Can You Rent a Car Under 25?

Yes, you can rent a car under 25, but most rental companies charge an additional daily “young renter fee” and may limit vehicle options. With the right preparation, smart choices, and knowledge of policies, drivers aged 18–24 can rent safely and affordably.

Key Takeaways

• Most rental companies allow drivers under 25 to rent a car, but they often impose age restrictions and extra fees ranging from $15 to $50 per day.
• Age requirements vary by state and rental company, with some locations requiring renters to be at least 21, while others accept 18-year-olds with a valid license.
• Young drivers may be limited to economy or compact cars, as luxury, sports, or high-performance vehicles are typically off-limits for under-25 renters.
• Credit cards and insurance coverage matter—some premium cards waive the young renter fee or include rental insurance, saving you money.
• Booking in advance and comparing rental agencies can help you find the most affordable and flexible options for under-25 drivers.
• International rentals have stricter rules, and many countries do not allow drivers under 25 to rent vehicles at all.
• Always read the fine print—understanding terms, fees, and insurance options helps avoid surprises at the counter.

Can You Rent a Car Under 25? The Short Answer

If you’re between 18 and 24 and wondering whether you can rent a car, the answer is yes—but it’s not always straightforward. While most major rental car companies in the U.S. allow drivers under 25 to rent vehicles, they often come with extra fees, restrictions, and requirements that can make the process more expensive and complicated than for older drivers.

The good news? With a little planning and awareness, renting a car under 25 is entirely possible. Whether you’re a college student heading home for break, a young professional on a business trip, or a recent high school grad planning a road trip, understanding the rules and options can save you time, money, and stress.

In this guide, we’ll walk you through everything you need to know about renting a car when you’re under 25—from age requirements and fees to tips for saving money and avoiding common pitfalls. We’ll also cover what to expect at the rental counter, how insurance works, and which companies are most friendly to young drivers.

Why Do Rental Companies Charge Extra for Young Drivers?

You might be wondering: Why the extra fees? After all, if you have a valid driver’s license and can legally drive, shouldn’t you be treated the same as any other renter?

The short answer is risk. Rental car companies base their policies on insurance data, and statistically, drivers under 25 are more likely to be involved in accidents. According to the Insurance Institute for Highway Safety (IIHS), drivers aged 16 to 19 have crash rates nearly three times higher than drivers aged 20 and older. Even by age 25, the risk remains elevated compared to more experienced drivers.

Because of this increased risk, rental companies treat young drivers as higher-risk customers. To offset potential losses, they charge a “young renter fee” or “underage fee”—typically ranging from $15 to $50 per day, depending on the company and location. Some companies also restrict the types of vehicles young drivers can rent, especially high-performance or luxury models.

How Age Affects Rental Eligibility

Not all young drivers are treated equally. Here’s a breakdown of how age impacts your ability to rent a car:

• Ages 18–20: Most rental companies require renters to be at least 21, but a few (like Enterprise and Hertz) allow 18-year-olds in certain states. However, expect high fees and limited vehicle options.
• Ages 21–24: This is the most common age range for young renters. Most major companies (Hertz, Avis, Budget, Enterprise, National, Alamo) allow rentals, but with daily underage fees and possible vehicle restrictions.
• Age 25 and over: Once you turn 25, the underage fee typically disappears, and you gain access to the full range of vehicles, including luxury and specialty cars.

It’s also worth noting that age requirements can vary by state. For example, in New York and Michigan, state laws prohibit rental companies from charging underage fees, making it easier (and cheaper) for young drivers to rent cars in those locations.

Which Rental Companies Allow Drivers Under 25?

Not all rental car companies have the same policies for young drivers. Some are more lenient than others, and a few even offer discounts or fee waivers under certain conditions. Here’s a look at the major players and their under-25 policies:

Enterprise Rent-A-Car

Enterprise is one of the most flexible options for young drivers. They allow renters as young as 18 in most states, though fees and restrictions apply. For drivers aged 21–24, Enterprise charges a daily underage fee (usually $20–$25), but they often have competitive rates and a wide selection of vehicles.

