Most rental companies charge drivers under 25 an extra daily fee, but the amount and whether it can be waived depends on the company and your circumstances
If you're under 25 and renting a car, expect to pay more per day than a driver aged 25 or older. This surcharge—sometimes called a young driver fee or underage driver fee—is standard across the major rental chains. The daily cost typically ranges from $15 to $30 per day, though some companies charge more for certain vehicle types. A few rental companies do waive this fee under specific conditions, but those conditions are narrow and not may provide.
The fee exists because rental companies view drivers under 25 as statistically higher risk for accidents and damage claims. Insurance data supports this: drivers in this age group file more claims. The rental company is protecting itself by charging more upfront rather than absorbing potential losses.
Key Takeaways
- Enterprise, Hertz, and Budget waive the under-25 fee for renters who hold certain credit cards, membership programs, or insurance policies—check your specific card or membership terms.
- Avis and National do not waive the fee based on age alone, though some corporate accounts or premium memberships may reduce it.
- The fee applies at the time of booking or pickup; you cannot dispute it after the rental begins.
- Declining the rental company's damage waiver does not reduce or remove the young driver surcharge.
- Some regional or independent rental companies have lower or no young driver fees, but availability varies by location.
Which companies waive the fee and what they require
Enterprise waives the under-25 surcharge if you hold an Enterprise Plus membership (free to join) or if you rent through certain corporate accounts. Some premium credit cards also may have access to, but this varies by card issuer and rental location. Call the specific Enterprise location before booking to confirm whether your membership or card qualifies.
Hertz waives the fee for members of its Five Star or President's Circle loyalty programs, and for renters with certain American Express cards or corporate accounts. The waiver is not automatic; you must provide your membership or card number at booking.
Budget waives the fee for members of its BudgetGuard program and for some corporate renters. Budget also occasionally runs promotions that waive the fee for specific dates or locations, though these are temporary.
Avis and National do not routinely waive the under-25 fee based on age. However, both offer corporate accounts and premium memberships that may reduce the overall rental cost or provide other benefits. Neither company guarantees a waiver of the age surcharge itself.
How the fee is calculated and what it covers
The young driver surcharge is a flat daily rate added to your base rental price. If you rent for five days at $50 per day plus a $20 young driver fee, you pay $350 for the car ($250 base plus $100 in surcharges). The fee does not cover damage, fuel, or insurance—those are separate charges.
The surcharge applies to all vehicle classes at most companies, though some charge higher fees for premium or specialty vehicles. A few companies charge a one-time fee instead of a daily fee, but this is less common. Always check your rental agreement before signing to see the exact breakdown.
The fee is non-refundable once you have completed the booking. If you cancel before pickup, you may recover other charges depending on the rental company's cancellation policy, but the young driver fee is typically forfeited.
Insurance and damage waivers do not affect the young driver fee
Some renters assume that purchasing the rental company's damage waiver (collision damage waiver or CDW) will reduce or eliminate the young driver surcharge. It will not. These are separate charges. The damage waiver protects you against liability for vehicle damage; the young driver fee is a risk assessment charge that stands alone.
If you decline the damage waiver and rely on your personal auto insurance or credit card coverage instead, the young driver fee still applies. Your own insurance does not lower the rental company's surcharge because the surcharge is not an insurance product—it is a rental rate adjustment.
What happens if you turn 25 during a multi-day rental
If your rental spans your 25th birthday, the surcharge applies to the entire rental period. The rental company charges based on your age at the time of pickup, not on your age during the rental. You cannot request a refund for days after your birthday, and the rental agreement you signed at pickup locks in the rate for the full duration.
If you are close to turning 25 and have flexibility on your rental dates, booking after your birthday will save you the surcharge entirely. Some rental companies will allow you to modify a booking if you contact them before pickup, but this is at their discretion and may incur other fees.
Regional and independent rental companies sometimes have lower or no young driver fees
National chains are not the only option. Some regional rental companies and independent operators charge lower young driver fees or waive them entirely. Availability depends on your location. In some areas, local companies may be competitive on price even with the surcharge factored in.
Check rental aggregator sites like Kayak, Autoslash, or Priceline to compare prices across multiple companies at your pickup location. Filter by total price (which includes all fees) rather than base rate alone. Sometimes a company with a higher base rate but no young driver fee costs less overall than a major chain.
How to learn about your card, membership, or insurance qualifies for a waiver
Start by checking the benefits guide for any credit card you own. Premium travel cards often include rental car benefits; some specifically mention young driver fee waivers. The benefits guide is usually available on the card issuer's website or in your account dashboard.
If you belong to a loyalty program (AAA, AARP, corporate travel program), log into your account or call the program's customer service line and ask whether the young driver fee is waived at any rental company. Some programs have partnerships that reduce or eliminate the fee.
Contact the specific rental location where you plan to pick up the car. National policies vary by location, and a local manager may have information about current promotions or waivers that do not appear online. Provide your membership number, card number, or corporate account details when you call.
Frequently Asked Questions
Can I negotiate the young driver fee at the rental counter?
No. The fee is set by the rental company's pricing system and is not negotiable at pickup. If you believe you may have access to for a waiver based on a membership or card benefit, bring proof of that benefit to the counter. Otherwise, the fee applies as quoted.
Does my parents' insurance or credit card waive the fee if I'm on their policy?
No. The waiver applies to the person whose name is on the rental agreement. If your parents' card or insurance qualifies for a waiver, you would need to be the primary renter on the reservation for it to explore. Rental companies do not extend benefits to secondary drivers.
What if the rental company charged me the fee but I later found out I may have access to for a waiver?
Contact the rental company's customer service department with proof of your may have access to membership or card benefit. Some companies will refund the fee if you can show you met the waiver criteria at the time of rental. Others will not. The sooner you contact them after your rental, the better your chances.
Is the young driver fee the same at airport rental locations as at off-airport locations?
No. Airport locations often charge higher base rates and may charge higher young driver fees as well. Off-airport locations are sometimes cheaper overall. Compare prices at both location types in your area before booking.
Do I have to pay the young driver fee if I'm renting a truck or van instead of a car?
Usually yes, though the amount may differ. Some companies charge higher fees for larger vehicles. Check the rental agreement at booking to see the exact surcharge for the vehicle type you need.