Can You Rent a Car at 23?

Yes, you can rent a car at 23, but it comes with extra fees and restrictions. Most major rental companies allow drivers aged 21 and older, but those under 25 face a “young renter fee.” With the right preparation and smart choices, you can still get a great deal and drive legally and safely.

Key Takeaways

• You can rent a car at 23: Most national rental companies allow drivers as young as 21, so 23-year-olds are eligible to rent.
• Young renter fees apply: Drivers under 25 typically pay a daily surcharge, ranging from $15 to $35, depending on the company and location.
• Valid driver’s license required: You must have a valid U.S. or international driver’s license held for at least one year in most cases.
• Insurance options matter: Understand your coverage—personal auto insurance, credit card benefits, or rental company insurance—to avoid unnecessary costs.
• Book in advance for better rates: Planning ahead and comparing prices online can help you avoid last-minute markups and limited availability.
• Choose the right vehicle class: Economy and compact cars are often cheaper and may have lower young driver fees than luxury or SUV rentals.
• Consider alternative rental services: Turo and other peer-to-peer platforms may offer more flexible age policies and competitive pricing for younger drivers.

Can You Rent a Car at 23? The Short Answer

If you’re 23 years old and wondering whether you can rent a car, the answer is a resounding yes—but with some important caveats. Most major car rental companies in the United States allow drivers as young as 21 to rent a vehicle, which means you’re well within the eligible age range. However, being under 25 comes with additional costs and restrictions that can affect your rental experience and budget.

At 23, you’re no longer a teenager, but rental companies still classify you as a “young driver,” which triggers extra fees and sometimes limited vehicle options. These policies exist because younger drivers statistically have higher accident rates, making them a higher risk in the eyes of rental agencies. But don’t let that discourage you—many 23-year-olds rent cars successfully every day for road trips, job interviews, family visits, or just getting around when their own car is in the shop.

The key is knowing what to expect and how to prepare. With the right information, you can navigate the process smoothly, avoid surprise charges, and even save money. This guide will walk you through everything you need to know about renting a car at 23, from age requirements and fees to insurance tips and money-saving strategies.

Age Requirements for Car Rentals in the U.S.

Car rental age policies vary slightly by company and location, but there are general standards across the industry. In most states, the minimum age to rent a car is 21, though some states like Michigan and New York allow rentals starting at 18 under certain conditions. At 23, you’re safely above the minimum threshold, but you’re still under the “preferred” age of 25, which is when most rental companies drop their young driver surcharges.

Major Rental Companies and Their Age Policies

Let’s look at how some of the biggest names in car rentals handle drivers aged 23:

– **Hertz**: Allows rentals starting at 20 in most states, but drivers under 25 pay a young renter fee of $19–$25 per day. At 23, you’ll definitely face this fee.
– **Enterprise**: Minimum age is 21, with a young driver fee of $20 per day for those under 25. Some locations may restrict vehicle types (e.g., no luxury or full-size SUVs).
– **Avis**: Also requires drivers to be at least 21, with a daily surcharge of $27 for renters under 25. Fees can vary by location.
– **Budget**: Similar to Avis, with a $27 daily fee for drivers under 25. Some states have different rules, so check local policies.
– **National**: Minimum age 21, young renter fee of $20–$25 per day. Offers a “Emerald Club” membership that may include perks for frequent renters.

These fees are non-negotiable and added automatically at checkout. They’re not optional insurance—they’re a mandatory surcharge based solely on your age.

Why Do Rental Companies Charge Young Drivers More?

It might feel unfair, but the young driver fee is based on data. Insurance companies and rental agencies have found that drivers under 25 are more likely to be involved in accidents, file claims, or return vehicles with damage. This increased risk translates into higher costs for the rental company, which they pass on to younger renters.

While it’s frustrating to pay extra simply for being young, the fee isn’t personal—it’s actuarial. The good news? Once you turn 25, the fee disappears, and you’ll likely see a noticeable drop in your rental costs.

What You Need to Rent a Car at 23

Renting a car at 23 isn’t just about age—you’ll need to meet several other requirements to complete the transaction. Here’s a checklist of what you’ll typically need:

Valid Driver’s License

You must have a valid driver’s license issued by your state or country. Most companies require that you’ve held your license for at least one year. If you’re using an international license, you may also need an International Driving Permit (IDP), depending on the country and rental company.

