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How to Avoid Paying the Under 25 Car Rental Fee
Look for offers or companies that waive the underage fee.
Sally French is co-host of the Smart Travel podcast and a writer on NerdWallet's travel team. Before joining NerdWallet as a travel rewards expert in 2020, she wrote about travel and credit cards for The New York Times and its sibling site, Wirecutter.
Outside of work, she loves fitness, and she competes in both powerlifting and weightlifting (she can deadlift more than triple bodyweight). Naturally, her travels always involve a fitness component, including a week of cycling up the coastline of Vietnam and a camping trip to the Arctic Circle, where she biked over the sea ice. Other adventures have included hiking 25 miles in one day through Italy's Cinque Terre and climbing the 1,260 steps to Tiger Cave Temple in Krabi, Thailand.
Kevin Berry works as the content lead for multimedia production at NerdWallet including YouTube, podcasts and social media videos across all financial topics. Previously, he was the Lead Editor for the Travel Rewards team. Prior to NerdWallet, Kevin managed the content and social media teams at NBC Sports in Portland for eight years. His prior experience also includes time as a financial analyst (Comcast) and business system analyst (Nike).
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Renting a car when you’re under 25 can be surprisingly difficult and costly because of young driver surcharges. If you fall in this age range, you could pay hundreds of dollars more than a 26-year-old with a couple of speeding tickets, no matter how perfect your own driving record is. Some rental car companies won’t even serve you if you’re under a certain age.
But it’s possible to avoid paying (or at least reduce the cost of) the under 25 car rental fee. Some car rental companies charge less than others, and some membership programs — like AAA and USAA — can get some (or all) of those fees waived. And other car rental companies don’t charge underage driver fees at all.
Here’s what you need to know about avoiding underage rental car fees when you’re under 25.
One of the best ways to not have to pay underage rental fees is through membership in certain programs.
Rent with Hertz, where AAA waives young driver fees
Hertz has among the steepest underage driver fees, yet the fees are among the easiest to get around because of the partnership between AAA and Hertz. AAA benefits when renting through Hertz include a waived young renter fee for members from ages 18 to 24 who also meet standard rental qualifications.
Other Hertz-related benefits for AAA members include discounts of up to 20% off, waived additional driver fees and free use of one infant seat or child booster seat with every rental.
How to become a AAA member: AAA membership costs vary based on location and level of coverage, though it typically ranges from about $40 to $165 per person, per year.
Even with the lowest tier of membership, the cost will likely end up as a net savings, meaning you nearly always break even on your AAA fee with just one Hertz rental per year. Throw in the other discounts and services, and AAA membership is worth it if you’re an underage driver looking to rent with Hertz.
🤓Nerdy Tip
Many major hotel brands offer special discount rates on rooms for AAA members. This is another great way to get even more value out of your AAA membership on top of car rental savings.
Check with your employer or university for underage fee waivers
Some employers and universities have partnerships with rental car companies that provide benefits for employees, alumni and students like discounted rates and waived underage driver fees.
Check your employer’s benefits portal or alumni website for potential car rental discounts.
While most typical car rental companies have underage surcharges, there’s an increasing number of alternatives that charge smaller fees or none at all.
Turo and Zipcar
Zipcar and Turo have tiered underage driver fees that are broken out into two tiers.
No matter which tier you fall into, the Turo young driver fee is on the higher end for U.S. rentals: $30 per day if you’re 21 to 25 years old, and $50 a day if you’re 18 to 20.
For shorter rentals, Zipcar's young driver fee could be among the lowest you’ll find, even if you’re 18. For most U.S. trips, you’ll pay $1 per hour and $12 per day if you’re 18-20, and 70 cents per hour and $10 per day if you're 21-24. There are some exceptions, such as certain membership plans (which may waive the fee) and cars rented in New York (where the fee is higher).
If you need a Zipcar for just an hour, you’d pay $13 as an 18-year-old. Though, if you’re taking it for a whole 24-hour block, it would cost $36.
Nerdy Perspective
Have you used car-sharing services like Turo, Car Shair or ZipCar?
Harlan Vaughn
Contributing Travel Writer
I frequently used ZipCar in Brooklyn and had only good experiences. The cars were always clean with full gas tanks, and the few times I had a small issue, customer service was impeccable. It can be pricey, but if you can rent at an off-peak time (typically in the middle of the day during the week), you can find better rates. The cars were always easy to find and unlock. I never had a major issue. It gave me a lot of freedom to take day trips when my schedule was flexible or I just felt like driving somewhere.
