ratings at the non-profit Consumer Reports and data from the 2021 J.D. Power North America Rental Car Satisfaction Study, smart travelers should think twice before renting from the worst rental car agencies in the United States.

ACE Rent A Car

Founded in 1966 and headquartered in Indianapolis, Indiana, ACE Rent A Car was once the top-ranked rental car company in the United States by J.D. Power. The company earned the top spot in the 2011 industry survey, followed by earning placement among J.D. Power’s Customer Service Champions in the next year.

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Since then, travelers have been critical about their experiences with their 300 affiliated locations across the United States, naming them one of the worst rental car agencies. From 2016 onward, ACE, along with several other companies appearing on this list, was not rated by J.D. Power,

In the ​reviews left at Consumer Affairs, many focus on the condition of the cars. Travelers claim their automobiles were dirty, “in poor shape,” or with outdated GPS equipment. Another common complaint focused on hidden fees, including automatic daily fees for tolls.

Before accepting a rental car, travelers should first understand all of the potential fees they could be responsible for absorbing. Before agreeing to initial anything on a paper or digital system, have the agreement explained, and be sure to ask about all other options. Finally, request a printed estimate of all charges to understand your contract and how items are being added to the rental car total.

Advantage Rent A Car

Often associated with the lowest prices for rental cars, Advantage Rent A Car is one of the worst car rental companies rated by customers on Consumer Affairs. Additionally, the consumer complaints on Better Business Bureau gave this rental car company an average one-star rating.

Among the most common complaints against Advantage Rent A Car is the addition of collision damage waiver (CDW) fees without proper explanation to the customer. Many customers claim they verbally requested to decline CDW policies because their credit cards or travel insurance policies cover damages or loss to rental cars to have it added later. When it comes to signing the agreement, travelers accuse the agents of misrepresenting approvals or denials, resulting in additional charges.

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Before signing any agreement, travelers need to understand what charges are added to their account and what travel insurance will and will not cover. While there are some situations where travelers may be forced to purchase additional insurance, most domestic itineraries will be covered through many other means. If a desk agent is too aggressive in having a deal signed, ask to either slow down or speak with a supervisor to clarify any situation.

Fox Rent A Car

Another “low cost” rental car company, Fox Rent A Car advertises cars available for as low as $10 per day or deeper discounts through other prepaid reservation websites. Despite their position as one of the largest rental car companies in the United States, many travelers have expressed their dissatisfaction with Fox as one of the worst rental car agencies.

Of the many negative ratings attributed to the one-star Consumer Reports rating, the most common complaint against Fox Rent A Car focuses on hidden fees and deposits for insurance, tolls, and second drivers. One traveler complained Fox kept a deposit for second drivers while another claimed they were charged for an alleged cracked windshield, which they say was never broken in the first place.

Travelers who are suspicious of the condition of their vehicle should document everything during contract acceptance. This includes taking time-stamped pictures of the car that note any pre-existing damage. All damages should be submitted in writing on the rental agreement with verification from an employee. Failure to do so could result in costly claims and a long consumer complaint battle.

Payless Car Rental

The last of the rental car companies not ranked by J.D. Power, Payless Car Rental offers travelers low prices on cars in the United States and Europe. As many travelers have learned, the other side of those low prices often comes in hidden fees and pressure to pre-pay for gas at the rental counter, making them one of the worst international rental car agencies.

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The most common complaint in the reviewsleft at Consumer Affairs revolved around purchasing additional insurance or pre-paying for fuel. Some complain they were told they would get a better deal in buying gas from the rental car counter and only charged for what they used. Instead, those travelers say they were charged a full tank of fuel at a higher price than at gas stations outside the rental locations.

Although pre-paying for gas can be a tempting offer, experts say avoid this at all costs. Travelers who want to ensure they don’t get charged for extra gas should refuel within 10 miles of the rental car return and keep a copy of the receipt as proof they filled up on fuel before their return.

Dollar and Thrifty Car Rental

Combined through a purchase by Chrysler, Dollar Thrifty Automotive Group represented J.D. Power’s two worst-rated rental car agencies in 2021. In 2021, Thrifty earned a score of 768 while Dollar only scored 786—both below the industry average.

