Costco car rental in Canada: how it works, the free extra driver, and the insurance gap

A Costco car rental is a regular Alamo, Avis, Budget or Enterprise rental booked through Costco Travel at member rates. The two concrete extras: one additional driver fee is waived in Canada with all four companies, and Executive members earn 2% on the rental. Insurance isn't included, and the CIBC Costco Mastercard won't cover the car, so sort out collision coverage before you pick it up. Whether it's cheaper depends on the dates and city, so compare the all-in price; see how Costco Travel works.

How does Costco car rental work?

From Costco Travel Canada's rental car help page, checked October 4, 2026:

1. Sign in to your Costco Travel account (membership required) and choose Rental Cars.

2. Enter pickup and drop-off locations, dates and times, and say whether every driver is at least 25.

3. Compare the options and prices from Alamo, Avis, Budget and Enterprise, then book. You get a confirmation with both a Costco Travel and a rental company number.

You can also book by phone (option 1 for rental cars), which connects you to a representative from one of the four companies.

What do Costco members get on a rental?

The extra driver still has to be added at the counter and meet the company's rules, including a valid licence and a major credit card. Drivers under 25 may pay extra.

Is Costco car rental cheaper?

Sometimes, but there's no guarantee, so check two things. First, compare Costco Travel's total, taxes and fees included, with the same car booked directly or through another site. Second, count the waived additional-driver fee if you'd add one, and the 2% Executive reward if you have it. Example only, what the reward and the card add:

Do you need rental car insurance through Costco?

Costco Travel says insurance isn't required to rent but recommends getting some, from one of three places: the rental company (pre-booked or at the counter), a credit card that includes rental car coverage, or your own auto policy. The CIBC Costco Mastercard doesn't include rental car collision or loss damage coverage, so if it's the card you pay with, you'll need cover from somewhere else before you decline the counter's waiver.

Which card should you pay for a Costco rental with?

One that includes rental car collision and loss damage coverage, if you'd otherwise buy the counter's waiver: that coverage can be worth far more than 1% cash back on a week-long rental. The card usually has to pay for the whole rental and you usually have to decline the rental company's damage waiver, so check its terms. If you already have coverage, the CIBC Costco Mastercard's 1% is fine; see the best card for Costco Travel.

Is Costco car rental worth it?

For members, it's worth checking every time: the free additional driver alone can save a meaningful amount on a long rental, and Executive members get 2% back. It isn't automatically the lowest price, and Costco Travel doesn't add insurance, so it pays to compare totals and settle coverage first.