I frequently used ZipCar in Brooklyn and had only good experiences. The cars were always clean with full gas tanks, and the few times I had a small issue, customer service was impeccable. It can be pricey, but if you can rent at an off-peak time (typically in the middle of the day during the week), you can find better rates. The cars were always easy to find and unlock. I never had a major issue. It gave me a lot of freedom to take day trips when my schedule was flexible or I just felt like driving somewhere.
Harlan Vaughn
Contributing Travel Writer
Sally French
Lead Travel Writer/ Spokesperson
These services are super hit-and-miss. Sometimes they're great, and sometimes the experience is abysmal and I wish I had just rented a normal rental car. It's largely due to car quality. With a traditional car rental company, I almost always know I'm getting a relatively new car. With something like Turo, I sometimes worry the car I rented is older than me. But I do appreciate that many of these services allow hourly rentals, which can often be way more affordable than a standard rental if I only need it for a couple hours.
These services are super hit-and-miss. Sometimes they're great, and sometimes the experience is abysmal and I wish I had just rented a normal rental car. It's largely due to car quality. With a traditional car rental company, I almost always know I'm getting a relatively new car. With something like Turo, I sometimes worry the car I rented is older than me. But I do appreciate that many of these services allow hourly rentals, which can often be way more affordable than a standard rental if I only need it for a couple hours.
Sally French
Lead Travel Writer/ Spokesperson
Harlan Vaughn
Contributing Travel Writer
I frequently used ZipCar in Brooklyn and had only good experiences. The cars were always clean with full gas tanks, and the few times I had a small issue, customer service was impeccable. It can be pricey, but if you can rent at an off-peak time (typically in the middle of the day during the week), you can find better rates. The cars were always easy to find and unlock. I never had a major issue. It gave me a lot of freedom to take day trips when my schedule was flexible or I just felt like driving somewhere.
I frequently used ZipCar in Brooklyn and had only good experiences. The cars were always clean with full gas tanks, and the few times I had a small issue, customer service was impeccable. It can be pricey, but if you can rent at an off-peak time (typically in the middle of the day during the week), you can find better rates. The cars were always easy to find and unlock. I never had a major issue. It gave me a lot of freedom to take day trips when my schedule was flexible or I just felt like driving somewhere.
Harlan Vaughn
Contributing Travel Writer
Sally French
Lead Travel Writer/ Spokesperson
These services are super hit-and-miss. Sometimes they're great, and sometimes the experience is abysmal and I wish I had just rented a normal rental car. It's largely due to car quality. With a traditional car rental company, I almost always know I'm getting a relatively new car. With something like Turo, I sometimes worry the car I rented is older than me. But I do appreciate that many of these services allow hourly rentals, which can often be way more affordable than a standard rental if I only need it for a couple hours.
These services are super hit-and-miss. Sometimes they're great, and sometimes the experience is abysmal and I wish I had just rented a normal rental car. It's largely due to car quality. With a traditional car rental company, I almost always know I'm getting a relatively new car. With something like Turo, I sometimes worry the car I rented is older than me. But I do appreciate that many of these services allow hourly rentals, which can often be way more affordable than a standard rental if I only need it for a couple hours.
Sally French
Lead Travel Writer/ Spokesperson
Harlan Vaughn
Contributing Travel Writer
I frequently used ZipCar in Brooklyn and had only good experiences. The cars were always clean with full gas tanks, and the few times I had a small issue, customer service was impeccable. It can be pricey, but if you can rent at an off-peak time (typically in the middle of the day during the week), you can find better rates. The cars were always easy to find and unlock. I never had a major issue. It gave me a lot of freedom to take day trips when my schedule was flexible or I just felt like driving somewhere.
I frequently used ZipCar in Brooklyn and had only good experiences. The cars were always clean with full gas tanks, and the few times I had a small issue, customer service was impeccable. It can be pricey, but if you can rent at an off-peak time (typically in the middle of the day during the week), you can find better rates. The cars were always easy to find and unlock. I never had a major issue. It gave me a lot of freedom to take day trips when my schedule was flexible or I just felt like driving somewhere.
Harlan Vaughn
Contributing Travel Writer
Sally French
Lead Travel Writer/ Spokesperson
These services are super hit-and-miss. Sometimes they're great, and sometimes the experience is abysmal and I wish I had just rented a normal rental car. It's largely due to car quality. With a traditional car rental company, I almost always know I'm getting a relatively new car. With something like Turo, I sometimes worry the car I rented is older than me. But I do appreciate that many of these services allow hourly rentals, which can often be way more affordable than a standard rental if I only need it for a couple hours.