Credit Card in Your Name

A major credit card in the renter’s name is almost always required. Debit cards are rarely accepted, especially for younger drivers, because they don’t offer the same level of financial security. The card will be used to hold a security deposit (usually $200–$300) during the rental period, which is released when you return the car in good condition.

Proof of Insurance (Optional but Recommended)

While not always required at pickup, having proof of your own auto insurance can help you decline the rental company’s collision damage waiver (CDW) or loss damage waiver (LDW). We’ll dive deeper into insurance options later, but knowing your coverage ahead of time can save you $15–$30 per day.

Reservation Confirmation

Booking in advance not only secures your vehicle but also gives you a chance to review the terms and fees. Always bring your reservation confirmation—either printed or on your phone—to the rental counter.

Additional Documentation (If Applicable)

If you’re renting in a different state or country, you may need extra documents. For example, some states require proof of residency or a secondary form of ID. International renters should check visa and passport requirements.

Understanding Young Renter Fees and How to Minimize Them

The young renter fee is the biggest hurdle for 23-year-olds looking to rent a car. This daily surcharge can add $100 or more to a week-long trip, so it’s worth understanding how it works and how to reduce its impact.

How Much Is the Young Renter Fee?

Fees vary by company and location, but here’s a general range:
– $15–$25 per day at Hertz, Enterprise, and National
– $27 per day at Avis and Budget
– Some local or regional rental agencies may charge less—or even waive the fee during promotions

These fees are added on top of the base rental rate, taxes, and other charges. They’re not refundable, even if you return the car early.

Can You Avoid the Young Renter Fee?

Unfortunately, there’s no legal way to avoid the fee if you’re under 25. However, you can minimize its impact with these strategies:

– **Rent from a local agency**: Smaller, independent rental companies may have more flexible policies or lower fees. Always compare prices.
– **Use corporate or membership discounts**: Some employers, alumni associations, or organizations (like AAA) offer rental discounts that can offset the fee.
– **Book during promotions**: Companies often run specials for young drivers or students. Sign up for email alerts to catch deals.
– **Choose a cheaper vehicle class**: Economy and compact cars often have lower base rates, which means the young renter fee represents a smaller percentage of your total cost.

Example: Comparing Rental Costs at 23

Let’s say you’re planning a 5-day trip and comparing two options:

– **Option 1**: Economy car from Enterprise
Base rate: $35/day × 5 = $175
Young renter fee: $20/day × 5 = $100
Total before taxes: $275

– **Option 2**: Mid-size car from Hertz
Base rate: $50/day × 5 = $250
Young renter fee: $25/day × 5 = $125
Total before taxes: $375

In this case, the economy car saves you $100—even with the young renter fee. Choosing a smaller vehicle can make a big difference.

Insurance and Protection Options for Young Renters

One of the most confusing parts of renting a car is understanding insurance. Do you need it? What does it cover? And can you save money by using your own policy? Let’s break it down.

Types of Rental Car Insurance

Rental companies typically offer four main types of coverage:

1. **Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW)**: This isn’t technically insurance—it’s a waiver that relieves you of financial responsibility if the car is damaged or stolen. It costs $10–$30 per day.
2. **Liability Insurance**: Covers damage or injury you cause to others. Required by law in most states, but often not included in the base rate. May cost $10–$15 per day.
3. **Personal Accident Insurance (PAI)**: Covers medical expenses for you and your passengers in case of an accident. Usually $5–$10 per day.
4. **Personal Effects Coverage (PEC)**: Protects your belongings if they’re stolen from the car. Rarely worth the cost unless you’re traveling with expensive items.

Do You Need to Buy Rental Insurance?

Not necessarily. Before paying for coverage, check:
– **Your personal auto insurance policy**: Many policies extend to rental cars, covering collision and liability.
– **Your credit card benefits**: Some premium cards (like Chase Sapphire or American Express Platinum) offer primary or secondary rental car insurance when you pay with the card.
– **Your health insurance**: May cover medical expenses from an accident, reducing the need for PAI.

If you already have coverage through these sources, you can often decline the rental company’s insurance and save $20–$50 per day.

Example: Saving with Credit Card Coverage

Say you have a Chase Sapphire Preferred card. When you rent a car and pay with the card, you get primary rental car insurance that covers collision damage. That means you can skip the CDW and save $25/day. On a 5-day rental, that’s $125 back in your pocket.

