You must be at least 18 years old to rent a car in Colorado, but most major rental companies charge an underage driver fee if you're under 25

Colorado law does not set a minimum age for car rental — that's up to each rental company. In practice, nearly every major rental agency (Enterprise, Hertz, Budget, Avis, National) will rent to you at 18 with a valid driver's license and a credit card in your name. The catch is the cost: renters under 25 typically pay an extra daily fee, usually between $15 and $30 per day, sometimes higher for drivers under 21.

Some smaller or regional companies may set their minimum at 21 or 25, so you need to check the specific rental location's policy before you book. Age restrictions can also vary by vehicle type — luxury cars, SUVs, and trucks sometimes have higher age minimums than economy sedans. If you're under 25, calling the rental counter directly before you arrive saves you from a surprise fee or a declined reservation.

Key Takeaways

  • Colorado has no state-mandated minimum age for car rental, so the requirement depends on the rental company's own policy.
  • Most major chains rent to 18-year-olds but charge an underage driver fee of $15 to $30 per day for renters under 25.
  • Drivers under 21 may face higher fees or additional restrictions, and some vehicle types (luxury, SUV, truck) may have age minimums of 25.
  • Your credit card must be in your own name; a parent's card or a debit card alone usually will not work, even if a parent co-signs.

What the underage driver fee actually covers

The underage driver fee is not insurance — it's a surcharge the rental company adds because statistically, drivers under 25 file more claims. The fee does not lower your insurance responsibility or reduce your liability if you damage the car. You are still responsible for the full cost of any damage beyond what your own auto insurance or credit card coverage pays.

Some credit cards offer rental car coverage that waives collision damage waivers (CDW) for renters of any age, but you need to check your specific card's terms. If your credit card covers rental damage, you may not need to buy the rental company's damage waiver — but read the fine print, because some cards exclude drivers under 25 from that coverage.

How to book as an 18- to 24-year-old renter

Start by calling or visiting the rental location directly rather than booking online. Online systems sometimes don't show age-based fees or restrictions until you're at the counter, and by then you've already committed. When you call, give your age and ask for the total daily rate including the underage fee, the damage waiver cost, and any other charges specific to your age group.

Bring your valid driver's license, a credit card in your own name, and proof of insurance (your own policy or your parent's if you're listed as an insured driver). Some companies ask for a second form of ID. If you're under 21, some locations may require you to sign an additional liability waiver. Ask about this when you call so you know what to expect.

Credit card and payment requirements for young renters

The rental company will place a hold on your credit card for the full estimated rental cost plus a damage deposit, typically $200 to $500. The card must be in your name — a parent's card will not work, even if they co-sign or may provide payment. Debit cards are rarely accepted as the primary payment method because the rental company cannot place a hold on a debit account the way they can with a credit card.

If you don't have a credit card in your own name, some rental companies will accept a debit card plus a co-signer (usually a parent) who brings their own credit card to the counter. Policies vary by location and company, so confirm this option exists before you arrive. Having a credit card in your name — even with a low limit — makes the rental process simpler and faster.

Insurance and liability when you're under 25

Your personal auto insurance (or your parent's policy if you're listed as a driver) covers rental cars in Colorado, but only if the policy includes rental coverage. Check your policy documents or call your insurer before you rent. If you're not covered under a parent's policy, you'll need to buy the rental company's collision damage waiver (CDW) or decline it and accept full financial responsibility for damage.

The rental company's CDW typically costs $15 to $25 per day and covers damage to the rental car but not your liability to third parties (other people's cars, property, or injuries). Colorado requires all drivers to carry liability insurance, and the rental company's liability coverage is included in the base rental rate — you don't buy it separately. If you cause an accident, your liability coverage (whether from your own policy or the rental company's) pays for the other person's damages up to your policy limit.

Restrictions on vehicle type and location for young drivers

Some rental companies restrict drivers under 25 from renting certain vehicle categories. Luxury sedans, sports cars, and high-end SUVs often have a 25-year-old minimum. Economy and mid-size cars are usually available at 18. Trucks and vans may fall somewhere in between depending on the company and location.

Rental locations at airports sometimes have stricter age policies than off-airport branches of the same company. If you're renting at Denver International Airport or another major airport, call ahead to confirm the specific policy. A location 10 minutes away from the airport may have a lower age minimum or a lower underage fee for the same vehicle.

What happens if you're 17 or younger

You cannot legally rent a car in Colorado at 17, even with a parent's permission or co-signature. Colorado's age of majority is 18, and rental contracts are binding legal agreements that minors cannot enter into. If you need a car before you turn 18, your parent or guardian must rent it in their own name and add you as an authorized driver (if the company allows it), or you must wait until your 18th birthday.

Some rental companies allow a minor to be listed as an additional driver on a parent's rental agreement, though policies differ. The parent remains the renter of record and responsible for the contract. Call the rental location to ask whether this option is available before you plan around it.

Frequently Asked Questions

Can my parent rent a car and let me drive it?

Yes. Your parent rents the car in their name, and you drive it as long as you have a valid license. The rental agreement is between your parent and the company, so your age doesn't affect the rental cost. Your parent is responsible for any damage and for traffic violations, though you're responsible for violations you commit while driving.

Do I need my own insurance to rent a car at 18?

Not necessarily. If you're listed as a driver on your parent's auto insurance policy, that coverage extends to rental cars. If you're not insured under any policy, you'll need to buy the rental company's collision damage waiver to protect yourself financially. Check your parent's policy or your own before you rent.

What if I have a learner's permit instead of a full license?

You cannot rent a car with a learner's permit in Colorado. Rental companies require a valid driver's license. A learner's permit is not a license — it's a provisional credential that allows you to drive only with a licensed adult in the car. You must have your full license to sign a rental agreement.

Is the underage fee the same at every rental company in Colorado?

No. Each company sets its own fee, and it can vary by location. Enterprise might charge $20 per day in Denver but $15 per day in Boulder. Budget, Hertz, and Avis each have their own rates. Call the specific location where you plan to rent to get an accurate quote.

Can I rent a car if I'm 18 but my license is suspended?

No. A suspended license is not a valid driver's license, and rental companies will not rent to you. You must have a valid, unsuspended license in your name. If your license is suspended, you cannot legally drive in Colorado regardless of who owns the car.