These services are super hit-and-miss. Sometimes they're great, and sometimes the experience is abysmal and I wish I had just rented a normal rental car. It's largely due to car quality. With a traditional car rental company, I almost always know I'm getting a relatively new car. With something like Turo, I sometimes worry the car I rented is older than me. But I do appreciate that many of these services allow hourly rentals, which can often be way more affordable than a standard rental if I only need it for a couple hours.
Sally French
Lead Travel Writer/ Spokesperson
Take advantage of the USAA car rental fee waiver
If you’re a member of the United Services Automobile Association and younger than 25, you might be able to get fees waived at some of the biggest car rental companies, including Avis, Budget, Enterprise and Hertz.
You’ll have to currently be enrolled in military schooling, such as a trade school or military academy, to qualify, and the fee waiver applies to rentals at participating U.S.-based locations. When renting through Avis, Budget and Hertz, the minimum USAA car rental age is 18, and — if you qualify — USAA waives the young driver fee through deals they’ve negotiated with the rental companies.
Here’s what you need to know about the USAA under 25 car rental fee waiver, by rental company:
Avis: Young driver fee (average $27 per day) waived for USAA members from 18 to 24 years old.
Budget: Young driver fee (average $27 per day) waived for USAA members from 18 to 24 years old.
Enterprise: Young driver fee (average $20 per day) waived for USAA members from 21 to 24 years old.
Hertz: Young driver fee (average $30 per day) waived for USAA members from 18 to 24 years old.
How to become a USAA member: USAA membership is open to current and former military and their spouses, as well as children of USAA members. Beyond avoiding the underage rental car fee, membership entails access to USAA banking and insurance products, and other travel and shopping discounts. As long as you qualify, membership is free.
But to rent a car using USAA benefits, you may have to be more than just a member. USAA said you may also be asked for proof of USAA insurance or a military ID at the rental car counter to get the fee waived.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account the type of card being reviewed (such as cash back, travel or balance transfer) and the card's rates, fees, rewards and other features.
Underage fees and other policies at major rental car companies
Underage driver fees vary based on the car rental company you’re using. Here are the general underage driver policies at the major rental car companies. Keep in mind that some states have their own rules for younger drivers. Fees and policies could vary depending on where you’re renting.
Alamo Rent a Car
Can you rent a car at age 18? Generally, no. The minimum age to rent an Alamo vehicle in most cases is 21 years old.
Underage surcharge: About $20 a day (though exact figures vary by location).
Some restrictions/requirements for renting a car if you’re underage:
You are restricted to renting from certain car classes only.
You will pay an additional per day surcharge.
Some exceptions to the car rental age limit (not a comprehensive list):
You’re a member of the U.S. military or a government employee age 18 or older and are renting for authorized government travel.
You’re renting in New York or Michigan, in which case the minimum age is 18.
Budget Rent a Car
Can you rent a car at age 18? Generally, no. The minimum age to rent a Budget vehicle in most cases is 21 years old.
Underage surcharge: $27 per day.
Some restrictions/requirements for renting a car if you’re underage:
You must show proof of: an accepted credit card (not a debit card), a valid driver’s license and an official student ID.
You will pay an additional per day surcharge.
You aren't allowed to rent most larger or luxury cars, which includes premium SUVs, passenger vans.
Some exceptions to car rental age limit (not a comprehensive list):
You’re getting a replacement vehicle through select insurance providers and are at least 18 years old.
You’re renting with certain employer corporate rates and are at least 21 years old.
You’re a member of the U.S. military or a government employee age 18 or older and are renting for authorized government travel.
You’re renting in New York or Michigan, in which case the minimum age is 18.
Can you rent a car at age 18? Generally, no. The minimum age to rent an Enterprise vehicle in most cases is 21 years old.
Underage surcharge: About $25 per day (though exact figures vary by location).
Some restrictions/requirements for renting a car if you’re underage:
You may not be allowed to rent certain types of cars (typically larger or luxury vehicles).
Some exceptions to car rental age limit (not a comprehensive list):
A U.S. government employee can rent at 18 years of age, but must be able to provide official orders.
You’re renting in New York or Michigan, in which case the minimum age is 18 or older. However, a young driver surcharge still applies (and it’s higher if you’re 18-20 years old versus 21-24).
You may be able to rent if you’re 18 to 24 years old and your vehicle is being repaired.
Hertz
Can you rent a car at age 18? Generally, no. The minimum age to rent a Hertz vehicle in most cases is 20 years old.