One advantage of Enterprise is their “Young Driver Program,” which offers discounted rates and waived fees for students and military personnel. If you’re a college student with a valid student ID, you may qualify for reduced underage fees or even fee waivers at participating locations.

Hertz

Hertz allows drivers aged 20 and older to rent vehicles, but those under 25 will face a daily underage fee (typically $25–$35). Hertz also restricts young drivers from renting certain vehicle classes, such as luxury cars, SUVs, and convertibles.

However, Hertz offers a “Young Traveler Program” that provides discounts and benefits for renters aged 18–24, including free membership in their Gold Plus Rewards program and access to exclusive deals. Booking through the program can help reduce costs.

Avis and Budget

Avis and Budget (both owned by Avis Budget Group) have similar policies. They allow drivers aged 21 and older to rent, with underage fees of $25–$50 per day for those under 25. Like other companies, they restrict access to premium vehicles.

One perk: If you have an Avis Preferred or Budget Fastbreak membership, you can skip the counter and speed up the rental process—helpful when you’re in a hurry.

National Car Rental and Alamo

National and Alamo (part of Enterprise Holdings) allow drivers aged 21 and older. Underage fees range from $20 to $30 per day. Both companies offer a wide selection of vehicles and have a reputation for good customer service.

National’s Emerald Club loyalty program is free to join and offers perks like free rental days and priority service—great for frequent renters.

Thrifty and Dollar

Thrifty and Dollar (owned by Hertz) allow drivers aged 20 and older, but underage fees can be steep—up to $50 per day in some locations. They also have strict vehicle restrictions for young drivers.

These brands are often more budget-friendly for older renters, but the high fees and limited options make them less ideal for under-25 drivers unless you’re in a pinch.

Local and Independent Rentals

Don’t overlook smaller, local rental agencies. Some independent companies have more flexible policies and lower fees than national chains. While they may not have as many locations or vehicles, they can be a great option if you’re looking to save money and avoid corporate restrictions.

Just be sure to read reviews and confirm their under-25 policies before booking.

How Much Does It Cost to Rent a Car Under 25?

The cost of renting a car under 25 depends on several factors: the rental company, your age, the type of vehicle, the rental duration, and your location. But the biggest cost driver is usually the underage fee.

Let’s break it down with a real-world example:

Imagine you’re 22 and renting a compact car for three days in Chicago. Here’s what you might pay:

• Base rental rate: $35/day × 3 days = $105
• Underage fee: $25/day × 3 days = $75
• Taxes and fees: ~$30 (varies by location)
• Total estimated cost: $210

Now, compare that to a 27-year-old renting the same car:

• Base rental rate: $35/day × 3 days = $105
• No underage fee
• Taxes and fees: ~$30
• Total estimated cost: $135

That’s an $80 difference—just because of age. Over a week-long trip, the gap can grow to $150 or more.

Ways to Reduce Costs

The good news is there are several ways to reduce or even eliminate the underage fee:

• Use a credit card with rental benefits: Some premium credit cards (like Chase Sapphire Reserve or American Express Platinum) waive the underage fee for cardholders. Check your card’s terms before booking.
• Book through a membership program: AAA, USAA, Costco, and other memberships often offer discounted rates and waived fees for young drivers. For example, USAA members under 25 can rent without underage fees at participating locations.
• Choose a rental-friendly state: As mentioned earlier, New York and Michigan prohibit underage fees. Renting in these states can save you hundreds.
• Book in advance: Last-minute rentals are often more expensive. Booking early gives you more options and better rates.
• Compare prices: Use comparison sites like Kayak, Rentalcars.com, or Priceline to find the best deals across multiple companies.

What Vehicles Can You Rent Under 25?

One of the biggest limitations for young drivers is vehicle availability. Most rental companies restrict under-25 renters from booking certain types of vehicles, especially those that are high-performance, luxury, or expensive to insure.

