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The immediate exception that comes to mind would be if you were on vacation in a major city. Then a car could be more hindrance than help.
You wouldn't need one on a cruise either
We just came back from Key West, Florida, and we didn't rent a car. The Galleon was nice enough to pick us up and take us back to the airport. We did the trolley tour to see the sites, took a cab to the fishing dock, and walked all the other places we went.
We never rent cars in Mexico - we have been to Cabo San Lucas twice, Mazatlan, once, Acapulco once, PV several times, and Cancun once.
We were within driving distance to San Luis Inn at Avila Beach and Worldmark at Bass Lake.
We did rent cars in Hawaii - Maui and Kauai - and in San Diego and Anaheim.
I agree with Muriel. Several trips where we did not rent a car; DC, San Francisco, New Orleans, Chicago, NYC, Philadelphia, Mexico, most places in Europe. We had one in Boston and it was a nightmare within the city; definitley use the T if you can.
Places where we have not rented a car in the past - Las Vegas and San Francisco. I think it is fun not to have to worry about a car or driving for a week, and also somewhat of an adventure.
That said, we have rented a car for many other trips.
Yes, there are times when a car's not necessary. It depends on where you're going, and what you want to do. We always rent one in Hawaii.
We had no car in Cozumel or Puerto Vallarta (but will be renting one for our upcoming trip to Riviera Maya), most of Europe, Tahiti, Paradise Island, Las Vegas, etc.
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