How much is the under-25 surcharge for a rental car?

The under-25 surcharge (also called young driver fee or young renter fee) typically ranges from $20 to $35 per day at major rental companies. On a 7-day rental, that adds $140 to $245 to your total cost. The exact amount varies by company, location, and your specific age.

Can you rent a car at 18 years old?

Some companies rent to 18-year-olds in select states. Enterprise and National allow 18+ rentals in New York and Michigan (where state law requires it). Hertz allows 18+ in New York. For most other states, the minimum age is 20 or 21 at major companies. Some local and independent agencies rent to 18-year-olds more broadly.

How can I avoid the young driver fee when renting a car under 25?

Several ways: USAA members get the fee waived at most major companies. AAA members get discounts or waivers at select companies. Government and military employees on official travel are exempt. Corporate rental codes from your employer may waive it. Some credit card travel portals offer under-25 fee waivers. And in New York state, the fee is prohibited by law.

Which rental car company is cheapest for drivers under 25?

Enterprise and National tend to have the lowest young driver surcharges and the most flexible age policies. Budget and Avis charge moderate fees. Turo (peer-to-peer) has no platform-level young driver fee, though individual hosts may set their own age requirements. Always compare total cost including the surcharge, not just the base rate.

Rental Car Under 25: Fees, Rules & How to Save

By RentRight Team · Published April 2, 2026 · 8 min read

If you are under 25 and trying to rent a car, you have probably already discovered the frustrating reality: the industry treats you as a higher-risk customer, and they charge accordingly. The young driver surcharge can add $20 to $35 per day to your rental, turning a $35/day compact car into a $70/day headache.

But here is what most young renters do not know: there are multiple ways to reduce or completely eliminate the under-25 fee. This guide covers every angle, from minimum age requirements by company to specific programs that waive the surcharge entirely.

What Is the Young Driver Fee?

The young driver fee (also called the young renter surcharge, underage driver fee, or age differential charge) is a per-day fee that rental companies charge drivers under 25. The fee exists because statistics show that drivers under 25 are involved in more accidents per mile driven than older drivers, which increases the rental company's risk and insurance costs.

The fee is applied per day, not per rental. On a 7-day trip, a $27/day surcharge adds $189 to your total bill. That often exceeds the cost of the actual car rental itself, which is why this fee catches so many young renters off guard.

At most companies, the young driver fee applies to renters aged 21 to 24. If you are under 21, many companies will not rent to you at all (with some exceptions covered below).

Minimum Age by Company

Each rental company sets its own minimum age, and these can vary by state:

Enterprise: 21 in most states. 18 in New York and Michigan.
National: 21 in most states. 18 in New York and Michigan.
Hertz: 20 in most states. 18 in New York.
Avis: 21 in most states. Occasionally 20 at select locations.
Budget: 21 in most states.
Alamo: 21 in most states.
Sixt: 21 at most US locations.
Dollar / Thrifty: 20 in most states.

The minimum age is the age at which you can rent at all. The young driver fee is a separate charge that applies from the minimum age up to 25. So a 21-year-old at Enterprise can rent, but will pay the surcharge until they turn 25.

Renting at 18, 19, or 20

If you are 18 to 20, your options are more limited but not nonexistent. Here is what to know:

State Law Requirements

Some states require rental companies to rent to anyone with a valid driver's license, regardless of age. New York and Michigan are the most notable examples. In these states, companies must rent to 18-year-olds, though the young driver surcharge still applies.

Companies That Rent to 18-20 Year Olds

Outside of states that legally require it, very few major companies rent to drivers under 20. Your best options at 18-19 are:

Enterprise and National in New York and Michigan
Some independent and local rental agencies
Peer-to-peer platforms like Turo (some hosts accept 18+)
Car-sharing services like Zipcar (allows 18+ with a membership)

At age 20, Hertz, Dollar, and Thrifty open up as options in most states, though all will charge the young driver surcharge.

How Much Does the Surcharge Cost?