Allowed Vehicles

Young drivers can typically rent:

• Economy cars (e.g., Nissan Versa, Hyundai Accent)
• Compact cars (e.g., Toyota Corolla, Honda Civic)
• Mid-size cars (e.g., Toyota Camry, Honda Accord)
• Standard SUVs (e.g., Ford Escape, Toyota RAV4) – sometimes allowed, depending on the company

These vehicles are generally affordable, fuel-efficient, and less risky from an insurance standpoint.

Restricted or Prohibited Vehicles

Most companies do not allow under-25 drivers to rent:

• Luxury cars (e.g., BMW, Mercedes-Benz, Audi)
• Sports cars (e.g., Chevrolet Corvette, Ford Mustang GT)
• Convertibles (e.g., Mazda MX-5 Miata)
• Full-size SUVs and trucks (e.g., Ford Expedition, Chevrolet Suburban)
• High-end minivans or passenger vans

The reasoning is simple: these vehicles are more expensive to repair or replace, and they’re often associated with higher-risk driving behavior.

Exceptions and Workarounds

In some cases, you may be able to rent a restricted vehicle if:

• You’re traveling with someone over 25 who is listed as an additional driver.
• You have a corporate or government rate that includes vehicle waivers.
• You’re a member of a loyalty program that offers expanded vehicle access.

For example, if your parent or older sibling is traveling with you and is over 25, they can be the primary renter, and you can be added as an authorized driver—bypassing the underage restrictions.

Insurance and Protection for Young Renters

Insurance is a critical part of renting a car, especially for young drivers who may not have extensive driving records or personal auto insurance.

What’s Included by Default?

When you rent a car, the rental company includes basic liability coverage, which covers damage to other vehicles or property in an accident. However, this does not cover damage to the rental car itself or medical expenses.

Additional Coverage Options

Most rental companies offer the following add-ons:

• Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Covers damage to the rental car. Costs $10–$30/day. Note: This is not insurance—it’s a waiver that reduces your financial responsibility.
• Liability Insurance Supplement: Increases your liability coverage beyond the state minimum. Usually $10–$15/day.
• Personal Accident Insurance (PAI): Covers medical expenses for you and your passengers. Around $5–$10/day.
• Personal Effects Coverage (PEC): Protects your belongings in the car. Typically $2–$5/day.

Do You Need Rental Insurance?

It depends on your existing coverage:

• If you have personal auto insurance: Check if it extends to rental cars. Most policies do, including liability, collision, and comprehensive coverage.
• If you have a credit card that offers rental protection: Many premium cards provide CDW coverage when you use the card to pay for the rental. However, this usually doesn’t include liability or personal injury coverage.
• If you have no coverage: Consider purchasing the rental company’s insurance or a third-party policy.

Tip: Always decline the rental company’s insurance if you’re already covered—otherwise, you’re paying for duplicate protection.

Special Considerations for Young Drivers

Young drivers are often encouraged to purchase CDW because they’re statistically more likely to be in an accident. However, if you have a credit card that offers primary rental coverage (meaning it pays first, before your personal insurance), you may not need to buy extra insurance.

Just remember: Credit card coverage varies widely. Some cards only offer secondary coverage, and many exclude certain vehicle types or rental periods over 30 days.

Tips for a Smooth Rental Experience Under 25

Renting a car under 25 doesn’t have to be stressful. With the right approach, you can navigate the process like a pro. Here are some practical tips to make your rental experience as smooth as possible:

1. Book Online in Advance

Booking online gives you time to compare prices, read the fine print, and choose the best option. It also allows you to add authorized drivers, select insurance, and apply discounts before you arrive.

2. Bring the Right Documents

When you pick up your car, you’ll need:

• A valid driver’s license (must be in your name and not expired)
• A credit card in your name (debit cards are often not accepted for under-25 renters)
• Proof of insurance (if applicable)
• Your reservation confirmation

Note: Some companies require the credit card used for booking to be present at pickup.

3. Arrive Early

Rental counters can get busy, especially at airports. Arriving early gives you time to complete paperwork, inspect the car, and ask questions without feeling rushed.

