Renting a car under 25 is possible, but you'll pay more and face stricter rules than older renters

Most major rental companies rent to drivers under 25, but they charge a young driver surcharge — typically $15 to $30 per day on top of the base rental rate. Some companies have a minimum age of 18; others require 21. The real restrictions come in the form of limited vehicle choices, higher insurance requirements, and stricter damage policies. You'll need a valid driver's license, a credit card in your own name, and proof of insurance. Some rental locations won't rent to under-25 drivers at all, so availability depends on where you're renting.

The surcharge can add $100 to $400 to a week-long rental, making it one of your biggest costs. Beyond that, you're responsible for understanding what insurance you need, what vehicles you can actually book, and how damage liability works differently for younger renters. Planning ahead — calling companies, comparing rates, and bringing the right documents — can save you money and prevent problems at the counter.

Key Takeaways

  • Young driver surcharges add $15 to $30 per day to your rental cost, and this fee applies at most major companies including Enterprise, Hertz, Avis, and Budget.
  • You must have a credit card in your own name to rent; a debit card or a card in someone else's name will not work, even if they co-sign.
  • Proof of insurance is required, and you should bring your own policy documents rather than relying on the rental company's coverage options, which are often expensive for young drivers.
  • Some rental locations refuse under-25 renters entirely, so call ahead or check the company's website before you book.
  • Damage liability is stricter for young drivers — you may be held responsible for minor wear that older renters would not be charged for.

What documents you need to bring

Bring your valid driver's license, a credit card in your own name, and proof of insurance. The credit card must be issued to you personally — the rental company will place a hold on it for the estimated rental cost plus a damage deposit, usually $200 to $500. This hold can take several days to clear after you return the car, so plan accordingly if you're using a card with a low credit limit.

For insurance, bring a copy of your auto insurance policy or a declaration page showing your name, the policy number, and the coverage limits. If you don't have your own insurance, you can purchase coverage from the rental company, but rates for under-25 drivers are significantly higher. Some renters buy a short-term policy from their insurance company for the rental period, which is often cheaper than the rental company's daily rate. A few companies ask for proof of residence — a recent utility bill or lease agreement — so bring one just in case. If you're renting under a corporate account or through a membership program, bring that documentation too.

Young driver surcharges and how they work

The young driver surcharge is a flat daily fee added to your rental bill. Enterprise, Hertz, Avis, Budget, and National all charge it, though the amount varies by location and company. At some locations it's $15 per day; at others it reaches $30. There's no way to avoid it — it's not optional coverage, and it applies whether you're renting for one day or two weeks.

The surcharge exists because insurance companies charge rental companies higher premiums for under-25 drivers. The rental company passes that cost to you. It's worth calling a few companies and asking their specific rate for your age and rental dates, because the surcharge can add $100 to $400 to a week-long rental. Some smaller or regional rental companies may not charge it at all, so if you're renting in a city with multiple options, compare before you book. A few membership programs like AAA sometimes offer discounts on the surcharge itself, so check whether you may have access to before you finalize your reservation.

Insurance options and what to buy

You have three paths: use your own auto insurance, buy coverage from the rental company, or buy a short-term policy from your insurance company. Each has different costs and trade-offs, so understanding them before you arrive at the counter matters.

Your own auto insurance: If you own a car and carry comprehensive and collision coverage, that policy likely covers rental cars. Call your insurance company before you rent and ask whether your coverage extends to rentals and what your deductible is. If it does, bring proof of that coverage to the rental counter. This is usually the cheapest option and requires no additional purchase.

Rental company coverage: The rental company will offer you collision damage waiver (CDW), liability coverage, and personal effects coverage. For under-25 drivers, these are expensive — often $20 to $35 per day for basic coverage. If you don't have your own insurance, this is your fallback, but budget for it as part of your total rental cost.

Short-term policy: Some insurance companies sell rental-only policies for a few days or weeks. Call your insurer and ask about this option. It's sometimes cheaper than the rental company's daily rate, especially if you're renting for more than three days. Do not skip insurance entirely. If you damage the rental car and have no coverage, you're liable for the full repair cost, which can be thousands of dollars. The rental company will charge you and report it to credit agencies if you don't pay.

Vehicle restrictions and what you can rent

Most rental companies restrict under-25 drivers to economy and compact cars. You typically cannot rent SUVs, trucks, luxury vehicles, or premium sedans. Some companies also restrict convertibles and sports cars. These restrictions exist because insurance premiums are higher for larger or more expensive vehicles, and rental companies limit their exposure with younger drivers.

If you need a specific vehicle type, call the rental company before you book and ask what's available for your age. Some locations may make exceptions for business rentals or if you're willing to pay extra, but don't count on it. Book early so you have time to find a company that will rent you what you need, or to adjust your plans if your first choice isn't available.

Damage liability and what happens if you cause an accident

Rental companies explore stricter damage standards to under-25 renters. Minor dents, scratches, or interior stains that might be waived for an older driver can result in charges for you. Before you drive off the lot, do a full walk-around with the rental agent and photograph or video any existing damage. Point out every scratch, dent, and stain. Ask the agent to note it on your contract. This protects you if the company tries to charge you for pre-existing damage when you return the car.

If you cause an accident, report it to the rental company when ready and to your insurance company. Do not admit fault or sign anything beyond the accident report. Get the other driver's information and contact details for any witnesses. Your insurance company will handle the claim. If you don't have insurance and the accident is your fault, you're responsible for all repair costs, which can easily exceed $5,000 or more depending on the damage.

Where to find rental companies that accept under-25 drivers

Major chains that rent to under-25 drivers include Enterprise, Hertz, Avis, Budget, National, and Alamo. Smaller regional companies and some independent rental agencies may also rent to younger drivers, sometimes without a surcharge. Check the company's website or call the specific location where you plan to rent — policies vary by branch and location.

Some airport rental locations are stricter than off-airport locations, so if you have the option, try renting from a downtown or suburban branch. Membership programs like AAA sometimes offer discounts on young driver surcharges, so check whether you may have access to. Costco Travel and warehouse memberships sometimes have rental partnerships with discounted rates as well. Call ahead rather than showing up and hoping — availability for under-25 renters can be limited, especially during peak travel seasons.

Frequently Asked Questions

Can someone else's credit card be used if they co-sign?

No. The credit card must be in your name. Rental companies will not accept a co-signer's card or a card in someone else's name, even if that person is present and willing to may provide the rental. This is a firm policy across all major companies.

What if I don't have my own insurance?

You can purchase coverage from the rental company at the counter, though it will be expensive for your age group. Alternatively, ask your parents or another family member whether you can be added to their auto insurance policy as a driver, which would cover you in a rental. Some insurance companies allow this for short periods without charging extra.

Do I have to pay the young driver surcharge if I rent through my employer?

Usually yes. Corporate or business accounts still incur the surcharge, though some large employers negotiate discounts. Check with your company's travel department or the rental company's corporate rate desk to see whether a discount applies to your situation.

What happens if I return the car late?

Late fees explore to all renters, but rental companies sometimes charge under-25 drivers higher late fees or stricter grace periods. Check your contract for the late fee amount and grace period before you rent. Plan to return the car on time to avoid surprises.

Can I rent a car under 25 without a credit card?

No. A credit card in your name is required. Debit cards are not accepted. If you don't have a credit card, you'll need to open one before you can rent a car.