Whether you’re planning a cross-country road trip or simply exploring a new city, renting a car can give you the freedom to travel on your own schedule. But how old do you have to be to rent one? Even if you have held a full driver’s license since the age of 16, rules in the US vary between companies and locations.
In this Remitly guide, we’ll explain the typical age requirements to rent a car, what additional fees might apply if you’re under 25, and the restrictions you might encounter. We’ll also take a look at how car rental rules compare around the world, so that you can make plans with clarity and confidence.
What is the minimum age requirement to rent a car?
Most states don’t set a specific minimum age to rent a car. Instead, car rental companies decide their own requirements, largely based on risk.
Why age matters for car rental
Statistics show that the younger and less experienced the driver, the more likely they are to be involved in an accident. This not only puts rental companies’ fleets at risk, but also drives up their insurance premiums. To manage the risk, many companies restrict rentals to younger drivers.
While each car rental company has its own policies, the most common minimum age for a standard car rental is 21 years old. Drivers under 25 generally pay a young driver surcharge, which is added to the daily rental fee. Young drivers may also be restricted from renting certain vehicle categories, such as luxury cars or bigger passenger vans.
There are also some state-specific rules. Michigan and New York both have laws that require car rental companies to rent to fully-licensed drivers from the age of 18. To offset the risk associated with much younger drivers, car rental companies often apply even higher young driver surcharges for 18-20 year olds.
Young driver fees and car rental age requirements at major rental companies
Policies for young drivers vary from company to company, and sometimes from state to state. The table below provides a general summary of the minimum age requirements and approximate daily surcharge for drivers under 25 at some major rental companies. These are averages and may vary by location and vehicle type, but they offer a useful reference point when estimating costs.
Prices are listed in USD and are correct at the time of writing. Rates may change.
| Car rental company | Minimum age | Standard daily surcharge | Daily surcharge New York | Daily surcharge Michigan |
| Alamo | 21 | $25 | $34 (18-20)
$13 (21-24) |
$57 (18-20)
$20 (21-24) |
| AVIS | 21 | $27 | $41 (18-20)
$28 (21-24) |
$84 (18-20)
$35 (21-24) |
| Budget | 21 | $27 | $84 (18-20)
$35 (21-24) |
$41 (18-20)
$28 (21-24) |
| Enterprise | 21 | $25 | $36.50 (18-20)
$15.75 (21-24) |
$64.75 (18-20)
$30.75 (21-24) |
The surcharge is typically added when you provide your date of birth during the booking process. Be aware that initial price estimates given before you enter your personal details may not include these fees.
Exceptions and waivers
There are exceptions for some young drivers. For example, state and government employees may be able to rent for official purposes as young as 18 if they present their official orders. If they are over 21, the young driver surcharge may be waived. Check with specific rental companies to confirm their policies.
Membership benefits (for example, with the American Automobile Association (AAA) or United Services Automobile Association (USAA)) and corporate or association agreements can also waive the young driver surcharge at some companies. Always check terms before booking.
Vehicle restrictions for younger renters
Most rental companies limit the types of vehicles available to drivers under the age of 25. Rental is often restricted for:
- Luxury cars
- Sports cars
- Specialty or premium cars
- Premium and full-size SUVs
- Passenger vans
- Pickup trucks
This still leaves a wide range of cars for younger drivers to choose from, including economy and compact cars, mid-size and full-size cars, small and standard SUVs, and smaller minivans.
Restrictions vary by company and location, and some membership or corporate programs may allow more flexibility.
International young driver car rentals
Car rental age rules vary widely around the world. Local laws set some limits, but they’re mostly set by the rental companies themselves. Like in the US, most companies restrict access for younger drivers and apply a surcharge for under-25s. Below are general guidelines for popular travel destinations:
| Country | Typical minimum age | Average daily surcharge for under 25s |
| Australia | 21 | $15-35 AUD (about $8-20 USD) |
| European Union members | 18-21, depending on the country and company | €10-€40 (about $11-46 USD) |
| Canada | 21
(18 in Quebec and Saskatchewan) |
$25 CAD (about $18 USD) |
| Mexico | 18, but 21 for many companies | $10-$25 USD |
| New Zealand | 18, but 21 for many companies | $10-$35 NZD (about $5.50-20 USD) |
| United Kingdom | 21 | £30-£50 (about $40-65 USD), usually capped at 10 days |
In some English-speaking countries, such as Canada, the UK, and Australia, US travelers can usually rent a car with a valid US driver’s license, as long as it’s a full license that meets local requirements. In Australia, New Zealand, and the UK, you typically need to have held a full license for at least one year.
