Renting a Car When You're Under 25

What changes when you rent a car under 25

Most rental companies will rent to you at 18 or 19, but they charge an extra daily fee — usually $15 to $30 per day — called a young driver surcharge. Some companies have a minimum age of 21 or 25 for certain vehicle types, particularly luxury or full-size SUVs. A few chains, like Enterprise and Budget, are more flexible with younger renters than Hertz or Avis, though the surcharge still applies everywhere.

The surcharge exists because insurance data shows drivers under 25 file more claims. You cannot avoid it by lying about your age or having someone else sign the contract — the rental agreement requires the driver to be present with a valid license, and the company will check your birthdate against your ID at pickup. If you misrepresent your age, the rental company can refuse service and keep your deposit.

Beyond the surcharge, you face the same requirements as any other renter: a valid driver's license, a credit card in your name (not a debit card, in most cases), and proof of insurance. Some companies will rent to you with a debit card if you have a larger deposit available, but this varies by location and company.

Key Takeaways

• Young driver surcharges range from $15 to $30 per day and apply at nearly every rental company, with no way to avoid them.
• Enterprise, Budget, and Fox are generally the most flexible with renters under 25, while Hertz and Avis have stricter age policies on certain vehicle classes.
• You must present a valid driver's license, a credit card in your own name, and proof of insurance at the rental counter.
• Luxury vehicles and full-size SUVs often have a minimum age requirement of 25, even if the company rents standard cars to younger drivers.
• Your personal auto insurance or a credit card's rental coverage may cover you as a renter, which can save money compared to buying the company's insurance.

Which rental companies accept drivers under 25

Enterprise, Budget, and Fox rent to drivers as young as 18 or 19 with the young driver surcharge. Hertz, Avis, and National typically require renters to be 25 for most vehicle categories, though some locations may make exceptions for drivers 21 and older. Alamo and Dollar fall somewhere in the middle — they rent to drivers 21 and up with a surcharge, but not to 18- or 19-year-olds.

The policy can vary by location, so calling the specific rental branch where you plan to pick up the car is the only way to know for certain. A company's website may say it rents to drivers 21 and up, but a franchise location in a different state might have different rules. When you call, ask specifically whether they rent to your age and what the daily surcharge is.

Airport rental locations tend to be stricter than off-airport branches of the same company. If you are renting at an airport and the company there has a 25-year-old minimum, try calling an off-airport location in the same city — they may have a lower minimum age.

Documents you need to bring

Bring your valid driver's license (state ID, not a learner's permit), a credit card in your name, and proof of insurance. The credit card does not have to have a high balance — the rental company uses it to hold a deposit, typically $200 to $500, which is released after you return the car undamaged. The card must be in your name; a card belonging to a parent or friend will not work, even if they are present.

Proof of insurance can be a printed copy of your policy, a digital copy on your phone, or a letter from your insurance company. If you do not have personal auto insurance, you can purchase the rental company's coverage at the counter, though this is expensive — usually $15 to $25 per day. Some credit cards offer rental car coverage if you charge the rental to that card; check your card's benefits before you rent, because you may need to decline the company's insurance to activate the card's coverage.

Bring your reservation confirmation if you booked online, though the rental company can look it up by your name and driver's license. If you have a frequent renter account with the company, bring that information too, as it can speed up the check-in process.

How the young driver surcharge works

The surcharge is a flat daily fee added to your rental rate. If the base rate is $40 per day and the surcharge is $20, you pay $60 per day total. The surcharge applies every single day you have the car, including the day you pick it up and the day you return it. A three-day rental for an under-25 driver can easily cost $60 to $90 more than the same rental for someone 25 or older.

The surcharge is non-negotiable — you cannot ask the rental agent to waive it or reduce it. It is built into the company's pricing structure and applies to all renters under the company's age threshold. Some companies advertise a lower surcharge during promotional periods, so checking the website or calling ahead can reveal whether a discount is currently running.

The surcharge is separate from insurance, damage waivers, and other add-ons. Even if you bring your own insurance, you still pay the young driver surcharge. The only way to avoid it is to wait until you turn 25 or to have someone 25 or older rent the car in their name and be the primary driver on the contract.

Insurance options and what you actually need

Your personal auto insurance likely covers you when you rent a car, even if you do not own one. Call your insurance company before you rent and ask whether your policy covers rental vehicles. If it does, bring proof of that coverage to the rental counter and decline the company's insurance offer. This saves you $15 to $25 per day.

If you do not have personal auto insurance, check whether your credit card offers rental car coverage. Many premium credit cards (particularly American Express and some Visa Signature cards) cover collision and theft if you charge the entire rental to that card. The coverage usually has a deductible of $500 to $1,000, meaning you pay that amount out of pocket if there is damage, but it is still cheaper than buying the company's daily coverage for a week-long rental.