The most common complaint among the ratings on the Consumer Affairs website is the handling of toll roads. Travelers who rented with Dollar or Thrifty say they were talked into paying a daily fee for toll transponders. In truth, many of those roads offered cash lanes, despite the desk agent’s insistence they did not and warnings of fines for every toll road infraction.

When planning for a trip, the savvy traveler should considerevery part of their route to understand what tolls they might encounter on their journey. While renting a transponder may be easier for those frequenting toll roads, it may not be the only option available to the frugal traveler.

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Budget Rent-A-Car

In numerous reviews, customer service issues were the most problematic among regular travelers. Former customers took to the nonprofit website to complain about experiences ranging from being overcharged on insurance to being “upgraded” without their knowledge or agreement to pay a higher daily rate.

While travelers may find themselves in a hurry to get out of the airport, it is essential to read all the fine print and understand everything they are being charged for before leaving the rental car lot. Those who are not in a hurry after they land should consider renting from an off-site rental agency to save money and get better customer service. Outside of the airport, travelers can avoid taxes, surcharges, and upgrade fees with a bit of distance and some patience.

Avis

While this global brand ranked as the fifth-worst rental car agency on the 2021 J.D. Power survey with a total customer satisfaction score of 826, Money Magazinealso found Avis Car Rental to be the most expensive rental car agency with average daily rates starting at $60.

The ratings on Consumer Affairs focus on two significant problems with Avis: customer service and the cars' condition. Across complaints, travelers say that the inflated price they paid did not correlate to a better experience when renting or returning their vehicles, with hidden fees added, including a per mile and upgrade fee. Other complaints accuse the company of renting cars that were not cleaned, had prominent wear spots, or had malfunctioning equipment. The 2021 J.D. Power survey discovered this was a growing problem among car rental companies, as overall customer satisfaction for the industry dropped to 830, down from 841 in 2020.

Travelers who are dissatisfied with their rental have several means to get satisfaction with their rental. Before a trip, experts recommend doing homework on their rental companies and reading reviews ahead of their trip. For those who experience an issue with their rental car, experts recommend calling the rental company directly to resolve itor returning the vehicle to the location where it was rented to discuss a proper replacement.

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Although dealing with a rental car issue can be time-consuming and challenging, travelers do not have to be sidelined due to a scam. By avoiding these seven rental car agencies and being aware of their hidden fees, travelers can avoid paying extra for insurance, getting talked into a toll transponder, or paying more for what they believe is a "free" upgrade.

FAQs

What is the easiest company to rent a car from? ›

SIXT is one of the most renowned car rentals across the world and most definitely also one the easiest and fastest car rental companies in the US. If you are looking to make an entry in style, SIXT is your company because they provide the most premium cars at affordable rates.

Which rental car company has the best selection? ›

Enterprise is regularly lauded for its customer service, but other companies also have their strengths -- Sixt, for instance, has the widest selection of vehicles to rent, while National car rental offers membership into a particularly beneficial customer loyalty program.

What rental car company just went out of business? ›

- Hertz filed for bankruptcy in May 2020. The company emerged in June after a group composed of Certares Opportunity, Knighthead Capital Management and Apollo Global Management injected $5.9 billion of equity.

Is Dollar or Thrifty better? ›

Dollar and Thrifty Car Rental

In 2021, Thrifty earned a score of 768 while Dollar only scored 786—both below the industry average. The most common complaint among the ratings on the Consumer Affairs website is the handling of toll roads.

What is the best rental car company 2022? ›

The Enterprise named the best car rental car company in North America. The next three companies on the list—National, Alamo and Hertz also came in above the industry average.

What is cheaper than a rental car? ›

10 Alternatives to Car Rentals
  • Ride-hailing. Depending on how much you need to drive around once you arrive at your destination, you may consider using a service like Uber or Lyft instead of renting a car. ...
  • Borrow a Friend's or Family Member's Car. ...
  • Rent an RV. ...
  • Public Transportation. ...
  • Zipcar. ...
  • Turo. ...
  • Avail. ...
  • Getaround.
14 Nov 2021

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