A Guide to Car Rental for Young Drivers in the US

A lot of young drivers are enthusiastic about exploring the roads and finally feeling the new level of autonomy, ease, and physical comfort that come with a car. Yet, those below the age of 25 cannot afford to owe one, and they have to deal with much higher insurance rates in comparison to others. 
What they can do instead is… rent a car — a solution that can help significantly minimize all the car expenses. Let us look at how everything’s going with this option in the US. This guide will help you learn things a young driver should keep in mind regarding vehicle rentals. 

How to rent a car before 25

Can you rent a car if you are 21? If you’re still unsure whether it’s possible at all for drivers under the age of 25 to rent cars, it definitely is. However, one thing should be perfectly clear — car renting is still a little more expensive for younger drivers than for those older than 25. Remember these three words we’ll soon talk about — the young driver fee. 

Young Driver Fee (Surcharge)

This is an additional charge applied by car rental companies to younger drivers. This fee reflects the increased risk associated with them, as according to statistical data they are more likely to be involved in accidents. Most companies charge this fee for drivers aged 18-24, but policies can vary.

The fee usually ranges from $10 to $30 per day, depending on the rental company and location. Some companies may offer exemptions for certain groups, like government employees or AAA members. If you are a young driver, check with your insurance provider—your personal coverage may help reduce costs. 
However, not all rental companies charge this fee, so just go and
shop around! Always read the rental agreement carefully to understand all potential charges.

Car insurance

Car insurance for young drivers often comes with higher costs as well. As we have already mentioned above, statistically, people younger than 25 are more likely to have accidents. 

Most policies include liability, collision, and comprehensive coverage. Many insurers offer discounts for good grades, completing driver’s education courses, or having a vehicle equipped with safety features. Young drivers can often be added to a parent’s insurance policy, which is typically cheaper than getting an individual one. Some companies offer pay-as-you-drive programs, where premiums are based on driving habits. If you’re looking for better insurance, compare offers from multiple insurers to find the best rates.

Vehicle Limitations

The common vehicle restrictions for young drivers cover engine size, car type, safety features, age of vehicle, and modification restrictions. That is why here are a few things to remember:

1. Many insurers charge higher premiums for vehicles with larger engines — choose cars with smaller, less powerful engines.

2. Sedans or hatchbacks are more accessible than sports cars or any high-performance vehicles — the latter are often viewed as higher risk and may be restricted.

3. Insurers may favor newer cars over older ones, as newer models typically have more safety technology and are less likely to break down.

4. Most likely insurers won’t cover vehicles that have been significantly modified — aftermarket modifications increase risk.

5. Vehicles equipped with advanced safety features may lead to lower premiums — choose models with better safety ratings. 

Driving License

A full driving license is typically required, often held for at least one year or more. However, having held a full driving license for a few years doesn't guarantee your eligibility to rent a vehicle. Drivers under 25 are also required to maintain a clean driving history, free of penalty points.

Car Rental Policies under 25: Extra

Always compare quotes and consider factors like coverage limits and deductible amounts to find the best car insurance for drivers under 25, and be ready: some companies may request additional documentation: proof of insurance or a credit card in the driver's name.