By Mr Rent A Car Editorial Team | Reviewed by | Last updated: 15 October 2026 | 10 min read
Quick Answer
Renting a car works in 7 steps: pick a location and dates, choose a vehicle, reserve it with a deposit card, show your driver’s licence and credit card at pick-up, check the car and sign the agreement, drive within the mileage and travel rules, then return it with the same fuel level. At Mr Rent A Car, a rental day is 24 hours and the minimum rental is 1 day.
Table of Contents
If you have never rented a car before, the process can feel confusing. So, how does rental cars work, and what will the company ask from you? This guide explains every step in plain words, from booking online to handing the keys back. We use real rules from Mr Rent A Car, a car rental company serving Vancouver, Calgary and nearby cities since 1996.
Key Takeaways
- A rental day is 24 hours. There is a 30-minute grace period on return. After that, hourly charges may apply.
- You need an original driver’s licence and a major credit card in your own name. The card is used for a security hold, not a charge.
- Insurance is required in Canada. Rental rates do not include it, so bring your own cover or buy a damage waiver.
- Return the car with the same fuel level as at pick-up to avoid refuelling charges.
- Mileage limits depend on where you live and where you drive. Local customers are limited to 200 km a day.
Car Rental at a Glance: The 7 Steps
| Step | What happens | What you do |
|---|---|---|
| 1 | Choose location and dates | Pick up at an airport or branch and set pick-up and return times |
| 2 | Choose your vehicle | Match seats, luggage space and budget to a car class |
| 3 | Reserve and secure the booking | Book online or by phone and give a credit card for the deposit |
| 4 | Pick up the car | Show your licence, credit card and insurance details |
| 5 | Inspect and sign | Walk around the car, note damage and sign the rental agreement |
| 6 | Drive | Follow the mileage, travel, fuel, smoking and pet rules |
| 7 | Return | Bring it back on time with the same fuel level |
How Does Rental Cars Work? The 7 Steps in Detail
Car rental is a short-term agreement. You pay to use a vehicle for a set time, and the company keeps ownership and maintenance. Here is how each step works in practice.
1. Choose your pick-up location and dates
Start with where you will collect the car. Mr Rent A Car has two airport pick-ups, Vancouver International Airport (YVR) and Calgary International Airport (YYC), plus branches in Richmond (7780 River Road), Burnaby (6322 Kingsway) and a Vancouver office on Drake Street. See all of them on the locations page.
Choose the pick-up and return dates and times. The minimum rental is 1 day, and the daily rate is based on 24 hours. If you pick up at 10 am, the car is due back by 10 am the next day for one rental day.
2. Choose the right vehicle
Car rental companies group vehicles into classes, so you book a class and not always one exact model. A class shows a model “or similar”. For example, the Standard class lists the Honda Civic, Toyota Corolla or Nissan Sentra, or similar.
Our fleet runs from economy cars to 7 and 8-passenger minivans, SUVs, electric cars such as the Tesla Model 3 and Model Y, luxury cars and a 15-passenger minibus. Think about three things:
- Passengers: how many seats you need
- Luggage: suitcases, ski gear or strollers
- Trip type: city driving, a highway road trip or a mountain route
3. Reserve and secure your booking
You can reserve online any time, or phone the team. A credit card is used to secure the booking with a deposit. Bring the same card when you collect the car.
Two useful booking rules:
- If you need more than one car for the same dates, use a different name on each reservation. Duplicate names are cancelled automatically.
- If you will arrive more than 2 hours late, call the office so the car can be held for you. In peak season, an uninformed delay of more than 30 minutes can be treated as a no-show.\
4. Pick up the car
At YVR, call 604-303-0063 when you reach the baggage claim area. Then go to the pick-up area, and the shuttle service takes you to the car. At other branches, the team can arrange a pick-up in advance, and a surcharge may apply for distances beyond 10 km from the office.
At pick-up you will show your documents (see the next section), pay for the rental in full, and choose your insurance option.
5. Inspect the car and sign the agreement
Before you drive away, walk around the car with the agent. Check for scratches, dents, windscreen chips, tyre condition, fuel level and cleanliness. Take photos with your phone. This protects you if someone asks about damage when you return.
Read the agreement. It lists your rental period, any extra drivers, the mileage limit and your insurance choice. Ask questions before you sign.
6. Drive within the rental rules
The most common rules are about mileage, travel area, fuel, smoking and pets. We cover each one below. Only people named on the rental agreement may drive the car.
