How to Rent a Car Under 25 (Complete Guide for Young Renters)

Introduction:
If you’re under 25, you’ve likely heard that renting a car can be challenging, or expensive. It’s true that rental companies impose extra restrictions and fees on young drivers, but renting a car under age 25 is very possible once you know the rules. In fact, drivers as young as 18 can rent cars in some places (with caveats), and virtually all major rental agencies rent to those 21 and up. This guide will walk you through everything you need to know as a young renter: age requirements by company, the dreaded “young renter fee” and ways to reduce it, which vehicles you’re allowed to rent, and savvy tips to make the experience easier on your wallet. If you’re 18-24 and need a set of wheels, read on, you’ll learn how to get on the road with minimal hassle.

Step-by-Step Guide:

1.Check Age Policies for Your Location and Company: Rules vary, so start by researching where you’ll be renting and the rental company’s age policy. In most U.S. states, the minimum age to rent a car is 21. Two notable exceptions are New York and Michigan, where state laws mandate rentals to 18 and older, though companies charge high fees for 18-20 year-olds. Some companies, like Hertz, have chosen to lower their minimum age to 20 nationwide (with an additional fee). If you’re under 21, your options are limited to certain states or agencies, you’ll need to hunt specifically for those exceptions (and be prepared to pay more). If you’re 21 to 24, nearly all rental companies will rent to you, just with a fee. The best approach is to visit the rental company’s website or call and ask: “What is the minimum rental age at this location, and do you rent to drivers under 25?” For example, Enterprise’s standard policy is 21+ in most locations (18+ for NY/MI), while Budget and Avis are similar. Some agencies might have special programs: e.g., if you’re a student or military personnel, they might accommodate younger renters. Write down or remember any key differences, this will help you choose the right company for your needs.

2.Anticipate the Young Driver Surcharge (and Try to Avoid It): The “Young Renter Fee” (also known as the under-25 fee) is an extra daily charge that rental companies add for drivers under 25. It typically ranges from $15 to $35 per day, depending on the company and location. This fee can sometimes eclipse the base rental rate, for instance, a $30/day car might have a $25/day fee added, making it $55/day for you. It’s a significant budget factor, so let’s tackle it head-on. First, when comparing rental prices online, make sure you input your age if the site asks, so that the prices shown include the young driver fee. Otherwise, you might get a nasty surprise at checkout. Second, look for ways to waive or reduce this fee. A top tip: if you are a member of AAA, renting through Hertz will waive the young renter fee (Hertz and AAA have a partnership, you must book with the appropriate AAA discount code and show your membership card). Similarly, USAA members (military and family) often get the under-25 fee waived at companies like Avis, Budget, and Hertz when booking through USAA’s portal. Some corporate or university discount codes also waive or reduce the fee, if you’re traveling for work or attending a college that has arrangements, check that out. Another avenue: car-sharing services (like Zipcar) include young driver fees within their membership structure (Zipcar allows 18+ with a membership, and their fees are built into the hourly rates). While not a traditional rental, it’s worth considering if the underage fees through rental companies are prohibitively high. In summary, expect the fee but do your homework to see if your affiliations or memberships can spare you that extra cost. The savings can be substantial for longer rentals.

3.Select a Company with Youth-Friendly Policies: Not all rental agencies are equally “young driver friendly.” When you’re under 25, it can pay to be choosy. For example, Hertz not only rents to 20-year-olds in the U.S. (which many companies do now), but as mentioned, they have partnerships to waive fees. Enterprise is everywhere and rents at 21, but their fees tend to be on the higher side (around $25/day commonly). Dollar and Thrifty often have slightly lower under-25 fees (sometimes closer to $15/day, depending on location). There are also smaller regional companies or independents, some of those might rent to younger drivers with lower fees or no fees, but be careful to ensure they’re reputable (look for reviews) and that their insurance and support are solid. In certain cases, if you’re traveling abroad, you might find countries where the age rules differ (for example, in parts of Europe, the minimum age can be 19 or 20, but under-25 fees apply until you’re 25 or even 26). The point is: include “driver age 23” (or your age) in your comparison when shopping around. One company might quote $300 total, another $400 total for the same rental once fees are included. Choose the one that’s more welcoming to your age group, which in turn saves you money.

