What you need to rent a car in Tennessee
To rent a car in Tennessee, you need a valid driver's license, a credit card in your name, and proof of insurance. Most rental companies require you to be at least 21 years old, though some charge an extra daily fee for drivers under 25. A few companies will rent to drivers as young as 18, but expect higher rates and stricter vehicle restrictions.
Your driver's license must be current and not suspended. If you hold an international license, bring it along with an English translation or an International Driving Permit — rental companies vary on what they accept. The credit card must be in your own name; rental companies use it to hold a deposit, which they release after you return the vehicle undamaged. Debit cards are rarely accepted for this hold, even if you have the funds available.
Insurance is the piece most renters get wrong. Your personal auto policy may already cover rental cars, or your credit card may offer rental coverage. Call your insurance company or credit card issuer before you book to confirm what is and is not covered. If you have neither, the rental company will sell you a daily insurance product at the counter — this is expensive but necessary if you have no other coverage.
Key Takeaways
- You must present a valid driver's license, a credit card in your name, and proof of insurance or be willing to buy the rental company's insurance at the counter.
- Rental companies place a hold on your credit card for a deposit; this is not a charge, but the funds are unavailable until you return the car.
- Drivers under 25 pay a surcharge at most companies, and some companies do not rent to anyone under 21.
- Airport rental locations in Tennessee charge a facility fee on top of the daily rate; off-airport locations are often cheaper.
- Returning the car with a full tank of gas costs far less than letting the rental company refuel it, so fill up before you drop it off.
Where to rent in Tennessee and what the location costs
Tennessee has rental desks at Nashville International (BNA), Memphis International (MEM), and Knoxville McGhee Tyson (TYS), as well as dozens of off-airport locations in cities across the state. Airport locations are convenient but add a facility recovery fee — this varies by airport and company but typically runs $5 to $15 per day on top of your base rate. Off-airport locations in the same city charge no facility fee and often have lower daily rates.
If you are flying into Nashville or Memphis, compare the airport rate against a location a few miles away before you book. The savings often cover a short taxi or rideshare ride to an off-airport counter. Some rental companies also operate at train stations and downtown locations; these fall between airport and suburban pricing.
Smaller cities like Chattanooga, Clarksville, and Johnson City have rental locations, though the selection of vehicle types is narrower and rates may be higher than in Nashville or Memphis. If you need a specific vehicle class — a truck, a van, or a luxury sedan — book early and confirm availability before your trip.
Understanding the daily rate and what gets added at checkout
The advertised daily rate is the base price, but several charges appear at checkout. A facility fee (at airports only), a state sales tax of 9.55 percent, and a rental tax specific to your county will be added. Some counties add an additional local tax; Nashville's total tax burden is higher than rural areas. A GPS rental, additional driver fee, or young-driver surcharge will also appear if you selected them.
Insurance is the largest variable cost. If you decline the rental company's coverage and your personal policy or credit card does not cover rentals, you are uninsured — a single accident can cost thousands. If you accept the company's daily insurance (called Loss Damage Waiver or Collision Damage Waiver), expect $15 to $30 per day depending on the vehicle size.
Fuel is another place renters overpay. Rental companies charge a premium per gallon if they refuel the car for you. The standard practice is to return the car on empty and let them charge you; this costs far more than filling the tank yourself at a gas station before drop-off. Some companies offer a pre-purchase fuel option at checkout, locking in a per-gallon rate — compare this against the local gas price before you buy.
How to avoid common rental mistakes
The most expensive mistake is returning the car with damage you did not document at pickup. When you arrive, walk around the vehicle with the rental agent and photograph or video any dents, scratches, or stains. Ask the agent to note these on your contract before you drive away. If you skip this step and return the car with new damage, the company will charge your credit card for repairs — these charges often appear weeks later.
The second mistake is accepting add-ons you do not need. GPS rental, roadside information, and additional driver fees are profitable for the company and rarely necessary. Your phone has free navigation, and your auto insurance or credit card likely covers roadside help. Add a second driver only if that person will actually drive; most renters pay for a second driver who never takes the wheel.
The third mistake is returning the car late. Rental agreements specify a return time, usually matching your pickup time. Returning even 30 minutes late can trigger a full extra day's charge. Set a phone reminder for two hours before your return time, and factor in traffic and parking when you plan your drop-off.
Comparing rental companies and booking strategies
The major national companies operating in Tennessee are Enterprise, Hertz, Avis, Budget, and National. Regional companies like Fox Rent A Car and Advantage also operate here. Prices vary significantly between companies for the same vehicle on the same dates, so check at least three before you book. Aggregator sites like Kayak and Autoslash pull rates from multiple companies, but always verify the final price on the company's own website before committing.
Book directly with the company rather than through a third-party site when possible. Third-party bookings sometimes have stricter cancellation policies or unclear insurance terms. If you book through a third party and the rate drops, you may not be able to rebook at the lower price.
Membership programs like AAA, AARP, or corporate travel accounts sometimes unlock discounts. Ask about these before you book. Rental car loyalty programs offer free upgrades or waived fees after a certain number of rentals, but the savings are modest unless you rent frequently.
What happens if you have an accident or damage claim
If you damage the car, report it to the rental company when ready — do not wait until drop-off. Take photographs of the damage and get a written incident report from the company. If the damage was caused by another driver, get their insurance information and file a police report; provide both documents to the rental company.
The rental company will inspect the vehicle and send you a damage claim, usually within one to two weeks. This claim goes to your credit card on file. If you purchased the company's damage waiver, the claim should be covered; if you declined it and your personal insurance does not cover rentals, you will pay out of pocket. Review your personal auto policy and credit card benefits before your trip so you know what is covered.
Disputes over damage charges are common. If you believe the charge is unfair, contact the rental company's customer service department with your photographs and incident report. Many companies will negotiate or waive charges if you have documentation showing the damage was pre-existing or minor.
Frequently Asked Questions
Do I need to buy insurance from the rental company?
Only if your personal auto insurance or credit card does not cover rental vehicles. Call your insurance company and credit card issuer before your trip to confirm coverage. If neither covers rentals, the rental company's daily insurance is necessary to protect yourself from repair costs.
Can I rent a car with a debit card instead of a credit card?
Most rental companies require a credit card because they place a hold on it for a deposit. A few companies accept debit cards, but they may require a larger deposit or additional documentation. Call ahead to confirm what the company accepts.
What is the best time to book a rental car in Tennessee?
Prices are lowest on weekdays and highest during summer, holidays, and major events like the CMA Awards in Nashville. Book at least one week in advance for better rates. Prices can change daily, so set a price alert on aggregator sites if you have flexibility on your travel dates.
Can I return the rental car to a different location than where I picked it up?
Yes, but one-way rentals cost more than round-trip rentals. The fee varies depending on the distance and direction. Returning to an airport location costs more than returning to an off-airport location. Compare the one-way fee against the cost of a round-trip rental before you book.
What should I do if the rental car breaks down during my trip?
Call the rental company's roadside information number when ready — this number is on your rental agreement. They will arrange a tow or send a replacement vehicle. You are not responsible for the breakdown unless you caused it through misuse. Stay with the vehicle and keep documentation of the breakdown for your records.