are taking a toll on many vacation plans these days. Travelers need to be prepared to dig deep into their pockets for a car if they can find one at all. It may be a temporary sign of the times, but that doesn't make it any less of a hassle. And there seems to be no immediate relief on the horizon.

Since 2019, the average price of rental cars is up by almost $35 a day. There are several reasons for this continuing jump in prices for U.S. rental cars, most as a

result of the COVID pandemic

. It's a dilemma not easily remedied.

Why are rental cars in the U.S. so expensive?

When the pandemic first started in early 2020, rental car agencies started to sell off their fleets because everything slowed down. Worldwide travel had come to a near halt and demand was down. The car rental industry needed cash flow to survive, so many agencies simply sold off half of their available fleet.

The rental car companies scrambled to restock once air travel began to rebound. Unfortunately, new car production was dramatically reduced in 2021 due to a shortage of semiconductor chips. Car rental agencies were caught flat-footed. Increasing the size of their fleets turned out to be a frustrating if not impossible feat.

Car and Driver

references the travel website, Kayak, which notes that in December 2019 the daily rental price was approximately $46. By December 2021, it had increased to an astounding $81 a day. Shortages are on track to continue until auto manufacturers are better able to keep up with demand.

Let Jerry find your price in only 45 seconds

No spam · No long forms · No fees

Find insurance savings

What is being done to solve the problem?

MORE:

A National Rental Car Shortage Is Making Car-Sharing More Appealing

Those who are in the rental car industry are finding themselves hunting for cars to add to their fleets. They shop around in the wholesale used car market rather than purchasing new cars in bulk as they usually do.

Autoblog

notes that prices are 52% higher at auction than they were a year ago. This information comes from the Manheim Index, which keeps track of the rental car data.

Of course, higher costs and lower availability mean consumers are paying exorbitant prices for rentals. And that is if they are lucky enough to secure one.

According to Auto Rental News, car rental companies normally purchase 800,000 cars in the fourth quarter. But in 2021, only 94,000 units were bought. The drastic change is one of the best indicators of the car rental dilemma.

It might be a while yet before the semiconductor chip shortage is resolved. Until then, both consumers and the rental car industry will have to be creative and make the best out of an inconvenient situation.

What options are available for vacationers?

MORE: Rideshare Prices From Uber and Lyft on the Rise After the Pandemic

Smart travelers can save themselves some hassle by booking their rental cars well in advance of arrival at their destination. Arranging a backup car at another company offering free cancellations is a good idea too. These days you never know when a company might be caught short.

Vacationers in Hawaii started renting U-Haul trucks to get around and travelers in Pittsburgh took advantage of local limousine services. Calling on Uber or Lyft for a ride is seeing an uptick in business too.

Demand for car rentals continues to be on the rise despite the high daily prices. Tourists may have better luck contacting car rental agencies directly instead of reserving through their online portal. Either way, they can expect to pay premium prices now and in the foreseeable future. The year 2022 is expected to offer more of the same.

Get great prices on your own car insurance with Jerry

It only makes sense to be prepared for soaring car rental prices before you take to the skies. Drivers who choose to stay home also want to make sure they have the best car insurance on their own ride.

Jerry

is your number one resource for finding great deals on car insurance. Jerry uses speedy artificial intelligence to compare prices from over 50 major insurance carriers.

Are you overpaying for car insurance?

Compare quotes and find out in 45 seconds.

Try Jerry