Understanding Admin Fees and How to Avoid Them

Admin, administrative, or processing fees are what a rental car company will charge you for paying something on your behalf. It can be a toll payment, speeding fine, parking ticket, or even cleaning, refueling or damage charges.

Even after a well planned and budgeted road trip, hidden costs can sneak up on you and put a damper on your post-vacation spirits. An admin fee or processing fee is a charge you should be aware of and look out for when signing a rental car agreement. As a standard fee charged by rental car companies, it should be included in your rental agreement terms and conditions. We’ll help break down what it is and how you can avoid it.

Understanding admin fees

Admin, administrative, or processing fees are what a rental car company will charge you for paying something on your behalf. It can be a toll payment, speeding fine, parking ticket, or even cleaning, refueling or damage charges. In these cases, if the rental company pays for any violation you’ve committed, they’ll charge you the actual fine and an additional admin fee for processing it. Companies can have different policies on how they charge admin fees – for example, Hertz charges it as a percentage rate. Your rental agreement should state the situations in which you’ll be charged an admin fee and whether it’s a flat rate or a percentage.

*The above information is sourced from Hertz’s official website in September 2024.

Ways to avoid paying an admin fee

• The first thing you should do before signing a rental agreement is understand the terms and conditions you’re agreeing to. For example, you may be prepared to pay a ‘young driver fee’ necessary to rent a car in your location, but if a company charges you an additional admin fee, you might want to rent from one with a different policy.
• Some companies charge a flat refueling or cleaning fee once you return the car and a subsequent admin fee. The best way to avoid these charges is to make sure you return the car with a full tank and in clean condition. Even if you have to shell out some cash for refueling or cleaning the vehicle, you’ll at least bypass the added admin fee by taking care of this yourself.
• In most cases, admin fees are charged when the rental company pays for something you did. Of course, the best way to avoid these fines and the added fees to process the claim is to avoid getting a penalty in the first place.
• Depending on the particular company’s policies and how they go about these processes, you can also avoid admin fees by paying any toll or fine you incur. However, if the system is that the fine goes to the registered car owner, who pays it for you, you’ll likely have no option but to pay the fee.

Disputing or waiving admin fees

• If you think you’ve been unfairly or incorrectly charged an admin fee for a fine or charge you didn’t incur, you can dispute the rental company’s claim. Make sure to ask them for proof of where and when the violation occurred, and if possible, make your case with evidence proving otherwise. So, for example, if you’ve been charged with admin fees for paying a toll on a date outside of your rental period, you can dispute it and have all the charges waived.
• If another party is responsible for damaging the vehicle, the rental company can still charge you an admin fee even if the damage costs are borne by the one at fault. You can also try to have it waived in such situations, especially if there’s a police report that can back you.
• If you’ve been unfairly charged and the company refuses to waive the fee, you can also contact your credit card company. They may refuse payment on grounds of fraudulent charges, or their insurance might cover this.
• Sometimes, the best thing to do is just ask. Even if everything’s on the up and up, and the company is charging you exactly what you signed up for, it doesn’t hurt to try your luck and request them to waive the fee.