The young driver surcharge varies by company, location, and sometimes by your exact age:

Enterprise / National: Approximately $20-$25/day for ages 21-24
Hertz: Approximately $20-$30/day for ages 20-24
Avis: Approximately $25-$30/day for ages 21-24
Budget: Approximately $22-$27/day for ages 21-24
Alamo: Approximately $25-$30/day for ages 21-24
Sixt: Approximately $25-$35/day for ages 21-24

Some companies charge a higher surcharge for drivers aged 21-22 and a slightly lower one for ages 23-24, but this is not universal. The fee can also be higher at airport locations than at neighborhood branches.

CostItRight factors in the young driver surcharge when calculating your total rental cost, so you see the real price before you book.

How to Waive the Young Driver Fee

This is the section that can save you hundreds of dollars. Several programs and situations will waive or reduce the young driver fee:

USAA Membership

USAA members (military families) get the young driver fee waived at Enterprise, National, Hertz, Avis, and Budget. This is one of the most valuable perks for young USAA members. You must use your USAA discount code when booking. If you are eligible for USAA membership, this alone can save you $150 to $250 on a week-long rental.

AAA Membership

AAA members aged 20 to 24 get the young driver fee waived at Hertz. At other companies, AAA may offer a reduced surcharge rather than a full waiver. A basic AAA membership costs about $60 per year, which pays for itself in a single 3-day rental.

Corporate and Employer Codes

Many large employers have negotiated rental car rates that include a young driver fee waiver. If you are renting for business (or even if your employer simply has a corporate code), check whether it waives the age surcharge. This applies even if the rental is for personal use, as long as you are using the corporate code.

Government Employee Rates

Federal, state, and local government employees on official travel are exempt from the young driver fee at most major companies. You will need your government ID and may need to book through your agency's travel portal.

Student Discounts

Some companies offer student discount programs that reduce (but typically do not eliminate) the young driver fee. Check Enterprise's student program and any partnerships your university may have with rental companies.

Military and Government Exemptions

Active-duty military members receive special treatment from most rental companies:

Young driver fee waiver: Most companies waive the under-25 fee for active-duty military on official orders.
Lower minimum age: Some companies lower the minimum rental age to 18 for active-duty military, even in states where the standard minimum is 21.
Discounted rates: Military-specific rates are available at most companies, often 5 to 25 percent below standard pricing.

To access military rates and fee waivers, you will typically need to present a valid military ID at the counter and book using the company's military discount code (often available through your base's travel office or MWR).

State Laws That Help You

A few states have laws that directly benefit young renters:

New York: The most renter-friendly state. Companies must rent to anyone 18 or older with a valid license. The young driver surcharge is also capped and cannot exceed a specific amount per day (currently around $20-$25).
Michigan: Companies must rent to 18+ drivers. The young driver fee still applies but is generally lower than in other states.
Some other states have proposed legislation to cap or eliminate young driver surcharges, but as of 2026, New York and Michigan remain the most protective.

If you happen to live near a state border, it may be worth checking whether renting in the adjacent state offers better terms for young drivers.

Alternatives to Major Rental Companies

If the surcharge is a dealbreaker, consider these alternatives:

Turo: Peer-to-peer car rental. No platform-level young driver fee. Some hosts restrict age, but many accept 18+. Daily rates are often competitive with or lower than traditional companies.
Zipcar: Car-sharing membership. Available to ages 18+ (21+ for some vehicle classes). No young driver surcharge. Best for short rentals (hourly or daily) in urban areas.
Local independent agencies: Smaller rental companies often have more flexible age policies and lower or no young driver fees. Check locally-owned agencies near your destination.

CompareItRight lets you compare rates across companies side by side, including the under-25 surcharge, so you can find the most affordable option for your age group.

The Bottom Line

Being under 25 does not mean you have to overpay for a rental car. The young driver surcharge is real and can be steep, but there are concrete ways to avoid it: USAA membership, AAA discounts, corporate codes, military exemptions, and alternative platforms like Turo. The key is to check your eligibility for fee waivers before you book, and to compare the total cost (base rate plus surcharge) rather than just the advertised daily rate.

Use CostItRight to see the true total including the under-25 fee, and CompareItRight to find the cheapest option for your specific age. A few minutes of research can easily save you $100 to $250 on your next rental.