Renting a car can't be expensive, if you do your research and prepare ahead of time. These tips will help you do just that.

Whether you're going on a vacation or doing some traveling for business purposes, car rentals are a common method of transportation. However, it can be difficult to deal with the expenses of car rentals. When you factor in the costs of fueling the car and the extra fees that companies may charge, you can see how renting a car can get expensive quickly. Don't worry, though. There are great tips that can help you save money on your next car rental.

Reserve Your Rental Car Early

It is not a good idea to wait until the last minute to rent a car. Not only will the price be high, but you may not be able to rent the car you want. Rental car companies count the number of cars available for rent every day, and if there are not enough cars, they will increase the price. To avoid this, book the car you want at least one to two weeks in advance.

Research and Get Quotes

Settling for the first prices that you find can cause you to miss out on great savings. Be proactive and research the best deals ahead of time. Sites such as Expedia and Orbitz allow you to compare prices of rental cars in the areas you'll be renting them in. Make sure to choose sites that allow you to see the fees and taxes associated with renting the car. Also, avoid renting a car from an airport unless you find a good deal. Renting a car from an airport is often more expensive.

Get Insurance Only If You Need It

Don't get talked into paying for the insurance that the car rental company offers without knowing if it is even necessary. Ask your auto insurance company if your insurance covers rental cars. If it does, then you don't need the extra insurance. If you have a credit card, you should also ask your credit card company if they have rental car insurance included for free in your program benefits.

Choose Your Rental Car Carefully

Upgrading from an economy class car (a rental car that is smaller and has fewer features) to a higher class car is pricey, so rent a compact class car (the least expensive car class after economy) instead; you'll get more features in the car and will have one less thing to worry about. If you do need to upgrade to a higher class, see if you can negotiate with the rental agent to lower or drop the upgrade fees. Also, keep fuel-efficiency in mind when choosing a rental car. If you rent a car that guzzles gas quickly, you could end up paying a lot more than you planned.

Know the Best Routes to Take

If you know the best routes to take when traveling, you can avoid wasting precious gas. Using your phone's GPS system (if it has one), you can see a variety of routes to get to your destination and choose the one that is the shortest distance. If your phone doesn't have GPS, buy a GPS unit. Renting a car with a GPS system included in it may be convenient, but it can also leave your wallet drained.