Yes, you can rent a car under 25, but most companies charge a young driver fee that adds $15 to $30 per day to your total cost

Nearly every major rental company will rent to drivers between 18 and 24, but they treat you as higher risk and price you accordingly. The young driver surcharge is separate from your base rental rate — it's not negotiable and applies every single day you have the car. Some regional and independent rental companies don't charge this fee at all, which can save you $100 to $200 on a week-long rental.

Your age also affects insurance options. Most rental companies require drivers under 25 to purchase their collision damage waiver (CDW), which covers damage to the rental car itself. This is different from liability insurance, which covers damage you cause to other people or property. If you decline CDW, many companies will hold a larger security deposit — sometimes $500 to $1,500 more than they would for a driver over 25.

Key Takeaways

  • Major rental companies (Enterprise, Hertz, Budget, Avis) charge $15 to $30 per day extra for drivers under 25, on top of the base rental rate.
  • Some independent and regional rental companies do not charge a young driver fee, so comparing prices across different companies can cut your total cost significantly.
  • You will likely be required to purchase collision damage waiver (CDW) coverage, which protects the rental car but not your own vehicle or liability.
  • Your personal auto insurance or credit card may already cover rental cars, so check your policy before buying the rental company's insurance.
  • Drivers under 21 face stricter restrictions — some companies require an additional deposit, and a few do not rent to this age group at all.

How the young driver surcharge works

The surcharge is a flat daily fee applied to your reservation. If you rent a car for seven days at $40 per day, and the young driver fee is $20 per day, your total is $420 for the car plus $140 for the age surcharge — $560 before taxes and insurance. This fee does not vary based on the type of car, the rental location, or how long you keep it. A one-day rental and a two-week rental both pay the same daily rate.

The amount varies by company and location. Enterprise and Budget typically charge $15 to $25 per day. Hertz and Avis often charge $20 to $30 per day. Regional companies like Fox Rent A Car or Thrifty sometimes charge less, and a few charge nothing. Calling ahead or checking the full price breakdown online before booking is the only way to know what you'll actually pay at a specific location.

Where you can rent without the young driver fee

Independent and smaller regional rental companies often do not charge a young driver surcharge. Fox Rent A Car, which operates in California, Nevada, Arizona, and Florida, does not charge drivers under 25 an extra fee. Thrifty locations vary by franchise — some charge the fee, others do not. Turo, a peer-to-peer car rental platform, does not have a blanket young driver surcharge, though individual car owners may set their own age restrictions or fees.

Local rental companies in your area may also skip the surcharge. Before booking with a major chain, search for independent rental agencies near your pickup location. Call them directly and ask whether they charge drivers under 25. You may find a $100 to $200 savings on a week-long rental, which often outweighs any difference in the base rental rate.

Insurance requirements and what they actually cover

Most rental companies require drivers under 25 to purchase collision damage waiver (CDW), also called loss damage waiver (LDW). This covers damage to the rental car itself — dents, scratches, broken windows, or total loss from an accident. The cost ranges from $10 to $25 per day depending on the company and car type. If you decline CDW, the company will typically hold a security deposit of $500 to $1,500 that you get back when you return the car undamaged.

CDW does not cover liability — damage you cause to other people or their property. That is covered by your personal auto insurance or the rental company's liability coverage, which is usually included in the rental rate or required by law. It also does not cover damage from things like weather, theft, or mechanical breakdown. Read the rental agreement carefully to understand what is and is not covered.

Before you buy CDW from the rental company, check whether your personal auto insurance covers rental cars. Many policies do, which means you are paying twice if you also buy the rental company's coverage. Some credit cards offer rental car coverage as a cardholder benefit — American Express, Visa Infinite, and some Mastercard products include this. Call your insurance company or credit card issuer before you rent to confirm what you are already covered for.

Drivers under 21 face stricter rules

If you are under 21, your options narrow. Some companies do not rent to drivers under 21 at all. Those that do often require an additional deposit, restrict the types of cars you can rent (usually no luxury or sports cars), and may charge an even higher young driver fee. A few companies require a co-signer who is 25 or older and holds a valid driver's license.

Hertz, for example, rents to drivers 20 and older at most locations but requires a $200 additional deposit and charges the young driver fee on top of it. Enterprise rents to drivers 18 and older but has similar restrictions. Call the specific location where you plan to rent — policies vary by franchise and state.

How to find the lowest total price

The base rental rate is only part of what you pay. Get a full quote that includes the young driver fee, required insurance, taxes, and any airport or facility fees before you compare companies. A rental that looks cheap at $35 per day becomes $85 per day once you add the $20 young driver fee and $30 CDW.

Use comparison sites like Kayak, Autoslash, or Priceline to see rates across multiple companies at once, but always click through to the company's website to see the full breakdown. Some sites hide the young driver fee until the final step. Book directly with the company if you find a better price — rental companies sometimes offer discounts on their own websites that do not show up on third-party sites.

If you are renting for more than a few days, call independent rental companies directly. The savings from skipping the young driver fee often make up for a slightly higher base rate. If you are renting for just one day, the young driver fee matters less — a $20 fee on a $40 rental is a bigger percentage increase than a $20 fee on a $200 week-long rental.

What happens if you lie about your age

Do not do this. Rental companies verify your age against your driver's license at pickup. If your license says you are under 25 and you claimed otherwise, the company can refuse to rent to you and keep any deposit you paid. If you rent the car anyway by providing false information, you have committed fraud.

If you are in an accident after misrepresenting your age, your rental agreement becomes void, and you are personally liable for all damage to the car and any injuries or property damage you cause. Your personal auto insurance may also deny your claim if you were driving a rental car under false pretenses. The cost of covering an accident out of pocket far exceeds what you save by avoiding the young driver fee.

Frequently Asked Questions

Can I rent a car at 18?

Yes. Most major rental companies rent to drivers 18 and older, though some require drivers under 21 to provide an additional deposit or have a co-signer. Regional and independent companies often have lower age minimums and do not charge a young driver fee. Call ahead to confirm the specific location's policy.

Does my parents' insurance cover me if I rent a car?

Usually not. Most auto insurance policies cover the named policyholder and household members, not someone renting a car under their own name. Check your parents' policy or ask your own insurance company. Some credit cards offer rental car coverage regardless of whose name is on the policy.

What if I get in an accident and I'm under 25?

If you purchased CDW, the rental company covers damage to the car up to the deductible (usually $0 to $1,500). Your personal auto insurance or credit card coverage may also explore. Liability for damage you cause to others is covered by your insurance or the rental company's liability coverage. Report the accident to the rental company when ready and get a police report if anyone was injured.

Is the young driver fee the same at every location?

No. The fee varies by company, location, and sometimes by season. A Budget location in one city might charge $15 per day while another charges $20. Always get a quote for the specific pickup location and dates you need — do not assume the price you saw online applies to your reservation.

Can I avoid the young driver fee by renting under someone else's name?

No. You must present your own driver's license at pickup. The rental company will see your age and explore the fee. Renting under someone else's name is insurance fraud and voids your coverage if you are in an accident.