If neither your insurance nor your credit card covers rentals, you will need to buy the company's coverage. The company offers several options: collision damage waiver (covers damage to the car you rented), liability coverage (covers damage you cause to other people's property), and personal effects coverage (covers your belongings stolen from the car). Most people need at least collision coverage; liability is often required by law in your state. Ask the rental agent which coverages are mandatory and which are optional.

Restrictions on vehicle types and locations

Many rental companies restrict drivers under 25 from renting luxury vehicles, full-size SUVs, or premium sports cars. A company might rent a compact car or midsize sedan to an 18-year-old but require renters to be 25 for a Cadillac Escalade or BMW. This restriction is separate from the young driver surcharge — it is an absolute age requirement, not a fee you can pay to get around it.

Some rental companies also restrict where you can take the car. A few will not allow drivers under 25 to take a rental across state lines or into Mexico. Others require an additional deposit or surcharge if you plan to drive more than a certain distance from the rental location. Ask about these restrictions when you book or call ahead, because discovering them at the counter can derail your trip.

One-way rentals (picking up in one city and returning in another) sometimes have higher surcharges or age restrictions for younger drivers. If you are planning a one-way rental, call the specific locations involved and ask about their policies for drivers under 25.

Ways to reduce the total cost

Book directly with the rental company rather than through a third-party site like Kayak or Expedia. Third-party sites sometimes hide the young driver surcharge in the fine print or do not display it until you are ready to pay, and you cannot always modify the reservation if you discover the surcharge is higher than expected. Booking directly lets you see the full price, including the surcharge, before you commit.

Compare the daily rate plus surcharge across companies. Enterprise might have a $50 daily rate plus a $20 surcharge ($70 total), while Budget might have a $45 daily rate plus a $25 surcharge ($70 total). The total is the same, but the breakdown matters if you are trying to negotiate or if one company is running a promotion on the base rate.

Rent for the shortest time possible. If you need a car for a weekend trip, renting Friday through Sunday (three days) costs less than renting Thursday through Monday (five days), even though the difference is only two days. Every day you keep the car, the surcharge applies again.

Check whether your employer, school, or membership organization (AAA, military, alumni association) offers a discount with a specific rental company. These discounts usually apply to the base rate, not the surcharge, but they can still save $5 to $10 per day on a longer rental.

What happens if you damage the car

If you damage the rental car and you purchased the company's collision coverage, the company handles the repair and you pay the deductible (usually $500 to $1,500). If you did not purchase coverage and you are not covered by your personal insurance or credit card, you are responsible for the full repair cost, which can be thousands of dollars.

The rental company will document any damage at pickup and again at return. Take photos of the car's condition when you pick it up, especially if there are existing scratches or dents, so you have proof you did not cause them. If the company tries to charge you for pre-existing damage, you can dispute it with your credit card company or insurance company if they are covering the rental.

Some rental companies charge a "loss of use" fee if the car is damaged and cannot be rented to other customers while it is being repaired. This fee can be $30 to $50 per day and is separate from the repair cost. It applies whether or not you purchased damage coverage, so understanding your coverage before you rent is critical.

Frequently Asked Questions

Can I rent a car at 18 without a credit card?

Most companies require a credit card in your name to hold a deposit. Some rental locations accept a debit card if you have a larger deposit available (sometimes $500 to $1,000), but this is not may provide. Call the specific location where you plan to rent and ask whether they accept debit cards for drivers under 25.

What if my parents' insurance covers me as a driver?

Your parents' insurance may cover you when you drive their car, but rental car coverage is different. Call your parents' insurance company and ask specifically whether their policy covers you when you rent a car. If it does, bring written proof to the rental counter. If it does not, you will need to purchase the company's coverage or use a credit card's rental benefit.

Do I have to buy the rental company's insurance?

No, if you have coverage through your personal insurance or credit card. If you have neither, you must decide whether to buy the company's coverage or rent without it. Renting without coverage is risky — a single accident can cost thousands of dollars out of pocket.

Can someone 25 or older rent the car for me to avoid the surcharge?

Technically yes, but the person 25 or older must be the primary driver on the contract and present their license at pickup. If you are the actual driver and the other person is not in the car, you are violating the rental agreement. If you are in an accident, the insurance may not cover you because you were not the named driver. This approach creates legal and insurance problems and is not worth the savings.

What is the difference between a young driver surcharge and a young driver fee?

They are the same thing — different companies use different terminology. Both refer to the extra daily charge applied to renters under a certain age. Some companies call it a "young renter surcharge" or "underage driver fee," but the cost and purpose are identical.