4. Inspect the Car Thoroughly

Before driving off, walk around the vehicle and note any existing damage (scratches, dents, stains). Take photos or videos as proof. This protects you from being charged for damage you didn’t cause.

5. Understand the Fuel Policy

Most rentals use a “full-to-full” policy: you get the car with a full tank and must return it full. If you don’t, the rental company will charge you a premium rate for fuel—often $8–$10 per gallon. Fill up at a nearby gas station before returning the car to avoid extra fees.

6. Avoid Toll Roads Unless You’re Prepared

Many rental companies offer electronic toll passes (like E-ZPass or PlatePass). If you use toll roads without one, you may be charged a daily fee plus the toll cost. Decide in advance whether you need the pass or plan your route to avoid tolls.

7. Return the Car on Time

Late returns can result in extra charges—sometimes a full day’s rate. Set a reminder and allow extra time for traffic or delays.

International Car Rentals: Can You Rent Under 25 Abroad?

If you’re planning to rent a car outside the U.S., the rules are often stricter. Many countries do not allow drivers under 25 to rent vehicles at all, or they impose much higher fees and requirements.

Countries with Strict Age Limits

• United Kingdom: Most companies require drivers to be at least 21, with underage fees for those under 25. Some luxury rentals require drivers to be 25 or older.
• Germany: Drivers must be at least 21, and many companies require a minimum of two years of driving experience. Underage fees are common.
• France: Similar to Germany—minimum age 21, with fees for under-25s. International driving permits (IDP) may be required.
• Australia: Most companies allow rentals at 21, but fees apply for under-25s. Some states require an IDP.
• Japan: Minimum age is 18, but most rental companies require drivers to be at least 20 and hold an IDP.

Tips for International Rentals

• Check the rental company’s age policy before booking.
• Obtain an International Driving Permit (IDP) if required—it’s cheap and easy to get through AAA.
• Book through a reputable international agency or U.S.-based company with global partners.
• Be aware of local driving laws, road conditions, and insurance requirements.

In many cases, it’s easier and safer to use public transportation or hire a driver when traveling abroad, especially if you’re under 25.

Final Thoughts: Yes, You Can Rent a Car Under 25

Renting a car under 25 is absolutely possible—but it requires a bit more planning and awareness than for older drivers. While underage fees and vehicle restrictions can be frustrating, they’re not insurmountable. With the right rental company, smart booking strategies, and a clear understanding of insurance and policies, young drivers can hit the road with confidence.

The key is to do your research, compare options, and take advantage of discounts, memberships, and credit card benefits. And remember: once you turn 25, many of these hurdles disappear. Until then, stay informed, drive safely, and enjoy the freedom that comes with having wheels.

Whether you’re road-tripping across the country, visiting family, or just need a car for a weekend getaway, don’t let your age stop you from getting behind the wheel. With the tips and insights in this guide, you’re well-equipped to rent a car under 25—smartly and affordably.

Frequently Asked Questions

Can I rent a car at 18?

Yes, in some states and with certain rental companies like Enterprise and Hertz, 18-year-olds can rent a car. However, expect high underage fees and limited vehicle options. Always check the specific location’s policy before booking.

Do all rental companies charge underage fees?

Most major rental companies charge underage fees for drivers under 25, but the amount varies. Some states like New York and Michigan prohibit these fees by law, so renting there can be cheaper.

Can I avoid the underage fee?

Yes, in some cases. Using a credit card that waives the fee, booking through a membership program (like USAA or AAA), or renting in a fee-free state can help you avoid or reduce the charge.

Can I rent a luxury car under 25?

Generally, no. Most rental companies restrict under-25 drivers from renting luxury, sports, or high-performance vehicles due to higher risk and insurance costs.

Do I need special insurance to rent a car under 25?

Not necessarily. If you have personal auto insurance or a credit card with rental coverage, you may not need to buy extra insurance. Always verify your coverage before declining the rental company’s offer.

Can someone over 25 rent a car for me?

Yes, as long as they are listed as the primary renter and you are added as an authorized driver. This can help you avoid underage fees and access more vehicle options.