You don’t actually have to be 25 to rent a car. Most major rental companies will rent to you at 21, and some go as low as 18 or 20 depending on the state. The reason 25 gets treated like a magic number is that it’s the age when the daily “young renter fee” disappears, a surcharge that typically adds $25 to $35 per day to the bill. Rental companies charge it because drivers under 25 crash more often per mile than older drivers, and that insurance risk gets priced straight into the rental agreement.
The Crash Data Behind the Age Threshold
Rental companies aren’t guessing when they treat younger drivers as higher risk. Federal highway safety data shows drivers aged 16 to 19 are involved in 4.8 fatal crashes per 100 million miles traveled, compared to 1.4 for drivers aged 30 to 59. Drivers aged 20 to 24 sit at 3.3 fatal crashes per 100 million miles, still more than double the rate of the 30-to-59 bracket. Drivers 20 and under make up about 5 percent of licensed drivers but account for roughly 8.5 percent of drivers involved in fatal crashes.1NHTSA. Young Drivers
Insurance companies use that data to set premiums, and rental companies pass those premiums along. A fleet rented primarily to 22-year-olds costs measurably more to insure than the same fleet rented to 30-year-olds. The young renter surcharge closes that gap. Once you turn 25, the statistical risk drops enough that the surcharge stops making financial sense for the company to charge.
You Can Actually Rent Well Before 25
The idea that you can’t rent a car until 25 is one of the most persistent travel myths. What the big three companies actually require:
- Enterprise: minimum age 21 in most states, with a young renter fee of about $25 per day for drivers aged 21 to 24.2Enterprise Rent-A-Car. What Are Your Age Requirements for Renting?
- Hertz: minimum age 20 at most U.S. locations, with a $25 per day young renter fee.3Hertz. Under 25 Car Rental
- Budget: minimum age 21 at most corporate locations, with a $27 per day surcharge for renters aged 21 to 24.4Budget Rent a Car. Requirements for Renting
Two states push the floor lower by law. New York’s General Business Law bars rental companies from refusing to rent based on age alone, though they’re still allowed to charge the under-25 surcharge.5New York State Senate. New York General Business Law 396-Z – Rental Vehicle Protections Michigan similarly requires rental companies to serve drivers as young as 18. All three major companies lower their minimum to 18 in those two states, and Hertz also sets the minimum at 19 in Alabama and Nebraska.3Hertz. Under 25 Car Rental Everywhere else, 21 is the practical floor.
So if you’re 21 or older with a valid license and credit card, you can rent from almost every major company in most states. You’ll just pay extra until your 25th birthday.
What the Young Renter Fee Actually Costs
The young renter fee is a flat daily charge stacked on top of the base rate, taxes, and anything else. For drivers aged 21 to 24 at most locations outside New York and Michigan, expect $25 to $27 per day. On a week-long rental, that’s an extra $175 to $189 before taxes.
The amount varies by location. Enterprise charges $15.75 per day in Michigan, $30.75 per day in New York, and about $25 per day everywhere else for the 21-to-24 group.2Enterprise Rent-A-Car. What Are Your Age Requirements for Renting? Budget charges $28 per day in Michigan, $35 per day in New York, and $27 per day at most other locations.4Budget Rent a Car. Requirements for Renting Hertz keeps it at a flat $25 per day across most locations.3Hertz. Under 25 Car Rental
For drivers aged 18 to 20 in states that permit it, the daily fee climbs higher and availability shrinks. Most companies won’t rent to this age group at all outside New York and Michigan, and when they do, the surcharge is substantially larger. If you’re in this bracket, call the specific location before you count on getting a car.
How to Avoid or Reduce the Surcharge
Several categories of under-25 renters can sidestep the fee entirely.
Military and Government Travelers
Active duty military and government employees traveling on official business can rent at 18 from most major companies. Enterprise explicitly permits this with official orders.2Enterprise Rent-A-Car. What Are Your Age Requirements for Renting? Under the Defense Department’s rental car program, drivers aged 18 to 20 may still be charged an underage fee, but it’s reimbursable as a travel expense.6Defense Travel Management Office. Rental Car Program
AAA Members Renting from Hertz
AAA members aged 20 to 24 who rent through Hertz get the young renter fee waived entirely, a savings of up to $29 per day. You’ll need to show your AAA card at the counter, present a credit card in your own name, and meet Hertz’s standard rental qualifications.7AAA. Hertz AAA Member Benefits At $25 per day saved on a week-long trip, a $60 to $100 AAA membership pays for itself in a single rental.
Corporate Accounts
Many corporate rental agreements waive the young renter surcharge for employees traveling on company business. If your employer has a negotiated rate with a rental company, check whether it covers drivers under 25 before booking on your own.
Insurance Replacement Rentals
If your personal car is in the shop after an accident, companies tend to be more flexible on age. Enterprise, for example, allows drivers aged 18 to 24 to rent as an insurance replacement while their vehicle is being repaired.8Enterprise Rent-A-Car. Renting a Car After an Accident Under 25 Restrictions vary by location.
Beyond those exemptions, picking the right location matters. Enterprise’s surcharge drops to $15.75 per day in Michigan, roughly 40 percent less than in most other states.2Enterprise Rent-A-Car. What Are Your Age Requirements for Renting? When the surcharge is unavoidable, compare total prices across companies instead of base rates alone. A company with a slightly higher daily rate but a smaller surcharge can come out cheaper over several days.
Other Rules That Apply to Under-25 Renters
Clearing the age minimum and paying the surcharge doesn’t quite put you on even footing with older renters. Two other restrictions tend to catch younger renters off guard.
First, vehicle class. Most companies restrict drivers under 25 to economy, compact, midsize, and standard sedans. Larger SUVs, passenger vans, convertibles, luxury models, and specialty vehicles are usually off-limits until 25. Hertz and Enterprise both enforce these class restrictions, with exact cutoffs varying by location. If you need a specific vehicle type, confirm it’s available to your age group before you book.
Second, payment. Some rental locations require renters under 25 to pay with a credit card and won’t accept debit cards at all. Budget requires debit card users to be at least 25 at most locations, with New York being the exception at 18.9Budget Rent a Car. Does Budget Allow Car Rental with a Debit Card? Where debit is accepted, the company places a hold on your account for the estimated rental cost or more, tying up several hundred dollars for the length of the trip. For younger renters without a credit card, sort this out before you get to the counter.
If You’re Too Young for a Traditional Rental
Peer-to-peer car-sharing has lower age floors than traditional rentals, though it carries its own surcharges.
Turo accepts bookings starting at 18 and charges a young driver fee for renters aged 18 to 24 that varies by trip length and other factors. Vehicle access scales with age: you need to be 21 to book a car worth more than $20,000, 25 for Deluxe Class vehicles, and 30 for Super Deluxe, classic, or specialty cars.10Turo. Booking a Car Young driver fees on Turo can be substantial, with minimum fees reaching $50 per day for the 18-to-20 bracket according to host-reported figures.
Zipcar takes a different approach. The standard consumer account requires age 21, but university-affiliated accounts drop the minimum to 18. In New York, Michigan, and Maryland, even consumer accounts are available at 18.11Zipcar. Am I Eligible to Join Zipcar For a college student who occasionally needs a car for a few hours, Zipcar’s membership model often beats a traditional rental once the young renter surcharge is factored in.