Renting a car under 25 costs more and requires advance planning, but it's possible at most major rental companies

If you're under 25, you can rent a car from Hertz, Enterprise, Avis, Budget, and National, but you'll pay a young driver surcharge — typically $15 to $30 per day on top of the base rental rate. Some companies set a minimum age of 18 or 21 depending on the location and vehicle type. The surcharge exists because insurance data shows drivers under 25 have higher accident rates. You'll also need a valid driver's license, a credit card in your own name, and proof of insurance.

The rental company will run a hard pull on your credit and check your driving record. If you have recent accidents or violations, some locations may refuse to rent to you regardless of age. Booking online in advance gives you better rates than walking in, and some companies waive or reduce the young driver fee if you're a member of their loyalty program or if you book through certain credit card partnerships.

Key Takeaways

  • Most major rental companies rent to drivers 18 and up, but charge $15 to $30 per day extra for drivers under 25.
  • You need a valid driver's license, a credit card in your name, and proof of insurance — rental companies will not accept a parent's insurance or credit card.
  • Booking online ahead of time usually costs less than renting on the spot, and loyalty memberships can reduce or eliminate the young driver surcharge.
  • Your driving record matters: recent accidents or violations can result in a rental denial even if you meet the age requirement.
  • Some rental companies offer lower surcharges or waive them entirely for drivers 21 and up, so age 21 is a meaningful price break point.

What the young driver surcharge actually covers

The surcharge is not insurance — it's a fee the rental company charges because you fall into a higher-risk category. Your own auto insurance or the rental company's damage waiver still covers accidents and theft. The surcharge straightforward reflects the company's cost of doing business with younger drivers, based on claims history.

The amount varies by location, vehicle type, and company. Renting a compact car in a small town will cost less per day than renting an SUV in a major city. Some companies charge the same surcharge for all drivers under 25; others charge less for drivers 21 to 24 than for drivers 18 to 20. Check the final price breakdown before you confirm the reservation — the surcharge should be listed separately from the daily rate.

Documents you need to bring

Bring your valid driver's license (state ID or passport-style license, not a learner's permit), the credit card you used to book the reservation, and proof of insurance. The proof of insurance can be a printed policy document, a digital copy on your phone, or a card from your insurance company. If you're on a parent's policy, bring documentation showing you're listed as an insured driver on that policy.

The credit card must be in your name and have enough available credit to cover a hold — rental companies typically place a hold of $200 to $500 on top of the rental cost. If the card is in a parent's name, the rental company will not accept it, even if they're present. Some companies accept debit cards for drivers under 25, but many do not, and those that do often require a larger hold or additional documentation.

Where young drivers get the best rates

Enterprise and National tend to have lower young driver surcharges than Hertz or Avis, though this varies by location. Costco Travel, AAA, and AARP memberships can unlock discounted rates that sometimes include reduced or waived surcharges. If you have a credit card with rental car benefits — American Express, Chase Sapphire, or Capital One Venture, for example — check whether it includes a young driver fee waiver or discount.

Booking through a third-party site like Kayak or Autoslash may show a lower total price, but always verify the young driver surcharge is included in that quote. Some sites hide the surcharge until you reach the final step. Calling the rental location directly can sometimes reveal local deals or loyalty discounts that don't show up online.

Insurance and damage coverage decisions

Your personal auto insurance likely covers rental cars, so you may not need the rental company's damage waiver. Call your insurance company before you rent and ask whether rental cars are covered, what the deductible is, and whether you need to decline the rental company's coverage. If you're not on a parent's policy, you'll need your own insurance to rent — rental companies require proof before you drive off the lot.

If you don't have insurance, the rental company's Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) costs $15 to $25 per day and covers damage to the rental car. Some credit cards offer rental car coverage if you charge the rental to that card, but read the fine print — many exclude drivers under 25 or have other restrictions. Declining coverage when you have no insurance is a financial risk; a minor accident could cost thousands.

Age 21 versus age 18: the price difference

Turning 21 usually brings a meaningful drop in the daily surcharge. Many companies charge $20 to $30 per day for drivers 18 to 20, then $10 to $15 per day for drivers 21 to 24. Some companies eliminate the surcharge entirely at 21. The difference adds up: a five-day rental at age 20 might cost $100 to $150 in surcharges alone, while the same rental at 21 might cost $50 to $75.

A few companies, including some regional operators, rent only to drivers 21 and up. If you're 18 to 20 and have limited options in your area, calling ahead to confirm the rental company will rent to you can save a wasted trip.

What happens if you have accidents or violations on your record

Rental companies check your driving record through a third-party service and may deny the rental if you have recent at-fault accidents, DUIs, or serious violations. The definition of "recent" varies — some companies look back three years, others five. A single minor violation like a speeding ticket usually won't disqualify you, but multiple violations or an at-fault accident within the past two years can.

If you're denied at one company, try another — policies differ. If you're consistently denied, ask the rental company which violations are causing the denial, then contact your state's Department of Motor Vehicles to verify your record is accurate. Errors do happen, and you have the right to dispute them.

Frequently Asked Questions

Can I rent a car if I'm 18 but don't have my own insurance?

No. Rental companies require proof of insurance in your name before you rent. If you're on a parent's policy and listed as an insured driver, that counts. If not, you'll need to purchase your own policy or add yourself to theirs before you can rent. The rental company's damage waiver is not a substitute for insurance.

Will my parent's credit card work if they're with me at the rental counter?

No. The credit card must be in your name. Rental companies will not accept a parent's card even if the parent is present. You need your own credit card with sufficient available credit to cover the hold the rental company places.

Does the young driver surcharge go away at 25?

Yes. At 25, you're no longer charged the young driver surcharge. The surcharge applies to drivers under 25, so on your 25th birthday, you rent at the standard adult rate. Some companies begin reducing the surcharge at 21, so the savings start earlier.

Can I rent a car with a learner's permit?

No. You need a valid driver's license. A learner's permit is not sufficient. If your license is suspended or expired, you cannot rent.

What if I'm denied a rental — can I appeal?

You can ask the rental company why you were denied and request they review the decision, but they have no obligation to reverse it. If the denial is based on your driving record, verify the record is accurate through your state's DMV. If the record is wrong, correct it and try again. If it's accurate, try a different rental company with less strict policies.