What are government rates for car rentals?
Quick insights
- Government employees may qualify for special car rental rates, which might include discounts and additional perks compared to standard pricing and offers.
- The amount saved and benefits received may vary by company, location and whether the rental is for official or leisure travel.
- Paying with a credit card can help cardmembers earn rewards and access travel protection benefits.
For many government employees and military personnel, travel is a part of the job. One way to help with travel costs is by using government rates for car rentals. These special rates can offer savings and added benefits for those who qualify, whether you are traveling on official business or for personal reasons.
Understanding how government rates work, who is typically eligible and how credit cards can add value may help you make the most of your next rental. Read on to learn more.
Do government employees get a discount on rental cars?
Government employees—federal, state and sometimes local—are often eligible for discounted car rental rates from major companies. These discounts also are frequently available to active-duty military members, government contractors and, in some cases, retired government personnel and veterans.
To access a government rate, you will generally be asked to show proof of eligibility, such as a government-issued ID or official travel orders at pick up. Discounts may vary, but they can apply whether you are renting a car for official business or, depending on the rental company, for personal travel.
Popular rental car agencies may even offer dedicated government rate booking channels. These rates are usually lower than standard rates. Actual savings may fluctuate depending on the city, rental duration, car class and time of year. Some companies may also waive certain fees or include extra benefits.
Official government travel vs. leisure travel
Government rates for car rentals are generally categorized by the purpose of travel. Travel is typically categorized in one of two ways:
- Official government travel: This is travel for work purposes, which can include attending conferences, project assignments or temporary duty. Rates for official travel are often the lowest available and may include extra benefits like insurance coverage or waived fees.
- Government leisure travel: This is personal or off-duty travel by government employees or military personnel. While discounts may still be available, they might be less than those for official travel and usually do not include the same insurance coverage or waived fees.
The documentation and eligibility requirements may differ depending on the purpose of your travel, so reviewing what is needed for your situation can help avoid surprises at the rental counter.
Benefits of booking a rental car with a government rate
Booking with a government car rental rate can offer several benefits beyond just a lower daily price. In addition to cost savings compared to standard rates, some other possible advantages include:
- Waived fees, such as additional driver charges or underage driver fees, for official travel
- Included insurance coverage for official government travel (varies by company)
- Flexible reservation and cancellation policies
Using a business credit card when booking a car rental
Using a business credit card to pay for your rental—even when using a government rate—could be beneficial, as many credit cards offer rewards points or cash back on rental car purchases. Depending on the card, you may have the ability to earn accelerated rewards on travel purchases, sometimes including car rentals.
Even though business cards offer rental car insurance, that coverage may not be universal. In some cases, travel protection benefits associated with business credit cards only extend to the primary cardmember—not employees who hold employee cards.
Because travel protection benefits vary depending on the specific card and card issuer, you may want to review your card’s Guide to Benefits before heading to the rental counter.
Who qualifies for a government discount
Eligibility for government rates is usually limited to:
- Current federal, state or local government employees with a valid government ID
- Active-duty military service members
- Government contractors and those traveling on official government orders
- Occasionally, retired employees or veterans for leisure travel
For official government travel, companies may require travel authorization or orders. For leisure travel, you may only need to show your government or military ID.
Individual rental companies have their own policies, so you may want to check eligibility and required documents before booking.
In summary
Government rates for car rentals can offer valuable savings and benefits for eligible travelers, whether for official duties or personal trips. Understanding who qualifies, the differences between official and leisure travel rates and the potential perks of paying with a travel rewards card can help you make the most of your next car rental.
