How Much Is the Under 25 Car Rental Fee in the U.S.?

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1. Why Under-25 Drivers Pay Extra Fees

If you're under the age of 25 and planning to rent a car in the U.S., chances are you’ve come across something called the "young renter fee." But why does it exist? Rental car companies often associate younger drivers with higher accident rates, less driving experience, and greater insurance risk. To offset this potential liability, agencies tack on an additional fee for drivers under 25.

While this may seem frustrating, it’s not unique to one brand. Almost every major U.S. rental company enforces this surcharge—but the amount and policies vary.

2. How Much Is the Under 25 Car Rental Fee?

The under 25 car rental fee typically ranges from $20 to $45 per day depending on the company, location, and vehicle type. This means even if your rental rate is $50/day, the final bill could jump to $70–$95 daily just because of your age.

Here’s a breakdown of average fees:

• Enterprise: $25–$35/day
• Hertz: $30–$45/day
• Avis: Around $27/day
• Budget: Up to $35/day

These prices may also vary based on whether you’re booking from an airport or a local rental office. High-demand cities like New York or Los Angeles sometimes have slightly steeper surcharges.

3. Real Costs from Top U.S. Rental Companies

Consider this true example from a University of Michigan student who rented a compact car from Hertz for a spring break trip to Florida. The base rate was $48/day, but the under-25 fee added another $35/day. Over a 5-day trip, that totaled an extra $175 just in young driver fees—nearly doubling the original rental cost.

At Carvel Car Rental, we’ve helped hundreds of young travelers minimize these costs by guiding them toward rental partners that offer better terms or waive fees through special memberships. Some credit card companies or insurance providers even offer programs that eliminate the underage fee altogether.

4. Ways to Reduce the Under 25 Fee

You may not be able to avoid the fee entirely, but here are proven methods to lower it:

• Join a loyalty program: Companies like Hertz Gold Plus Rewards or Avis Preferred sometimes reduce or waive the surcharge for frequent renters.
• Use a corporate or university discount: Many universities have partnerships with rental companies that include fee waivers for students under 25.
• Rent through USAA (if eligible): Members of USAA can often rent without any young driver fee at select partners.
• Choose the right location: Some off-airport branches have lower fees or waive them entirely compared to airport branches.

Ask customer service before booking if any discounts or promotions apply to you. If you're unsure, platforms like Carvel Car Rental can help you compare offers quickly.

5. Tips for Young Drivers to Rent Smart

Navigating the car rental world under 25 requires planning. Choose economy or compact cars—they often come with lower base rates and may qualify for reduced young driver fees. Avoid luxury or specialty vehicles, which sometimes come with age restrictions beyond just a surcharge.

Also, make sure your driver’s license is clean. Some rental companies are stricter with young drivers who’ve had recent violations.

Finally, always read the fine print. What seems like a great online deal could come with hidden age-based charges when you arrive to pick up the car.

Whether you're heading to a weekend festival, a college road trip, or a summer internship in a new city, Carvel Car Rental is here to help you find the best deals—even if you’re under 25.