Underage surcharge: Up to $52 per day (can vary by car).
Some restrictions/requirements for renting a car if you’re underage:
You may not rent Hertz’s Dream Cars, Prestige and Adrenaline collections, and certain specialty vehicles.
You must show proof of a valid debit or credit card and a valid driver’s license in good standing for over a year.
You will pay an additional per day surcharge.
Some exceptions to car rental age limit (not a comprehensive list):
You’re renting in New York or Michigan, in which case the minimum age is 18.
Thrifty Car Rental
Can you rent a car at age 18? Generally, no. The minimum age to rent a Thrifty vehicle in most cases is 20 years old.
Underage surcharge: About $27 per day (though it varies by location).
Some restrictions/requirements for renting a car if you’re underage:
You may not rent some specialty vehicle classes, such as the StyleSeries.
You must show proof of a valid debit or credit card and a valid driver’s license.
You will pay an additional per day surcharge.
Some exceptions to car rental age limit (not a comprehensive list):
You’re renting in New York or Michigan, in which case the minimum age is 18.
You are U.S. military personnel or a government employee and can provide official government paperwork, in which case the minimum age is 18.
Other things to know about under 25 car rental fees
You’ll likely owe more at the counter than the rate quoted online
In most cases, car rental companies don’t verify your identification when you reserve a rental car online. That also means they generally don’t bake in the underage driver fee in your quoted rate. Be prepared to owe more at the counter than what the initial booking receipt suggests if you’re under 25 years old.
Some fees vary by state
Some states have their own rules, so you could get hit with varying fees. For example, at Budget’s New York corporate-operated locations, there’s an additional $84-per-day underage surcharge for drivers 18 to 20 years old and $35-per-day surcharge for drivers 21 to 24. At Budget’s corporate-owned locations in Michigan, there’s an additional $41-per-day underage surcharge for drivers 18 to 20 and $28-per-day surcharge for drivers 21 to 24 years old.
A young driver fee isn't the same as insurance (you’ll need that, too)
Not only do drivers under 25 typically have to pay a young driver fee, but you’ll also need to have rental car insurance. Rental car insurance typically isn’t any more expensive based on your age. What’s more, it’s fairly easy to avoid paying extra for the rental car insurance offered at the counter.
If you already own a car, then your existing auto insurance policy may cover you. Many credit cards also provide coverage for rental cars when you use that card to pay for the rental and the rental is in your name. Or it might make more sense to purchase a standalone rental car policy rather than purchase it from the rental car company. You generally need to decline the rental company’s coverage to use these options.
You’re seeking advice on how to avoid the under 25 car rental fee, but what if you avoid the car rental entirely? Depending on the nature of your trip, it might turn out to be more cost-efficient to go with alternative transportation.
Use Uber, Lyft or other ridesharing services
You’ll pay per ride, but an Uber or Lyft might end up saving you money over a rental car, especially if you won’t actually be taking very many rides on a trip.
Plus, you’ll save on parking costs while avoiding the hassle of trying to find parking in the first place. You’ll get to avoid rental car counter lines, and you won’t have to worry about navigating an area you’re unfamiliar with.
Take a different type of 'road trip'
It’s no secret that road trips are one of the hottest travel trends since the coronavirus pandemic started. A National Park road trip can take you to a new part of the world while largely avoiding crowds, and driving your own car can often turn out to be cheaper than flying and renting a car.
But you don’t necessarily need to rent a car to tour the off-the-beaten-path parts of the country. Consider a train ride, traveling from one city to the next by rail. Some trains have sleeper cars so you don’t even need to get off and find a hotel.
To save money, look for railroad loyalty programs like Amtrak Guest Rewards, which allows you to earn points from other travel and even everyday shopping to earn points toward free train tickets.
Also consider using privately-operated buses headed to where you need to go. For example, rather than rent a car to go from San Francisco to Lake Tahoe for a ski weekend, it’s not uncommon to take a ski bus. You don’t need to worry about underage driver fees or driving in snow — and they’ll often throw in free hot cocoa for the ride home. Or look to intercity bus services like Megabus for travel between major cities.
The bottom line
Rental cars can quickly get costly if you’re underage. For most people, joining AAA is the best way to get that under 25 car rental fee waived. Though, depending on your affiliation with employers, the military or a university, you may be eligible to avoid the young driver surcharge in other ways.
To view rates and fees of the American Express Platinum Card®, see this page.
Insurance Benefit: Car Rental Loss & Damage Insurance
Car Rental Loss and Damage Insurance can provide coverage up to $75,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
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