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Renting a motor vehicle can be very cost effective whether you're traveling on vacation or on company. If you make wise decisions and plan in advance it's likely that you won't overspend on your rental car and most companies are banking on the fact that you will come in to pick up your vehicle and be unprepared for what you are going to need. This is how they intend to jack up the cost on that car rental for you.For starters don't do anything until you check with your credit card companies and car insurance carrier about how much coverage you have, if any, when you are renting a vehicle. Most companies will try and convince you that you need their coverage and even if you have insurance coverage and know it, don't be surprised by the overzealous sales associate who is trying to convince you that the car hire insurance will somehow provide you with additional coverage. It won't. It's simply intended as a coverage for those whose car insurance will not likely cover a car rental or for individuals who do not own a vehicle. Everyone else should stick with their own car insurance once they have verified with the organization that they will cover a car hire.Being prepared also means shopping around. You are going to be better prepared and will set yourself up for a better deal if you know what other companies are offering. This will set the bar for you to know what to anticipate. And take the time to figure out as accurately as possible what the mileage you need will be. This is one place that individuals tend to get taken for a ride because an extra .10 or .15 per mile seems like nothing until you multiply it out for thousands of miles. If you plan to drive a lot search for a business that includes all miles in the rate.Another way that companies get you is by selling you extras that you didn't think about bringing with you. Items such as GPS systems, car seats, and bike racks for instance are items that most men and women have at home but forget that they will need while on vacation. Planning well and bringing these items from home can actually prove very financially sound as a way to ensure that you don't end up paying to rent these items from the car rental agency per day which can really add up quickly.Most companies count on your failure to plan ahead as a way to cost you more on your vehicle rental. Most people don't really anticipate their needs in advance and will actually wind up paying anything to have the items they need while on holiday. Don't allow the rental companies to bank on your failure to prepare. Instead take the initiative and lay everything out in advance for a better and less expensive rental experience.