7. Return the car
Bring the car back to the agreed location and time, with the same amount of fuel as at pick-up. You may return it to any available Mr Rent A Car location, which is useful if your plans change. A one-way trip between Calgary and Vancouver is also possible.
The return rules are strict about time. There is a 30-minute grace period. After 30 minutes, hourly charges may apply, and after 120 minutes a full extra day can be charged. Need more time? Call your rental location before the return time. An extension carries a $20 service fee, and your daily rate may change.
For airport tips, read our guide on YYC rental car return.
What Do You Need to Rent a Car in Canada?
You need a valid original driver’s licence, a major credit card in your own name, proof of insurance or a damage waiver, and to meet the minimum age. Here is the full list as used by Mr Rent A Car.
| Requirement | Details |
|---|---|
| Driver’s licence | A valid government-issued original. No photocopies. A class 5 BC licence or equivalent is needed. |
| International driving permit | Accepted only together with your original licence from home. |
| Credit card | Visa, Mastercard or American Express, in the renter’s name. Prepaid cards, debit Visa, debit Mastercard and UnionPay are not accepted for the hold. |
| Age | The standard age is 25. Drivers aged 19 to 24 can rent with an underage surcharge. |
| New drivers | A class 7 licence holder may rent with a new driver surcharge. A learner’s licence (class L) does not qualify. |
| Insurance | Liability and collision cover are required. Bring your own or buy a damage waiver. |
| Payment | Paid in full at pick-up by Visa, Mastercard, American Express, debit, WeChat Pay or cash. |
If you are visiting from another country, read the licence rule carefully. If your licence is not in English, an international driving permit may help, but it never replaces your original licence.
How Much Does a Car Rental Cost?
The daily rate is only the start. The final cost depends on the car class, the number of days, insurance and any extras. Rates shown on the booking page do not include insurance.
| Cost item | How it works |
|---|---|
| Daily rate | Based on 24 hours. Minimum 1 day. |
| Insurance | Not included in the quoted rate. Choose your own cover or buy a damage waiver. |
| Underage surcharge | Applies to drivers aged 19 to 24. |
| Additional driver | Must be added to the agreement. A fee might apply. |
| Extension | $20 service fee, and the daily rate may change. |
| Extra kilometres | $0.25 per km over the limit when a limit applies. |
| Late return | Hourly charges after the 30-minute grace period, a full day after 120 minutes. |
| Refuelling | Charged if the car is not returned with the same fuel level. |
| Cleaning | A minimum $500 fee for smoking, vaping or pets (service dogs are allowed). |
Money tip: book the right class the first time. Booking a small car and then needing an upgrade can cost more, especially in peak season.
How Does a Rental Car Security Deposit Work?
The security deposit is a temporary authorization hold on your credit card. It is not a payment. The money is not taken from you, but that amount must be available on your card when you collect the car.
| Vehicle type | Age 25 and over | Age 21 to 24 |
|---|---|---|
| Economy to full-size | $500 | $1,000 |
| SUVs, premium cars, minivans, pick-up trucks, 6 seats and up | $1,000 | Call the office |
| Luxury and sport cars | $2,500 | Call the office |
If you are under 25 and want a larger or luxury car, call the team first so they can confirm the conditions for your booking.
How Does Car Rental Insurance Work in Canada?
In Canada, every rental vehicle must have liability or property accident cover and collision cover. You have two options: use your own insurance, or buy a damage waiver (ODW) from the rental company.
- Your own insurance: you must bring the original written policy so the company can keep a copy. A plate usage and insurance transfer administration fee applies.
- Company damage waiver: the simplest option for visitors, because it is arranged at the counter.
- Long rentals: rentals of 90 calendar days or more are treated as short-term leasing. You must buy at least the basic insurance package from the company, and other policies, including credit card cover, are not valid.
Before you rely on a credit card benefit, ask your card issuer in writing what it covers and for how long. For more detail, read our guide to car hire with insurance.
Mileage and Travel Rules
Mileage rules change with where you live and where you drive.
- Visitors and airport customers: unlimited kilometres may be available when the car stays inside the province of the rental location.
- Local customers: limited to 200 km a day.
- Outside the province: 200 km a day, 1,400 km a week or 3,000 km a month, with $0.25 for each extra kilometre.
- Canada and USA travel: allowed only with written permission from Mr Rent A Car, and extra charges apply.
- Not allowed: Alaska, Yukon, the Northwest Territories, Nunavut and Mexico.