International Driving Permits
In some countries, you might need an International Driving Permit (IDP) to rent a car. An IDP is a valid translation of your license, and it’s valid for one year. You can find out if you need an IDP for a country you intend to visit here.
US citizens can apply for an IDP through the AAA or the American Automobile Touring Alliance (AATA). You’ll need to submit an application form, two passport-sized photos, and a copy of your driver’s license. You’ll also need to pay a fee.
Insurance and coverage
If you’re under 25 and renting a car abroad, there may be different insurance and deposit requirements than you’d find in the US. Many international rental companies require young drivers to take out additional coverage. This typically includes:
- Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): This covers any damage to the vehicle.
- Theft protection: This protects against theft of the vehicle.
- Third-party liability: This covers damage or injury to others.
Young renters may also face higher security deposits or credit card holds. In some countries, rental companies may require proof of alternate insurance coverage if you decline their insurance.
Checking the insurance and deposit terms in advance can save you from any unexpected charges and ensure you’re fully covered when you rent a car abroad.
Tips for young drivers to rent cars successfully
Here are some tips to help you save money on your car rentals and make the process smoother.
In the US:
- Consider membership programs: If you’re a young driver and think you’ll be renting a car regularly, AAA or USAA membership could save you money on young driver fees.
- Ask about employer or university discounts: Many large employers and universities have partnerships with major rental companies that include fee waivers or reduced rental rates.
- Use a credit card whenever possible: Remember that to rent a car, you must have a full and valid driver’s license and a credit card. Some rental companies may accept a debit card for drivers under 25, but you’ll likely need to meet additional conditions, such as passing a credit check.
- Double-check your quote: Online quotes typically don’t include the young driver surcharge. This is added once you input your personal details.
If you’re planning to rent a car outside the US:
- Do your research before you go: Find out whether you’re eligible to rent a car as a young driver, and how much it is likely to cost. Rules vary by country and company.
- Check if you need an International Driving Permit (IDP): Some countries require it, even if you have a full US license.
- Be aware of local driving rules and customs: Confirm which side of the road they drive on, and take extra care.
- Know your transmission type: Manual cars are more common in other countries. If your license only allows you to drive automatic cars, make sure you book automatic cars only.
Start planning your rental today
If you’re under 25, you’re considered a greater risk on the road. Car rental companies often restrict rentals for young drivers. Many won’t rent to under-21s, and almost all charge a daily young driver surcharge to offset the added risks.
As a young driver, paying a bit more just comes with the territory. But if you do your research and book in advance, you can often find lower rental rates. Also, don’t forget to check whether you’re entitled to any discounts through your employer or school. Those discounts are there to help you save.
With a little planning, renting a car doesn’t have to be complicated. Once you understand the rules and compare your options, you’ll be ready to hit the road, wherever your next adventure takes you.
FAQs
How old do you have to be to rent a car in the US?
Car rental companies set their own minimum age for car rentals. Most won’t rent to under-21s, and nearly all charge a daily young driver surcharge for under-25s. There are exceptions: Laws in New York and Michigan require car rental companies to rent to drivers from the age of 18, although surcharges tend to be higher.
Can an 18-year-old rent a car?
Most car rental companies choose not to rent to under-21s because of the risk they represent, even though there are no laws preventing it. There are exceptions, so if you shop around, you may find a company that is willing to rent to you, but the range of cars available to you may be limited, and a higher surcharge almost always applies.
Why do rental companies charge extra for young drivers?
Young drivers are considered high-risk because they are significantly more likely to be involved in accidents. Young driver surcharges help cover the increased costs of insurance and vehicle maintenance.
Are there ways to avoid young driver fees?
Some memberships (like AAA and USAA) and corporate agreements can reduce or eliminate young driver surcharges. It’s worth checking with your employer, university, or membership organization before booking.
What documents do young renters need?
To rent a car in the US, you need a full driver’s license and a major credit card in your name. Some companies accept debit cards but may require additional identification or a credit check. If you’re renting overseas, you might also need an International Driving Permit (IDP) along with your US license.