- Subscription-based car rental models come with both advantages and drawbacks, depending on the user's needs and preferences. For those who need long-term access with flexibility, subscriptions could be a great fit. But for short-term use or budget-conscious drivers, traditional rentals or leasing might be better. There are pros and cons of these subscription-based car rental models.
- Pros
- Flexibility – Users can switch between different vehicles without long-term commitments.
- All-inclusive pricing – Monthly fees often cover insurance, maintenance, and roadside assistance, reducing unexpected costs.
- No depreciation worries – Unlike car ownership, users don’t have to worry about the vehicle losing value over time.
- Access to newer models – Subscription services often offer access to modern, well-maintained cars, including luxury and electric options.
- Cons
- Higher cost vs. traditional rentals – Subscription models tend to be more expensive than short-term rentals or leasing.
- Limited availability – These programs are not as widely available as traditional car rental services.
- Mileage restrictions – Many subscriptions impose limits on mileage, leading to extra fees for high usage.
- Less customization – Users may have fewer options to customize a vehicle compared to buying or leasing.
- Several rental car companies have embraced subscription-based models to offer more flexible alternatives to traditional rentals. These programs cater to customers who want long-term flexibility
without the commitment of ownership. For example,
- Hertz My Car – Hertz launched a subscription service allowing customers to choose from different tiers, starting at $599 per month, which includes maintenance, roadside assistance, and insurance.
- Subscribe with Enterprise – Enterprise introduced a subscription program in 2019, offering access to over 20 makes and models, with the ability to switch vehicles up to four times per month.
- Sixt+ – Sixt offers a subscription service where customers can rent cars on a month-to-month basis, with insurance and maintenance included.
- Loopit – Some rental companies have partnered with Loopit, a platform that helps businesses integrate subscription models into their existing rental services.
- Rental car companies have transformed significantly in the modern era, adapting to technological advancements and shifting consumer preferences. Digital transformation, airport expansion,
ride-sharing competition, subscription-based models, and sustainability efforts are some key developments. The industry continues to evolve, blending tradition with innovation to stay
relevant in a rapidly changing mobility landscape.
- Digital Transformation – The industry moved from traditional counter-based rentals to online booking platforms and mobile apps, making reservations more convenient.
- Airport Expansion – Rental companies strategically placed their services at airports, linking car rentals with air travel for seamless transportation.
- Ride-Sharing Competition – The rise of Uber and Lyft disrupted the market, pushing rental companies to offer more flexible options like hourly rentals and app-based services.
- Subscription-Based Models – Some companies introduced car subscription services, allowing customers to access vehicles without long-term commitments.
- Sustainability Efforts – Many rental fleets now include hybrid and electric vehicles, responding to environmental concerns and regulatory changes.
- Early rental car companies emerged in the 1910s and 1920s, shaping the industry into what it is today. Joe Saunders (1916), Walter L. Jacobs (1918), and Sixt (1912) are some key pioneers of rental car companies.
The industry gained momentum after World War II, with companies like National Car Rental (1947), Europcar (1949), Enterprise Rent-A-Car (1957), Thrifty Rent A Car (1958), and Budget Rent a Car (1958) entering the market.
- Joe Saunders (1916) – Often credited as the first rental car entrepreneur, Saunders started renting out a Ford Model T in Omaha, Nebraska. His business expanded to 56 cities by 1926 before being acquired by Avis in 1955.
- Walter L. Jacobs (1918) – Another early competitor, Jacobs launched his own rental business with 12 Model T Fords in Chicago. His company was acquired by John Hertz in 1923, leading to the formation of Hertz Rent-A-Car.
- Sixt (1912) – In Germany, Martin Sixt founded a rental company with just three cars, which later grew into one of Europe's largest rental brands.
- The history of rental cars dates back to the early 20th century. The earliest known example of cars being offered for rent was in 1906. One of the first rental car businesses was started by Joe Saunders in 1916,
who rented out a Ford Model T in Omaha, Nebraska. He charged 10 cents per mile, using a mileage meter attached to the car. By 1925, his company had expanded to 21 states. Another early competitor was Walter L. Jacobs,
who started renting out Model T Fords in 1918. His business was later acquired by John Hertz in 1923, leading to the creation of the Hertz rental car company. In Britain, car rental began with Godfrey Davis in 1920,
which was later acquired by Europcar in 1981. The industry grew rapidly after World War II, with major companies like National Car Rental (1947), Europcar (1949), Enterprise Rent-A-Car (1957),
Thrifty Rent A Car (1958), and Budget Rent a Car (1958) emerging. Today, rental cars are a global industry, serving travelers, businesses, and individuals in need of temporary transportation.
- Department of Motor Vehicles (DMV) maintains a database of drivers and their point balances.
The DMV adds demerit points to your record if you are convicted of a moving violation. The number of points depends on the severity of the violation. In most the U.S. states, moving violations are classified
as either three point violations, four point violations or six point violations. A motorist starts with a clean slate: 0 points. A safe driving point is added for every calendar year that a motorist holds a
valid state license and does not incur any moving violations or suspensions. The point balance is +1 after the first year. It goes to +2 the second year when a motorist continues driving without incident.
A maximum of 5 safe driver points can be earned. A +5 point balance is as good as you can have. Demerit points will be removed from the state DMV record 2 years from the date of the offense, but the length of
time the conviction will remain on the state driving record depends on the specific offense, and could be as short as three years or as long as permanently.
| Violation |
Points |
| Failure to observe traffic signals (e.g.; red light) |
3 |
| Speeding 1-9 mph above the posted speed limit |
3 |
| Illegal turn (e.g.; U-turn) |
3 |
| Reckless driving |
4 |
| Speeding 10-19 mph above the posted speed limit |
4 |
| Unsafe passing |
4 |
| Failure to yield right-of-way |
4 |
| Tailgating |
4 |
| Failure to obey railroad crossing signal |
4 |
| Driving Under the Influence (DUI) |
6 |
| Speeding 20 mph above the posted speed limit |
6 |
| Speeding in excess of 80 mph |
6 |
- Traffic deaths are rising dramatically in the U.S.; more than 40,000 people are killed
on U.S. roads each year, and tens of thousands more are seriously injured.
- New York is the most expensive state for car insurance, with an average annual cost of $4,770 for full coverage while Idaho is cheapest state, with an average annual cost of $340 for minimum coverage (as of July 2024);
these rates are based on various factors, including age, type of car, driving history, credit, liability coverage, uninsured motorist coverage, and collision/comprehensive insurance.
- When it comes to auto insurance, to get low rates with the protection you need, there some common ways to get car insurance discounts and customer incentives:
- Having a good and clean driving record;
- Insuring multiple cars or have multiple polices (e.g.; life insurance, homeowner insurance policy plus auto insurance) with the same insurance company;
- Driving car that is equipped with safety equipment like anti-theft devices and anti-lock brakes, factory-installed air bags, and passive restraint;
- Informing your insurance company of your long vacation/trip or health issues, because of which you do not plan to drive your car for 90 consecutive days or more;
- Let your insurance company know if you have a family member (e.g.; son, daughter) who doesn’t have access to a car while at a college.
- The Toll Roads is advising drivers to disregard phishing texts being sent to their phones that detail a
specific outstanding toll amount, it's a text phishing scam. If you receive a text and are unsure, The Toll Roads customers can verify valid text notifications by logging into their account. On the dashboard, scroll down to account security and click
“Notification Verification” or use the direct link at https://secure.thetollroads.com/accounts/notification-verification. The Toll Roads do not send text messages to non-accountholders.
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