Travelers have found a new way to save money on rental cars: booking through Costco.

Costco Travel, a service from the warehouse club, lets members compare rental prices from companies like Alamo, Enterprise, Avis and Budget. Discounts and coupons get added automatically. Costco handles the booking, but the actual rental company still deals with payment, insurance and other extras like toll passes.

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One big perk is a free extra driver. Normally, adding a second driver costs a daily fee. With Costco, that fee often disappears, as long as the rental company takes part in the program. Only the main driver needs a Costco membership, which starts at $65 a year.

Members can also cancel most reservations for free, though some prepaid bookings work differently. Executive members can earn back 2 percent a year on Costco Travel purchases.

This rental perk has actually been around since Costco Travel started in 2000. It is only now getting attention, thanks to posts on Reddit and TikTok from people looking to cut travel costs.

One Costco Executive member, RV Mendoza, told The Washington Post she paid $573, including taxes and fees, for a compact SUV over 10 days in Los Angeles. That was about $88 less than booking directly with Alamo. She also saved $12 to $15 a day by skipping the extra driver fee.

What this means for you

1. Compare the full price, not just the daily rate. Taxes and fees can change the total a lot.
2. Check if your rental company takes part in Costco's free extra driver perk.
3. Weigh the membership cost against your likely savings. Mendoza said one rental nearly paid for her $130 Executive membership.

Travel expert Clint Henderson told the Post that Costco rentals are often 10 to 25 percent cheaper, and sometimes up to 40 percent. But NerdWallet's Sally French warned that other deals, like credit card perks, might beat Costco's price. Still, she said Costco's own travel team negotiates its own deals, unlike some other clubs that use third-party agencies.

If you already have a Costco membership, check Costco Travel before your next trip and compare the total price against your usual rental site.

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