4.Rent an Appropriate Car Class (Expect Some Restrictions): As a young driver, don’t plan on renting the fanciest cars on the lot. Rental companies usually restrict renters under 25 to economy through full-size cars, and sometimes SUVs or minivans, but exclude premium or luxury vehicles, specialty cars, and high-performance models. For instance, you probably won’t be allowed to rent the Corvette or luxury BMW that the rental company offers to older drivers. Typically allowed categories for 21-24 year olds include: compact, intermediate, standard cars; often small SUVs; possibly cargo vans and minivans. Each company lists what car classes are off-limits for younger renters (e.g., no luxury SUVs, no specialty sports cars). This isn’t usually a big problem, you can still get a normal, practical car to drive. But manage your expectations. When booking, the website might automatically filter out cars you can’t rent once you input your age. If you’re booking in person or over the phone, the agent will guide you to the permissible categories. On the bright side, sticking to a smaller or standard car will also keep your costs down (both rental rate and fuel). If you had hopes for a specific model, you could always ask the counter if an exception can be made (occasionally, for an additional fee or if you have a compelling reason, a local manager might override a restriction, but this is not common, so don’t count on it).

5.Gather Required Documents (Beyond the License): For most renters 25+, showing a license and credit card suffices. As an under-25 renter, ensure you have all necessary docs ready. You will need: a valid driver’s license (definitely no probationary licenses and no major recent violations ideally), and a credit card in your name for the deposit. If you only have a debit card, refer to the previous section, policies will then combine the underage rules and the debit card rules, which means more documentation (proof of insurance, additional ID, etc., could be required in that scenario). Some companies might require under-25s to show proof of insurance. This isn’t super common, but a few might ask if you have your own car insurance (especially if you decline their coverage). If you do have an insurance card, bring it along. Also, as a younger renter, double-check the insurance coverage situation. Drivers under 25 can usually purchase the optional coverage products from the rental company (though they can be pricey). It might be wise to buy the Collision Damage Waiver in your case, since younger drivers are statistically higher risk and you may want to avoid any potential charges for dings or accidents, but weigh the cost. Importantly, read the rental contract carefully when you pick up the car. Sometimes there might be a clause specific to young drivers (for example, some contracts specify that certain fees or responsibilities apply). It’s rare, but worth the extra minute to read so you know your obligations.

6.Drive Carefully and Follow All Rental Rules: Once you have the car, treat it responsibly, this is advice for anyone, but especially for younger renters. Any traffic infractions, accidents, or misuse of the vehicle can become extra complicated when you’re under 25, because the rental company (or its insurance) may scrutinize things more closely. A few pointers: avoid extra drivers if possible, or if you need one, make sure they are added to the contract and ideally also over 25. (Some companies will not allow any additional driver under 25 unless they are a spouse or sometimes, they don’t allow at all, so check that. If they do, that additional driver will also incur a young driver fee in many cases.) Stick to the permitted area of driving, if your contract says the car must remain in-state, for instance, don’t cross state lines thinking it’s no big deal; any incident out of bounds could void your contract or insurance. Refuel the car as required and return on time to avoid giving the company any reason to add penalties. Essentially, you want your rental record as a young driver to be clean and boring, it will help in the future if you rent again (some agencies keep notes or profiles of renters; a positive history can sometimes lead to fewer questions or even fee waivers down the line).

7.Explore Fee Waivers and Discounts for Young Renters: We touched on this in step 2, but let’s emphasize some actionable tactics to save money. The under-25 fee is the big one. If you haven’t already, sign up for any memberships that can help. A basic AAA membership, for example, could pay for itself if it waives a $30/day fee on a weeklong rental. If you’re in college, see if your university has a partnership with any rental agency (sometimes campus rental offices or student unions have coupons). If you’re traveling for military or government purposes and under 25, use those official channels, government rates often waive underage fees as well. Another strategy: some companies run periodic promotions, such as “no young driver fees in the month of X” or for certain destinations (commonly in Europe, international visitors under 25 might find deals that local residents don’t get). It’s worth doing a quick internet search like “<rental company> young driver fee waiver 2025” to see if any promotions or coupon codes are current. Additionally, consider renting from a location in a state with lower fees if it’s an option for you. For instance, if you’re on the NJ/NY border, renting in New Jersey might be cheaper than New York because NY state mandates a higher young driver fee cap. These little differences can save you quite a bit.