Just remember: Credit card coverage usually only applies to collision damage, not liability. And it may exclude certain vehicle types (like luxury cars or trucks). Always read the fine print.

Tips for Renting a Car at 23

Now that you know the basics, here are some practical tips to make your rental experience smoother and more affordable.

Book Early and Compare Prices

Prices fluctuate based on demand, location, and time of year. Booking 2–4 weeks in advance can save you money and ensure vehicle availability. Use comparison sites like Kayak, Expedia, or Rentalcars.com to compare rates across multiple companies.

Join a Loyalty Program

Signing up for free loyalty programs (like Hertz Gold Plus Rewards or Enterprise Plus) can give you access to discounts, faster checkout, and free upgrades. Some programs even offer birthday rewards or anniversary bonuses.

Inspect the Car Before Driving Off

Always do a walk-around inspection with a rental agent. Note any existing damage (scratches, dents, stains) on the inspection form or take photos. This protects you from being charged for damage you didn’t cause.

Return the Car on Time and with a Full Tank

Late returns can trigger extra daily charges. And if you don’t refuel, the rental company will charge you a premium rate—often $8–$10 per gallon. Save money by filling up at a nearby gas station before returning the car.

Consider Peer-to-Peer Rentals

Platforms like Turo and Getaround let you rent cars directly from owners. These services often have more flexible age policies—some allow rentals starting at 18—and may charge lower fees. Just make sure the host’s insurance covers you.

Ask About Student or Military Discounts

If you’re a student or active-duty military, you may qualify for special rates. Bring your student ID or military ID to the counter and ask—many companies offer discounts of 5–15%.

Alternatives to Traditional Car Rentals

If the young renter fee feels too steep, consider these alternatives:

Turo: The Airbnb of Cars

Turo allows individuals to rent out their personal vehicles. Many hosts are open to younger drivers, and fees are often lower than traditional rentals. You can filter search results by age requirements and read reviews from other renters.

Car Sharing Services

Services like Zipcar offer hourly or daily rentals in urban areas. Membership typically requires being 18–21+, and fees are all-inclusive (gas, insurance, maintenance). Great for short trips or city driving.

Rent from a Local Dealer

Some car dealerships offer rental programs, especially for customers getting service work done. These may have more lenient age policies or lower fees.

Final Thoughts: Yes, You Can Rent a Car at 23

Renting a car at 23 is absolutely possible—and with the right approach, it can be affordable and stress-free. While the young renter fee is unavoidable, it doesn’t have to break the bank. By booking early, comparing options, understanding insurance, and choosing the right vehicle, you can hit the road with confidence.

Remember, the fee is temporary. In just a couple of years, you’ll turn 25 and enjoy lower rates and more flexibility. Until then, use this guide to make smart decisions and get the most value from your rental experience.

Whether you’re planning a weekend getaway, moving to a new city, or just need a reliable ride for a few days, don’t let your age hold you back. With preparation and awareness, you can rent a car at 23—and drive away smiling.

Frequently Asked Questions

Can I rent a car at 23 without a credit card?

Most major rental companies require a credit card in the renter’s name. Debit cards are rarely accepted, especially for drivers under 25, due to the higher risk and need for a security deposit.

Do I need my own car insurance to rent a car at 23?

No, but having your own auto insurance can save you money. If your policy covers rental cars, you may be able to decline the rental company’s collision damage waiver and liability coverage.

Can I add another driver under 25 to my rental?

Yes, but additional drivers under 25 will likely incur their own young renter fees. Some companies allow one additional driver for free if they’re your spouse or domestic partner.

Are there any car rental companies that don’t charge young driver fees?

Most national companies charge fees for drivers under 25. However, some local or peer-to-peer platforms like Turo may have more flexible policies or lower fees.

Can I rent a luxury car at 23?

It depends on the company and location. Some rental agencies restrict luxury, sports, or SUV rentals to drivers 25 and older. Others may allow it but charge higher young renter fees.

What happens if I get into an accident while renting a car at 23?

You’re responsible for any damage or liability, just like with your own car. If you purchased a collision damage waiver, your financial responsibility may be limited. Always report accidents to the rental company and your insurance provider immediately.