Planning a Vancouver to Calgary drive? Tell the team before you book, so the trip is approved and priced correctly.
Fuel, Smoking and Pets
Return the car with the same fuel level as at pick-up. Smoking and vaping are not allowed inside the car. Pets are not allowed either, except a service dog. Breaking these rules can bring a cleaning fee of at least $500.
Types of Car Rental: Which One Fits You?
| Type | Best for | Learn more |
|---|---|---|
| Daily or weekend rental | Trips, visitors, events | Fleet |
| Monthly rental | Long stays, work contracts, students | Monthly Car Rental |
| Corporate rental | Business travel and teams | Corporate Car Rental |
| Insurance replacement | A temporary car while yours is being repaired | Insurance Replacement |
| One-way rental | Calgary to Vancouver or the reverse | Contact us |
Business renters can also read why long-term car rental for business makes sense.
7 Common Mistakes First-Time Renters Make
- Arriving without an original licence. Photocopies are not accepted.
- Using a debit or prepaid card for the hold. Only Visa, Mastercard or American Express credit cards in your name work for the deposit.
- Forgetting insurance. The quoted rate does not include it.
- Not checking the car at pick-up. Always photograph the car before leaving.
- Returning late. Even 30 minutes can start hourly charges.
- Ignoring the mileage limit. Extra kilometres cost $0.25 each.
- Smoking or bringing a pet. A cleaning fee of at least $500 applies.
How Mr Rent A Car Makes Renting Simple
Knowing how does car rental work is one thing. Getting a clear answer for your own trip is another. Mr Rent A Car has served drivers since 1996 and takes bookings 24 hours a day online.
- Many locations: Vancouver, Calgary, Richmond, Burnaby and more.
- Airport pick-up: YVR and YYC.
- Return at any location: helpful when plans change.
- A wide fleet: from economy cars and Tesla EVs to minivans and luxury SUVs.
Ready to rent?
Reserve your car now or call +1 604-303-0063. Not sure which car you need? See the full fleet.
Frequently Asked Questions
How does rental cars work for a first-time renter?
You choose a pick-up location and dates, pick a vehicle class, reserve it with a credit card, then show your original driver’s licence and credit card at pick-up. You inspect the car, sign the agreement, drive within the rules and return it with the same fuel level.
What do I need to rent a car?
You need a valid original driver’s licence, a Visa, Mastercard or American Express credit card in your own name, proof of insurance or a damage waiver, and to meet the age requirement. A class 5 BC licence or equivalent is required.
How old do you have to be to rent a car?
The standard age at Mr Rent A Car is 25. Drivers aged 19 to 24 can rent with an underage surcharge, and larger or luxury cars may need a call to the office first.
How much is the deposit for a rental car?
The deposit is a hold on your credit card. For economy to full-size cars it is $500 for drivers 25 and over and $1,000 for drivers aged 21 to 24. SUVs, premium cars and minivans are $1,000, and luxury and sport cars are $2,500 for drivers 25 and over.
Is insurance included in the rental price?
No. The quoted daily, weekly and monthly rates do not include insurance. In Canada you must have liability and collision cover, either your own policy or a damage waiver from the company.
Can I rent a car with a debit card?
You can pay the rental with a debit card, but the security hold needs a Visa, Mastercard or American Express credit card in your name. Debit and prepaid cards are not accepted for the hold.
What happens if I return a rental car late?
There is a 30-minute grace period. After that, hourly charges may apply, and after 120 minutes a full-day charge can be added. To keep the car longer, contact your location before the return time. An extension has a $20 service fee.
Can I drive a rental car from Vancouver to Calgary or into the USA?
Travel outside the province has extra charges and mileage limits. Canada and USA travel needs written permission from Mr Rent A Car. Alaska, the Yukon, the Northwest Territories, Nunavut and Mexico are not allowed. A one-way rental between Calgary and Vancouver is also available.
Final Thoughts
So, how does rental cars work? Reserve with a credit card, bring your original license, choose your insurance, inspect the car, follow the mileage and fuel rules, and return on time. Do those six things and renting is simple.
Ready to book? Reserve your car with Mr Rent A Car or call +1 604-303-0063.
Disclaimer: Rental terms, deposits, fees and mileage limits are based on the Mr Rent A Car Terms and Conditions as checked on 15 October 2026. They can change without notice and may differ by location and vehicle. This is not legal or insurance advice. Please confirm your exact terms when you book.
