Renting a Car Under Age 25: What You'll Pay and What You'll Need

Most rental companies charge extra if you're under 25, and some won't rent to you at all

If you're under 25, nearly every major car rental company will charge you an additional daily fee — often called a "young driver surcharge" — on top of the base rental rate. This fee typically ranges from $15 to $30 per day, though it varies by company, location, and the type of car. Some smaller or regional rental agencies may not charge this fee, but they're less common.

A few companies have different age cutoffs. Enterprise, for example, rents to drivers as young as 18 in most locations, while Hertz and Avis generally require you to be at least 20 or 21 before they'll rent to you at all. National, Budget, and Alamo have their own policies that vary by location. Before you book, check the specific rental company's website for your age and the location where you want to rent.

The surcharge exists because insurance companies charge rental agencies more to cover younger drivers, who statistically have more accidents. The rental company passes that cost to you.

Key Takeaways

• Most rental companies charge $15 to $30 extra per day for drivers under 25, and some companies won't rent to anyone under 20 or 21.
• You'll need a valid driver's license, a credit card in your own name, and proof of insurance to rent a car at any age.
• Some companies offer lower surcharges if you're a member of AAA, a military veteran, or enrolled in their loyalty program.
• Declining the rental company's insurance offer and using your own coverage can save money, but verify your policy covers rental cars first.
• Booking directly through the rental company's website often shows the young driver surcharge upfront, while third-party booking sites may not display it until checkout.

What documents you need to bring

You'll need a valid driver's license — a learner's permit or temporary license won't work. The license must be current and not suspended. If your license is from another country, bring an International Driving Permit along with it; some rental companies require this, others don't, so call ahead if you're unsure.

You must have a credit card in your own name. The rental company will place a hold on it for the full rental cost plus a damage deposit, typically $200 to $500. Debit cards are rarely accepted, and prepaid cards almost never are. The credit card doesn't have to have a high limit, but it does have to be in your name — you can't use someone else's card.

Bring proof of insurance. This can be a printed copy of your insurance card, a letter from your insurance company, or a digital copy on your phone. If you don't have your own insurance, you'll need to buy the rental company's coverage, which adds significantly to the cost — usually $15 to $25 per day for basic coverage.

How the young driver surcharge works

The surcharge is a per-day fee added to your rental rate. If you rent a car for three days and the surcharge is $20 per day, you'll pay an extra $60 on top of the base rental cost. Some companies build it into the quoted price when you book; others show it as a separate line item at checkout.

The surcharge applies whether you're 18 or 24. It doesn't decrease as you get older — it only disappears on your 25th birthday. A few companies offer slightly lower surcharges for drivers aged 21 to 24 compared to 18 to 20, but this varies by location and company.

If you're a member of AAA, a military veteran, or enrolled in the rental company's loyalty program, you may may have access to for a discount on the surcharge. These discounts are usually 10 to 25 percent off the standard fee. Ask about them when you book or call the rental location directly.

Insurance options and what they cost

When you rent a car, you have three insurance choices: use your own coverage, buy the rental company's coverage, or decline coverage entirely (which is risky and not recommended).

If you have your own auto insurance, check your policy to see whether it covers rental cars. Most policies do, but some exclude rentals, and some only cover rentals in certain situations. Call your insurance company before you rent — it takes five minutes and can save you money. If your policy covers rentals, you can decline the rental company's offer and use your own coverage.

If you don't have insurance or your policy doesn't cover rentals, you'll need to buy the rental company's coverage. This usually includes collision damage waiver (covers damage to the rental car) and liability (covers damage you cause to other vehicles or property). Rental company insurance typically costs $15 to $25 per day. For a week-long rental, that's $105 to $175 on top of everything else.

Some credit cards offer rental car coverage if you charge the rental to that card. Check your card's benefits before you book — this can eliminate the need to buy the rental company's insurance. However, credit card coverage often has limits and exclusions, so read the fine print.

Where to book and how to compare prices

Booking directly through a rental company's website usually shows the young driver surcharge upfront in the quoted price. Third-party booking sites like Kayak, Expedia, or Priceline sometimes don't display the surcharge until you're at the final checkout step, which makes comparison harder.

Call the rental location directly if you want the clearest picture. A staff member can tell you the exact surcharge for your age, any discounts you might may have access to for, and what's included in the base rate. This takes a few minutes and often reveals options that don't show up online.

Compare the total cost, not just the daily rate. A cheaper base rate with a high surcharge may cost more than a higher base rate with a lower or no surcharge. Factor in insurance, taxes, and any fees for additional drivers or equipment like GPS or child seats.

Renting from smaller or independent companies

Regional rental companies and independent agencies sometimes don't charge a young driver surcharge, or charge a lower one than the major chains. Companies like Fox Rent A Car, Advantage, or local independent agencies may have different policies. The trade-off is that their cars are often older, their locations are fewer, and their customer service may be less consistent.

If you go this route, check the insurance situation carefully. Smaller companies sometimes require you to buy their coverage regardless of your own insurance, and their coverage may be more limited. Read the rental agreement thoroughly before you sign.

Peer-to-peer car rental services like Turo let private owners rent out their cars. These services don't have a standard young driver surcharge, but individual owners set their own age requirements and fees. Some owners won't rent to anyone under 25; others have no age restriction. You'll need to check each listing individually.

What happens if you're under the minimum age

If a rental company's minimum age is 21 and you're 20, you cannot rent from that company at that location, period. There's no workaround, no exception, and no way to override it. Your only option is to find a different rental company with a lower minimum age.

If you're 18 or 19, your options are limited. Enterprise is one of the few major companies that rents to 18-year-olds in most locations. Some regional companies and independent agencies also rent to drivers this young. Check their websites or call ahead before you make a trip to a rental location.

Frequently Asked Questions

Can someone over 25 rent the car for me if I'm under 25?

No. The person whose name is on the rental agreement must be the one driving the car. If you're not old enough to rent, you can't be the primary driver, even if someone else pays for it. The rental company will check the driver's license of anyone behind the wheel.

Does the young driver surcharge apply if I'm renting a luxury or sports car?

Yes. The surcharge applies to all vehicle classes. Some rental companies charge a higher surcharge for luxury or sports cars on top of the standard young driver fee, but the young driver surcharge itself is separate and applies regardless of what type of car you're renting.

What if my credit card gets declined when I try to place the hold?

Call your credit card company and ask them to temporarily increase your limit or remove the block on rental car holds. Some cards flag rental holds as suspicious activity. Once you've cleared it with your card company, try booking again. If your card still won't work, you'll need to use a different card or find a rental company that accepts debit cards (though this is rare).

Do I have to buy insurance from the rental company if I have my own policy?

No, but verify your coverage first. Call your insurance company and ask specifically whether your policy covers rental cars and in what situations. Get the answer in writing if possible. Once you've confirmed coverage, you can decline the rental company's insurance at checkout.

Will the surcharge be cheaper if I rent for a longer period?

No. The per-day surcharge stays the same whether you rent for one day or two weeks. However, some rental companies offer discounts on the base rate for weekly rentals, which can offset some of the surcharge cost. Compare the total price for different rental lengths before you book.