8.Consider Alternatives if Traditional Rental Costs Are Too High: If after all the research, you find that renting a car as an under-25 driver is prohibitively expensive for your trip, it’s worth considering alternatives. We mentioned car-sharing services like Zipcar or Turo in the previous section; those can sometimes be more lenient or cost-effective for younger drivers (Zipcar, for example, has an annual fee and hourly rates but might end up cheaper for a day’s use than a rental + fee). Another alternative: ridesharing and public transit, not ideal if you really need a car, but if your primary goal was just local travel in a city, crunch the numbers on using Uber/Lyft or buses/trains versus paying an underage fee for a multi-day rental. And if you’re traveling with someone 25 or older, see if they are willing to be the primary renter. Most rental companies charge for an additional driver, but if that person is the main driver, you as the under-25 can often still drive as a secondary (rules vary, some contracts forbid under-25s entirely even as additional, but others allow it if the primary is of age). In such a case, you wouldn’t pay the young driver fee because the rental is under the older person’s name (do check the fine print and drive extra carefully because insurance might have conditions about this scenario). This obviously only works if you have a travel companion who is 25+, but it’s a hack that has saved many groups money.

Additional Tips and Insights:

Upper Age Limits, A Non-Issue: While we focus on minimum age, some young renters are curious if there’s an upper age limit to rent a car (especially if traveling abroad). In the U.S., there is typically no maximum age, even seniors can rent if they have a valid license. In some countries, rental agencies might have upper age caps (often around 70-75 or require a medical letter for older drivers). But if you’re under 25, at least you won’t age out of renting, your challenge is just aging into the cheaper bracket! So hang in there: once you hit 25, that surcharge will disappear.

Insurance Considerations for Young Drivers: If you have your own auto insurance, check whether it extends to rental cars. Often it does but note that if you do have an accident with the rental, claims can affect your personal insurance rates, and as a young driver, those rates are already high. If you don’t have personal auto insurance (many under 25 might not, especially if you don’t own a car), strongly consider the rental company’s damage waiver and liability coverage. Yes, it adds to the cost, but a minor fender-bender could cost much more. Some credit cards offer rental coverage, but quite a few exclude coverage if the driver is under a certain age (or they might not exclude by age but check the terms). For peace of mind, it might be worth the extra $10-$20/day for coverage if you’re not otherwise insured, at least until you’re more experienced or have your own policy.

Driving Abroad Under 25: If you’re renting a car outside your home country and you’re under 25, research that country’s specific rules. Many countries in Europe have underage fees as well (often called “young driver surcharge” and usually apply under age 25 or sometimes under 26). Some countries require an International Driving Permit (IDP) for your license to be recognized, that’s something to get at AAA before traveling, if required. The rental process abroad will be similar (fees, small cars, insurance) but keep an eye on local driving laws and any youth-specific regulations (for example, some places might restrict under-21 drivers from certain high-powered vehicles by law).

Renting at 18-20, Special Cases: For the youngest readers (18-20 years old) wondering if it’s hopeless: you do have a few options. As mentioned, New York and Michigan are states where 18-year-olds can legally rent from major companies (with high fees, ~$50+ a day extra). Some companies also have student programs; for instance, Hertz in the past allowed 18+ rentals for military or government employees on orders. Another route: U-Haul and some local moving truck companies rent pickups or vans to 18+, not for leisure travel, but if you needed a vehicle for a local move or task, that’s a possibility (though not ideal for general transportation). Peer-to-peer rental platforms (Turo) sometimes allow 18+ drivers if they are college students or meet certain criteria, but they often require 21+. The bottom line is that at 18-20 your choices are slim and expensive, but by 21, the door opens wider. If you’re in that 18-20 range, double down on alternate options (like borrowing a car from family, etc.) or be ready to pay a premium in the rare cases a rental is possible.

Conclusion:
Being under 25 might mean you pay a bit more and have a few extra hoops to jump through, but it shouldn’t stop you from renting a car when you need one. By understanding each company’s rules, planning for the young renter fee (or finding ways around it), and renting responsibly, you can get on the road and enjoy the freedom of a rental car at 18, 21, or any age. Think of it as a rite of passage, every year you get closer to that magical 25th birthday, but in the meantime, you now know how to navigate the system and minimize the costs. Safe driving and enjoy your rental!