Excess mileage surcharge

An excess mileage surcharge is an extra fee charged to travelers who exceed the mileage limit set by a car rental company. When renting a vehicle, customers are often given a mileage allowance, such as 100 kilometers or miles per day. If this limit is surpassed, the renter must pay a per-mile or per-kilometer fee, which is the excess mileage surcharge.

This fee is commonly applied in markets where car rental reservation systems offer limited mileage packages at lower base prices to attract price-sensitive customers. Excess mileage surcharges allow rental providers to recover costs related to fuel, vehicle wear and tear, and depreciation.

Travelers should carefully review the rental terms to understand how much they may be charged per unit of distance beyond the limit.

Just like ancillary revenue in airlines and hospitality, excess mileage charges are a way for rental providers to generate extra income beyond the base rate.