Where Chicago rental prices come from and how to lower them

Car rental prices in Chicago change based on the airport you pick up from, the day of the week, how far ahead you book, and what kind of car you choose. O'Hare International Airport and Midway International Airport both have rental counters, but Midway is often cheaper because it has less traffic and lower facility fees. If you can pick up from a neighborhood location instead of an airport — Enterprise, Budget, or Hertz have branches throughout the city — you skip the airport surcharge entirely, which can cut 10 to 15 percent off your total.

The rental companies themselves set different base prices, and the same car costs different amounts depending on when you need it. A compact car on a Tuesday in January costs far less than the same car on a Friday in July. Booking directly through a rental company's website often beats booking through comparison sites, because the company controls its own inventory and pricing. You can check multiple companies in minutes by visiting their sites side by side.

Key Takeaways

  • Midway Airport and neighborhood rental locations charge less than O'Hare because they have lower facility fees.
  • Booking on a rental company's own website usually shows lower prices than third-party comparison sites.
  • Renting on a weekday, especially Tuesday through Thursday, typically costs less than weekend rentals.
  • Declining insurance you already have through your credit card or personal auto policy can save $15 to $30 per day.
  • Returning the car with a full tank costs less than paying the rental company's fuel rate, which is marked up significantly.

Comparing prices across the major rental companies in Chicago

Enterprise, Budget, Hertz, Avis, and National all operate in Chicago, and each sets its own rates. Enterprise and Budget tend to have lower base prices, especially at neighborhood locations. Hertz, Avis, and National often charge more but may offer loyalty discounts if you rent frequently. The only way to know which is cheapest for your specific dates and location is to check each one.

Visit each company's website directly and enter your pickup location, return location, and dates. Write down the total price for the same car type at each company. Do this for at least three different car sizes — compact, midsize, and full-size — because the price differences vary by vehicle. A compact car might be cheapest at Enterprise, but a midsize might be cheaper at Budget. Spend five minutes on this step and you often save $20 to $50 on a week-long rental.

Pickup and return locations that cost less

O'Hare and Midway both charge facility fees that get added to your bill. Midway's fees are lower than O'Hare's. But the cheapest option is often a neighborhood location: Enterprise on North Avenue, Budget on South Michigan, or Hertz on West Division. These locations have no airport surcharge. The trade-off is that you have to drive or take transit to get there, which takes time but saves money if you have that time.

If you are flying in and need a car when ready, the airport is your only choice. If you are renting a car for a trip that starts the next day, or if you live in Chicago and are renting for a weekend, a neighborhood location can cut your cost by $30 to $60 for a three-day rental. Check the price at both an airport location and a neighborhood location for your dates — the difference will show you whether it is worth the extra trip.

Timing your rental to avoid peak prices

Rental prices spike on weekends, holidays, and during summer months. A car that costs $35 per day on a Tuesday in March might cost $65 per day on a Saturday in July. If your travel dates are flexible, shifting your rental by even one or two days can save significantly. Tuesday, Wednesday, and Thursday are typically the cheapest days to rent. Friday through Sunday are the most expensive.

Booking further in advance sometimes locks in a lower rate, but not always — rental companies adjust prices based on demand, so a rate that is low today might be higher in two weeks if demand rises. Check the price today, then check it again a week before your rental. If the price has gone up, you can often cancel and rebook at the original lower rate. If it has gone down, you can rebook at the new lower price. This works because most rental companies do not charge cancellation fees for reservations made online.

Insurance and fuel: where renters overpay the most

Rental companies offer collision damage waiver (CDW) and loss damage waiver (LDW) insurance, which cover damage to the car if you get in an accident. They charge $15 to $30 per day for this coverage. If your personal auto insurance or credit card already covers rental cars, you do not need to buy it from the rental company. Call your insurance company or check your credit card's benefits guide before you rent. If you are covered, decline the rental company's insurance and save the daily fee.

Fuel is the second place renters overpay. Rental companies charge $6 to $8 per gallon for fuel, compared to $3 to $4 at a gas station. If you rent a car with a full tank and return it empty, you pay the rental company's inflated rate for every gallon. Instead, return the car with a full tank by filling up at a gas station near the rental location before you return it. This costs less even if you have to drive a few blocks out of your way. Some rental companies offer a prepaid fuel option at a slightly lower rate than pay-as-you-go, but it is still higher than filling up yourself.

Using membership discounts and promotional codes

AAA members, AARP members, and corporate employees often get discounts from rental companies. The discount is usually 10 to 20 percent off the base rate. If you belong to any of these groups, ask the rental company whether you have a discount code. You enter the code when you book online, and the discount applies automatically. Check your membership card or your employer's benefits page for the code.

Rental companies also run promotions — "rent for three days, get the fourth day free" or "20 percent off this weekend." These promotions are advertised on the company's website and change frequently. If you are flexible about when you rent, checking the websites of two or three companies once a week can help you catch a promotion that matches your dates. Sign up for email newsletters from Enterprise, Budget, and Hertz if you rent regularly; they send promotional codes to subscribers.

What to check before you finalize your reservation

Before you click "confirm," review the total price and make sure you understand what is included. The base rate should be clear, and any fees — airport facility fee, city tax, state tax — should be listed separately. Some websites hide fees until the final step, so the price you see first is not the price you pay. Scroll down and read the full breakdown.

Check the cancellation policy. Most online reservations can be canceled free of charge up to 24 hours before pickup, but some cannot. If your plans might change, pick a company with a free cancellation policy. Also confirm the pickup and return times — most rentals are 24 hours from the time you pick up the car, not from midnight. If you pick up at 2 p.m. on Monday, you return at 2 p.m. on Tuesday. Returning late costs extra, usually $40 to $60 per hour or per partial hour.

Frequently Asked Questions

Is it cheaper to rent from an airport or downtown Chicago?

Downtown and neighborhood locations are usually cheaper because they do not charge airport facility fees. Midway Airport is cheaper than O'Hare. If you are flying in and need the car right away, the airport is your only option. If you can pick up the next day or later, a neighborhood location can save $30 to $60 for a three-day rental.

Should I buy insurance from the rental company?

Only if your personal auto insurance or credit card does not cover rental cars. Call your insurance company or check your credit card's benefits guide before you rent. If you are covered, decline the rental company's insurance and save $15 to $30 per day. If you are not covered, buying it from the company is your only option.

What happens if I return the car late?

Late fees vary by company but typically run $40 to $60 per hour or per partial hour. If you think you might be late, call the rental location before your return time and ask whether you can extend the reservation. Extending in advance is usually cheaper than paying a late fee.

Can I book a rental and then cancel it if I find a better price?

Yes, if the reservation has a free cancellation policy. Most online reservations can be canceled free of charge up to 24 hours before pickup. Check the cancellation policy before you book. If you find a lower price later, you can cancel the first reservation and book the cheaper one.

Do I have to fill the tank before I return the car?

You do not have to, but it is much cheaper if you do. Rental companies charge $6 to $8 per gallon for fuel, compared to $3 to $4 at a gas station. Fill up at a gas station near the rental location before you return the car and save significantly.