N -- Renting a car for summer holidays can be an expensive proposition, but there are strategies that hold down the price of the vehicle as well as the costs for fuel and insurance.

It often pays to shop around, whether the family is using a travel agent, booking via the Internet or over the phone, said Nancy Dunnan, editor of TravelSmartNewsletter.com.

Sometimes packages including both air tickets and car reservations are available through major travel sites such as travelocity.com, orbitz.com or expedia.com. Or travel agents may have access to discounted car rental deals.

Among the affiliations that car renters should mention are memberships in AAA, the travel and leisure group, or AARP, which caters to individuals 50 and older. There also may be discounts for government employees or people in the military.

Cars often are more expensive to rent from an agency located at an airport than from one in town, in part because of excise taxes charged by county and municipal governments on airport properties.

"I'd look at this option only if they have free shuttle service," she said. "If you have to pay for a taxi or spend a lot of time, it probably isn't worth it."

Mike Pina of AAA said he believes the important trend affecting consumers is that financially troubled U.S. automakers are making fewer low-profit, bulk sales to rental companies. That has forced the car rental companies to compete in the open market for vehicles, raising their costs to purchase the popular mid-size cars.

Consumers who can't get mid-size cars but want leg room may have to "buy up" to the luxury class, he said. On the other hand, renters can get a relatively better deal on small cars -- and likely enjoy lower gas bills -- "if they're willing to forgo the leg room," Pina said.

Consumers need to decide whether they're going to buy their gasoline on the open market or from the car rental agency. In most cases, the car comes filled with gas, and the renter either returns it filled or pays the agency -- often at a premium -- to fill it up.

"You definitely do better buying your own gas," Pina said. "The only time it makes sense to return the vehicle with an empty tank is if you risk missing your flight or it's a huge inconvenience to buy gas yourself."

Most insurance policies that car owners buy provide full coverage when they rent cars, Pina said. Dunnan said that consumers also can get some insurance coverage if they use their credit cards to pay for the car rental booking. In both cases, renters should call their insurance or card issuers and check.

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